Breakthrough to Solve Investment Issue Will Continue, says Jokowi

Breakthrough to Solve Investment Issue Will Continue, says Jokowi

Eventhough deregulation and debureaucratization packages through First Phase Policy Package on 9 September and Second Phase Policy Package on 29 September have been launched, President Joko‘Jokowi’ Widodo ensured that his administration would continue the breakthrough to solve the investment issues.

“The breakthrough to solve the investment issues will continue,” President Widodo said on his facebook fanpage on Tuesday (29/9).

The President also said many times that actually many investors wanted to invest in Indonesia but the investment regulation in Indonesia made them leave the country.

“Just imagine. An investor is required to meet 10 procedures which take 52.5 days to start running their  business while in Singapore, they only have to meet 3 procedures within 2.5 days,” President Widodo said.

According to him, the focus of the Economic Policy Package of September Phase II was to simplify the procedures and the investment licensing service. For instance, the investment licensing process in industrial area is cut from 8 days to 3 hours. Meanwhile, the licensing process in environment and forestry sector is cut from 14 to 6 licenses.

“The investment licensing process in industrial area is cut from 8 days to 3 hours,” President Joko Widodo said in his twitter account @jokowi posted on Tuesday (29/9) evening.

As previously reported on Tuesday (29/9) afternoon, the Government announced the Second Phase Policy Package.

It is expected that the new policy package will be easy to implement, understood by the public and more effective and efficient.

Meanwhile, Coordinating Minister for the Economy Darmin Nasution said that there are two kinds of the investment license in the Second Phase Policy Package, namely license for the investment in the industrial area and outside industrial areas.

In the existing regulation for the investment outside industrial area, Darmin added, it takes 8 days for obtaining a business entities license and 526 days for having 11 licenses to do construction, etc.

“Through the amendment of the September Phase II regulation, the business entities license and the other 11 licenses for the investment in industrial area are not treated as a license anymore but only as a standard or a requirement,” Darmin said.

The Minister explained, for instance, a license for environment. The Government has given the license for environment in the industrial area so that the investment in the area does not require a license anymore.

“The license applicant is given quality standards. He/she should meet that standard. Then, the applicant puts a signature as his/her commitment to the standard,” he noted.

Therefore, after a number of licenses are changed into a standard or a requirement, the Minister added, the duration to obtain an investment permit in the industrial area would be faster, which is only 3 hours. After that, he/she can start working.

“This means that the Investment Coordinating Board (BKPM) should hire its own notary because it will take a long time if the investors have to go to another notary. So, if BKPM appoints an in-house notary or make a contract with a notary, everything can be processed immediately as long as the investor comes and meets the notary,” Darmin explained.

In addition, he said that in 3 hours, the investor has received the investment license. Beside the investment license, BKPM has also taken care of the company’s name, the deed of incorporation and the validation from Ministry of Law and Human Rights as well as tax identification number (NPWP).

In forestry sector, Ministry of Environment and Forestry has cut the investment licensing process significantly. The process is cut from 2-4 years to 12-15 days.

“Currently, 14 licenses are cut into 6 licenses in Ministry of Environment and Forestry that will involve in the revision of 9 Ministerial regulations of the previous Minister of Environment and Forestry,” Minister of Environment and Forestry Siti Nurbaya said to reporters at the Presidential Office, Jakarta, on Tuesday (29/9) afternoon.

The Minister said that there are two licenses for using forest area namely license for exploration and production operation. This pemit is usually used for mining, coal production, etc. Now, we combine the license becomes one license which is a license for using forest area.

“Exploration license actually only takes 3-5 days while for production license only takes no later than 12 days,” Siti noted.

Related to the requirement about a regional recommendation from the Governor, the Minister explained that according to the Laws, currently the forest license is given to the Governor.

”So, we give the Governor a deadline no later than 4 days. If the Governor does not give the recommendation, we will manage it,” she stated.

“Therefore, licensing process to use forest area can be shortened into 12 days or no later that 12-15 day,” Siti added. (ES) (JS/EP/YM-Naster/Sy)