Explained: J&T's Suspected Foreign Ownership Violation in Indonesia
J&T Express’s plan to go public on the Hong Kong stock exchange may face regulatory hurdles. The logistics company is suspected of violating the foreign ownership limits, which are set by several regulations, such as Law No. 38/2009 on post, Law No. 6/2023 on amendments to the Job Creation Law, and Presidential Regulation No. 49/2021 on investment.
These regulations limit the foreign capital in courier activities or the Standard Classification of Indonesian Business Fields (KBLI) 53201 to 49 percent at most.
The Indonesian Digital Economy Logistics Association (ALDEI) claims that J&T Global Express Ltd, a foreign company based overseas, owns 100 percent of J&T Indonesia’s shares. ALDEI Secretary Manorsa Tambunan said he had reported this information to the Investment Minister, Law and Human Rights Minister, and Communications and Information Minister. “They will follow up on this information,” he said last week.
J&T Express Indonesia spokesman Diego Prayoga said he would coordinate with J&T Global regarding this issue.