Indonesia is now transformed into one of the country's favourite investment destinations. With a large population, natural resources are still abundant, rising purchasing power, plus demographic bonus, making Indonesia like a ' beautiful girl ' in the eyes of investors.
Of course, there is not an easy to make Indonesia the main choice of investment. A long journey investing in Indonesia now have reached the age of 50 years.
Started when Constitution Number 1 Year 1967 regarding foreign capital investment, and Constitution Number 6 Year 1968 regarding domestic capital investment put in place.
At that time, in the new order era, the Government formed a body of Foreign Capital Investment Considerations (BPPMA) as set out in the Decree of the Presidium of the Cabinet Number 17 in 1967. Then, over time, Constitution Number 20 Year 1973, concerning the establishment of The Investment Coordination Board (BKPM).
But in the era of reform, to expedite the development of the national economy, realize the political and economic sovereignty of Indonesia, as well as to deal with the changing global economy, the Government issued Constitution Number 25 Year 2007 about Investment. Beleid was born in order to created a conducive investment climate, legal certainty, fair, and efficient.
The current head of BKPM, Thomas Lembong, argued that the presence of a proven investment pushed Indonesia's economic wheel. A year after the Investment Constitution enacted, Indonesia's economic growth reached 10.9 percent. And in 1970, Indonesia managed to suppress inflation to under 10 percent.
Of course, in the past 50 years the investment tap is opened, investments are experiencing ups and downs. Mainly due to social and political turmoil in domestic and global conditions. For example, when the political crisis whack in 1998, economic drop and stagnant investment. Post-war reform of 1998, the social conditions of domestic politics in Indonesia that is still not stable making investors doubt infusing capital.
However, slowly but surely, the BKPM was moving fast by doing coordination with ministries and other institutions, as well as pushing the friendly investment regulations. BKPM work actively with any open representative offices in eight countries to convince investors that Indonesia is the right choice to invest. The eight countries, among others, Singapore, Japan, Taiwan, United Arab Emirates, Australia, United Kingdom, United States, and South Korea.
Repairs carried out simultaneous, among others since the year 2004 system simplifies service conducting capital investment through a system of One-Stop Services (PSA) for service approval, licensing and facility investment for foreign and domestic, centralized and implemented by BKPM. that was then enhanced with National One Door Integrated Service (PTSP) based on Presidential Regulation Number 97 Year 2014. And this time, the PTSP Center of BKPM has received the approval from 22 ministries and agencies to publish licensing as well as putting Liaison Officer (LO) in the center of the PTSP Center of BKPM.
Another breakthrough in the year 2016, BKPM gave a 3-hour Licensing Service, as part of a package of Economic Policies Vol. II, which was launched by the Government. This service was subsequently further developed, by publishing 8 product licensing, plus 1 letter booking ground (if required), i.e. the investment Licence, the tax payer ID (TAX ID), deed establishment of the company and the decison of the Ministry of Justice and Human Rights, company list (TDP), permit of foreign worker (IMTA), plan the use of foreign labor (RPTKA), identifier number of the manufacturer importer (API-P), and the number of customs carriers (NIK).
In addition, the BKPM also provide Direct Construction Investment Service (KLIK) for investor/investors that its investments are in the areas of certain industries.
In fact, to make it easier for new companies who are doing construction project investment, the government launched the green line facilities to import capital goods with just takes 30 minutes. So the imported machine can be immediately used on the schedule are planned.
Not surprisingly, the value of any investment continues to rise. The 2012-2016, the value of total Foreign Direct Investment (FDI) inflows reached USD 139.8 billion or approximately Rp 1,561.1 trillion, which is derived from the new project of Rp 1,094.2 trillion and project expansion Rp 466 trillion. Meanwhile, the Local Investment (PMDN) inflows in the same period reached Rp 772.2 trillion, which is derived from the new project of Rp 502.5 trillion and project expansion Rp 269.7 trillion.
As for the third quarter until 2017, the realization of Foreign Direct Investment (FDI) in Indonesia reached Rp 318.5 trillion, which is derived from the new project Rp 261.4 trillion and from expansion project amounting to Rp 57.1 trillion. While the realization of investment reached PMDN Rp 194.7 trillion, which comes from new projects amounting to Rp 150 trillion and expansion project Rp 44.7 trillion.
Improvement done BPKM, making Indonesia the country fourth top investment destinations of multinational corporations, according to a survey conducted by the United Nations on Trade and Development (UNCTAD). Whereas in the World Investment Report in 2017, Indonesia managed to rise four rankings sped from the previous year, after the United States ranks first in China in the second place, and India in third position.
Indonesia also reached the ranking of competitiveness to the 42 according to The 2017 IMD World Competitiveness Year Book, jump 6 level than the previous survey year 2016. The third stage of the country with the best Prospects for international business (JBIC, 2016). While based on the results of the survey, the World Economic Forum ranked Indonesia in rank 41 to Global Competitiveness Index -2015-2016 (WEF, 2016-2017).
This investment prospects of improvement are also marked Indonesia's debt rating by S&P be Investment Grade. Currently, there are four debt-rating agencies in the world was recorded already ranks Investment Grade for Indonesia, namely Investment Grade Baa3 with a projection of ' positive ' (Moody's, February 2017), Investment Grade BBB-with the projection of the ' positive ' (Japan Credit Ratings (JCR), March 2017), the Investment Grade rating of BBB-with Stable ' projection ' (Standard Poor's &, may 2017), and the Investment Grade BBB-with the projection of the ' positive ' (Fitch Ratings, July 2017).
Continuous improvement done by BPKM perceived Suhat Miyarso, Director of PT Chandra Asri. The management process changes permissions on the BKPM, making businessmen have certainty of the time, if all the requirements are already met. Said Suhat, with the online process, the document will not be lost because the stored well and easy to find.
"By having the system online and tracking system, we can immediately know if there were delays because there are terms that are not yet complete. Now, the process of filing documents online is much simpler, easier, and faster, "said Suhat.
Seung Hwa Suh, Global CEO & Vice Chairman of Hankook Tire, also agree. BKPM always give input to the Hankook Tire in each step of the decision making process of investment, so that gives confidence to make a final decision to invest in Indonesia. "Hankook Tire is eager to contribute to the economic growth of Indonesia," said Seung Hwa Suh
Over the past 50 years, the BKPM has done a variety of innovations and improvements in the various establishments to provide the best service to candidates and foreign investor in the country in Indonesia.
