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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
BKPM's Office. Photo by: RES
In line with the government’s mission to further simplify the investment process, Indonesia’s Investment Coordinating Board (BKPM) oversaw and evaluated construction projects involving some 200 companies during the course of 2015. To date, IDR 264.7 trillion in investment, or 51.4% of the total investment value of IDR 512.6 trillion for these 200 projects, has already been realized. These realized projects include, but not are limited to, the industrial sector, power plants, and real estate.
Commenting on this issue, BKPM head Franky Sibarani explained that of the 200 investment projectscurrently being overseen by the institution, 59 projects with a total investment value of IDR 108 trillion had already completed their construction stages and were ready to begin production. These 59 projects are predicted to provide direct employment for some 14,679 members of the Indonesian workforce. Meanwhile, the remaining 141 companies are still in the construction phases of their projects.
Mr. Sibarani went on to underline two important matters relating to the investment realization of these 200 companies. Firstly, Indonesia’s investment growth remains positive despite the current economic slowdown, which was predicted to also slow down the investment-realization process. And secondly, the oversight and evaluation of investment projects still in their construction stage is helping to realize the government’s 2o16 investment-realization target of IDR 594.8 trillion. Moreover, the government recently issued Government Regulation No. 79 of 2015, which amends Government Regulation No. 29 of 2000on Construction Services.
“We plan to continue overseeing the remaining projects, which are still in their construction phases, as these projects have the potential to employ another 65,012 members of Indonesia’s workforce,” asserted Mr. Sibarani during a press conference held in Jakarta on Wednesday, 2 March 2016.
Azhar Lubis, the BKPM’s Deputy of Investment-Realization Control, also ventured an opinion on the matter. According to Lubis, the oversight of these 200 investment projects is being undertaken in order to monitor their investment realization. And while the BKPM has not yet engaged in any direct inspections, it has already visited 108 project sites.
“From the 200 projects that we [the BKPM] are overseeing, some 108 project sites have already been visited. Mr. Sibarani has personally visited 80 sites, while other BKPM staff members have visited the remaining 28 sites,” asserted Mr. Lubis.
Mr. Lubis also revealed five positive impacts that these investment realizations have already brought. Firstly, investment rates continue to rise, especially outside of the island of Java. Indeed, out of the 59 investment projects which have already been realized, 33 are located outside Java. Secondly, this investment realization has been able to provide employment for many members of the Indonesian workforce, while the remaining projects are predicted to offer some 65,012 employment opportunities.
Thirdly, the BKPM is optimistic that the projected electricity investment realization can be achieved with proper oversight. Mr. Lubis further revealed that several companies were already planning to construct their own power plants, which are eventually projected to generate some 4,190 MW of electricity. Most of the electricity that ends up being produced will be used by companies in order to power their operations, although several companies are cooperating with the State Electricity Company (PLN) under a power-purchasing agreement (PPA). This means that these companies will end up selling their electricity to PLN.
Fourthly, there’s optimism that Indonesia’s trade balance can be improved even further. And finally, the BKPM is trying to prove that it understands the many problems and hurdles which must be overcome by investors as they attempt to realize their investments, and is thus offering assistance to companies encountering problems.
“We [the BKPM] have assisted with many projects, including offering help with the licensing process at the regional level, as well as land procurement, electricity issues such as the onstruction of industrial electrical grids and the absence of working electricity networks, the supply of workers in the Central Java province, and several attempts to streamline investment realization, including the so-called “green-company” designation policy and the Investment Simplification Through Direct Construction Permission (“KLIK”) program. Through such engagement, we are hoping for a speedy investment realization,” asserted Mr. Lubis.
From a slightly different perspective, Mr. Sibarani also pointed out the strategic value of overseeing investment realization in these 200 companies. These investments are predicted to rack up some USD 634 million in import-substitution value, as well as some USD 15.2 billion in export value. Moreover, the 59 companies which have already completed construction work on their projects are in possession of some IDR 453 million in import-substitution value, as well as USD 7.1 billion in export value, while the remaining 141 companies still under construction are in possession of some USD 181 million in import-substitution value and some USD 8.1 billion in export value.
According to Mr. Sibarani, these high import-substitution and export values should ultimately make a significant contribution to the Indonesian economy as a whole. This is primarily the reason why the BKPM is committed to continuing to oversee these construction projects, as an element in the government’s overall plan to reduce imports, promote the use of domestic commodities, and boost the country’s exports.
“The BKPM is continuing to cooperate with the relevant ministries and government institutions in order to better analyze the obstacles and problems currently being faced by companies investing in Indonesia. We will attempt to formulate the best solutions to any problems that arise,” concluded Mr. Sibarani.
