Indonesia to open up several economic sectors to foreign investment

Widodo told Reuters this week that he had instructed ministers to market the country aggressively to investors.

JAKARTA: Indonesia will ease foreign investment rules in several sectors of the economy, including the e-commerce, healthcare, and movie industries, President Joko Widodo said on Wednesday.

The move is aimed at attracting more foreign funds into the country, which has been growing at its slowest pace in six years because of falling commodity prices and cooling growth in major trading partner China.

"We are seriously considering deregulation across the board, but focusing on e-commerce, healthcare and creative industry," Widodo said in an interview with Reuters at the presidential palace in central Jakarta.

"Our commitment is to increase competition," he said.

Trade Minister Thomas Lembong told Reuters separately the retail sector is also among those to be opened up to foreign investment.

The last revision to the negative list - which names sectors to which foreign investment restrictions apply - was done in 2014 and was seen by many as less investor-friendly.

Widodo's administration has rolled out several economic stimulus packages in recent months aimed at cutting red tape, boosting spending and improving investor sentiment.

On another note, Widodo said he would like to see lower interest rates to lift economic growth and bolster industry but he cannot interfere in the monetary policy of the central bank because it is independent.

"I would like to see a lower interest rate but I cannot force Bank Indonesia to cut the interest rate because they are independent and the government respects the way Bank Indonesia conducts monetary policy," he said.

Widodo added that he was very optimistic that the government's target of a recovery in economic growth to 5.3% in 2016 could be achieved after a slide to 4.8% last year. - Reuters