INDONESIA INVESTMENT COORDINATING BOARD
© 2017 by Indonesia Investment Coordinating Board. All rights reserved
Investment Policy Updates:Presidential Regulation No 91/2017 on Acceleration of Doing Business
Farah Ratnadewi IndrianiDeputy Chairman for Investment Climate Development
Jakarta, 28 February 2018
The Investment Coordinating Board of the Republic of Indonesia
2
Global Perception on Indonesia
INDONESIA COMPETITIVENESS
Strong Reform Commitments
120114
91
106
2014 2015
Ease of Doing
Business Indonesia,
2013-2017
19
72
2016 2017 20182013
129
Country
India
DB 2018DB 2017
130
78
3540
123 125
100
China
Russia
Brazil
Indonesia
Indonesia vs other emerging economies
Indikator
Ranking
DB 2017 DB 2018
Indonesia’s DB Rank 91 72
Starting a Business 151 144
Dealing with Construction Permits
116 108
Getting Electricity 49 38
Registering Property 118 106
Getting Credit 62 55
Protecting Minority Investors
70 43
Paying Taxes 104 114
Trading across Borders 108 112
Enforcing Contract 166 145
Resolving Insolvency 76 38
91 72
78
4
Indonesia keep showing a progressive performance
toward business environment Indonesia
Investment Grade from International
Credit Rating Agencies
BBB- / Stable Baa3 / Positive BBB- / Positive BBB- / Positive
BBB- /Positive BBB/ Stable
The Investment Coordinating Board of the Republic of Indonesia
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World Economic Forum: the Global Competitiveness Report
Indonesia increase its competitiveness rank from 41st to 36th
Indonesian Competitiveness
The Investment Coordinating Board of the Republic of Indonesia
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Investment Performance in Indonesia
INVESTMENT TARGET AND REALIZATION
The Investment Coordinating Board of the Republic of Indonesia
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12015 2016 2017 2018 2019 Total
FDI 343.7 386.4 429.0 476.5 569.9 2,205.5
DDI 175.8 208.4 249.8 288.5 363.0 1,285.5
Total 519.5 594.8 678.8 765.0 932.9 3,491.0
Growth 12.2% 14.5% 14.1% 12.7% 8.1%
(IDR trillion) Excl. Financial Sectors and Upstream Oil and Gas
Strategic Plan of Investment 2015-2019
Investment Target total investment targetedin 2015-2019
113% increasefrom 2010-2014 period(IDR 1,632.8 trillion)
66.0 % average shareof total investment target in 2015-2019
FDI2015-2019
DDI2015-2019
IDR 3,491 trillion
34.0 % average shareof total investment targetIn 2015-2019
12.3%targeted in 2015-2019 periodaverage growth
Source: BKPM, 2018
Investment Target
The Investment Coordinating Board of the Republic of Indonesia
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Source: BKPM, 2018
Japan is the 2nd biggest investor in Indonesia
FDI Realization by CountryBased on Capex , not including financial, oil & gas sectors (US$ million)
No Country 2010 2011 2012 2013 2014 2015 2016 2017 Total
1 Singapore 5,565 5,123 4,856 4,671 5,832 5,901 9,178 8,441 49,569
2 Japan 713 1,516 2,457 4,713 2,705 2,877 5,400 4,996 25,377
3 USA 931 1,488 1,238 2,436 1,300 893 1,161 1,992 11,439
4 South Korea 329 1,219 1,950 2,205 1,127 1,213 1,065 2,024 11,132
5 Netherland 608 1,354 967 928 1,726 1,308 1,475 1,489 9,855
6 Malaysia 472 618 530 711 1,776 3,077 1,115 1,213 9,513
