DNI Revision to Support E-Commerce in Indonesia

DNI Revision to Support E-Commerce in Indonesia
Image: en.hukumonline.com

DNI Revision to Support E-Commerce in Indonesia - The hype of e-commerce and online transaction leads the government of Indonesia to revise Daftar Negatif Investasi (DNI). DNI is a list contains business fields closed and open for investors. On February 2016, DNI revised to provide opportunities for foreigners to acquire 100 percent of ownership in several business fields, one of which includes e-commerce.

Furthermore, Minister of Communication and Information explains that there are three stages of e-commerce related to foreign investment. First, the e-commerce with valuation less than 10 billion rupiahs cannot be acquired by foreign investment. Second, e-commerce with valuation from 10 billion up to 100 billion rupiahs can be acquired by foreign investor with 49% of ownership. Last, e-commerce with valuation number more than 100 billion rupiahs may be acquired 100% by foreign investor.

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E-commerce which is includes in DNI is only for marketplace. The government wants to assure that local business owners can compete with foreign investors. The foreign investors should have partnership with local business owners and provide opportunities for local to supply products for the marketplace.

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