invest in

Pelatihan Peningkatan Kapasitas Diplomasi Ekonomi | March 2016

UPDATES FROM

INDONESIA

Progress of Investment Performance, Opportunity & Policy INDONESIA INVESTMENT COORDINATING BOARD

Himawan Hariyoga Deputy Chairman of Investment Promotion

© 2013 by Indonesia Investment Coordinating Board. All rights reserved

What are we doing?

The Investment Coordinating Board of the Republic of Indonesia

2

BKPM Plan 2016

3 Policy Directions and 5 Strategies of BKPM IMPROVING INVESTMENT LICENSING SERVICES PRO GROWTH ASSISTING INVESTMENT REALIZATION

PRO EMPLOYMENT

PROACTIVE AND TARGETTED MARKETING INVESTMENT

IMPROVING INVESTMENT CLIMATE ADDRESSING GEOGRAPHICAL DISPARITIES

ENSURING THE BENEFITS FOR THE PEOPLE (People Oriented Investment)

Indonesia Investment Coordinating Board

3

BKPM Plan 2016

5 Strategies of BKPM IMPROVING INVESTMENT LICENSING SERVICES

ASSISTING INVESTMENT REALIZATION

 OSS  Online System  3-Hour Investment Licensing  Direct Construction

 Monitoring project under construction  Fast track custom clearance for project under construction  Debottlenecking  IRO  Priority areas: 6 Provinces in Eastern Indonesia

PROACTIVE AND TARGETTED MARKETING INVESTMENT

 14 Marketing Officers  19 targeted countries  5 priority sectors  8+1 IIPC Office

IMPROVING INVESTMENT CLIMATE

 Ease of Doing Business 120  109  < 100  Streamlining procedures  Incentive (Tax Allowance/Tax Holiday, Income Tax)  Revision of Negative List > Investment Guideline

ENSURING BENEFITS FOR THE PEOPLE (People Oriented Investment)

 Supporting Labor Intensive Investment  Collaboration with Islamic Boarding School  Special desk for textile & footware ind.

Indonesia Investment Coordinating Board

Indonesia Investment Promotion Centre (IIPC) In 8 Cities

End-to-End Services for Investors Investment Interest

Indonesian Representative Office & IIPC

Investment Licensing

Investment Marketing

One Stop Service at BKPM

Investment Realization Investment Problem Facilitation (Debottlenecking)

Implementation and Control

The Investment Coordinating Board of the Republic of Indonesia

5

Improvement of Investment Service

One place

All

22 ministries integrated

3-hour

sectors 162 permits are delegated to BKPM

Service One-Stop

Service Industry,

(PTSP) at BKPM

power,

Direct

oil & gas,

Construction

tourism at one place

91%

Regional PTSP formed. 61% regional PTSP implement e-licensing.

One-Stop Integrated Services

Doing Business in the New Administration Era

One Stop Services

Investors submit and obtain permits exclusively at BKPM with time certainty & online monitoring.

The Investment Coordinating Board of the Republic of Indonesia

7

Improving Investment Service

3-hour Investment Licensing Service

Requirements Minimum investment of IDR 100 billion

(USD 8 million) and/or employing

1,000 local workers

9 documents obtained • Investment license • Certificate of incorporation • NPWP / Tax registration • TDP / Company registration • APIP / Import identification • NIK / Customs registration • RPTKA / Employment plan • IMTA / Working permit • Letter of land availability

BKPM

• Arrive at BKPM directly from the airport. • Consult with Director of Investment Service. • Submit the required documents & data.

Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions.

Obtain eight documents & letter of land availability within three hours to start your business.

Priority Investment Service

No Requirements

Direct Construction Investors can directly start their project construction before obtaining construction permits. This service is supported by both Central and Regional Governments.

Obtain investment licence at One-stop Integrated Service (PTSP) at national or regional level.

• No minimum investments or workers is required. • Available for selected industrial parks. • Construction permits can be obtained in parallel with construction process.

• Survey a land within

• Start the construction of your

selected industrial parks. • Acquire the land for your industry.

project. No other permits are required. • Apply for building construction permit & environmental permit, in parallel with construction process.

