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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
Head of BKPM, Franky Sibarani (left). Photo by: RES
The Investment Coordinating Board (BKPM) is continuing to implement the government’s mission to further simplify the investment process within Indonesia. This time around, the three-hour investment service, which was introduced in order to simplify and accelerate the investment process within Indonesia, has now been expanded to encompass the infrastructure sector.
In order to support this new policy, the Head of the BKPM recently signed a memorandum of understanding (MoU) with the Minister of Transportation, the Minister of Energy and Mineral Resources, the Minister of Public Works and Public Housings, and also the Minister of Communications and Information Technology.
BKPM head, Franky Sibarani, explained during a press conference held in Jakarta on Monday, 22 February 2016 that the three-hour investment service previously encompassed eight products and a non-licensing procedure, so long as they satisfied the requirement to have a minimum-investment value of IDR 100 billion or to employ 1,000 members of the Indonesian workforce. Now, however, the three-hour investment service has also been opened up to four primary infrastructure sectors: transportation and energy-and-mineral resources, as well as communications and information technology.
“It is hoped that this simplification of the service procedure will ultimately be able to accelerate the implementation of projects in these areas,” stated Mr. Sibarani.
According to Mr. Sibarani, the BKPM is introducing this measure in order to better optimize and streamline the three-hour investment service for infrastructure related investments. This measure is also aiming to support government policy, as regards accelerating the construction of vital infrastructure across the country.
Six types of energy and mineral-resource infrastructure projects, as well as one type of business license, can now be processed via the three-hour investment service. These six project areas consist of geothermal power exploitation, power plants, the distribution of electricity and the determination of distribution areas, electricity sales and the determination of sales areas, electricity supporting businesses, as well as one business license, specifically the temporary downstream oil-and-natural-gas business license.
Meanwhile, within the transportation infrastructure sector, the three-hour investment service now encompasses railway industries, port industries, and airport industries. Moreover, within the public-works infrastructure sector, the three-hour investment service now encompasses toll-road management, irrigation and water resources, and businesses involved in water provision, waste management (collection, management, and dumping of non-hazardous waste), and garbage management systems collection (collection, management, and dumping of non-hazardous garbage).
And finally, the three-hour service for communications and information technology now encompasses telecommunications-network management, and telecommunications networks which are integrated into telecommunication services.
According to Mr. Sibarani, the various relevant ministries are already planning to issue a number of breakthrough policies in order to follow up the inclusion of the above four sectors under the three-hour investment service. For example, the Ministry of Public Works and Public Housing has already issued Ministerial Regulation No. 5 0f 2016 on Building Construction Licenses, and this regulation repeals the need to conduct an environment-impact analysis (AMDAL) from the list of requirements for securing building-construction licenses (IMB).
The IMB processing timeframe itself now varies depending on the building type, however, ultimately this policy is aiming to provide more legal certainty for investors. Under the current IMB timeframe, the authority for which remains delegated to regional level governments, processing usually takes around 60 days, and this will be vastly accelerated under the three-hour investment service. IMB license processing for basic buildings can now be completed within two days, or four days for two-storey buildings, seven days for complex buildings, 12 days for up to eight-storey complex buildings, and 30 days for complex buildings of more than eight storeys.
Azhar Lubis, the BKPM’s Investment Deputy, has revealed that aside from simplifying Indonesia’s investment policy through the introduction of the three-hour investment service, as well as the Investment Simplification Through Direct Construction Permission (Kemudahan Investasi Langsung Konstruksi or “KLIK”) program, the government is also planning to encourage better consolidation between central government and regional-level governments. It is hoped that such consolidation will contribute to an acceleration in the processing times, as regards the licensing services offered to investors.
“Facilitating investment projects will be the key to improving [Indonesia’s] investment competitiveness,” asserted Mr. Lubis.
Mr. Lubis firmly believes that regional government has a major role to play in improving the investment sector, as successful investment projects are usually supported by pro-investment governments. As a result of this, issues relating to the acceleration and simplification of license-processing procedures at the regional level remain a primary concern for the One-Stop Integrated Service (PTSP) facility.
According to the BKPM data, out of 561 national areas, some 511 regional PTSPs have already been established. Moreover, from this total of 511 regional PTSPs, 341 PTSPs are already utilizing the BKPM’s online-licensing service system (SPIPISE). Sadly though, many areas are still unable to utilize the SPIPISE system due to internet connectivity issues.
