SINGAPORE (AP) -- Indonesia's new investment law will restrict foreign investment in transportation, mining, broadcasting and armament, but all other industries will remain open, a senior government official said Monday.

Foreign investors will be allowed to hold stakes of up to 45 percent in transportation companies and projects, and stakes of not more than 20 percent in the broadcasting sector, said Muhammad Lutfi, chairman of Indonesia's Investment Coordinating Board.

The armament industry will be closed to foreign investment, while investment in mining and other highly polluting industries will be "tightly regulated," he said, without providing details.

"For (other) industries, they will all be open," Lutfi told the World Economic Forum on East Asia, a gathering of political and business leaders to discuss the region's growth.

Indonesia has set a target of US$426 billion (?316 billion) in foreign and domestic investment between 2004 and 2009, and a target of US$123 billion (?91 billion) to build new infrastructure - the bulk which will come from the private sector, he said. Lutfi did not say what percentages of the two targets have been met.

Investors have been increasingly reluctant to invest in Indonesia since former President Suharto's fall in 1998 and the loss of certainty in investment structures. Investors have been particularly reluctant to put money into oil and gas, mining and infrastructure projects.

The new law is a "progressive" policy that ensures equal treatment and gives legal guarantees for foreign and local investors, cuts bureaucratic red tape, eases immigration rules for foreign workers and provides tax holidays for select sectors, Lutfi said.

"Indonesia will be a government that is pro-business," he said. "The government is committed to fight corruption, create good governance and deliver a strong economy."

Other details are expected to be unveiled soon, he said.

Officials have said the new investment policies will protect Indonesia's national interest and update current regulations, which have been in place since 1994 and are becoming inconsistent with the country's needs.

Lutfi said Indonesia, which is rich in natural resources, wants to develop its petrochemical, and steel and iron industries. It plans to build two new steel plants in southern Kalimantan and two new oil refineries, he said.

"We don't want to just sell raw materials. We want to sell at least half finished goods and go up the value chain," he said.