The Investment Coordinating Board of the Republic of Indonesia

9

Priority Investment Service

14 Selected Industrial Parks for Direct Construction North Sumatra KI Medan

Banten

Modern Cikande Industrial Estate KI Terpadu Wilmar Krakatau Industrial Estate Cilegon

Central Java

KI Kendal KI Bukit Semarang Baru KI Wijayakusuma

South Sulawesi KI Bantaeng

West Java Bekasi Fajar Industrial Estate KI Delta Silicon 8 Karawang Internasional Industrial City Suryacipta City of Industry GT Tech Park

East Java

Java Integrated Industrial & Port Estate

The Investment Coordinating Board of the Republic of Indonesia

10

Improvement of Investment Climate

Policy Reforms Wage

Cost

Free VAT

for business. Annual increase based on inflation rate & economic growth.

Fuel, gas & electricity price reduction for industry.

For shipbuilding, railway & airplane industries, including spareparts

Tax Discounts

No Double

More Open

Formulation More certain formula

50% incentive for net income tax (PPh21) given to export oriented textile & footwear industries

Reduction

Taxation For property & infrastructure

to Foreign Investment The revised regulation is more open for industries, creative economy, tourism, e-commerce etc.

The Investment Coordinating Board of the Republic of Indonesia

11

Investment Guideline 2016

Indonesia is More Open to Foreign Investments 100% FDI

Distributor

100% FDI

100% FDI

affiliated with production

Raw material for

67% FDI for distributor not affiliated with production

From previously open to 85% FDI

Pharmacy

100% FDI

Film Industry Production, postproduction, distribution, projection

E-Commerce in partnership with SMEs From previously closed to FDI

100% FDI

Marketplace For min. Investment of IDR 100 billion (USD 8 million). Open 49% FDI for investment < IDR 100 billion

67% FDI

Transport

infrastructure & support services Including cargo handling, air transport, renting & leasing

100% FDI

Tourism Sports center, restaurant, bar, cafe

The Investment Coordinating Board of the Republic of Indonesia

12

Improvement of Investment Climate

Investment Facilities PDKB

KITE

(Company in Bonded Zone)

(Import Facility for Export)

(MoF No. 120/PMK.04/2013)

(MoF No.176 & 177/PMK.04/2013)

Three tax exemptions

Three tax exemptions

For export-oriented industry: • Import duty • Luxury tax • VAT for machines, goods, materials for production

For production of 100% export products: • Import duty • Luxury tax • VAT for machines, goods, materials for production

Domestic Market 50% products* produced in bonded zones can be sold to domestically

Outside Bonded Zones

Simplified

Various Import Origins

BKPM is simplyfing the process of company establishment in bonded zones, from 5 to 2 steps

Applicable for goods coming from overseas, bonded zones & warehouses, FTZs & SEZs

Available for industries located outside bonded zones

*based on last year’s export value The Investment Coordinating Board of the Republic of Indonesia

13

Improvement of Investment Climate

CUSTOMS CLEARENCE Four customs checking status: • Red line is for new companies. Physical & document checks before transported from ports.

• Yellow line Document check before goods transported from ports.

• Green line Document check after goods transported from ports. • Main Partner Priority for companies with proven track record. No checking required. New Facility:

Status upgrade

Import Facility for Capital Goods Acceleration and certainty in custom clearance process Faster & Certain

• Capital goods do not require screening. • Cutting the processing time from 3-5 days to only 30 minutes.

Simple requirements

• Projects under construction • Obliged in reporting quarterly investment activities (LKPM) • Recommendation from BKPM

from red to green line for new companies under construction The Investment Coordinating Board of the Republic of Indonesia

14

TAX HOLIDAY

IMPORT DUTY FACILITY

(MoF Regulation No.159/PMK.010/2015)

5-15 25

(MoF Regulation No.176/PMK.011/2009)

years tax exemption With potential 20 years exemption for project that considered strategic for Indonesia economy.

years tax exemption

Upto

For Special Economic Zones

9 eligible pioneer industries: 1. Basic metal industries; 2. Oil refinery industries and/or basic organic chemicals; 3. Machinery industries; 4. Industries of renewable resources; 5. Communication devices industries. 6. Agricultural processing 7. Marine transportation 8. Manufacturing industry in SEZ 9. Economic infrastructures

IDR

1

trillion

Machines, goods, materials for production 2 years import duty exemption or 4 years for companies using locally-produced machines (min.30%).

