Indonesia may surpass investment target

Thursday, 16 September 2010

The Jakarta Post

Buoyed by the economy’s performance in the first half of 2010, the Investment Coordinating Board (BKPM) is upbeat Indonesia will meet its 2010 investment target — worth Rp 160.1 trillion (US$17.77 billion).

The combined value of realized investment from domestic and foreign investors could reach Rp 180 trillion, since the first half had seen Rp 92.9 trillion already, a 39.9 percent increase over the same period last year, BKPM chairman Gita Wirjawan said Wednesday.

The total realized foreign direct investment stood at Rp 71 trillion in the first half, up by 46 percent year-on-year.

“We don’t see any reason why this year’s target cannot be met. We are optimistic,” he said after the signing of an agreement to synchronize regional investment services between the investment board and the Administrative Reforms Ministry and the Home Ministry.

To secure the annual target, the BKPM was moving forward by synchronizing regional investment services by accelerating the introduction of one-stop facilities for investments (PTSP), with branches in all provinces and municipalities, hence the agreement with the two ministries.

The one-stop facilities utilize an integrated information technology system called SPIPISE, which connects investment services.

“All potential investors will be able to obtain investment permits directly from the regional governments,” Gita said.

According to the BKPM, 17 of the 33 provincial governments had issued governor decrees on the mandatory implementation of PTSP facilities, and the remaining administrations would soon issue similar decrees.

Meanwhile, 15 of the 40 targeted municipalities had issued decrees on the mandatory implementation of the national single window for investment.

“From now on, all governors, regents and mayors should issue investment permits using the national single window for investment,” Home Minister Gamawan Fauzi said after signing the agreement.

In the past, the issuance of investment permits had been prone to abuses of power at a regional level, Gamawan said.

“By making the issuance of investment permits into a system, we hope to prevent this procedure from being exploited negatively in the future,” he said.

The government, Gamawan said, would harmonize regional investment promotions in response to complaints from overseas Indonesian representatives saying too many regional governments’ investment promotions were not coordinated properly.

“We should carry out investment promotion in a more effective and coordinated way,” he said.

Meanwhile, Administrative Reforms Minister E. E. Mangindaan said the government would impose sanctions on heads of regional governments who refused to implement regulations as stipulated in the 2009 Law on Public Administration. He did not provide any details on the sanctions. (ebf)

Buoyed by the economy’s performance in the first half of 2010, the Investment Coordinating Board (BKPM) is upbeat Indonesia will meet its 2010 investment target — worth Rp 160.1 trillion (US$17.77 billion).

The combined value of realized investment from domestic and foreign investors could reach Rp 180 trillion, since the first half had seen Rp 92.9 trillion already, a 39.9 percent increase over the same period last year, BKPM chairman Gita Wirjawan said Wednesday.

The total realized foreign direct investment stood at Rp 71 trillion in the first half, up by 46 percent year-on-year.

“We don’t see any reason why this year’s target cannot be met. We are optimistic,” he said after the signing of an agreement to synchronize regional investment services between the investment board and the Administrative Reforms Ministry and the Home Ministry.

To secure the annual target, the BKPM was moving forward by synchronizing regional investment services by accelerating the introduction of one-stop facilities for investments (PTSP), with branches in all provinces and municipalities, hence the agreement with the two ministries.

The one-stop facilities utilize an integrated information technology system called SPIPISE, which connects investment services.

“All potential investors will be able to obtain investment permits directly from the regional governments,” Gita said.

According to the BKPM, 17 of the 33 provincial governments had issued governor decrees on the mandatory implementation of PTSP facilities, and the remaining administrations would soon issue similar decrees.

Meanwhile, 15 of the 40 targeted municipalities had issued decrees on the mandatory implementation of the national single window for investment.

“From now on, all governors, regents and mayors should issue investment permits using the national single window for investment,” Home Minister Gamawan Fauzi said after signing the agreement.

In the past, the issuance of investment permits had been prone to abuses of power at a regional level, Gamawan said.

“By making the issuance of investment permits into a system, we hope to prevent this procedure from being exploited negatively in the future,” he said.

The government, Gamawan said, would harmonize regional investment promotions in response to complaints from overseas Indonesian representatives saying too many regional governments’ investment promotions were not coordinated properly.

“We should carry out investment promotion in a more effective and coordinated way,” he said.

Meanwhile, Administrative Reforms Minister E. E. Mangindaan said the government would impose sanctions on heads of regional governments who refused to implement regulations as stipulated in the 2009 Law on Public Administration. He did not provide any details on the sanctions.