INDONESIA

New Law Helps Foreign Investors: The government is beginning to publicize changes in investment law designed to lure foreign investors. Late last month it said it will allow many foreign investors to hold 100% equity in Indonesian companies for certain periods. Previously, foreigners were required to form joint ventures with Indonesians unless they invested in the relatively undeveloped island of Batam. Under the new directive, foreigners can start with 100% equity if their investments involve capital of at least $50 million or if the venture is outside the main population areas of Java and Sumatra. However, the new law requires investors to sell at least 5% of their wholly owned ventures to an Indonesian after five years.