New Business Areas Open to Foreign Investment In Tourism Sector

The plan is to allow foreign investors to wholly own shares in seven business areas in the tourism sector, BKPM Chief Franky Sibarani said here on Wednesday.

The seven business areas are restaurants, bars, cafes, swimming pool, football clubs, tennis courts and sport centers, Franky said.

He said it has also been decided that foreign investors are allowed to have up to 70 percent of the shares of companies in four other related business areas , and up to 67 percent in 14 other areas in the tourism sector.

He said the decision to allow foreign investors to wholly own shares in the seven business areas is part of the regulation relaxation scheme of the government.

The policy is expected to increase the inflow of foreign investment into the country, he said.

"This is quite positive in boosting investment in the tourisim sector which is a priority for BKPM," he added.

The four business areas in which foreign investors are allowed to own up to 70 percent of the shares is offered to be in line with the ASEAN Framework Agreement on Services (AFAS).

The four business areas are catering, golf field, exhibition convention service and travel service (MICE) and spa.

Foreign investors in these business still need to have local partner to hold the remaining 30 percent of the shares.

The 14 business areas in which foreign investors are allowed to have only up to 67 percent of the shares include private museums, privately run business in historical remains, private travel agencies , and one-star, two star and non-star hotels , other accommodation facilities, etc.

"Under the present regulations those business areas are still closed to foreign investment,"Franky said.

There are still two business areas in the tourism sectors closed to foreign investment. They are business in travel agent and tourist guide.(WDY)