Industries Which produces goods and/or services, including: 1. Tourism and culture 2. Public transportation 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port

Minimum investment plan (USD 80 million). The Investment Coordinating Board of the Republic of Indonesia

15

TAX ALLOWANCE Agriculture • Cattle breeding & farming • Corn plantation • Soya plantation • Rice farming • Tropical fruits Power Generation • Geothermal • Alternative/renewable energy Oil & gas industry • Oil refinery • Liquefied Natural & Petroleum Gas • Lubricant

(Government Regulation No.18/2015)

30

% of investment value Reduction of corporate

net income tax for 6 years, 5% each year.

143

business segments Eligible for tax

allowance, expanded from 129 segments in the previous regulation.

Under certain requirements among others: investment value or export orientation, menpower absorption, local content, and project location (especially outside Java island).

Manufacturing Industry • Iron & steel • Semi conductors • Electronic components • Computer • Communication devices • Television • Tires • Pharmaceutical • Cosmetics • Fish & shrimp processing • Etc.

The Investment Coordinating Board of the Republic of Indonesia

16

Tax

Facilities

Incentives

Property ownership & residence permit for foreigners. Ease of investment, land, immigration & working permits integrated at SEZs.

20-100% tax discounts for period up to 25 years. Free VAT for importation of raw materials.

Sei Mangkei Lhoksemawe Shipyard, Manufacture

Investment Incentives

Economic Stimulus for Special Economic Zones

Tarakan

Palm Oil, Rubber, Fertilizer Industries, Logistics, Tourism

Bitung

Manufacture

Fishery & Agro Industries, Logistics

Padang Pariaman Agro Industry (Cacao, Rubber, Palm Oli)

Tanjung Api-api Palm Oil, Rubber, Petrochemical Industries

Maloy Batuta Palm Oil, Coal, Mineral Industries

Smelters, Agro Industry, Logistics

Garombong

Batu Licin Refinery, Metal Industry Garombong Refinery, Logistic, Petrochemical

Manufacture)

Tourism, Manufacturing Industry, Logistics

Palu

Refinery, Logistics, Petrochemical)

Tanjung Lesung West Java Tourism

Morotai

Mandalika Tourism

Taka Bonerate Tourism (Maritime)

Raja Ampat Tourism (Maritime)

Sorong Fish industry

Teluk Bintuni Fertilizer, Petrochemical

Merauke Food, Energy

8 Existing SEZs 11 Planned SEZs

Pola Diseminasi Perkembangan Informasi:

Media Sosial

Facebook Fan page BKPM Pola updating informasi dengan feeding informasi terbaru bagi pengguna Facebook yang mendaftarkan/mengikuti fan page atau setuju untuk menjadikan fan page tsb sebagai favorit (like).

Twitter @BKPM Pola updating informasi kepada pengguna twitter dengan feeding informasi terbaru bagi pengguna twitter (follower) yang mengikuti akun twitter BKPM.

Youtube THEBKPMVIDEO Pola diseminasi informasi dengan menggunakan media visual/video kepada pengguna Youtube yang mendaftar atau mengikuti akun/channel Youtube BKPM.

ENewsletter BKPM E-Newsletter Pola updating informasi kepada seluruh stakeholder yang telah mendaftarkan diri untuk didiseminasikan perkembangan informasi mengenai investasi dengan format newsletter. Calon pengguna newsletter dapat mendaftarkan diri melalui website BKPM.

The Investment Coordinating Board of the Republic of Indonesia

18

Why?

The Investment Coordinating Board of the Republic of Indonesia

19

Strategic Plan of Investment 2015-2019

Investment Target

IDR

3,519 trillion

total investment targeted in 2015-2019

2015

2016

2017

2018

2019

FDI

343.7

386.4

429.0

494.7

569.9

DDI

175.8

249.8

297.8

363.0

Total

1

208.4

519.5

594.8

678.8

792.5

933.0

Growth

12.2%

14.5%

14.1%

16.8%

17.7%

(IDR trillion) Excl. Financial Sectors and Upstream Oil and Gas

Summary

2

2010-2014 Period (Completed) • Investment realisation: IDR 1,633 trillion • Investment plan (Principal license stock 2010 - April 2015): IDR 4,125 trillion. 2015-2019 Period (Plan) • Investment realisation: IDR 3,519 trillion • By using assumption that 50% of investment plan will be realized, Indonesia investment plan needs is IDR 7,000 trillion, therefore we still need principal license stock for IDR 3,000 trillion.

