REGULATION | Staff Reporter, Indonesia

Indonesia eyes looser foreign investment caps for geothermal energy

FDI is now expected to reach up to 100% in 54 sectors.

Indonesia plans to loosen foreign direct investment (FDI) restrictions, with FDI now being able to reach up to 100% in 54 sectors.

Reports from Mondaq said there will be no change in respect to ownership (67%) of geothermal power generation of up to 10MW.

Ownership limits were set for geothermal operating and maintenance services (90%), power generation beyond 10MW (95% for general, and 100% for PPP during the concession period).

The cap was also adjusted for geothermal drilling services (95%), geothermal surveying services (95%), and testing and analysis of electrical installation of high or extra-high voltage electrical power generating and utility installation (49%).

“In some sectors, such as power generation, this is not a huge shift as these dispensations already existed,” Mondaq said. “However, it indicates an overall change of stance that sends a positive message to the market, which will in the long run make projects more bankable.”

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