T

he Investment Coordinating Board (BKPM) is to team up with the National Intelligence Agency (BIN) to generate more reliable data on the political and security condition in new investment sites.

BKPM chief Franky Sibarani said BIN could provide accurate information on the local social and political condition which would help generate site-specific investment policies.

He said at present the board often lacked the necessary information to cater investment policy to specific regions.

'€œOn the contrary, BIN possesses accurate information about a region, thereby we will collaborate with the agency to aid our efforts to generate additional investment,'€ Franky said after signing a memorandum of understanding with BIN chief Marciano Norman.

Investment, the second-largest driver of economic growth in Southeast Asia'€™s biggest economy, after domestic consumption, is expected to surpass Rp 3.5 quadrillion (US$267.75 billion) by 2019, more than double the level recorded in 2014.

This year, the investment board has projected a 14 percent increase of Rp 519.5 trillion in realized direct investment from both foreign and domestic investors, which will be aided by the development of massive infrastructure projects, including power plants, roads, railways, and ports, smelters and refineries to process minerals.

The achievement will significantly spur the expansion of the economy, which is set to grow at 5.7 percent amid slowing exports due to weak overseas demand and falling commodity prices.

BKPM'€™s cooperation with BIN follows a separate partnership between BKPM and the National Code Agency (LSN) to protect the security of data processed at the board'€™s one-stop integrated investment licensing service (PTSP).

Franky added that the information provided by BIN would also help investors find appropriate business partners as well as to weed out bogus investors.

The board recently revoked 6,541 principal permits handed out to foreign investors passed between 2007 and 2012 for inactivity due to, among other factors, difficulties acquiring land and a lack of supporting permits from local administrations. The total value of the revoked permits was $23 billion.

Unreported investment realization has also attributed to the existence of fake investors, according to Franky.

Speaking after the signing of the deal, Marciano said his agency was determined to help the BKPM attract bigger investments in Indonesia.

'€œAll BIN staff, either here or overseas, can provide support for the BKPM to issue policies in line with guidelines set by the President,'€ he said.

Marciano cited knowledge of local sympathies and grievances as an example of the kind of information it could provide the investment board.