3

115 15.1%

% increase

FDI

2015-2019

DDI

2015-2019

from 2010-2014 period (IDR 1,632.8 trillion)

average growth targeted in 2015-2019 period

63.2

% average share

36.8

of total investment target in 2015-2019

% average share of total investment target In 2015-2019

The Investment Coordinating Board of the Republic of Indonesia

Source: BKPM, 2015

20

Investment Strategic Plan 2015-2019

Investment Target Average share Primary : 15,7% Secondary : 53,5% Tertiary : 30,8%

Average share Java : 46,5% Outside Java : 53,5%

The Investment Coordinating Board of the Republic of Indonesia

Source: BKPM 2016

21

InvestmentOpportunities in Indonesia 2015-2019

Investment Priority Sectors Infrastructure

35 GW power generation

24 Sea ports

Agriculture

Food estate

Corn Plantation

Cattle

Labor-intensive industry

Textile

Food & Beverages

Furniture

Toys

Import-substitution industry

Chemical & Pharmaceutical

Iron & Steel

Electronics

CPO & derivative products

Wood products, pulp & paper

Automotive

Machinery

Rubber products

Fish & derivative products

Shrimp

Cacao

Sugar

Smelter

Maritime

Ship building

Fishery Industry

Cold storage

Tourism,SEZ & Industrial Park

Strategic tourism areas

MICE

8+11 SEZs

Industry

Export-oriented industry

Downstream industry of natural resources

15 New Ind. Parks

IndonesiaInvestment Coordinating Board

22

Investment Promotion Strategy

Targeted Marketing Country BKPM 2016 Belanda Kanada Amerika Serikat

Rusia

Inggris Jerman

RRT

Italia

Korea Selatan Jepang

Hong Kong

Timur Tengah India

Thailand

Taiwan

Vietnam

Malaysia Singapura

Australia

19 Targeted Marketing Country America Region Europe Region

Asia Region Australia Region

consist of 11 countries in Asia, 5 countries in Europe, 2 countries in America, 1 country in Australia The Investment Coordinating Board of the Republic of Indonesia

23

What Have Been Achieved?

The Investment Coordinating Board of the Republic of Indonesia

24

Investment Performance 2015

Growing Investment Realization

545,4 17,8%

trillion rupiahs Investment realization 2015

Investment realization growth (y/y)

1.852

45%

Investment commitment 2015

Investment commitment growth (y/y)

trillion rupiahs

The Investment Coordinating Board of the Republic of Indonesia

25

Investment Performance

Investment Realization Based on Priority Sectors Period of 2015, FDI and DDI compare to period of 2014

The biggest investment realization sector: 1. Infrastructure 2. Labor intensive industry 3. Tourism and Special Zone The biggest growth sector: 1. Mineral Resources downstream industry 2. Tourism and Special Zone 3. Maritime

The Investment Coordinating Board of the Republic of Indonesia

Source: BKPM 2016

26

Investment Updates

FDI Realization in Indonesia by Country 2010 - 2015 in USD million (Excl. oil, gas, and financial sectors) Rank

Country

1

Singapore

2

2010

2011

2012

2013

2014

2015

Total

5,565

5,123

4,856

4,671

5,832

5,901

31,949

Japan

713

1.516

2.457

4.713

2.705

2,877

14,981

3

United States

931

1.488

1.238

2.436

1.300

893

8,285

4

South Korea

329

1.219

1.950

2.205

1.127

1,213

8,043

5

Malaysia

472

618

530

711

1.776

3,077

7,185

6

Netherlands

608

1.354

967

928

1.726

1,308

6,891

7

British Virgin Islands

1.616

517

856

786

624

731

5,129

8

United Kingdom

276

419

934

1.076

1.588

503

4,797

9

Hong Kong, PRC

566

135

310

376

657

937

2,981

10

Mauritius

23

73

1.059

780

541

44

2,520

Total Top-10 Countries

11.099

12.462

15.156

18.682

17.876

17,485

92,760

Total (All Countries)

16.215

19.475

24.565

28.616

28.530

29,276

146,677

The Investment Coordinating Board of the Republic of Indonesia

Source: BKPM, 2016

27

The Investment Coordinating Board of the Republic of Indonesia

28

Investment Performance Investment GAP : Plan vs. Realization 700.0

FDI

1,400.0

DDI

600.0

(in US$ Billion)

