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BKPM eyes realized-investment growth of 20 percent this year
The Investment Coordination Board (BKPM) expects realized investment to grow 20 percent this year, following the launch of the three-hour licensing service, which is expected to attract large-scale investments and create more jobs.
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The Investment Coordinating Board (BKPM) expects realized investment to grow 20 percent this year, following the launch of the three-hour licensing service, which is expected to attract large-scale investments and create more jobs. (Courtesy of ptsp.bkpm.go.id/-)
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span style="letter-spacing: 0.1px; background-color: rgb(255, 255, 255);">The Investment Coordinating Board (BKPM) expects realized investment to grow 20 percent this year, following the launch of the three-hour licensing service, which is expected to attract large-scale investments and create more jobs.
BKPM director Yuliot said the board recorded Rp 1,852 trillion (US$ 13.6 trillion) of investment commitments in 2015, a 42 percent year-on-year (yoy) increase. While realized investment reached Rp 545.4 trillion, a 17 percent (yoy) growth.
"With the permit acceleration, we expect realized investment to grow 20 percent this year," Yuliot told thejakartapost.com in Jakarta on Monday, adding that most of the investments were likely to be made in industry and infrastructure.
Since the implementation of the service in January 1 to May 20, 72 companies have utilized the service. "Since January until now, the investors have been enjoying the faster process. Previously, it took six to seven months, and now it only takes three hours," he said.
The permit acceleration, which is part of the government's second economic policy package, aims to allow investors to have their preliminary permits processed at BKPM's one-stop integrated service (PTSP) within three hours.
However, it only applies to investments above Rp 100 billion (US$7.33 million) and/or to investments that will lead to the employment of more than 1,000 workers.
With this service, the number of permits required has been reduced to only nine, including an in-principle permit, legal entity information from the Law and Human Rights Ministry, a tax identification number (NPWP) and a land-booking letter issued by the Agrarian and Spatial Planning Ministry.
Therefore, Yuliot explained, the investment realization process had become shorter since the three-hour service came into effect. Previously, it took about 3 to 4 years to construct a project, the investors spent the first two years just completing the permit process. (ags)
