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INDONESIA INVESTMENT COORDINATING BOARD © 2017 by Indonesia Investment Coordinating Board. All rights reserved UPDATING IMPLEMENTATION OF OSS CENTER | March, 2017 invest in

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INDONESIA INVESTMENT COORDINATING BOARD

© 2017 by Indonesia Investment Coordinating Board. All rights reserved

UPDATING IMPLEMENTATION OF OSS CENTER

| March, 2017

invest in

The Investment Coordinating Board of the Republic of Indonesia

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Topics :

The Investment Coordinating Board of the Republic of Indonesia

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OSS Center

• One Stop Service Center organizes complete 170 licensing and non-

licensing procedure of investment in a single office that has been

given the authority from related technical institutions or ministries to issue the licensing and non-licensing documents on particular sectors.

• It is dedicated to provide fast, simple, transparent and integrated licensing and non-licensing services.

Definition of OSS Center -- BKPM

The Investment Coordinating Board of the Republic of Indonesia

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Updated OSS Center Services

The Investment Coordinating Board of the Republic of Indonesia

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BKPM

Ministry of Labor

Ministry of Trade

Ministry of Finance

3 Hours Investment Licensing Service

Ministry of Law ATR

The Investment Coordinating Board of the Republic of Indonesia

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Business process of 3 Hours Investment Licensing Service

The Investment Coordinating Board of the Republic of Indonesia

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3 Hours Licensing Service For Energy and Mineral Resources Sector

BKPM

1 2 3

ARRIVEDirector ARRIVES at Central OSS, then SUBMIT required documents *

WAITING In Priority Lounge, while the documents processed

RECEIVEApplicants receive the requested licensing products

*REQUIREMENTS

ESDM3J service is given if the company has fullfiled the checklist of administrative and technicalrequirements as regulated on MEMR Ministrial Decree No.15 of 2016

The Investment Coordinating Board of the Republic of Indonesia

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Type of Licensing Service For Energy and Mineral Resources Sector

NO

TYPE OF LICENSING ISSUED BY ESDM3J SERVICE

DURATION FOR REGULAR

SERVICE (WORK DAYS)

DURATION FOR ESDM3J

SERVICE

1. Temporary Business License for Electricity 20

3 HOURS

2. Temporary Business License for Oil / Fuel / LPG Storage 32

3. Temporary Business License for Storage of Processed Products / CNG

32/40

4. Temporary Business License for LNG Storage 32

5. Temporary Business License for Oil Refinery 32

6. Temporary Business License for Processing Oil Residue Industry 32

7. Temporary Business License for Natural Gas Processing 32

8. Temporary Business License for General Trade of Oil/Fuel 40

9. Temporary Business License for General Trade of Processed Products

40

The Investment Coordinating Board of the Republic of Indonesia

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Investors can directly start their project construction before obtaining construction permits.

This service is supported by both Central and Regional Government

Direct Construction – “KLIK”

The Investment Coordinating Board of the Republic of Indonesia

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List Of Industrial Estate – implemented “KLIK”

West Java1. Bekasi Fajar Industrial Estate/BFIE (300 ha)2. Delta Silicon 8 (158 ha)3. Karawang Internasional Industrial City/KIIC

(293 ha)4. Suryacipta City of Industry/SCI (300 ha)5. GT Tech Park @ Karawang (100 ha)6. Artha Industrial Hill (315,1 ha)7. KI Greenland International Industrial Center

(GIIC)/Deltamas (400 ha)8. KI Jababeka Tahap III (45 ha)9. KI Kota Bukit Indah Ind. City (510 ha)10.KI Indotaisei Kota Bukit Indah (300 ha)11.KI Marunda Center (300 ha)

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Banten

1. Modern Cikande Industrial Estate/MCIE (1.800 ha)

2. Wilmar Integrated Industrial Park/WIIP (800 ha)

3. Krakatau Industrial Estate Cilegon/KIEC (570 ha)

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East Java1. KI Java Integrated Industrial

and Port Estate/JIIPE (1.761ha)

2. KI Maspion (151 ha)3. KI Tuban (190 ha)

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Kep. Riau1. KI Batamindo Industrial

Park (61,4 ha)2. KI Bintang Industrial Park II

(20 ha)3. KI Kabil Integrated

Industrial Estate (142,5 ha)4. KI Bintan Inti Industrial

Estate (229,6 ha)5. KI Westpoint Maritim

Industrial Park (102,5 ha)

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Riau

KI Dumai (198,9 ha)

3

South Sulawesi

Bantaeng Industrial Park (BIP)(3.000 ha)

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KI Kariangau (133,8 ha)

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East KalimantanDKI Jakarta1. Kawasan Berikat

Nusantara/KBN (118,6 ha)2. KI Jakarta Industrial Estate

Pulogadung/JIEP (10,4 ha)

4Central Java

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1. Kendal Industrial Park/KIP (700 ha)

2. Bukit Semarang Baru/BSB (40 ha)

3. Wijayakusuma Industrial Estate/KIW (100 ha)

4. KI Jatengland Industrial Park Sayung (285,7 ha)

North Sumatera

Kawasan Industri Medan/KIM(100 ha)

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Total available land in 32 Industrial Estates implemented “KLIK”:

13.537 ha

Java: 23 IE (9.547,8 ha)Outside Java : 9 IE (3.988,7)

The Investment Coordinating Board of the Republic of Indonesia

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BKPM Recommendation

THE GREEN LINE SERVICE

Importation facility through The Green Line Acceleration

Normally

Breakthrough

The Investment Coordinating Board of the Republic of Indonesia

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Badan Koordinasi Penanaman Modal