1,200.0

(in IDR Trillion)

500.0

1,000.0

400.0

800.0 300.0 600.0 200.0

400.0

100.0

200.0 0.0

0.0 2010

2011

2012

2013

2014

2015

Realized 147.9 Planned 339.5

175.3 482.0

221.1 548.4

270.5 831.4

307.0 365.9 962.5 1,220.6

Realized Planned

2010

2011

2012

2013

2014

2015

60.6 93.5

76.0 172.3

92.2 262.7

128.2 505.6

156.1 339.7

179.5 652.9

Total 2010-2015

Total 2010-2015

FDI Realized : 1.487,7 Trillion Rupiahs FDI Planned : 4.384,4 Trillion Rupiahs FDI Realization Ratio: 34% from Planned

DDI Realized : 692,6 Trillion Rupiahs DDI Planned : 2,026.8 Trillion Rupiahs DDI Realization Ratio: 34% from Planned

The Investment Coordinating Board of the Republic of Indonesia

29

19 Targeted Marketing Country

Targeted Marketing Country BKPM 2016 (million USD) FDI Outward 2010 - 2015 ke Ranking Indonesia Indonesia Dunia Dunia Nilai Rasio (%) (ASEAN)

Negara R.R. Tiongkok

Singapura Jepang Malaysia Korea Selatan Hongkong, RRT Inggris Jerman

Timur Tengah

Realisasi FDI 2015 ke Realisasi PMA Indonesia Dunia Nilai Rasio (%) 2010-2015 Ranking 2015

Target IP 2015

IP PMA Rasio (%) 2010-2015

2014

2015

Target IP 2016

209.083,6

18.865,0

9,0%

2 (1)

45.865,7

3.511,7

7,7%

2.168,1

11

628,3

4.949,0

45.463,2

15.679,8

22.217,3

4,8%

30.000

87.287,5

9.110,8

10,4%

2 (1)

22.833,1 3.732,7

16,3%

31.948,5

1

5.901,2

9.491,0

73.062,2

9.662,5

16.314,6

43,7%

22.000

316.498,8

26.677,4

8,4%

3 (1)

47.109,1

9.503,0

20,2%

14.980,6

2

2.877,0

3.429,0

31.716,7

4.125,2

8.054,2

47,2%

13.000

55.096,3

3.843,2

7,0%

4 (1)

4.208,3

872,1

20,7%

7.184,6

5

3.077,0

15.675,5

2.227,8

5.532,8

45,8%

10.000

138.181,6

7.368,7

5,3%

5 (2)

21.785,1

4.120,0

18,9%

8.042,5

4

1.213,5

24.740,9

2.601,2

4.841,8

32,5%

10.000

98.845,0

494,8

0,5%

19 (4)

10.888,2

250,1

2,3%

2.981,4

9

937,2

14.374,1

2.311,8

2.933,6

20,7%

4.000

226.589,7

2.087,3

0,9%

29 (3)

37.367,6

86,1

0,2%

4.796,6

8

503,2

3.086,2

195,0

724,4

155,4%

5.000

298.823,6

2.076,2

0,7%

27 (3)

35.263,7

252,3

0,7%

552,3

17

57,3

1.193,4

141,4

625,9

46,3%

1.000

22.857,7 5.584,1

24,4%

2.168,1

22

628,3

45.463,2

15.679,8

22.217,3

4,8%

16.000

9.910,0

1.931,0

475,2

69,5%

2.000

7.730,7

3.203,8

309,3

27,0%

5.000

N/A 3.365,0 N/A 2.713,0 N/A

124.830,4

5.999,8

4,8%

7 (1)

Belanda

70.223,1

1.816,1

2,6%

11 (1)

7.714,0

2,9

0,0%

6.891,2

6

1.307,8

Australia

54.890,4

1.407,9

2,6%

13 (3)

6.839,6

95,8

1,4%

2.089,2

12

168,0

Thailand

38.108,2

7.013,9

18,4%

2 (2)

15.000,4

183,9

1,2%

799,1

14

174,2

N/A

23.614,2

390,1

168,1

3,4%

1.000

649.978,7

6.550,2

1,0%

27 (4)

