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As established in Article 19 of the Airports Law, amended in January 2009, authorization of that type is granted whenever the investment promotes the development of technology and infrastructure at the regional level, and protects the environment and national sovereignty.

In 2011, the Indonesian economy showed excellent performance in the midst of the global economic slowdown, Europe debt crisis, climate change and natural disasters on a global level, as well as political tensions in the Middle East and North Africa.

Indonesia is in the process of conducting technical studies needed to inform The Low Carbon Development Strategy (Emission Reduction Opportunities and Policies: Manufacturing Sector). The Low Carbon study/development options will prove that sound environmental management, reduction of emissions , economic efficiency and growth are compatible goals, important to the sustainability of Indonesia’s development path.

Indonesia is also seeking to reform economic and fiscal policy to meet green economy objective. A range of government-led studies is underway in Indonesia that looks at options to reduce emissions  · provide domestic enabling conditions supported by innovative financing mechanisms as well as policy reforms (fiscal/pricing policy, standards, education and training);

· create public and private partnership and including green investment funding mechanisms;

· green investment at the core of the stimulus packages include green investment in regular government budget investment in regular government budget; and

· provide global enabling conditions (trade, IPRs, ODA, TT and environmental agreements).

The 2011 Master Plan for the Acceleration and Expansion of Economic Development 2011-2025 recognizes that higher and sustainable economic expansion requires the country to diversify sources of growth, accelerate infrastructure development, close the development gap between eastern and western regions, improve the quality of human resources , manage rapid urbanization, as well as cope with climate change.

From 2007 to 2011, Indonesia’s gross domestic product (GDP) grew by an average of 5.9% per year, GDP per capita almost doubled from US$1,859 to US$3,495, and the poverty incidence declined from a post-crisis peak of 24% to 12.4% in 2011. However, over 50% of the population still lives on less than US$2 a day (purchasing power parity)1 , and while most Millennium Development Goals (MDGs) are on course to be achieved on time, progress is lagging for important targets such as maternal mortality, HIV and AIDS incidence, and environmental management.

Activities closed to investment (domestic and foreign) are generally for health, safety, and environmental reasons, and include the alcoholic beverage industry and gambling and casinos. 25 A large number of business activities are subject to restrictions to investment.

 As set out in the 2007 Investment Law, the national Government has responsibility for cross-province investment; investment related to non-renewable natural resources possessing high environmental damage risk;. 

 Indonesia is an active participant in the WTO Council for Trade-Related Aspects of Intellectual Rights (TRIPS Council). In this forum Indonesia has advocated for the incorporation into the TRIPS Agreement of a requirement for disclosure of origin of genetic resources and/or associated traditional knowledge. Indonesia is in favour of strengthening the mutual supportiveness of TRIPS and the Convention on Biological Diversity(CBD) and, in particular, it's recently created Nagoya Protocol, arguing that developing countries are not benefiting from the exploitation of genetic resources and traditional knowledge and are paying more for new inventions created by others while using these assets.The authorities noted that Article 7 of Indonesia's patent law prohibits the patenting of living creatures, other than micro- organisms , and of any biologicalprocess that is essential in producing plants or animals, other than non- biological or microbiological processes.

Indonesia's initial offer of April 2005 in the DDA negotiations contains a limited number of new sector inclusions and removals of existing limitations. Indonesia has not submitted a revised offer. Indonesia's initial GATS offer would provide for new commitments on educational services and health services. Foreign-equity ceilings for construction would be raised to 55% but remain unchanged for telecommunications. Indonesia has received collective requests in the following sectors and modes: legal services, architectural/engineering/integrated engineering, computer services, postal/courier services, telecommunications, audio-visual, construction, distribution, education, environmental services, financial services, maritime transport, air transport, logistics, energy , cross-border trade (mode 1), and commercial presence (mode 3)