Jakarta, Jan 12, 2016 (Antara) - The Indonesian government has given investors a New Year's gift in the form of a new investment licensing service that could cut the processing period for licensing applications from 23 days to just three hours.
The swift service was officially launched by Vice President M Jusuf Kalla at the headquarters of the Investment Coordinating Board (BKPM) in Jakarta, on January 11, 2016.
BKPM Chairman Franky Sibarani said the service was in accordance with the Indonesian government's economic policy package II, issued in September 2015, he added.
Since its trial launch on October 26, 2015, seven companies have used the service to obtain investment licenses for a total investment of Rp17.85 trillion.
These companies were engaged in manufacturing, real estate, power plants, ports, and livestock farming, Sibarani stated.
He noted that the Three-Hour Investment Licensing Service was a breakthrough for fast and easy licensing services for investors.
To obtain a license from the three-hour service, the applicant must invest at least Rp100 billion to build a company that could absorb at least 1,000 workers, Sibarani said.
The applicant then receives 10 documents: an investment principle permit, a Tax ID Number, a company establishment certificate, a legalization decree from the justice and human rights ministry, a company registration certificate, a foreign worker recruitment permit, a foreign worker recruitment plan, producer-importer identification numbers, a customs identification number, and a land booking letter.
The applicant then receives 10 documents: an investment principle permit, a Tax ID Number, a company establishment certificate, a legalization decree from the justice and human rights ministry, a company registration certificate, a foreign worker recruitment permit, a foreign worker recruitment plan, producer-importer identification numbers, a customs identification number, and a land booking letter.
He noted that the rapid service had a strategic role in boosting the flow of both foreign and domestic investors into the country.
Accelerating services for the issuance of investment licenses could boost economic growth in Indonesia, which is expected to reach seven percent at the end of 2017, according to Vice President Jusuf Kalla.
The BKPM has set the 2016 target for realized investment at Rp594.8 trillion, up by 14.48 percent from the 2015 target of Rp519.5 trillion.
"The target of realized investment for 2016, set at Rp594.8 trillion, comprises foreign investment of Rp386.4 trillion and domestic investment of Rp208.4 trillion," Sibarani remarked at a recent press conference on "Investment projection 2016."
The targets for foreign and domestic investment in 2016 rose 12.6 percent and 18.4 percent, respectively, compared with those of the previous year, he added.
To achieve the 2016 target, the Board outlined five strategies: increasing investment services, monitoring the realization of investment, conducting more focused investment marketing, improving the investment climate, and ensuring that the benefits of investment are passed on to the people.
The targets for foreign and domestic investment in 2016 rose 12.6 percent and 18.4 percent, respectively, compared with those of the previous year, he added.
To achieve the 2016 target, the Board outlined five strategies: increasing investment services, monitoring the realization of investment, conducting more focused investment marketing, improving the investment climate, and ensuring that the benefits of investment are passed on to the people.
The realization of investment projects overshot the 2015 target of Rp519.5 trillion, Sibarani said.
"Total investment is certain to reach some Rp540 trillion, exceeding the target," Sibarani claimed in Cikarang, West Java, on Thursday.
He pointed out that in the last quarter of 2015, investment had soared beyond expectations.
Based on data from BKPM, investment in the first nine months of 2015 totaled Rp400 trillion, up 16.7 percent from the Rp342 trillion secured in the same period in 2014, or 77 percent of the target for 2015.
Domestic investment made up Rp133.2 trillion of the investment realization in the January-September period, with foreign investment accounting for Rp266.8 trillion.
Strong growth was recorded for both domestic and foreign investment in the first nine months of 2015.
Investment in the manufacturing sector is projected to increase by 17.2 percent to Rp313.6 trillion from the 2015 target. By September 2015, the realized investment in the sector had reached Rp172.1 trillion.
During 2015, the Central Integrated One-Stop Service (PTSP) run by the BKPM in cooperation with 22 related ministries and institutions, issued a total of 17,238 licenses.
On average, 1,436 licenses were issued monthly by the PTSP last year, the Board chief noted.
The investment agency has provided facilities and made improvements to attract more investors over the past year.
"Quantitatively, there is a significant increase in the number of licenses issued. Qualitatively, licensing services have been improved, particularly with the adoption of the three-hour investment licensing service," he pointed out.
Despite fierce competition, the BKPM chief was optimistic that the country would be able to lure more investors by offering various facilities.
The BKPM has simplified licensing procedures and has addressed bottleneck problems to increase the number of investment applicants, he said.
During the period between January and September 2015, the number of investments increased by 16.7 percent and employment absorption surged by 10.4 percent.
Foreign investment jumped by 16.8 percent and domestic investment, by 16.5 percent.
Foreign investment jumped by 16.8 percent and domestic investment, by 16.5 percent.
The realization of investment from January to September 2015 contributed to the creation of one million jobs.
At the end of 2015, the number of new employees was expected to reach 1.4 million.
"We will prioritize the manufacturing sector for investment in 2016 to support the process of industrialization. Expansion of the manufacturing sector will also contribute to the development of other sectors, especially infrastructure," Sibarani explained.
The BKPM will also encourage investment in export-oriented industries, sectors producing import substitutes, and labor-intensive projects, he remarked.
"In addition to the three sub-sectors, we will also facilitate investment in the development of resource-based downstream industries," he stated.
"In addition to the three sub-sectors, we will also facilitate investment in the development of resource-based downstream industries," he stated.
In 2014, investment in the manufacturing sector contributed Rp1,991.1 trillion, or 42.99 percent of the total investment in the country, with the primary sector contributing 19.81 percent and the tertiary sector accounting for 37.2 percent. ***3***
(f001/INE/O001)
EDITED BY INE
(T.F001/A/BESSR/O. Tamindael) 12-01-2016 13:46:17
(f001/INE/O001)
EDITED BY INE
(T.F001/A/BESSR/O. Tamindael) 12-01-2016 13:46:17
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