Govt scrambles to ease permit processes as investments worth USD42.6bn await in the pipeline

  • The government pledged it will streamline licensing processes to speed up investment in more than 1,000 public and private sector projects, worth approximately USD42.6bn, a minister said on 10 Jan 18.
  • Coordinating Economics Minister Darmin Nasution said some of the new projects were proposed as early as Sep 17, after President Joko “Jokowi” Widodo issued a regulation to simplify and integrate business licensing processes.
  • The regulation sets a deadline in Mar 18 for the government to begin operation of a single permit submission system, called the One Stop Integrated Service (PTSP). The new system is a complete overhaul to the current permit service, which only provides basic licensing for newly established businesses and does not process specialized licensing on the regional governmental level or for several government agencies.
  • For now, Darmin said the government will focus on resolving licensing problems on the 1,054 projects to lay a path for cooperation among various task forces in regional governments and agencies.
  • The Ministry of Industry and the Ministry of Tourism will handle most of the projects that have been registered to ministries and institutions, the minister said.
  • The ministries will identify and check permits and requirements to help resolve obstacles as well as to provide periodical reports to the central task force.
  • Foreign and domestic investments account for about a third of Indonesia’s economy. The country targets to draw IDR765tr of investments — excluding those in the oil and gas and banking sectors – in 2018, up 13% from 2017’s target of IDR678.8tr.
  • Data from the Investment Coordinating Board showed that total investments reached IDR513tr by end-Sep 17. Indonesia recorded IDR613tr of investments in 2016, a 3% increase from IDR595tr in 2015.

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