The capital investment is any form of investment activity, both by domestic investors and foreign investors to do business in the territory of the Republic of Indonesia.
Foreign investment is investment activity to do business in the territory of the Republic of Indonesia will be undertaken by a foreign investor, whether using foreign capital entirely or in partnership with domestic investors.
Foreign capital is capital owned by foreign countries, a foreign national, foreign enterprises, foreign legal entities, and / or Indonesian legal entities that are partly or wholly owned by foreign parties.
Sectors that are closed to investment, both foreign and domestic based on the criteria established by the health, safety, defense and security, environmental and moral / culture (K3LM) and other national interests.
Field Closed business in certain sectors which are banned from engaging in investment activities.
K3LM criteria referred to in Article 8 can be detailed as follows:
1. order to maintain community life;
2. protect biodiversity;
3. maintain the balance of the ecosystem;
4. maintain the sustainability of natural forests;
5. oversee the use of Hazardous Toxic;
6. avoid forgery and oversee circulation of goods and / or services that are not planned;
7. maintain state sovereignty, or
8. maintain and preserve limited resources.
1) Gambling casino;
2) Heritage and Archaeology (temple, palace, inscriptions, ruins, ancient buildings, the findings under the sea, etc.;
4) Settlement / customary environment;
6) The object of pilgrimage (the place worship, ruins, tombs, etc.);
7) Utilization (collection) of natural coral;
8) Catching Fish Species Listed in Appendix 1CITES;
9) Management and Operation of Monitoring Stations Radio Frequency Spectrum and Satellite Orbit;
10) Institute for Public Broadcasting (LPP) Radio and Television;
11) Provision and Operation of Terminal;
12) Installation and Maintenance of Way Equipment;
13) organization of and operator of Weigh Stations;
14) organization of Type Tests for Motor Vehicles;
15) Operation of Motor Vehicle Periodic Testing ;
16) Telecommunication / Navigation Aid Facilities Sailing;
17) Vessel Traffic Information System (VTIS);
18) scouting Air Traffic (ATS) Provider;
19) Industrial Chemicals That Can Damage the Environment, such as: Penta Chlorophenol, Dichloro Diphenyl Trichloro Elhane (DDT), Dieldrin, Chlordane, Carbon Tetra Chloride, Chloro Fluoro Carbon (CFC), Methyl bromide, Methyl Chloroform, Halon, and others;
20) Industrial Chemicals in Schedule-1Konvensi Chemical Weapons (Sarin, Soman, Tabun Mustard, Levisite, Ricine, Saxitoxin, VX, etc.);
21) Industry Builder Chlor Alkali with Mercury Containing Material;
22) Industrial Cyclamate and Saccharin;
23) Manufacture of Beverages Containing Alcohol (Liquor, Wine, and Malt Beverages Containing); 24) Manufacture of Basic Metals Non Iron (Lead);
25) Cultivation of Marijuana.
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Republic of Indonesia