7 China 173 128 140 298 800 628 2,665 3,361 8,194
8 Hong Kong 566 135 310 376 657 937 2,248 2,116 7,345
9British Virgin
Islands1,616 517 856 786 624 731 1,157 844 7,130
10 UK 276 419 934 1,076 1,588 503 306 774,8 5,878
Total 10 Countries 11,249 12,517 14,283 18,199 18,135 18,068 25,775 27,251 145,432
Total (123 Countries) 16,215 19,475 24,565 28,618 28,530 29,276 28,964 32,239 207,848
The Investment Coordinating Board of the Republic of Indonesia
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Investment Realization Jan-Dec 2017Investment in Indonesia
692.8Rp. Trillion (US$
53.2 Billion)Investment Realization
+13.1%Investment
Growth (y/y)
+ 21.3%DDI Growth
(y-o-y)
+8.5%FDI Growth(y-o-y)
Economic Policy Packages I – XV
Phase I, 9 Sept ‘15Improving national industry competitiveness
Phase III, 7 Oct ‘15Financial services facilitation, export financing and
elimination of business unnecessary burden
Phase IV, 15 Oct ‘15Social safety net and betterment of people welfare
Phase V, 22 Oct ‘15Improving industry and investment climate through
tax incentives and deregulating of sharia banking
Phase VI, 6 Nov ‘15Stimulating economic activities in border areas and
facilitating strategic commodities availability
Phase VII, 7 Dec ‘15Stimulating business activities in labor-intensive
industries nation-wide through incentives in the form
of accelerating land certification process for
individuals
Phase VIII, 21 Dec ‘15Resolving land acquisition disputes, intensifying
domestic oil production, stimulating domestic parts
and aviation industries
Phase II, 29 Sept ‘15Easing permit requirement and simplifying export
proceeds requirement
Phase IX, 27 Jan ‘16Accelerating electricity generation, stabilizing
meat prices and improving rural –urban
logistics sector
Phase X, 11 Feb ‘16Revising Negative investment List and
improving protection for SMEs
Phase XI, 29 Mar ’16Stimulating national economy through
facilitation to SMEs and industries
Phase XII, 28 Apr’16Improving Indonesia’s rank on Ease of Doing
Business (EODB)
Phase XIII, 25 Aug ’16The reduction of bureaucracy to boost the
construction of low-cost housing for the poorer
segments
Phase XIV, 10 Nov ’16E- commerce Road Map that focuses on providing
facilities and incentives to e-commerce and
creative industries
Phase XV, 15 Jun ’16Focused on national logistics system
improvements to accelerate business development
and competitiveness of national logistics sectors
Packages Milestones:
9 REGULATION
REVOKED
49NEW
REGULATION
31REGULATION
REVISED
To reduce economic barriers
To accomodate new government
policy
To eliminate certain conditions that
hamper economic growth
89 REVOKED OLD REGULATION
35 REGULATION
MERGED
To simplify license and regulation
To addjust old irrelevant regulation
Objective of Reform - 15 Economic Policy Packages: To improve the competitiveness of national industries, exports and investments.
Rationalization (harmonization and streamlining) of regulations, simplifying bureaucratic process and ensuring law enforceability.
These packages cover deregulation of 222 regulations of 167 ministries/agencies and 52 regulations at the Presidential level.