(rfs/sp)
Marcell Sihombing, Fitri N. Heriani
BKPM's Office. Photo by: RES
In line with the government’s mission to further simplify the investment process, Indonesia’s Investment Coordinating Board (BKPM) oversaw and evaluated construction projects involving some 200 companies during the course of 2015. To date, IDR 264.7 trillion in investment, or 51.4% of the total investment value of IDR 512.6 trillion for these 200 projects, has already been realized. These realized projects include, but not are limited to, the industrial sector, power plants, and real estate.
Commenting on this issue, BKPM head Franky Sibarani explained that of the 200 investment projectscurrently being overseen by the institution, 59 projects with a total investment value of IDR 108 trillion had already completed their construction stages and were ready to begin production. These 59 projects are predicted to provide direct employment for some 14,679 members of the Indonesian workforce. Meanwhile, the remaining 141 companies are still in the construction phases of their projects.
Mr. Sibarani went on to underline two important matters relating to the investment realization of these 200 companies. Firstly, Indonesia’s investment growth remains positive despite the current economic slowdown, which was predicted to also slow down the investment-realization process. And secondly, the oversight and evaluation of investment projects still in their construction stage is helping to realize the government’s 2o16 investment-realization target of IDR 594.8 trillion. Moreover, the government recently issued Government Regulation No. 79 of 2015, which amends Government Regulation No. 29 of 2000on Construction Services.
“We plan to continue overseeing the remaining projects, which are still in their construction phases, as these projects have the potential to employ another 65,012 members of Indonesia’s workforce,” asserted Mr. Sibarani during a press conference held in Jakarta on Wednesday, 2 March 2016.
Azhar Lubis, the BKPM’s Deputy of Investment-Realization Control, also ventured an opinion on the matter. According to Lubis, the oversight of these 200 investment projects is being undertaken in order to monitor their investment realization. And while the BKPM has not yet engaged in any direct inspections, it has already visited 108 project sites.
“From the 200 projects that we [the BKPM] are overseeing, some 108 project sites have already been visited. Mr. Sibarani has personally visited 80 sites, while other BKPM staff members have visited the remaining 28 sites,” asserted Mr. Lubis.
Mr. Lubis also revealed five positive impacts that these investment realizations have already brought. Firstly, investment rates continue to rise, especially outside of the island of Java. Indeed, out of the 59 investment projects which have already been realized, 33 are located outside Java. Secondly, this investment realization has been able to provide employment for many members of the Indonesian workforce, while the remaining projects are predicted to offer some 65,012 employment opportunities.
Thirdly, the BKPM is optimistic that the projected electricity investment realization can be achieved with proper oversight. Mr. Lubis further revealed that several companies were already planning to construct their own power plants, which are eventually projected to generate some 4,190 MW of electricity. Most of the electricity that ends up being produced will be used by companies in order to power their operations, although several companies are cooperating with the State Electricity Company (PLN) under a power-purchasing agreement (PPA). This means that these companies will end up selling their electricity to PLN.
Fourthly, there’s optimism that Indonesia’s trade balance can be improved even further. And finally, the BKPM is trying to prove that it understands the many problems and hurdles which must be overcome by investors as they attempt to realize their investments, and is thus offering assistance to companies encountering problems.
“We [the BKPM] have assisted with many projects, including offering help with the licensing process at the regional level, as well as land procurement, electricity issues such as the onstruction of industrial electrical grids and the absence of working electricity networks, the supply of workers in the Central Java province, and several attempts to streamline investment realization, including the so-called “green-company” designation policy and the Investment Simplification Through Direct Construction Permission (“KLIK”) program. Through such engagement, we are hoping for a speedy investment realization,” asserted Mr. Lubis.
From a slightly different perspective, Mr. Sibarani also pointed out the strategic value of overseeing investment realization in these 200 companies. These investments are predicted to rack up some USD 634 million in import-substitution value, as well as some USD 15.2 billion in export value. Moreover, the 59 companies which have already completed construction work on their projects are in possession of some IDR 453 million in import-substitution value, as well as USD 7.1 billion in export value, while the remaining 141 companies still under construction are in possession of some USD 181 million in import-substitution value and some USD 8.1 billion in export value.
According to Mr. Sibarani, these high import-substitution and export values should ultimately make a significant contribution to the Indonesian economy as a whole. This is primarily the reason why the BKPM is committed to continuing to oversee these construction projects, as an element in the government’s overall plan to reduce imports, promote the use of domestic commodities, and boost the country’s exports.
“The BKPM is continuing to cooperate with the relevant ministries and government institutions in order to better analyze the obstacles and problems currently being faced by companies investing in Indonesia. We will attempt to formulate the best solutions to any problems that arise,” concluded Mr. Sibarani.
(rfs/sp)