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INDONESIA: 100% FDI Approved for the E-Commerce Sector

Indonesia is to permit 100% foreign direct investment (FDI) in the e commerce sector for the first time, with a formal ruling on this change expected by the end of June. The change has been facilitated by a revision to the country’s Negative Investment List (NIL).

It is believed that investment in the sector will be subject to the following four conditions:

  • 100% FDI will be permitted in an e-commerce business as long as the investment is at least Indonesian Rupiah 100 billion (US$7.4 million).
  • If the investment falls below that threshold, FDI will be limited to 49%.
  • A foreigner or a foreign entity will be allowed to own a 100% stake in an e-commerce business regardless of the level of investment if the total number of local workers employed in the company exceeds 1,000.
  • It will be mandatory for foreign investors in the e-commerce sector to cooperate with local micro, small, and medium enterprises (MSMEs).
Content provided by Picture: HKTDC Research
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