Indonesian foreign-ownership law may avert $3 billions from Maersk

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3 billion dollars. Maersk has shown his interest to enter domestic shipping in Indonesia, but Indonesian foreign-ownership laws has put the huge amount of money from the Danish shipping giant on waitinglist.

According to Indonesian laws from 2005 and 2008, only companies majority owned by Indonesians can do domestic shipping in Indonesia.

“[Maersk] expressed interest to transport goods within our territory, but they stumbled upon our shipping law that requires majority shareholders to be locals. They wanted to be the majority,” Minister Rini Soemarno said a day before a visit by Danish Queen Margrethe II’s visit to the country in October 2015.

The Danish shipping giant has made it clear they wish to invest billions in the vast island nation, but not until Indonesia changes their shipping laws.

According to newspaper the Globe, the Indonesian government is tweaking foreign-ownership laws in some industries, but Rini  Soemarno didn’t say whether domestic shipping was included.

Indonesia has recently stepped up its courting of foreign investment. It expanded income tax holidays and said it will lower corporate income taxes next year while working on new policies for economic zones, the Wall Street Journal reported in August.

Sources: www.maritimedanmark.dk, www.ibtimes.com

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