View
6
Download
0
Category
Preview:
Citation preview
INDONESIA INVESTMENT COORDINATING BOARD
© 2016 by Indonesia Investment Coordinating Board. All rights reserved
Saribua SiahaanDirector
Investing in
INDONESIAIndonesia Investment Seminar| Tokyo, December 13th, 2016
The Investment Coordinating Board of the Republic of Indonesia2
Appealing
INDONESIAThe new Investment Guidelines 2016 (Presidential Regulation No.44/2016):
• More open to investment
• Simpler investment procedure
• More protection for investors
• Easier to understand
WHEREON EARTH
Economic reforms: Openness &
Competitiveness
The Investment Coordinating Board of the Republic of Indonesia3
More open to investment• More business fields open to 100% FDI.• Less business fields open with condition,
reduced from 664 to 515.• More business fields open to foreign
majority share ownership (>50% FDI).• Less business fields reserved for domestic
investment, reduced from 66 to 51.
Simpler investment procedure• No more technical approval from other
ministries or institutions.• No more conditions related to regional
government.• Special Economic Zones (SEZs) are
excluded from the negative list, except for business fields allocated for SMEs.
Investment Guidelines 2016
The Investment Coordinating Board of the Republic of Indonesia4
More protection for investors• Facilitation of the National Team for the
Enhancement of Exports and Investments (Timnas PEPI) in monitoring, evaluation and issue settlement.
• Prohibition of the establishment of contrary regulations issued by regions, ministries, or agencies.
Easier to understand• Maximum share of FDI are simplified and
in line with the Company Law in Indonesia.• Three categories of business fields:
1. Closed for investment;2. Allocated for SMEs and partmership;3. Open with conditions.
Investment Guidelines 2016
The Investment Coordinating Board of the Republic of Indonesia5
Reducing logistic costsInvestment Guidelines 2016
100% FDIDistributoraffiliated with
production 67% FDI for distributor
without affiliation
67% FDITransport
infras. & servicesIncluding cargo
handling, air transport, renting & leasing
2010 2014
SeaPassenger (million) 37 44
Goods (million tons) 856 1,040
RailPassenger (million) 203 278
Goods (million tons) 19 33
AirPassenger (million) 58 85
Goods (million tons) 0.6 0.8[Source: Indonesian Statistics Center, 2016]
100% FDICold
storageFrom previously
33% FDI
67% FDIWare-
housingFrom previously
33% FDI
The Investment Coordinating Board of the Republic of Indonesia6
Stimulating retailsInvestment Guidelines 2016
67% FDIwith 400-2,000 m2
of retail areaFrom previously
closed to FDI.Requirements:• Licence from Ministry of
Trade;• Located inside a
shopping mall;• Outlet store expansion
based on export performance.
Large & Growing Market• In Southeast Asia, Indonesia represents 41% of
its 618 million population and 34% of its 190 million middle-income class.
• By 2030, there will be 135 million members of the consuming class in Indonesia.
• This offers USD1.3 trillion of market opportunity in consumer services.
[Source: McKInsey, 2012. BCG, 2015. ]
Department Store
100% FDIwith >2,000 m2
of retail area
The Investment Coordinating Board of the Republic of Indonesia7
Developing film industryInvestment Guidelines 2016
Large & Growing Market• By 2030, 135 million consuming class offer USD105 billion market in entertainment.• Box office market is increasing, the 16th largest in the world (USD300 million).Big Opportunity• 0.4 screen per 100,000 population, compared to China (1.8) and India (0.9).• Screens are not well distributed, 87% of screens are located in Java Island.Promising Talents• More than 50 companies in film making and 30 companies in animation.• More Indonesian films get global recognitions and attract millions of viewers.[Source: McKinsey, 2012. MPAA, 2015.]
100% FDIFilm Industry
Production, post-production,
distribution, exhibition
The Investment Coordinating Board of the Republic of Indonesia8
Improving skillsInvestment Guidelines 2016
67% FDISkill trainingFrom previously open to 49% FDI
Large & Young Population• 60% of Indonesia’s 255 million population are
in working age.• In 2020-2030, the dependency index will be
the lowest (demographic bonus).
Growing Vocational Education50% enrolment in technical and vocational education schools in 2015, up from 43% (4 million students) in 2012.
Increasing Budgets• Government’s annual budget for education
has been increasing exponentially since 2008.• From USD12.7 billion (2008) to USD33.4
billion (2015).[Source: Oxford Business Group, 2015]
The Investment Coordinating Board of the Republic of Indonesia9
Boosting Tourism
67% FDI•Museum & historical
site management •Travel bureau•Catering•1-2 star hotel•Billiard, bowling, golf•Art gallery & theatre•Karaoke•Meetings, Incentives,
Conferencing, Exhibitions (MICE)
•Natural tourist attraction
100% FDI•3 or more star hotel •Restaurant, bar, cafe•Sport center•Swimming pool
Investment Guidelines 2016
*) Projection. [Source: Ministry of Tourism RI, 2016]
2014 2015 2019*
Contribution to GDP 9.3% 10% 15%
Foreign tourists (trips) 9.4m 10.4m 20m
Domestic tourists (trips) 251m 255m 275m
The Investment Coordinating Board of the Republic of Indonesia10
Toba Lake
Tanjung Kelayang
Kepulauan Seribu
A. SEZ Tanjung Lesung
Borobudur
Bromo Tengger Semeru
B. SEZ Mandalika Komodo
WakatobiC. SEZ Morotai
Investment Opportunities
10 National Strategic
Tourism Areas
The Investment Coordinating Board of the Republic of Indonesia11
Improving
INDONESIAOne-stop service for investment
3-hour service and direct construction
Simplification of licensing
Pro-investment policy reforms
Bonded logistics centers
34 provinces & 514 regions,
decentralized
WHEREON EARTH
One-Stop Service
(PTSP) at BKPM
One place
22 ministries integrated
3-hourService
DirectConstruction
91%Regional PTSP formed. 61% regional PTSP
implement e-licensing.
