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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
BKPM's Office. Photo by: RES
The Indonesia Investment Coordinating Board (BKPM) is continuing with its recent efforts to simplify the investment process in Indonesia, following the implementation of the three-hour investment processing policy. This time around, the BKPM is planning to launch its new Investment Simplification through Direct Construction Permission (Kemudahan Investasi Langsung Konstruksi or “KLIK”) program.
“The KLIK program was formulated at the same time as the launch of the government’s second economic policy package, which took place on 29 September 2015. The KLIK program was also simultaneous with the implementation of the three-hour investment processing policy, a policy which has to date facilitated the entry into the country of investments totaling more than IDR 52 trillion,” asserted BKPM head, Franky Sibarani, during a press conference held at the BKPM’s Jakarta Office on Tuesday, 9 February 2016.
According to Mr. Sibarani, the new program will be officially launched on 22 February 2016. The KLIK program is also to be implemented across nine industrial areas with a total land size of 10,947 ha. These nine industrial areas are located in the provinces of Central Java, East Java, South Sulawesi, and Banten.
The industrial areas located in the province of Central Java break down into the Kendal industrial area (Kendal Regency, foreign direct investment/FDI, 700 ha), Bukit Semarang Baru/BSB industrial area (Semarang City, domestic investment, 350 ha), Tugu Wijaya Kusuma industrial area/ITW (Semarang City, domestic investment, 162 ha), and Candi industrial area/KIC (Semarang City, domestic investment, 350 ha).
Meanwhile, in the province of East Java, industrial areas encompass Java Integrated Industrial and the Port Estate industrial area/JIIPE (Gresik Regency, domestic investment, 1,762 ha). South Sulawesi province contains the Bantaeng industrial area (Bantaeng Regency, state-owned enterprise investment, 3,000 ha). And finally, the province of Banten features the Modern Cikande Industrial Estate (Serang Regency, domestic investment, 2,175 ha), the Wilmar Integrated industrial area (Serang Regency, FDI, 1,744 ha), and the Krakatau Industrial Estate Cilegon/KIEC (Cilegon City, domestic investment, 705 ha).
The reason for these nine industrial areas being addressed through the new KLIK program comes down to the fact that these are the only areas to have already complied with the various mandated development stages. Specifically, the nine industrial areas in question have already undertaken the necessary regulatory reforms at the central government level, provincial level, and also at the regency/municipality level. Moreover, the governing bodies responsible for the above nine industrial areas (central government, provincial administrations, regency/municipality administrations) have already entered into agreements with each other.
“This process [of determining industrial areas] consumes a lot of time, due to the fact that industrial areas are determined based upon the support of the relevant governor and regent/mayor responsible for the area in which an industrial area is to be located. The simplification of this process also requires the support of government ministers, as the relevant technical regulations (NSPK) need to be modified so that they can serve as guidelines for the reform of regional-level regulations,” asserted Mr. Sibarani.
Mr. Sibarani also explained that the new KLIK program would hopefully become an example that would in time be followed by other regions across Indonesia. “This is just a short-term measure. If these nine [industrial areas] ultimately succeed, then certainly many other [regions] will participate,” asserted Mr. Sibarani.
So how exactly do investors utilize the new KLIK program? Mr. Sibarani explained that companies which have already secured the relevant investment license/principal license, either from the Central One-Stop Integrated Services (Central PSTP) facility or from the Regional-Level PTSP, were now allowed to immediately begin any construction work linked to their projects. Indeed, such construction work may get underway while applications for other necessary licenses (e.g. Building Construction License/IMB, Environmental Licenses such as UKP/UPL and AMDAL, and other regional-level licensing procedures) are still being processed.
However, two conditions have to be satisfied before a company can utilize the KLIK program. The first of these is full compliance with the so-called Estate Regulation (Tata Tertib Investasi Kawasan Industri), while the second condition is the absence of minimum-investment-value requirements.
Ultimately though, investors no longer have to wait for extended periods before they can finally proceed with the construction stages of their projects, as now other relevant licenses can be processed while construction gets underway. On the other hand, Mr. Sibarani stressed that a number of important conditions have to be met by companies which are intending to utilize the new program. Specifically, all of the relevant licenses required of a company must have been secured before the company in question can be considered ready for commercial production.
Commenting on this matter, Azhar Lubis, the BKPM’s Deputy of Investment Realization Control, asserted that in order to optimize the KLIK program, inter-sector commitment was necessary to create and maintain a conducive investment/business climate. “Preparations for the initiation of the new KLIK program are already comprehensive, and the government will launch the program in under two weeks time,” asserted Mr. Lubis.
Indeed, the BKPM has already drawn up several memorandum of understanding (MoU) with other government officials, as well as regional governments, pertaining to the oversight of company licensing obligations. For example, the BKPM has already signed an MoU with the Supreme Prosecutor and the Chief of the National Police, as well as with the Governors and the Chiefs of Regional Police from the provinces of Central Java, Banten, South Sulawesi, and East Java.
“At the regency and municipality levels, MoUs have also been drawn up with the Regent of Kendal, the Mayor of Semarang City, the Mayor of Cilegon City, the Regent of Gresik, and the Regent of Banteng,” concluded Mr. Lubis.
