Proposed New Regulation On Classification And Licensing Of Hospitals May Affect Foreign Direct Investment In Hospital Business

Foreign direct investment (“FDI”) in hospital business in Indonesia is currently regulated by the Presidential Regulation No. 44 of 2016 on Lists of Business Fields that are Closed to and Business Fields that are Open with Conditions to Investment (the "Negative List") and Ministry of Health ("MOH") Regulation No. 56 of 2014 on Classification and Licensing of Hospitals ("Regulation 56/2014"). The Negative List allows up to 67% foreign investment in a hospital (or 70% if the investor is domiciled in ASEAN countries) and foreign investment must also comply with the procedure under Regulation 56/2014 to establish, manage and classify a hospital.