(BKPM)Indonesia Investment Coordinating Board

Jln. Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesia

t . +62 21 525 2008

f . +62 21 525 4945

e . [email protected]

www.bkpm.go.id

Thank YouTerima Kasih

The Investment Coordinating Board of the Republic of Indonesia

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Q & A

The Investment Coordinating Board of the Republic of Indonesia

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Q & A (1)

THE PRESIDENTIAL DIRECTIVE

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Coordination

Integration

Standardization

The Investment Coordinating Board of the Republic of Indonesia 16

Planning Stage Construction Stage Production Stage

In-principal

License

Regional

Technical

License

Ministerial

Technical

License

Business

License

428 regents (81%) connected with SPIPISE

10 M/IIntegrated with

SPIPISE

Using Cloud Computing

SPIPISE – current condition

The Investment Coordinating Board of the Republic of Indonesia

Regional Integration Step :

At the moment, SPIPISE is in the Process of Integration with the Regional Operation Licensing

SPIPISE is experiencing some issues at the integration process with the Regional Technical Licensing

There needs to be Standardization of the business licensing processes in order to accelerate the SPIPISE integration with the Regional Technical Licensing

Selection of certain Regional & sector -- as pilot project

Application ofCloud Computing

Integrated Tracking System

Socialization

Nationalimplementation

The Investment Coordinating Board of the Republic of Indonesia

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Q & A (2)

The Investment Coordinating Board of the Republic of Indonesia

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Investment ValueINDUSTRIAL SECTOR

Based on : Industrial Ministry Regulation No.64/M-IND/PER/7/2016

< IDR 1.000.000.000 IDR 1.000.000.000 –IDR 15.000.000.000

> IDR 15.000.000.000

1-19 people

SMALL ENTERPRISE

(Exclude : land & building)

MEDIUMENTERPRISE

MEDIUMENTERPRISE

≥ 20 people

MEDIUMENTERPRISE

MEDIUMENTERPRISE

LARGEENTERPRISE

The Investment Coordinating Board of the Republic of Indonesia

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Capital ValueTRANSPORTATION SECTOR

Line of Business Authorized Capital Paid Up Capital

Marine Transportation (SIUPAL)Based on : Transportation Ministry Regulation No.93/2013 jo. 74/2016

IDR 50.000.000.000 IDR 12.500.000.000

Ports

Based on : Transportation Ministry Regulation No.146/2016

Main Port: IDR 500.000.000.000

Main Port: IDR 125.000.000.000

Collector Port: IDR 100.000.000.000

Collector Port: IDR 25.000.000.000

Salvage and Underwater WorksBased on : Transportation Ministry Regulation No.71/2016

IDR 3.000.000.000 IDR 750.000.000

Crew Recruitment and Placement (IUPPAK)Based on : Transportation Ministry Regulation No.84/2013

IDR 3.000.000.000 IDR 750.000.000

Freight Forwarding (IUJPT)Based on : Transportation Ministry Regulation No.74/2015

USD 4.000.000 USD 1.000.000

The Investment Coordinating Board of the Republic of Indonesia

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Stimulating retails

67% FDIwith 400-2,000 m2

of retail area*)

previously :closed to FDI.

Requirements:•Licence from Ministry of Trade;•Located inside a shopping mall;•Outlet store expansion based on export performance.

Negative Investment List 2016

Supermarket

100% FDIwith >1,200 m2

of retail area

Supermarket: selling foods & beverage,

household, furniture, electronics

Dept.store : selling clothing products

and accessories

The Investment Coordinating Board of the Republic of Indonesia

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Q & A (3)

The Investment Coordinating Board of the Republic of Indonesia

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Spurring digital economy

100% FDI

E-Commercein partnership

with SMEs

From previously closed to FDI

100% FDI

MarketplaceFor min. Investment of

IDR100 billion (USD 8 million).

Open 49% FDI for investment < IDR100 billion

KBLI : 47911-47914Type of partnership with SMEs:•Suppler goods•Delivery service•etc.

Negative Investment List 2016

KBLI : 63122 (new BPS’s regulation)

Foreign equity IDR 100 billion *)Waiting for a confirmation letter from Director General of MOC

The Investment Coordinating Board of the Republic of Indonesia

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Q & A (4)

The Investment Coordinating Board of the Republic of Indonesia

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Reducing logistic costs

[Source: Indonesian Statistics Center, 2016]

100% FDIDistribution

affiliated with production

67% FDI for distributor without affiliation

100% FDI

Cold storagepreviously :

33% FDI

67% FDI

Ware-housingpreviously :

33% FDI

Negative Investment List 2016

100% DDICommision

agent

KBLI : 46100

The Investment Coordinating Board of the Republic of Indonesia

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Distributor scheme

The Investment Coordinating Board of the Republic of Indonesia

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Q & A (5)

The Investment Coordinating Board of the Republic of Indonesia

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Negative Investment List 2016

100% FDIDistribution

affiliated with production

Indonesia Investment Coordinating Board

Negative Investment List 2016

Distribution

affiliated with production

100% or 67%

Scenario affiliated shares Not-affiliated sharesDomestic Production

BaseOverseas Production

Base

The percentage of the maximum foreign

shareholding

1 √ √ 100%

2 √ √ 67%

3 √ √ 67%

4 √ √ 67%

5 √ √ √ 100%

6 √ √ √ 67%

Note : Excluding 1. Distributor for Medical Equipment which follow conditions stipulated in the health sector2. Distributor for Oil & Gas which follow conditions stipulated in the mining sector

Trade Sector