Taskforce To Monitor Economic Policy Packages
Taskforce on the Acceleration and
Efficacy Implementation
of Economic Policies
Policy Campaign
(Chaired by Minister of
Trade)
Compliance
(Chaired by Chief of
Presidential Staff)
Regulatory Impact
(Chaired by Senior Deputy of Bank Indonesia)
Damage Control Channel/The Bottleneck
(Chaired by Minister of Law and Human
Rights)
NOWORKING
GROUPFUNCTION
1 Policy Campaign
Campaign, socialization, dissemination, roadshow, business matching, CEO meeting, talk show/dialog
2 Compliance Completing all of the regulation and technical regulation necessary for the implementation ofeconomic deregulation
Ensuring the regulation compliance
3 RegulatoryImpact
Observing, analyzing, and evaluating the implementation of policy/regulation and impact
Reviewing for the “next” deregulation
4 Damage Control Channel/The Bottleneck
As an complaint channel for the implementation of deregulation policy
Handling the cases related to the implementation of deregulation policy
5 Supporting Unit
Supporting the administration of the working group Coordinating with the ministry/board and local
government Business clinic and public private consultation for
testing the policy effectiveness
To monitor the implementation of economic policy packages, the Government established Task Forces
on the Implemention Acceleration and Efficacy of Economic Packages
The Investment Coordinating Board of the Republic of Indonesia
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ECONOMIC POLICY PACKAGE XVI:
PRESIDENTIAL DECREE NO. 91/2017 ACCELERATION OF DOING BUSINESS
Acceleration of Doing Business Policy: Regulation Framework
PRESIDENTIAL DECREE
NO. 91/2017ACCELERATION OF DOING BUSINESS
Online Single Submission (Integrated Business Licensing) System)
PH
ASE
1P
HA
SE 2
Safeguarding Issuance of the Licenses (end to end)
Licenses Checklist System
Reform of Business Licenses Regulation
Trial System
Roadmap OSS
Data Sharing of license
Concept of Doing Business Policy
Paradigm shift
From regulator to civil servant
Safeguarding Issuance of the
Licenses(end to end)
Establish task forces to ensure issuance of business permits in all government level
(Central, Provincial, and District)
Reform of Business Licenses
Regulation
Simpler, faster, cheaperand more accurate
Licenses Checklist System
Investor can start their business activity in SEZ, FTZ, Industrial Zone, and Tourism Zone
without completing permits in the beginning
Data Sharing of license and its requirements
Eliminate redundancy/repetition of license and recommendation
Including for SMEs
Integrated System
Online Single Submission
1. 2a.
2b. 3. 4.
A Breakthrough On Investment Services (1)
Starting January 2018
Pemerintahan Daerah
Penanaman Modal
Pelayanan Publik
persiapan
PERIZINA
N DAERAH
PERIZINAN
TEKNIS
InvestmentRegistration+ 7 Licenses*
+ Register Statement
Letter
For Investment Projects in KEK/KPBPB/KI/KSPN
Technical
Permits
2 Regional
Permits
* Notes:1. Notary deed and
legalization from MoLHR,
2. Tax ID/NPWP, 3. Foreign Worker
Plan/RPTKA, 4. Foreign Worker
License/IMTA, 5. Company
registration/TDP, 6. Import Identification
Number/API, 7. Customs ID/AKSES
KEPABEANAN
IN PARALEL
Preparation Construction Production1 2 3
Import Duty Facility
Tax Allowance
Tax Holiday
INVESTMENT FACILITY BUSINESS LICENSE
A Breakthrough On Investment Services (2)
Starting January 2018
Pemerintahan Daerah
Penanaman Modal
Pelayanan Publik
persiapan
PERIZINA
N DAERAH
PERIZINAN
TEKNIS
InvestmentRegistration+ 3 Licenses*
For Investment Projects Located Outside KEK/KPBPB/KI/KSPN
Technical
Permits
2 Regional
Permits
* Notes:1. Notary deed and
legalization from MoLHR,
2. Tax ID/NPWP, 3. registration/TDP,
Preparation Construction Production1 2 3
Import Duty Facility
Tax Allowance
Tax Holiday
INVESTMENT FACILITY BUSINESS LICENSE
Acceleration Doing Business Policy: ONLINE SINGLE SUBMISSION
The licenses data of all ministries/agencies and local governments are managed in singleintegrated licenses service system
Single submission of data and information
Single and synchronous processing of data and information
Single decision making on the issuance of business licenses
will be applied on 1 March 2018 simultaneously
Sistem OSS
SKPD PemprovSKPD Pemkab/
Pemkot
Investor
K/L
Lainnya
PTSPFront line
The Investment Coordinating Board of the Republic of Indonesia
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Badan Koordinasi Penanaman Modal
(BKPM)Indonesia Investment Coordinating Board
Jalan Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesia
C all center : 0807 100 2576 (BKPM)
www.bkpm.go.ide . [email protected]
Thank YouTerima Kasih
Indonesia Investment Promotion Centre (IIPC)