Indonesia has lowered a limit on foreign ownership of cellular operators from 95 percent to 65 percent, as part of new restrictions aimed at protecting national security, an official said July 5.
"The move follows a presidential regulation signed on July 3, regarding investment areas," an official at the trade ministry spokesman's office told AFP. The regulation covers an array of industries, he said, referring to a statement on the ministry's website quoting trade minister Mari Pangestu saying the move "prioritises national interest and the future of the nation."
Fixed line telephone companies have a foreign ownership limit set at 49 percent. Indonesia's fixed line business however is currently monopolised by state-owned Telekomunikasi Indonesia (Telkom).
Minister for the Economy, Budiono, said in the statement that the new rules did not apply retroactively. They apply to newly established companies, or to those which are still seeking a license to operate from the government.
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