Bahlil: No More Falsity in Investment Licensing

The Chairman of the Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia gave direct guidance to the Heads of the Regional One-Stop Integrated Investment Service (DPMPTSP) throughout the Provinces/Regencies/Cities in Indonesia at the Central-Regional Policy Harmonization Meeting for Equal Investment held at the Ritz Carlton - Pacific Place, Jakarta on 19 February 2020. This meeting was a preliminary meeting held one day before the 2020 National Investment Coordination Meeting (Rakornas) on 20 February 2020 with the theme “Investment for Onward Indonesia”.

“This is my first meeting with Heads of DPMPTSP throughout Indonesia since being appointed as Chairman of BKPM,” Bahlil said opening the event, furthermore emphasized the forum focused on building synergy between BKPM and DPMPTSPs.

“Our conclusion today will be conveyed to Mr President tomorrow. We can’t be strong if we are not unified. Eliminate central or provincial arrogance. We would not be successful if we don’t cooperate,” Bahlil said, opening the event.

In accordance to the BKPM’s success in exceeding the 2019 investment realization target as much as 102.2% or IDR 809.6 T of the based target set at IDR 792 T, Bahlil mentioned that it was the result of the Regional DPMPTSPs hard work.

Bahlil also revealed that managing investment is not enough only by promotion. The stalled investment of Rp. 708 T was mainly caused by sectoral arrogance between Ministries/Institutions (K/L), overlapping central and regional regulations as well as problems in the field. “There are many ghost problems in the field, ghosts with ties. This can be solved by people who have been part of the group. Because I understand it, then I can solve it. Thank God, within 3 months, we have resolved almost Rp. 200 T”, Bahlil said.

Investment has an important role in economic growth, creating jobs and impacts on income security as well as increasing consumption of the community. “The fact that there are currently around 7 million unemployed people, and every year the workforce increases by 2-3 million. There is no other way, the investment must be increased,” Bahlil added.

As a follow-up to Presidential Instruction No. 7/2019 in the context of accelerating ease of doing business, currently there are K/L liaison officials who are stationed at BKPM. So after the company obtains a Business Identification Number (NIB), investors do not need to go back and forth to the K/Ls to get notifications, including matters of fiscal incentives such as Tax Holiday, Tax Allowance, and exemption from import duty on capital goods. “Now it is clear, so NIB is obtained through OSS, the notification can be directly on BKPM. We are managing the NSPK. There will be no more falsities later,” Bahlil stressed.

Furthermore, in the context of optimizing the role of regional governments in accelerating the ease of doing business in the regions, permits in the regions can be granted to DPMPTSP. “I know that there are regions who do not want to give their licensing authority. Indeed, investment licensing is like a water spring becoming tears,” said Bahlil.

The Chairman of BKPM also stressed that the delegation of investment licensing in the regions must be addressed carefully. There must be no corruption and pressure on investors. “If we take care of investors, they will take care of us. As clever as a painter, there must be splashes of paint. As long as you don’t bathe in paint,” Bahlil joked in front of the forum.

In Omnibus Law, BKPM has fought for administrative problems. “So, you don’t need to be afraid of signing the permit, if later in question, we will defend it,” Bahlil said.

The Chairman of BKPM then asked to hold joint discussions to agree on commitments in the framework of accelerating and equitable investment which will be reported directly to President Jokowi during the Rakornas 2020. “I am ready to become your spokesman in front of the President, Governor, Regent, Mayor and Ministers” Bahlil promised.

The Rakornas 2020 on the next day was opened by Indonesian President Joko Widodo with speakers including the Coordinating Minister for Maritime and Investment Affairs, the Coordinating Minister for Economic Affairs, the Minister of Home Affairs, the Minister of Cooperatives and SMEs, the Minister of BUMN, the Chief of Indonesia National Police (Kapolri), and the Attorney General.

The agenda included the signing of MoU between the Chairman of BKPM and the Chief of Indonesia National Police regarding Security Assistance and Problem Resolution in the Investment Sectors. The MoU signifies the government’s commitment to providing legal certainty, security and comfort for investors. “There are people who like to oppress in the field. It is hoped that it will not be complicated but made easier by the existence of this MoU,” Bahlil said.

Meanwhile, BKPM’s Main Secretary Andi Maulana also added that in the Rakornas 2020, BKPM would like to synergize the implementation of Presidential Instruction No. 7 of 2019 concerning Acceleration of Ease of Business which requires all Ministry/Institution Heads to delegate business licensing services and investment facilities to BKPM. Andi Maulana also emphasized the importance of the MoU to be part of BKPM’s ‘weapon’ in solving investment problems in the regions and providing convenience, certainty and security for investors.