RI OFFERS SIMPLIFIED LICENSING SERVICES TO ATTRACT S KOREAN INVESTORS by Fardah

Jakarta, Feb. 26, 2016 (Antara)- The Indonesian Investment Coordinating Board (BKPM) earlier this month planned to  organize a Forum of South Korean Investors, dubbed "The Three Hours Investment Licenses and Green Lane Facility,"  to publicize the government's latest investor-friendly policies.          The Board also held a Korean Business Dialogue in Jakarta recently to offer easy investment services, called KLIK,  and a three-hour investment licensing facility in the infrastructure field, to 100 investors from South Korea attending the  event.          The new services were expected to lure more South Korean investors to invest in Indonesia, BKPM Chief Franky  Sibarani said in a press statement on Feb. 23.          The Korean Business Dialogue was organized by the Korean Chamber of Commerce and Industry (KCCI),  Kocham, and the Korean Trade and Investment Promotion Agency (KOTRA).          Indonesian Trade Minister Thomas Lembong and the South Korean Ambassador to Indonesia, Cho Tae Young,  were present in the meeting.          The value of Korean investment in Indonesia was recorded at US$1.2 billion in 2015, an increase of 7.6 percent from the previous year.          During the 2010-2015 period, South Korea invested a total of US$8 billion in Indonesia. The country has invested in 2,329 projects. Some 45 percent of the investment was in the metal industry field.          Over the past five years, South Korea has emerged among the top five countries investing in Indonesia. The BKPM has received investment commitments worth US$4.8 billion, an increase of 86 percent compared to the previous year.          The BKPM chief noted that South Korean investors had expressed confidence and optimism about the investment climate in Indonesia.          "The Indonesian economy continues to offer promising investment opportunities," he remarked.          South Korean investors should benefit from the latest facilities and  the three-hour services offered by Indonesia, he stated.          KLIK is a new mechanism that allows investors to begin construction even as the application process for building permits (IMB), environmental licenses and other regional licenses is still underway.          The KLIK scheme was issued as part of the third package of reforms issued by the Joko Widodo (Jokowi) administration within 15 months of holding the executive power.          The two previous reforms were the One-Stop Investment Service (PTSP), launched by President Jokowi on January 26, 2015, and the three-hour Investment Licensing Service, kicked off by Vice President M Jusuf Kalla, on January 11, 2016.          In fact,  late last year, the BKPM had begun offering the three-hour licensing service to some investors planning to start businesses in a bid to attract large-scale investment, and eventually, create jobs in the country.          The service, which is part of the government's second economic policy package, will allow prospective investors with a minimum investment of Rp100 billion, or US$7.33 million, and/or a plan to employ more than one thousand workers, to have their preliminary permits processed at the PTSP within three hours.          Currently, 16 investors have availed of the three-hour licensing service, with a total investment of Rp52.2 trillion.          The investors are from Malaysia, Singapore, Saudi Arabia, England, Belgium, China, the United Arab Emirates, and the United States.  Meanwhile, a domestic investor has also used this licensing service.          The  simplified investment services are applicable in 14 industrial zones, covering 10,022 ha of the 17,154 ha total industrial zone areas, located in nine districts and cities in six Indonesian provinces.        The 14 industrial zones are Kendal (700 ha), Bukit Semarang Baru (40 ha), Wijayakusuma (100 ha), Java Integrated Industrial and Port Estate (1,761 h), Bantaeng (3,000 ha), Modern Cikande Industrial Estate (1,800 ha), Wilmar (800 ha), Krakatau Industrial Estate Cilegon (570 ha), Bekasi Fajar Industrial Estate (300 ha), Delta Silicon 8 (158 ha), Internasional Industrial City (293 ha), Suryacipta City of Industry (300 ha), GT Tech Park (100 ha), and Medan.        In the meantime, earlier this year, Minister of Industry Saleh Husin welcomed the willingness of South Korea to develop the shipyard industry in Indonesia, and asked for another investment in ship components.        "We welcomed their expansion investment. In particular, I have asked the Korean businessmen to invest more in the ship components industry in order to support President Joko Widodo's program of creating a sea toll," Husin said in a written statement.          Following a high demand of ships and shipyards, he believed it would lead to an increase demand for ship component industry.          The Ministry of Industry tried to boost the ship industries by putting in place incentives through the Government Borne Import Duty (BMDTP) mechanism to import ship components and uncollected income tax value (PPN) for shipping companies who bought ships from national shipyard companies.          "We are ready to facilitate the Korean investors to meet and build further cooperation with the national shipyard companies, whether these are state-owned companies or private ones," the minister said.          Another good news regarding the economic ties between the two countries came from Bank Negara Indonesia (BNI) 46 which opened a branch office in Seoul, South Korea, recently.          The new overseas branch was inaugurated by Indonesian Ambassador to South Korea, John A Prasetio, and Manager of BNI46 Seoul, Wan Andi Aryati.          "BNI Seoul wants to be a bridge to establish cooperation between Indonesia and South Korea by providing loans and other related banking services," Wan Andi said.          The BNI46 also provides services for South Korean businessmen who want to invest in Indonesia, she added.          "We are also targeting the Indonesian labor market in South Korea, which now has 40 thousand people. We are committed to providing the best service for the Indonesia's foreign exchange heroes," she said.          Meanwhile, Ambassador Prasetio stated that cooperation in trade and investment between Indonesia and South Korea remains  positive.          Moreover, the demand for Indonesian products and South Korea's investment in the country continues to rise,  according to him.          "They have been responding positively to the economic policies of President Jokowi (Joko Widodo). I believe that the presence of BNI46 in Korea is very important to ensure and enhance cooperation between the two countries," the ambassador said.         ***3***