Indonesia loosening restriction on offshore investment

The Indonesian government will give more rooms for expansion of foreign ownership in several sectors later this month, a move aiming to bolster foreign investment inflows. Chairman of Coordinating Investment Board Mahendra Siregar said on Monday that the government would allow foreign investors to have maximally 49 percent ownership of airports and 95 percent of sea ports and railways in the vast archipelago country. Mahendra said that the ownership "is on the operation," of the sectors only. "The foreign investors expect a good partnership with (local partners)," he said at the board headquarters, referring to his talks with the investors recently. The chairman said that the policy is aimed at diminishing current account deficit following the capital outflows ahead of implementation of U.S. tapering off policy. Indonesia has regained credit rating upgrade to investment grade recently, helping lure global fund managers to park their funds in the country. Indonesia is homed to over 17,500 islands with emerging middle class and growing wealth. Indonesia's economy withstands global economic slowdown with growth expected to be moderate this year and next year.