Jakarta, October 3, 2019 - To build communication and interaction between the Indonesia Investment Coordinating Board (BKPM) and both foreign and domestic direct investors in Indonesia, BKPM held the Investor Forum 2019 “Investment Facilitation” at the Fairmont Hotel, Jakarta (Thursday, 03/19). The event is expected to deliver insights on various investment facilitation attempts, such as debottlenecking which is carried out by the BKPM Investment Control and Implementation Unit.
The BKPM Caretaker of Deputy Chairman of Investment Control and Implementation Farah Ratnadewi Indriani stated, the theme “Investment facilitation” was chosen to remind us about the efforts that have been made so far to improve Indonesia’s investment climate. “We focus on improving the investment climate in Indonesia by generating breakthroughs to simplify licensing, eliminating several licenses, and digitizing licensing system using the Online Single Submission (OSS) application following Government Regulation Number 24 of 2018 on the Electronics Integrated Business Licensing Service. This new system has succeeded in increasing the number of business licenses in Indonesia,” she explained in an official statement to the media, Jakarta (Thursday, 03/10).
In the context of supervising and resolving investment obstacles and problems, the Government has established a Task Force which applies across Ministry/Institution as well as the Regional Working Unit (SKPD). The formed Task Force consists of the National Task Force, Ministry/Institution Task Force, Provincial Task Force, and Regency Task Force. The formation of this unit is an indicator that the government is highly committed to improving Indonesia’s investment climate.
“Digitizing the Licensing Services is not enough to actualize the expected investment realization, so the companies need active supports and facilitations from relevant government bodies at the Central, Provincial and Regency/City levels,” she continued.
Considering investment as one of the main drivers of Indonesia’s economy in implementing the 2020 Draft State Budget, active investment facilitation to reach the investment realization target becomes strategic. On the other hand, the challenge of achieving the target (whose value becomes higher every year) will be heavier amid the sluggish world economy.
“The existence of investor-friendly tax incentives and facilities are the other important factors to support the investment realization. Of course, the application of tax incentives and facilities must be more dynamic. Not only at the initial stage when investors start their business, but also when they are already operating commercially and then facing problems as an impact of government policy; or when investors want to expand,” explained the BKPM Deputy of Investment Services Husen Maulana.
Some inputs from participants in this event are:
- BKPM can act by disseminating government policies which impact investment in the region;
- BKPM can assist in increasing the capacity of DPMPTSP in the regions to carry out investment facilitation including providing solutions for investment problems or debottlenecking;
- The forum needs to be re-implemented with more specific or sectoral themes, for example electricity, infrastructure, smelters, and so on;
It is expected that BKPM can give responses to any obstacle/problem faced by investors, especially those that are submitted officially.
The Investor Forum 2019 was opened by BKPM Caretaker of Deputy Chairman of Investment Control and Implementation Farah Ratnadewi Indriani. The speakers at the discussion session included Secretary of Working Group IV Carlo Tewu, BKPM Deputy Chairman of Investment Services Husen Maulana, Director of Taxation Regulations II Yunirwansyah, BKPM Regional Director IV Yos Harmen, and AKSET Law Firm Partner Inka Kirana. There were 130 participants from 100 FDI/DDI companies in East Java, Bali, NTB, NTT, Maluku, North Maluku, West Papua and Papua.