Port business sector will open for foreign investment in 2009

The Government will open investment in port sector for local investor and foreign investor next year. After Shipping Law is enacted, the Government will issue at least 8 government regulations for the implementation of the Shipping Law, including government regulation for local and foreign investment in port sector. However, according to Minister of Communication, Mr. Jusman Syafii Djamal, the maximum of foreign investment in port sector will be limited in maximum 49% ownership. If foreign investors want to invest in port sector, they should ask Indonesian partner for the joint venture, either private or state owned enterprise. Directorate General of Sea Communication Mr. Effendy Batubara said that the limitation of foreign investment namely 49% is reasonable because transportation sector is very strategic, therefore the majority of share ownership should be owned by local investor subject to Investment Law. [Source: Bisnis Indonesia daily newspaper, 18 April 2008]