INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat, Gustaaf Reerink and Adri Dharma, ABNR Counsellors at Law
If the undertaking selects option (ii) or (iii), it must pro - vide legal, economic and/or technical considerations supporting the rejection. Furthermore, if the under - taking partially rejects the proposal, it may submit an alternative conditional approval (remedies) along with a proposed timeline for implementation to the KPPU. The agreed remedies will be stipulated in a KPPU decision, which may take the form of: (i) structural remedies; (ii) behavioural remedies; or (iii) the imple - mentation of a reasonable pricing strategy. 6.4 Antitrust/Competition Enforcement As Indonesia has adopted a post-merger system, the KPPU has no authority to block or otherwise challenge FDI. The KPPU cannot prohibit or otherwise interfere with a transaction within the framework of merger control; however, it may initiate a formal investigation into cartel violations or the abuse of dominance rules under the ICL. 7. Foreign Investment/National Security 7.1 Applicable Regulator and Process Overview Indonesia does not have a foreign investment/nation - al security review regime applicable to FDI that may scrutinise or potentially block an investment in sectors or locations deemed sensitive, and which might affect national security. Additionally, all investors are treated equally regardless of their country of origin. The Indonesian Investment Law, however, describes several business fields that are closed for investment in Indonesia, including: • the cultivation of narcotic crops and manufacture of schedule I narcotic drugs; • all forms of gambling and/or casino activities; • fishing of species listed in Appendix I of the Con - vention on International Trade in Endangered Spe - cies of Wild Fauna and Flora; • coral and sponge utilisation or harvesting for construction/lime/calcium materials, aquariums and souvenirs/jewellery, including living coral or recently dead wild coral; • the manufacture of chemical weapons; and
• the manufacture of industrial chemicals or ozone- depleting substances. In 2021, the Indonesian government issued the Invest - ment List, adding the manufacture of hard liquor, wine and malt beverages to the list. In addition to the fore - going, some other business fields are reserved for the government authority (and thus closed for invest - ment), including activities or services carried out in the framework of strategic defence and security that can - not be carried out or in co-operation with a third party. The Investment List also limits or restricts several business fields with respect to FDI. For instance, the manufacture of traditional cosmetics, traditional medicines for human consumption, batik textiles and ships is currently reserved for domestic investment and closed to FDI. 7.2 Criteria for National Security Review There is no applicable information in this jurisdiction. 7.3 Remedies and Commitments There is no applicable information in this jurisdiction. 7.4 National Security Review Enforcement Other than the restriction or limitation of business fields specified under the Investment Law and the Investment List, the prevailing regulations do not grant the government the authority to block or otherwise challenge FDI, particularly after an investment has been made. In general, foreign investors are able to invest in Indonesia as long as they comply with all the requirements of Indonesian law, and there is no restriction or limitation on the intended business under the prevailing regulations. 8. Other Review/Approvals 8.1 Other Regimes Other regimes that may be relevant to foreign inves - tors in Indonesia include the following. Zoning Requirements The project/business location for FDI must align with the spatial planning and zoning requirements in that location. The conformity of the business with spatial
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