(rfs/sp)
Marcell Sihombing, Fitri N. Heriani
BKPM's Office. Photo by: RES
The Indonesia Investment Coordinating Board (BKPM) is continuing with its recent efforts to simplify the investment process in Indonesia, following the implementation of the three-hour investment processing policy. This time around, the BKPM is planning to launch its new Investment Simplification through Direct Construction Permission (Kemudahan Investasi Langsung Konstruksi or “KLIK”) program.
“The KLIK program was formulated at the same time as the launch of the government’s second economic policy package, which took place on 29 September 2015. The KLIK program was also simultaneous with the implementation of the three-hour investment processing policy, a policy which has to date facilitated the entry into the country of investments totaling more than IDR 52 trillion,” asserted BKPM head, Franky Sibarani, during a press conference held at the BKPM’s Jakarta Office on Tuesday, 9 February 2016.
According to Mr. Sibarani, the new program will be officially launched on 22 February 2016. The KLIK program is also to be implemented across nine industrial areas with a total land size of 10,947 ha. These nine industrial areas are located in the provinces of Central Java, East Java, South Sulawesi, and Banten.
The industrial areas located in the province of Central Java break down into the Kendal industrial area (Kendal Regency, foreign direct investment/FDI, 700 ha), Bukit Semarang Baru/BSB industrial area (Semarang City, domestic investment, 350 ha), Tugu Wijaya Kusuma industrial area/ITW (Semarang City, domestic investment, 162 ha), and Candi industrial area/KIC (Semarang City, domestic investment, 350 ha).
Meanwhile, in the province of East Java, industrial areas encompass Java Integrated Industrial and the Port Estate industrial area/JIIPE (Gresik Regency, domestic investment, 1,762 ha). South Sulawesi province contains the Bantaeng industrial area (Bantaeng Regency, state-owned enterprise investment, 3,000 ha). And finally, the province of Banten features the Modern Cikande Industrial Estate (Serang Regency, domestic investment, 2,175 ha), the Wilmar Integrated industrial area (Serang Regency, FDI, 1,744 ha), and the Krakatau Industrial Estate Cilegon/KIEC (Cilegon City, domestic investment, 705 ha).
The reason for these nine industrial areas being addressed through the new KLIK program comes down to the fact that these are the only areas to have already complied with the various mandated development stages. Specifically, the nine industrial areas in question have already undertaken the necessary regulatory reforms at the central government level, provincial level, and also at the regency/municipality level. Moreover, the governing bodies responsible for the above nine industrial areas (central government, provincial administrations, regency/municipality administrations) have already entered into agreements with each other.
“This process [of determining industrial areas] consumes a lot of time, due to the fact that industrial areas are determined based upon the support of the relevant governor and regent/mayor responsible for the area in which an industrial area is to be located. The simplification of this process also requires the support of government ministers, as the relevant technical regulations (NSPK) need to be modified so that they can serve as guidelines for the reform of regional-level regulations,” asserted Mr. Sibarani.
Mr. Sibarani also explained that the new KLIK program would hopefully become an example that would in time be followed by other regions across Indonesia. “This is just a short-term measure. If these nine [industrial areas] ultimately succeed, then certainly many other [regions] will participate,” asserted Mr. Sibarani.
So how exactly do investors utilize the new KLIK program? Mr. Sibarani explained that companies which have already secured the relevant investment license/principal license, either from the Central One-Stop Integrated Services (Central PSTP) facility or from the Regional-Level PTSP, were now allowed to immediately begin any construction work linked to their projects. Indeed, such construction work may get underway while applications for other necessary licenses (e.g. Building Construction License/IMB, Environmental Licenses such as UKP/UPL and AMDAL, and other regional-level licensing procedures) are still being processed.
However, two conditions have to be satisfied before a company can utilize the KLIK program. The first of these is full compliance with the so-called Estate Regulation (Tata Tertib Investasi Kawasan Industri), while the second condition is the absence of minimum-investment-value requirements.
Ultimately though, investors no longer have to wait for extended periods before they can finally proceed with the construction stages of their projects, as now other relevant licenses can be processed while construction gets underway. On the other hand, Mr. Sibarani stressed that a number of important conditions have to be met by companies which are intending to utilize the new program. Specifically, all of the relevant licenses required of a company must have been secured before the company in question can be considered ready for commercial production.
Commenting on this matter, Azhar Lubis, the BKPM’s Deputy of Investment Realization Control, asserted that in order to optimize the KLIK program, inter-sector commitment was necessary to create and maintain a conducive investment/business climate. “Preparations for the initiation of the new KLIK program are already comprehensive, and the government will launch the program in under two weeks time,” asserted Mr. Lubis.
Indeed, the BKPM has already drawn up several memorandum of understanding (MoU) with other government officials, as well as regional governments, pertaining to the oversight of company licensing obligations. For example, the BKPM has already signed an MoU with the Supreme Prosecutor and the Chief of the National Police, as well as with the Governors and the Chiefs of Regional Police from the provinces of Central Java, Banten, South Sulawesi, and East Java.
“At the regency and municipality levels, MoUs have also been drawn up with the Regent of Kendal, the Mayor of Semarang City, the Mayor of Cilegon City, the Regent of Gresik, and the Regent of Banteng,” concluded Mr. Lubis.
(rfs/sp)