Gain Investment by one stop service

Gain Investment by one stop service

THE Government and the People’s Representative Council (DPR) agreed to widen authority Body of the Investment Coordination (BKPM) as agency to responsible for investment achievement.

Now, BKPM currently wasn’t under auspices of Department of the Trade. But direct under the President.

BKPM became as coordinator policy of investment, coordinator both between the agency of government, the government with the Bank Indonesia (BI), as well as the government with the regional government and intergovernmental area.

BKPM also responsible to advocate investors interest’s who get the problem resolution that was discussed by the investor’s candidate, for example high cost economics.

Agreement to more expansion BKPM authority born from difficult and long debate in each meeting about draft Plan of Investment Constitution between DPR. The Draft of Investment Constitutions will be ratified by the DPR today (29/3).

The expansion of the BKPM authority as one of alternatives answered significance problem in investment. During this time, BKPM difficulty maximising get investment of achievement.

BKPM separation from Department of Trade also was the form of consistency in the implementation of one stop service for investors. Therefore, the procedure of bureaucracy permission will be faster. BKPM optimist could pursue investment target.

Deputy of Promotion Head BKPM, Darmawan Djajusman said, with ratification of Investment Constitution, BKPM optimist can get growth target investment on 2007 until more 15.2 percent compared to 2006.

According to him, foreign investment agreement direct during 2007, could reach US$17,9 billion. “With Constitution Investment, hopefully target be growth. Investment was hoped exceeded 15.2 percent compared to last year,” said Darmawan in Jakarta last Tuesday.

For 2006, BKPM agreed to 1.710 foreign investment projects totally thought US$15,62 billion dollar AS. In meantime, requirement for investment in 2007 reached 94,79 billion US dollar. The head of BKPM Muhammad Lutfi also claimed optimist target

could be reach.

According to him, investment rose because government will give stimulasion towards supreme sectors. Lutfi sure, investment experienced the rise. The government also gave incentive and stimulasion towards supreme sectors.

The government also made a commitment to make no longer sold raw but make half-finished thing in the sector of primary commodity so get added value.

The member of VI Commission DPR, Hasto Kristiyanto said, the BKPM separation from Department of Trade was part bureaucracy reform that was investor hope.

”BKPM must be able to apply form of the under the same roof service, or most united service investment permission through one stop service. So, must breakthrough in order to give service for owners.

Hasto considered the government must answer issue government regulation immediately so can implementation of task BKPM. According to him, Constitutions of Investment indeed gave legal draf for make mor strengthening of the authority BKPM.

But, in the implementation stage as the surrender authority from agencies that were involved in permission with BKPM, still was becoming the problem personally for the climate of investment in Indonesia that also must be answered by the government.

Hasto added, in implementation procces, BKPMD authority can not disrupted to get investment achievement.

However, that must be paid attention BKPM in centre and BKPM regional area. That institutions must be functional connection.

Coordination very weak so must have rule that must be made by BKPM as part of the policy. Beforehand, the BKPM existence just for investment promotion as to be able to not be expected to be able to grasp maximal investment.

Vice Chairman Komisi VI People’s Representative Council the Trade field and the Industry of Agus Hermanto, said, beforehand the investment achievement was more dominant carried out by the Department of Trade.

However, the reality proved if the Department of Trade gaining proven investment not more maximal.

Therefore, expansion BKPM authority as the person responsible for investment hoped could be more maximal in investment achievement target.

Based on data from BKPM, the realisation of investment value on last few years experienced is decline. In January-November 2006, realisation investment value

descended of 45.91 percent compared to 2005.

The realisation of foreign investment (PMA) till November 2006 with 801 projects only reached US$4,69 billion. Now, realisation of Domestic Investment (PMDN) in same period also descended of 37.14 percent or only with a value of Rp16,91 trillion with 145 projects.

While the number of PMA projects descended descended 3.61 percent, and PMDN descended 24.48 percent. Investment was grout during 2005. From January 1 to December 31 2005, realisation of good PMDN investment and PMA reached around Rp 115.3 trillion. Realisation of PMDN investment until Rp 30.66 trillion and PMA as big as US$ 8.91 billion.

From BKPM document, realisation of PMDN investment 2005 totalling 214 projects.

Decline investment value also happened from 2001-2004.

During 2001, the foreign investment agreement reached 1.334, but that was brought about by only 376 projects with the value US$2,79 billion.

In 2002, foreign investment agreement decreased to 1.151 projects, whereas the project that was realised rose to 425 projects with the value US$ 9.52 billion.

Foreign investment agreement on 2003 till September period only achieved 773 projects, whereas the realisation just achieved 338 projects with the value US$ 2.03 billion.

While investment agreement and domestic realisation continued to plummet. In 2001, investment realisation totalling 145 projects with value Rp7,54 trillion, whereas the project agreed by 264 projects.

Further 2002, agreement declined still became 188 projects and the realisation of only 105 projects with the value Rp11,04 trillion. Till September 2003, still achieved 76 projects with a value of Rp5,64 trillion from 143 projects that were agreed to.

The achievement of the realisation of PMDN investment could rise 100 percent during 2005 compared with 2004 namely 129 projects with the Rp value 15.2 trillion.

That time, the realisation of PMA investment totalling 909 projects with the value of investment of the realisation as big as US$ 8.914 billion.

During 2004, realisation of investment only 544 projects with investment value until US$ 4.601 billion. According to Lutfi, investment became fall because permission procedure in level of the bureaucracy is delay.

Charge of investment permission took up time 151 days until 180 days.

Now, BKPM aim at 10 days for the principle permit but in general not more than 4 days.

Weakness of interdepartmental coordination, and between the centre and area became main problem investment gained.

The problem was increasingly complicated when the implementation regional autonomy.

In outonomy aera, often founded overlap and pulled interesting between activity the Body of Coordination Investment in regional (BKPMD) province and BKPM as well as the regional agency that handled investment.

Several areas are those that bundled authority investment into industry service and trade, or economic part. There were also those who formed an investment service personally.

Many also the city still could not formulate the policy or the regulation personally so as still tied with the policy of the government centre.

Problems were businessman dealt by in doing investment in the area also in relation to problem of the bureaucracy, uncertainty of the investment cost that must be dismissed as well as change in regional government regulation.

Quite significant national hindrance was condition for security, social and politics in Indonesia. By being ratified Consitutiton Investment became UU, hoped for existence of assurance law for investors.

Luffi explained, there were four factors to get investment, that is assurance of the law, customs and excise service and tax, infrastructure and workers.

Photo: Jurnal Nasional


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