REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Chatib Basri said on Friday the government would revise the list of areas negative for foreign investment (DNI) to prevent outflows during external problems and increase value.

"A revision will be done considering national interest. Strategic industries will remain protected based on socio-economic conditions. So, there is also an issue of ownership here. Foreign ownership is allowed but it will be based on certain conditions," he made it clear.

Chatib said though there was foreign ownership in certain industrial sectors, it would not create jobs and transfer the technology needed for developing human resources.

"So, there will be rules to protect national interest. For example, research and development will be done here while industries are located outside Java. That is what the Investment Coordinating Board is considering," he said.

Chatib stated that the government had decided to invite foreign investors to increase production in the country rather than import to maintain the current account, which is likely to be in deficit till the end of 2014.

"It is easier to import and the price could also be lower but the deficit will rise because of it. With foreign direct investment, the capital account would be safer and the current account issue would also be solved," he noted.

Chatib said the government would prepare a package of policies to prevent foreign investors from sending profits back to their countries of origin.

"A regulation will be made to prevent capital repatriation. This will be part of the second-round package which is now being prepared by the government and will be issued this month or next," he remarked.

Chatib hoped the efforts would increase investment value and decrease imports.

"We will not see high growth until the end of 2014 but the next government will be happy because the economic fundamentals will be better," he said.

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