(rfs/sp)
Marcell Sihombing, Fitri N. Heriani
Head of BKPM, Franky Sibarani (left). Photo by: RES
The Investment Coordinating Board (BKPM) is continuing to implement the government’s mission to further simplify the investment process within Indonesia. This time around, the three-hour investment service, which was introduced in order to simplify and accelerate the investment process within Indonesia, has now been expanded to encompass the infrastructure sector.
In order to support this new policy, the Head of the BKPM recently signed a memorandum of understanding (MoU) with the Minister of Transportation, the Minister of Energy and Mineral Resources, the Minister of Public Works and Public Housings, and also the Minister of Communications and Information Technology.
BKPM head, Franky Sibarani, explained during a press conference held in Jakarta on Monday, 22 February 2016 that the three-hour investment service previously encompassed eight products and a non-licensing procedure, so long as they satisfied the requirement to have a minimum-investment value of IDR 100 billion or to employ 1,000 members of the Indonesian workforce. Now, however, the three-hour investment service has also been opened up to four primary infrastructure sectors: transportation and energy-and-mineral resources, as well as communications and information technology.
“It is hoped that this simplification of the service procedure will ultimately be able to accelerate the implementation of projects in these areas,” stated Mr. Sibarani.
According to Mr. Sibarani, the BKPM is introducing this measure in order to better optimize and streamline the three-hour investment service for infrastructure related investments. This measure is also aiming to support government policy, as regards accelerating the construction of vital infrastructure across the country.
Six types of energy and mineral-resource infrastructure projects, as well as one type of business license, can now be processed via the three-hour investment service. These six project areas consist of geothermal power exploitation, power plants, the distribution of electricity and the determination of distribution areas, electricity sales and the determination of sales areas, electricity supporting businesses, as well as one business license, specifically the temporary downstream oil-and-natural-gas business license.
Meanwhile, within the transportation infrastructure sector, the three-hour investment service now encompasses railway industries, port industries, and airport industries. Moreover, within the public-works infrastructure sector, the three-hour investment service now encompasses toll-road management, irrigation and water resources, and businesses involved in water provision, waste management (collection, management, and dumping of non-hazardous waste), and garbage management systems collection (collection, management, and dumping of non-hazardous garbage).
And finally, the three-hour service for communications and information technology now encompasses telecommunications-network management, and telecommunications networks which are integrated into telecommunication services.
According to Mr. Sibarani, the various relevant ministries are already planning to issue a number of breakthrough policies in order to follow up the inclusion of the above four sectors under the three-hour investment service. For example, the Ministry of Public Works and Public Housing has already issued Ministerial Regulation No. 5 0f 2016 on Building Construction Licenses, and this regulation repeals the need to conduct an environment-impact analysis (AMDAL) from the list of requirements for securing building-construction licenses (IMB).
The IMB processing timeframe itself now varies depending on the building type, however, ultimately this policy is aiming to provide more legal certainty for investors. Under the current IMB timeframe, the authority for which remains delegated to regional level governments, processing usually takes around 60 days, and this will be vastly accelerated under the three-hour investment service. IMB license processing for basic buildings can now be completed within two days, or four days for two-storey buildings, seven days for complex buildings, 12 days for up to eight-storey complex buildings, and 30 days for complex buildings of more than eight storeys.
Azhar Lubis, the BKPM’s Investment Deputy, has revealed that aside from simplifying Indonesia’s investment policy through the introduction of the three-hour investment service, as well as the Investment Simplification Through Direct Construction Permission (Kemudahan Investasi Langsung Konstruksi or “KLIK”) program, the government is also planning to encourage better consolidation between central government and regional-level governments. It is hoped that such consolidation will contribute to an acceleration in the processing times, as regards the licensing services offered to investors.
“Facilitating investment projects will be the key to improving [Indonesia’s] investment competitiveness,” asserted Mr. Lubis.
Mr. Lubis firmly believes that regional government has a major role to play in improving the investment sector, as successful investment projects are usually supported by pro-investment governments. As a result of this, issues relating to the acceleration and simplification of license-processing procedures at the regional level remain a primary concern for the One-Stop Integrated Service (PTSP) facility.
According to the BKPM data, out of 561 national areas, some 511 regional PTSPs have already been established. Moreover, from this total of 511 regional PTSPs, 341 PTSPs are already utilizing the BKPM’s online-licensing service system (SPIPISE). Sadly though, many areas are still unable to utilize the SPIPISE system due to internet connectivity issues.
(rfs/sp)