T

he Investment Coordinating Board (BKPM) named on Monday nine regions — comprising provinces, regencies and municipalities — as the best providers of centers for one-stop integrated license services (PTSP).

Palembang (South Sumatra) tops the list as the best provider of license services in the municipality category, followed by Semarang (Central Java) and Salatiga (Central Java), while Sragen regency (Central Java) reigns supreme in the regency category, followed by Purwakarta regency (West Java) and Trenggalek regency (East Java). At the provincial level, the best performing providers were East Java, South Sumatra and West Java.

The winners were selected from a survey and field verification undertaken by state-owned survey firm Sucofindo in 268 local administrations. The one-stop services and evaluations were based on several aspects, including institutional, human resource, infrastructure and index of users’ satisfaction, according to Arief Safari, the president director of Sucofindo.

BKPM chief Chatib Basri said that the award winners could pose as examples of how to implement efficient services to facilitate investment.

Investment has been the main engine of growth, apart from domestic consumption, in Southeast Asia’s largest economy, particularly at a time of prolonged crisis when exports have dropped due to the decline of overseas demand. From January to September, realized investment settled at Rp 229.9 trillion ($23.9 billion), up 27.02 percent from Rp 181 trillion last year, inching closer to the government’s target of Rp 283.5 trillion for the full year.

“Excellent investment climate is a prerequisite to draw investment into Indonesia. [...] We see that the PTSP is the key to improve our position,” Chatib said during the awarding ceremony of 2012 Investment Award in Jakarta.

An easier and quicker licensing service is essential for boosting investment in the country — where the length of time it takes to commence business operations remains a major issue, he added.

The centers for one-stop integrated license services were established by local administrations to comply with Home Ministry regulations — passed in 2006 and 2008 — and in a bid to promote good governance and help push up economic growth through a sizeable level of investment.

Despite the importance of the centers, excellent one-stop licensing services are still not a determining factor in attracting investment, Edy Priyono, the managing director of the Center for Public Policy Analysis (CPPA), said.

“Good licensing services is only one factor that can draw investment to a region. Other factors, such as the region’s potential, promotion and adequate infrastructure, are much more important to investors,” he said, citing East Java as an example.

Soekarwo, the governor of East Java province, which is among the winners, said that the region aimed to realize Rp 130 trillion this year, with the largest amount of investment for the food and beverage
industry.

“We are optimistic we can achieve this. The business permits are already issued,” he said after the awarding ceremony.

For next year, his administration has set a target of Rp 150 trillion, particularly in the agro-based industry, Soekarwo said.