Industry, power, oil & gas, tourismat one place
All sectors
167 permits are delegated
to BKPM One-Stop Services
Investment Service Reforms
The Investment Coordinating Board of the Republic of Indonesia13
BKPM
• Arrive at One-stop Service at BKPM directly from the airport.
• Consult with Director of Investment Service.
• Submit the required documents & data.
3-hour ServiceAvailable for investors with minimum
investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers.
8 documents obtained
Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions.
Obtain eight documents & letter of land availability within three hours to start your business.
Certainty to work• RPTKA / Employment plan• IMTA / Working permit
Certainty to start a business• Investment license• Certificate of incorporation• NPWP / Tax registration• TDP / Company registration
Certainty to import capital goods• APIP / Import identification• NIK / Customs registration
Accurate land Information• Letter of land availability
Investment Service Reforms
The Investment Coordinating Board of the Republic of Indonesia14
Direct ConstructionNo Requirements
• No minimum investments or workers is required. • Available for selected industrial parks. • Construction permits can be obtained in parallel
with construction process. Investors can directly start their project construction before obtaining construction permits. This service is
supported by both Central and Regional Governments.
Obtain investment licence at One-stop Service (PTSP) at national or regional level.
• Survey a land within selected industrial parks.
• Acquire the land for your industry.
• Start the construction of your project. No other permits are required.
• Apply for building construction permit & environmental permit, in parallel with construction process.
Investment Service Reforms
The Investment Coordinating Board of the Republic of Indonesia15
Pro Investment Policy
Projectable Wage System
Setting Provincial Minimum Wage
regulation. Formula to ensure stable and projectable wage
adjustments.
Policy Reforms
Lower Fuel & Electricity Prices
Lower retail fuel costs, gas & electricity prices for factories & qualified
industries.
ImprovedEase of
Doing BusinessMore certain, simpler,
faster, and cheaper
Tax IncentivesFree VAT for transport
industries, including spare parts. Income tax (PPh21)
incentive for labor intensive industry.
Acceleration of Land Licensing
Simplifying spatial license& land accomodation.
Speeding up land registration. Electronic
system.
The Investment Coordinating Board of the Republic of Indonesia16
Easing export & importCompanies can store their export/import products and obtain customs, tax, and other facilities
Improving logistics distribution • For domestic & regional market• Cheaper storage, freight and port handling costs• Bring the products closer to consumers
11 locationsIn Java, Bali & Kalimantan
Bonded Logistics CentersPolicy Reforms
Java, Bali & Kalimantan are three
of main islands.
WHEREON EARTH
The Investment Coordinating Board of the Republic of Indonesia17
New Seaport in Wasior, Papua Province (in picture) was finished in April 2016.
New seaportsto be finished by 2019163
Infrastructure Development
Wasior, West Papua
WHEREON EARTH
The Investment Coordinating Board of the Republic of Indonesia18
New Mopah Airport in Merauke, Papua Province (in picture) is finished in 2015.
New airportsto be finished by 201915
Infrastructure Development
Merauke, Papua
WHEREON EARTH
The Investment Coordinating Board of the Republic of Indonesia19
New toll-roadsto be finished by 20191,000 km
Progress of Trans Sumatra toll road (in picture). Until 2019, 119 miles of toll-road will be built in Sumatra.
Infrastructure Development
WHEREON EARTH
Sumatra, the second most
populous island
The Investment Coordinating Board of the Republic of Indonesia20
New railwaysto be finished by 20193,250 km
Progress of Trans Sulawesi railway (in picture). Trans Sulawesi (145 km - Phase I) Makassar to Pare-pare (145 km) will be finished in 2016.
Infrastructure Development
WHEREON EARTH
Sulawesi, the fourth most
populous island
The Investment Coordinating Board of the Republic of Indonesia21
New railwaysto be finished by 20193,250 km
Jakarta MRT (21.5 km – North/South) will be finished in 2017 (in picture). Progress 38% per January 2016.
Infrastructure Development
WHEREON EARTH
Jakarta,the capital city
The Investment Coordinating Board of the Republic of Indonesia22
New dams to be finished by 201949
Jatigede Dams which irrigates 90,000 farmlands in West Java is finished in 2016 (in picture).
Infrastructure Development
WHEREON EARTH
West Java, one of concentrations of
farmland
The Investment Coordinating Board of the Republic of Indonesia23
Indonesia Investment
Promotion Centre (IIPC) Tokyo
Fukoku Seimei Building 16F2-2-2, Uchisaiwai-cho,
Chiyoda-ku, Tokyo 100-0011 Japan
t . +81 3 3500 3878
f . +81 3 3500 3879
e . bkpm521@bkpm-jpn.com
www.bkpm.go.id
Thank YouTerima Kasih
Director Indonesia Investment Promotion Center in TokyoMr. Saribua Siahaan, juicesiahaan@yahoo.com
Deputy Director Indonesia Investment Promotion Centre in TokyoMr. Arismunandar, arismunandar@bkpm.go.id
Recommended