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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
Franky Sibarani, Chairman of BKPM (left). Photo by: RES
The government has just announced the introduction of another round of measures that it hopes will attract desperately needed investment to the country, boost the sliding rupiah and breathe new life into the slowing economy. The latest measures were unveiled by the Indonesian Investment Coordinating Board (BKPM).
It is common knowledge that infrastructure and logistics are two of five stubborn obstacles that have to be overcome when companies are looking to do business in Indonesia. This fact was recently reiterated by BKPM Chair, Franky Sibarani, who pointed out that realizing urgent infrastructure projects would enhance optimism as regards Indonesia’s future investment competitiveness, as well as strengthen the country’s foundations and help it to achieve sustainable economic growth.
The BKPM has drawn up three main strategies which it hopes will accelerate infrastructure realization, and these have just been announced by the BKPM Deputy for Investment Planning, Tamba Hutapea. The first strategy involves investment deregulation. This deregulation involves a simplification of the electrical-power investment licensing process by reducing the number of license types from 52 to 25, as well as by reducing the processing time from 923 days to 256 days.
The second strategy involves reducing the current investor bottleneck, either by dealing with obstacles as they arise or through a process of mediation involving other infrastructure stakeholders. And finally, the third new strategy involves the marketing of infrastructure projects.
“Infrastructure is one of government’s main priorities. The BKPM is always aiming to attract as much investment as possible into Indonesia, however investment requires infrastructure, just as much as infrastructure requires investment, which is why the BKPM has decided to assist stakeholders in their efforts to accelerate investment here,” explained Mr. Hutapea in a press release issued on Tuesday, 29 September 2015.
According to Mr. Hutapea, Indonesia’s competitiveness as regards the attracting of investors mainly revolves around the availability and condition of the country’s infrastructure. Recent trends have shown a significant improvement in Indonesia’s infrastructure sector and the latest BKPM reports show that total infrastructure investment realization value during the first semester of 2015 reached IDR 72.2 trillion, which is equal to 63 percent of the 2014 realization or 94 percent of the 2013 realization.
It should also be noted that there has been a significant increase in investment planning as regards this sector, and that the BKPM issued Principal Investment Licenses amounting to IDR 315 trillion during the first semester of 2015, a figure which is approximately five times higher than for the same period last year.
Furthermore, according to President Joko Widodo’s five-year infrastructure plan, the government is set to construct 24 seaports, 15 airports, a 1000km toll road, a 2650km inter-province road, 49 dams, and a 35,000 MW power plant, as well as develop mass transportation systems in three major cities. Additionally, the government is also planning to open several special economic zones (KEK) outside Java, including in Borneo, Sulawesi, Maluku, and Papua.
In relation to the logistics sector, the Head of the Indonesian Forwarders and Logistics Association, Yukki Nugrahawan, asserted that an archipelagic state such as Indonesia possessed a very distinct set of characteristics in comparison with other countries. Vast areas of ocean and lengthy stretches of coastline combine with limited infrastructure capabilities as regards the traffic of goods to pose a formidable challenge for providers of logistics services.
Mr. Nugrahawan also revealed that a recent World Bank survey has shown that Indonesia currently sits 53rd out of 160 countries on the bank’s logistics performance index, which is far below that of other developing countries within Southeast Asia.
Mr. Nugrahawan expressed his ardent hope that a logistics revolution would take place in Indonesia, and believes that this can be achieved if the government and logistics businesses cooperate in a bid to evaluate and improve the national logistics blueprint. The ultimate goal is to create an integrated logistics system within Indonesia, to formulate a Law on National Logistics and Transportation, as well as to promote the development of human resources within the logistics sector.
(sp)
Marcell Sihombing, Fitri N. Heriani
Franky Sibarani, Chairman of BKPM (left). Photo by: RES
The government has just announced the introduction of another round of measures that it hopes will attract desperately needed investment to the country, boost the sliding rupiah and breathe new life into the slowing economy. The latest measures were unveiled by the Indonesian Investment Coordinating Board (BKPM).
It is common knowledge that infrastructure and logistics are two of five stubborn obstacles that have to be overcome when companies are looking to do business in Indonesia. This fact was recently reiterated by BKPM Chair, Franky Sibarani, who pointed out that realizing urgent infrastructure projects would enhance optimism as regards Indonesia’s future investment competitiveness, as well as strengthen the country’s foundations and help it to achieve sustainable economic growth.
The BKPM has drawn up three main strategies which it hopes will accelerate infrastructure realization, and these have just been announced by the BKPM Deputy for Investment Planning, Tamba Hutapea. The first strategy involves investment deregulation. This deregulation involves a simplification of the electrical-power investment licensing process by reducing the number of license types from 52 to 25, as well as by reducing the processing time from 923 days to 256 days.
The second strategy involves reducing the current investor bottleneck, either by dealing with obstacles as they arise or through a process of mediation involving other infrastructure stakeholders. And finally, the third new strategy involves the marketing of infrastructure projects.
“Infrastructure is one of government’s main priorities. The BKPM is always aiming to attract as much investment as possible into Indonesia, however investment requires infrastructure, just as much as infrastructure requires investment, which is why the BKPM has decided to assist stakeholders in their efforts to accelerate investment here,” explained Mr. Hutapea in a press release issued on Tuesday, 29 September 2015.
According to Mr. Hutapea, Indonesia’s competitiveness as regards the attracting of investors mainly revolves around the availability and condition of the country’s infrastructure. Recent trends have shown a significant improvement in Indonesia’s infrastructure sector and the latest BKPM reports show that total infrastructure investment realization value during the first semester of 2015 reached IDR 72.2 trillion, which is equal to 63 percent of the 2014 realization or 94 percent of the 2013 realization.
It should also be noted that there has been a significant increase in investment planning as regards this sector, and that the BKPM issued Principal Investment Licenses amounting to IDR 315 trillion during the first semester of 2015, a figure which is approximately five times higher than for the same period last year.
Furthermore, according to President Joko Widodo’s five-year infrastructure plan, the government is set to construct 24 seaports, 15 airports, a 1000km toll road, a 2650km inter-province road, 49 dams, and a 35,000 MW power plant, as well as develop mass transportation systems in three major cities. Additionally, the government is also planning to open several special economic zones (KEK) outside Java, including in Borneo, Sulawesi, Maluku, and Papua.
In relation to the logistics sector, the Head of the Indonesian Forwarders and Logistics Association, Yukki Nugrahawan, asserted that an archipelagic state such as Indonesia possessed a very distinct set of characteristics in comparison with other countries. Vast areas of ocean and lengthy stretches of coastline combine with limited infrastructure capabilities as regards the traffic of goods to pose a formidable challenge for providers of logistics services.
Mr. Nugrahawan also revealed that a recent World Bank survey has shown that Indonesia currently sits 53rd out of 160 countries on the bank’s logistics performance index, which is far below that of other developing countries within Southeast Asia.
Mr. Nugrahawan expressed his ardent hope that a logistics revolution would take place in Indonesia, and believes that this can be achieved if the government and logistics businesses cooperate in a bid to evaluate and improve the national logistics blueprint. The ultimate goal is to create an integrated logistics system within Indonesia, to formulate a Law on National Logistics and Transportation, as well as to promote the development of human resources within the logistics sector.
(sp)