87.539,8

1.187,3

1,4%

8.285,4

3

893,2

14.438,0

16.113,8

10.258,5

4.504,5

51,4%

14.000

77.797,7

1.436,6

1,8%

7 (4)

13.918,3

59,1

0,4%

1.562,9

13

107,9

360,0

2.967,1

1.502,2

166,7

52,7%

3.000

India

100.695,0

3.338,4

3,3%

8 (1)

9.498,6

164,1

1,7%

288,2

23

57,2

N/A

3.190,4

338,9

129,4

9,0%

1.600

Italia

89.989,0

154,8

0,2%

49 (3)

7.424,2

8,4

0,1%

256,4

24

104,1

N/A

742,7

267,0

112,2

34,5%

1.200

Kanada

25.748,0

283,5

1,1%

71 (6)

17.524,0

N/A

0,0%

550,2

18

103,5

N/A

394,0

33,9

19,5

139,6%

1.000

50 (4)

13.254,3

N/A

0,0%

8,2

48

1,0

N/A

125,9

47,6

12,1

6,5%

2.000

17 (5)

4.403,6

N/A

0,0%

0,1

94

0,1

N/A

121,4

3,7

0,1%

N/A

Amerika Serikat Taiwan

Rusia

Vietnam

59.998,9 7.138,1

139,0

11,0

0,2% 0,2%

212,0 N/A 971,0

N/A

belumterdapatrealisasi belummenjadiprioritas2015 / merupakantarget outward IndonesiaInvestment Coordinating Board

30

Potential Investment Sectors 2010-2015 Not Include Financial Sectors and Upstream Oil and Gas Communi cations

Real estate

Warehou sing & storage

Hotel & tourism

Real estate

Electronic component

Coal

Software & IT

Real estate

Warehou sing & storage

Renewable energy

Real estate

Food & tobacco

Renewable energy

Coal

Communic ation

Real estate

Communi cation

Coal

Hotel & tourism

Automotive OEM

Hotel & tourism

Real estate

Metal

Automotive component

Renewabl e energy

Renewable energy

Metal

Coal

Commun ication

IndonesiaInvestment Coordinating Board

31

Potential Investment Sectors 2010-2015 Not Include Financial Sectors and Upstream Oil and Gas Electronic components

Metal

Semicondu ctors

Chemical

Communic ation

Coal

Chemical

Renewa ble energy

Metal

Electronic components

Semicondu ctors

Automo tive OEM

Automotive OEM

Coal

Business service

Renewable energy

Automo tive OEM

Renewa ble energy

Business services

Transportati on

Chemical

Metal

Real estate

Coal

Chemical

Industri al machin ery

Metal

Transportation

Aerospace

Automotive OEM

IndonesiaInvestment Coordinating Board

32

Potential Investment Sectors 2010-2015 Not Include Financial Sectors and Upstream Oil and Gas Coal

Renewa ble Energy

Mining

Semicondu ctors

Metals Real estate

Automotive OEM

Chemical

Business service

Real estate

Hotel & tourism

Renewa ble energy

Automotive OEM

Real estate

Metals

Transpo rtation

Real estate

Communication

Food & tobacco

Coal

Metals

Communica tion

Chemical

Coal

Transportation

Minerals

Automotive component

Real estate

Coal

Chemical

IndonesiaInvestment Coordinating Board

33

Investment Interest Progress : by Sector (Periode : 22 Oktober 2014 - 4 Maret 2016) Interest

Serious NO.

Prospective

Principal License 2016

Total

Priority Sector USD Mil

P

1

Infrastructure

2

Agriculture

3

USD Mil

P

USD Mil

P

P

USD Mil

USD Mil

P

25

10,748

36

36,090

38

2,039

99

48,877

7

2,150

8

368

5

126

6

901

19

1,395

2

140

Labor Intensive Industry

12

5,117

13

3,353

9

2,349

34

10,818

0

0

4

Import Substitution Industry

15

182,834

13

8,766

13

3,005

41

194,605

1

4

5

Export Orientation Industry

4

59

10

440

2

0

16

499

1

12

6

Downstream Mineral Resources

8

14,530

10

9,491

6

5,000

24

29,021

0

0

7

Maritime

8

462

13

2,455

6

0

27

2,917

0

0

8

Tourism & Economic Zones

6

2,801

16

10,060

8

5,535

30

18,396

1

4

9

Others

37

1,844

28

71,747

50

273 115

73,865

7

29

142,528 138

19,102 405

380,392

19

2,339

TOTAL

123

218,762 144

IndonesiaInvestment Coordinating Board

34

Investment Interest Progress : by Country (1/2) (Periode : 22 Oktober 2014 - 4 Maret 2016) Interest

Serious NO.

