FOREIGN INVESTOR ALLOWED TO HAVE UP TO 49% OF RETAIL COMPANY

Source: Indonesian Commercial Newsletter - April 2006

The Government of Indonesia has issued a regulation allowing foreign individuals or companies to have up to 49% stake in modern retail companies or shop.

Under previous regulation, foreign investor were allowed to own supermarkets and small shops in the country without specifying the percentage of ownership.

The foreign investors, however, are allowed to have stake indirectly from stock exchange. Direct acquisition or investment of supermarket and shops modern is still banned for them.

The association of retail companies (APRINDO) said the regulation should be more concrete in banning foreign investor from holding the majority stake.

APRINDO secretary general become the majority shareholder if the remaining 51% stake is split by number of local partners.


Key of contact:

ASSOCIATION OF INDONESIAN RETAILING MERCHANTS (APRINDO)
Address:
E-Trade Building, Ground Floor
Jl. KH. Wahid Hasyim No. 55,
Jakarta Pusat 10350, INDONESIA
TEL:(021) 3928545
FAX:(021) 323267
email: aprindo@cbn.net.id