BKPM Supports Green Investment in Papua

On February 26-27, Indonesia Investment Coordinating Board (BKPM) visited Sorong, West Papua. BKPM held a series of meetings with several investor representatives in Sorong City. The meeting was conducted by BKPM Acting Deputy Chairman for Investment Supervision and Controlling, Farah Ratnadewi Indriani, accompanied by Director of Regional IV, Yos Harmen, and Investment Committee for Communication and Information, Rizal Calvary Marimbo.

“We absorb various problems faced by investors. There are eight main problems here,” Rizal Calvary Marimbo said in his statement at The Belagri Hotel, Sorong City.

He said, the problem of overlapping land, the lack of local Human Resources (HR) who are willing to work on oil palm lands, infrastructure for access to development fields, community involvement and development, lack of assistance by the local government, multi-layered tax issues and regulations (for example, the legacy of previous Minister of Maritime and Fisheries Affairs), the palm oil moratorium, as well as interference from international and national NGOs.

Rizal said, aside from absorbing investor complaints, BKPM directly coordinated with the Regional One-Stop Integrated Investment Service Office (DPMPTSP). “What we can solve in Sorong is directly coordinate with the service here. There are issues that we will bring to the center. For example, regulatory issues and disturbances to investors,” said Rizal.

He said, the direction of BKPM Chairman, Bahlil Lahadalia, BKPM was not only focused on helping new investors. BKPM will also nurture and protect existing investors who are already running. “When investment goes on, many problems are faced, BKPM and DPMPTSP are obliged to help so that investment realization can run smoothly. Besides, for a long time he might be reinvesting,” Rizal said.

BKPM Chairman, Bahlil Lahadalia, also attended the opening of the High Level Meeting (HLM) on the Green Investment Blueprint for Papua and West Papua on 26-27 February 2020 in Sorong, West Papua. This meeting was also attended by the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan, Minister of Agriculture Syahrul Yasin Limpo, Minister of Cooperatives and Small and Medium Enterprises Teten Masduki, West Papua Governor Dominggus Mandacan, Deputy Governor of Papua Klemen Tinal, and Deputy Minister of Tourism and Creative Economy Angela Tanoesoedibdjo.

This forum provides a further view of the green investment. The green investment scheme is very promising because it is related to the economy and the welfare of society. This meeting resulted in several agreements including the development of coffee, nutmeg, and cocoa plants which could be managed by middle-low farmers. It also emphasized on the role of the Governor of West Papua in developing the potential of this agricultural product. In terms of investment, everything is for the sake of the people of Papua.

BKPM Chairman stated that investment in Papua is not only talking about trillions of investments, but rather leads to medium to lower investment. “It is hoped that with a very environmentally friendly investment pattern, the focus is on nutmeg, cocoa, and fisheries which are sectors that become commodities down from our parents,” Bahlil said.

On this occasion, the minister’s delegation also visited the Sorong Special Economic Zone (KEK) to see the readiness of the SEZ to invite investment into this region. The Sorong KEK still needs support from various parties to provide adequate basic infrastructure. Even though three companies have officially operated, but the number is still far from the existing potentials.

The Governor of West Papua also said that improving the skills of workers is needed for the readiness of the SEZ. He once conveyed the need for a Vocational Training Center (BLK) in Sorong and this was immediately echoed by the Coordinating Minister Luhut. The BLK is planned to be established this year.

After the visit to Sorong SEZ, the BKPM Chairman also immediately visited the West Irian Fishing Industries company. The company is 100% owned by domestic capital and has employed nearly 200 local fishermen. Shrimp products are exported to foreign countries, with the main goal of Japan.

For BKPM, this kind of investment gets you a lot more economic activity, empowering the local communities and it will create job opportunities for the local fishermen. Besides, its export products originating from Papua show persistence in showing the quality of domestic products.