BKPM Gears Up for Realization of 2016 Investment Target


Marcell Sihombing, Fitri N. Heriani

 ojk

BKPM's office. Photo by: RES


2016 has only just begun, and yet the Indonesia Investment Coordinating Board (BKPM) is already poised to realize this year’s investment target. The BKPM also recently formulated a plan for enhancing internal coordination between the BKPM’s investment-marketing team and its Central One-Stop Integrated Service (PTSP) license-servicing team.
 
The plan was formally unveiled at a workshop event held on Tuesday, 5 January 2016. According to BKPM Head Franky Sibarani, this new coordination initiative is predicted to make a major contribution to the maximization of service performance for investors. Moreover, it is also hoped that the new scheme will end up optimizing the utilization by investors of the government’s various license-policy packages.
 
Mr. Sibarani further asserted that the plan to coordinate the BKPM’s investment-marketing team and Central PTSP license-servicing team would have strategic value, as these two teams are in the vanguard as regards engaging in direct contact with investors. Mr. Sibarani expressed his hope that both teams would develop a uniform understanding that would influence their decisions relating to various investment-sector policies, and thus investors would ultimately be able to take advantage of greater certainty.
 
“Over the last twelve months, the government has made various licensing policy breakthroughs that simplify Indonesia’s investment procedures. Greater coordination between our investment-marketing team and our license-servicing team should also be well received by investors,” explained Mr. Sibarani during his opening speech at the workshop event.
 
Mr. Sibarani also pointed to the government's recent achievement of introducing a breakthrough three-hour investment-licensing service. Through this service, investors are able to secure eight different types of licenses and land-title certificates within just three hours and are then free to begin doing business. The Directorate General of Customs and Excise has also launched the so-called “green company” designation on behalf of the government. Green companies are able to more easily import capital goods to be used in ongoing investment and construction projects.
 
The government is also gradually introducing a number of other investment-friendly policies. For example, the recent government regulation on wages clarifies the formula that should be used to calculate employee salaries, and various tax incentives aimed at labor-intensive investments are also being rolled out.
 
“Other potential breakthroughs are still being discussed and will hopefully be announced very soon so that the investment appeal of Indonesia will rise even further,” concluded Mr. Sibarani.
 
Investment Target
 
Mr. Sibarani further revealed that the BKPM’s investment-realization target for the 2016 period, which is set at IDR 594.8 trillion (a 14.5 % increase over last year’s figure), was already close to being met. According to BKPM data, the Central PTSP, which was established one year ago, has already issued some 9,600 licenses, and this has been primarily due to the BKPM delegating power to 160 license-issuing authorities.
 
Offering further insight, Mr. Sibarani stated that investment realization from January to September 2015 had amounted to some IDR 400 trillion, which represents an increase of 17% over the same period in 2014. The BKPM is still calculating the investment-realization figure for the October to December 2015 period, and it is hoped that this total will be announced as soon as possible.

(rfs/sp)

Marcell Sihombing, Fitri N. Heriani

 ojk

BKPM's office. Photo by: RES


2016 has only just begun, and yet the Indonesia Investment Coordinating Board (BKPM) is already poised to realize this year’s investment target. The BKPM also recently formulated a plan for enhancing internal coordination between the BKPM’s investment-marketing team and its Central One-Stop Integrated Service (PTSP) license-servicing team.
 
The plan was formally unveiled at a workshop event held on Tuesday, 5 January 2016. According to BKPM Head Franky Sibarani, this new coordination initiative is predicted to make a major contribution to the maximization of service performance for investors. Moreover, it is also hoped that the new scheme will end up optimizing the utilization by investors of the government’s various license-policy packages.
 
Mr. Sibarani further asserted that the plan to coordinate the BKPM’s investment-marketing team and Central PTSP license-servicing team would have strategic value, as these two teams are in the vanguard as regards engaging in direct contact with investors. Mr. Sibarani expressed his hope that both teams would develop a uniform understanding that would influence their decisions relating to various investment-sector policies, and thus investors would ultimately be able to take advantage of greater certainty.
 
“Over the last twelve months, the government has made various licensing policy breakthroughs that simplify Indonesia’s investment procedures. Greater coordination between our investment-marketing team and our license-servicing team should also be well received by investors,” explained Mr. Sibarani during his opening speech at the workshop event.
 
Mr. Sibarani also pointed to the government's recent achievement of introducing a breakthrough three-hour investment-licensing service. Through this service, investors are able to secure eight different types of licenses and land-title certificates within just three hours and are then free to begin doing business. The Directorate General of Customs and Excise has also launched the so-called “green company” designation on behalf of the government. Green companies are able to more easily import capital goods to be used in ongoing investment and construction projects.
 
The government is also gradually introducing a number of other investment-friendly policies. For example, the recent government regulation on wages clarifies the formula that should be used to calculate employee salaries, and various tax incentives aimed at labor-intensive investments are also being rolled out.
 
“Other potential breakthroughs are still being discussed and will hopefully be announced very soon so that the investment appeal of Indonesia will rise even further,” concluded Mr. Sibarani.
 
Investment Target
 
Mr. Sibarani further revealed that the BKPM’s investment-realization target for the 2016 period, which is set at IDR 594.8 trillion (a 14.5 % increase over last year’s figure), was already close to being met. According to BKPM data, the Central PTSP, which was established one year ago, has already issued some 9,600 licenses, and this has been primarily due to the BKPM delegating power to 160 license-issuing authorities.
 
Offering further insight, Mr. Sibarani stated that investment realization from January to September 2015 had amounted to some IDR 400 trillion, which represents an increase of 17% over the same period in 2014. The BKPM is still calculating the investment-realization figure for the October to December 2015 period, and it is hoped that this total will be announced as soon as possible.

(rfs/sp)
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