Prospective

Total

Country USD Mil

P

USD Mil

P

USD Mil

P

USD Mil

P

Principal License 2016 USD Mil

P

1 Japan

30

1,492

15

8,076

9

3,233

54

12,802

1

3

2 China

6

2,133

29

52,390

31

5,456

66

59,979

5

2,008

23

187,853

15

12,323

20

1,016

58

201,192

7

61

4 Taiwan

2

520

21

278

5

2,510

28

3,308

1

12

5 Europe

11

4,477

18

2,499

23

5,391

52

12,367

0

0

9

5,564

7

1,405

5

400

21

7,369

0

0

7 Australia

23

1,026

17

1,128

13

65

53

2,219

0

0

8 Singapore

4

438

5

1,218

2

40

11

1,696

4

156

10

14,360

11

11,100

5

890

26

26,350

0

0

0

0

3

52,000

6

0

9

52,000

0

0

3 South Korea

6 America-Canada

9 Middle East

10 Malaysia

IndonesiaInvestment Coordinating Board

35

Investment Interest Progress : by Country (2/2) (Periode : 22 Oktober 2014 - 4 Maret 2016) Interest

Serious NO.

Prospective

Principal License 2016

Total

Country USD Mil

P

USD Mil

P

USD Mil

P

USD Mil

P

USD Mil

P

11 Hong Kong

2

0

0

0

1

0

3

0

0

0

12 India

3

900

3

111

6

100

12

1,111

0

0

13 Russia

0

0

0

0

0

0

0

0

1

100

14 Thailand

0

0

0

0

10

0

10

0

0

0

15 Vietnam

0

0

0

0

2

0

2

0

0

0

19,102 405

380,392

19

2,339

TOTAL

123

218,762 144

142,528 138

IndonesiaInvestment Coordinating Board

36

What’s Next?

The Investment Coordinating Board of the Republic of Indonesia

37

Homework Leverage Indonesia‘s position as investment destination specially in ASEAN

Accelerate the construction of Industrial Estate & Special Economic Zone specially outside Java for an evenly distributed investment growth

Transform the investment interest to become commitment

Facilitate “commitment” to become realization of investment

Encourage Indonesia’a Outward Investment

The Investment Coordinating Board of the Republic of Indonesia

38

Investment Opportunities

Integration to Global Market *)

*)

TPP & EU-CEPA Indonesia is preparing to join Trans Pacific Partnerships (TPP) & Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA). The Investment Coordinating Board of the Republic of Indonesia

39

Investment Opportunities

15 New Industrial Parks Palu -

Kuala Tanjung - Aluminium Industry - CPO

Rattan Industry Rubber Industry Cacao Industry Smelter Industry

Landak Sei Mengkei - CPO Processing Industry

- Rubber Industry - CPO

Teluk Bitung - Agro Industry - Logistic

Buli - Smelter Ferronickel Industry - Stainless Steel Industry - Stainless Steel Downstream Industry

Teluk Bintuni - Fertilizer Industry - Petroleum Industry

Ketapang - Aluminium Industry

Morowali Tanggamus - Maritime Industry - Logistic

Batu Licin

- Smelter Ferronickel Industry - Stainless Steel Industry - Stainless Steel Downstream Industry

- Stainless Steel Ind

Sayung - High-technology - Labor-intensive - consumer goods ind

Konawe JIIPE - High-technology - Labor-intensive - consumer goods ind

Bantaeng - Smelter Ferronickel Industry - Stainless Steel Industry - Stainless Steel Downstream Industry

- Smelter Ferronickel Industry - Stainless Steel Industry - Stainless Steel Downstream Industry

The Investment Coordinating Board of the Republic of Indonesia

Source: Bappenas, 2015

40

Investment Opportunities

8 Existing Special Economic Zone (SEZ) Sei Mangkei -

Bitung

Palm Oil Processing Industry Rubber Processing Industry Fertilizer and Miscellaneous Industry Logistic Tourism

-

Fisheries Processing Industry Coconut Based Industrial and Medicinal Plants Various Industries Logistic

