The Indonesian government will be publishing a regulation that will assure investment principle permits are issued within three hours, even as it announced plans to unveil the third installment of its economic package this week, following the recent release of the first and second installments.
Head of Investment Coordinating Board (BKPM) Franky Sibarani said the latest regulation is the first step toward creating a new three-hour investment permit service, which forms part of the second installment of the policy reform package, according to Antara News.
“After the issuance of the regulation, BKPM will recruit a notary public and make other technical preparations. We hope within two weeks investors would be able to fully enjoy the service,” Franky said.
He added that with the three-hour service, investors can obtain an investment permit, company certificate, and taxpayer number within three hours.
To avail themselves of the service, investors must personally come to the one-stop service center at BKPM, as their signatures will be needed for their company certificates.
“Under the current regular system, investors obtain a principle permit within three days. The company certificates and taxpayer number are processed separately, unlike in the new three-hour service, which is carried out in one location at the one-stop service center,” he said.
He noted that the three-hour service is aimed at projects worth at least IDR100 billion (about US$7 million) or those that employ a minimum of 1,000 workers.
“Elasticity of our manpower has declined from 450,000 workers per one percent growth in 2004 to only 160,000 in 2014. The hope is that through this breakthrough, investors’ interests will rise in creating large investment projects that absorb much employment in the country,” he said.
BKPM’s deputy for investment service Lestari Indah said investors who have investment permits can directly carry out construction if their projects are located within industrial zones. Moreover, they need not wait for construction permits, as the investment permit process is parallel with the construction process itself.
The long wait for their permits is one of the issues investors often complain about. In stages, BKPM has been improving the process, mainly by implementing a one-stop service and simplifying procedures.
Third economic package almost ready
Meanwhile the government will come up with the third package of economic policies this week in anticipation of the impact of the global economic slowdown and to make businesses more investor-friendly.
Cabinet Secretary Pramono Anung said the government is discussing a package of policies as an anticipatory measure to mitigate the effect of the worldwide economic downturn.
“The government is also seeking ways to make the business world more friendly for investors and also to protect domestic businesses. Issues such as smallholders credit (were) also discussed,” he said. “On Thursday, we will announce licensing facilities in land and agrarian sector.”
He said licensing in the sector has so far been very complicated and with the new package, he hopes the process will be significantly simplified.
Photo: Caitlin Childs
