BKPM Chairman Thomas Lembong briefs the press on the progress of Ease of Direct Investment Construction program (Image credit : BKPM)

JAKARTA (TheInsiderStories) – The National Investment Coordinating Board (BKPM) has widened the implementation the Ease of Direct Investment Construction to 47 industrial zones, following the inclusion of 15 new industrial zones and industrial parks. The move is aimed at speeding up the realization of direct investments in the country.

The East of Direct Investment Construction (KLIK) program, officially launched on Feb. 22, 2016, is a license that will be given to the investor who has an investment plan in certain industrial or bonded zones. With this license, investors are allowed to do the Construction-Stage directly after obtaining Principle License (IP).

Once the KLIK license is obtained, the investor is allowed to obtain other licenses parallelly while doing the construction-stage, such as Building Permit, Environmental Permit and so on.

However, these licences should be completed prior to entering commercial-stage.

The program is introduced in response to investors’ complaints over slow progresses of their projects. The BKPM data shows that between 2016-2017, 115 projects or companies have made use of the program with investment value amounting to Rp130 trillion.

The industrial zones are located in 12 provinces and 25 regencies/cities.

The Head of BKPM Thomas Lembong said that the 15 industrial zones cover an area of 1,459.85 hectares, located in eight provinces and 12 regencies/cities. The 47 industrial zones that can now implement the ease of direct investment construction reached 14,966.85 hectares.

This facility can be enjoyed by any investor because there are no minimum limits required for investment value or the amount of labor as long as the investment plan located in certain industrial/ bonded zones assigned by Government of Indonesia.

Among industrial zones or industrial parks that have been successfully implementing the Ease of Direct Investment Construction permit are including Kendal Industrial Park in Central Java, Java Integrated Industrial and Port Estae (JIIPE) in East Java, Bantaeng Industrial park in South Sulawesi, Krakatau Industrial Estate, Cilegon Industrial Park and Modern Cikande Industrial East in Banten province, Delta Silicon 8 Industrial Park and Bekasi Fajar Industrial Estate Industrial Park in West Java province.

Minister for Industry Airlangga Hartarto called on all governors and regency heads across the country to support the drive to boost investment, including the implementation of the construction permit in their industrial areas.

According to BKPM data, realized investment in 2017 reached Rp692.8 trillion (US$51.3 billion), up 2.01 per cent from Rp678.8 trillion in 2016. Of these, foreign direct investment (FDI) reached Rp430.5 trillion, increased 13.1 per cent from previous year.

The government is now stepping up efforts to lure more investors to the country to accelerate the country’s economic growth. Among sectors that Indonesia is trying to lure investors are digital and tourism. Indonesia is certainly a promising market with 132.7 million users or 50.4 per cent of the total population, where the people spend more time on the internet (4.5 hours/day).

Currently, the Government provides opportunities for investors to participate in promoting the digital sector in Indonesia, where the digital industry sectors become more open to foreign investment.

The Government of Indonesia is targeting Indonesia to become the largest digital economy in ASEAN by 2020 as the development of the manufacturing sector with the digital platform becomes important.

Written by Roffie  Kurniawan, email: roffien@theinsiderstories.com