Morotai

Maloy Batuta Trans Kalimantan - Palm Oil Industry - Logistic

Tanjung Api-Api

Palu

- Tourism - Fisheries Processing Industry - Business and Logistic

- Manufacture Industry - Agro Based Industry Cacao, Rubber, Seaweed, Rattan - Manufacturing Nickel, Iron Ore, Gold - Logistic

- Rubber Processing Industry - Oil Processing Industry - Petrochemical Industry

Tanjung Lesung - Tourism

Mandalika - Tourism

Source: Bappenas, 2015

The Investment Coordinating Board of the Republic of Indonesia

41

Proyek Strategis Nasional – Perpres No.3 Tahun 2016 Tujuan

226 Proyek Strategis Nasional

Mempercepat pelaksanaan proyek strategis nasional untuk kebutuhan dasar dan meningkatkan kesejahteraan masyarakat.

Berdasarkan Sektor No.

Sektor

Berdasarkan Lokasi Jumlah Proyek

No.

Sektor

Jumlah Proyek

No.

Lokasi

Jumlah Proyek

1

Jalan

52

12

Persampahan

1

1

Sumatera

46

2

Perkeretaapian

19

13

Tanggul Penahan Banjir

1

2

Jawa – Bali

91

3

Bandara

17

14

7

3

Kalimantan

23

4

Pelabuhan

13

Pos Lintas Batas Negara (PLBN)

4

Sulawesi

30

5

Perumahan Rakyat - MBR

3

15

Bendungan

60

5

Nusa Tenggara

13

16

Broadband

2

6

Kilang Minyak

3

17

IPTEK/ Techno Park

1

6

Maluku - Papua

13

7

Gas - LPG

3

18

24

Total

216

8

Waste to Energy

1

9

Smelter

6

Kawasan Ekonomi Khusus (KEK) & Kawasan Industri Prioritas (KIP)

10

Ketenagalistrikan

1

19

Pariwisata

1

11

Air Minum

8

20

Kawasan Pertanian dan Kelautan

3

Total

+ 8 proyek Nasional dan 2 proyek yang lokasinya belum ditentukan

226 Indonesia Investment Coordinating Board

42

Framework of facilitation on interest and commitment

Investment Interest

Getting information

Embassy of RI - Economic Function Trade

Tourism

Development Coop.

Investment

Task Force of Economic Diplomacy - Ministry of Foreign Affairs

IIPC (if available)

Marketing Officer

Overseas Indonesia

Applying for licenses

One-Stop Service BKPM Debottlenecking

Investment Realization The Investment Coordinating Board of the Republic of Indonesia

43

BKPM Priorities: Debottlenecking of Investment Realization

Progress of Debottlenecking

Obstacles faced by 46out of 88 companies are solved as of December 2015, with investment valued at USD 19,6 billion out of USD 34,3billion. Obstacles faced by 46 Companies are solved

Main Issues • • • • •

46

land acquisitions, misuse of permits, supply of raw materials, cooperation contracts, tax regulation.

Debottlenecking Australian Companies

14 14 Companies without principle license are under faclitation

28

16

28 Companies with principle license are under faclitation

Sector

Value

Problems

Mining

-

Undergorund Coal Gasification regulation is not clear

Basic Chemicals

US$. 137 Million

Building permit has not released yet.

48

The Investment Coordinating Board of the Republic of Indonesia

Source: BKPM, 16 Oct 2015

44

Invest in Remarkable Indonesia

Simple Procedure, Faster Service

✔ ☐ ✔ ☐ ✔ ☐ ✔ ☐ ✔ ☐

Sustainable economic growth Maturing democracy Politically stable Large and growing market Strong reform agenda

The Investment Coordinating Board of the Republic of Indonesia

45

President Jokowi:

“We are still only at the beginning. We will still continue to simplify, continue to open up, continue to modernize our rules and regulations.“ ASEAN Economic Community conference in San Francisco, U.S., 17 Feb 2016 [Reuters]

The Investment Coordinating Board of the Republic of Indonesia

46

Thank You Terima Kasih

Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jln. Jend. Gatot Subroto No. 44 Jakarta 12190 - Indonesia t . +62 21 525 2008 f . +62 21 525 4945 e . [email protected]

www.bkpm.go.id

The Investment Coordinating Board of the Republic of Indonesia

47