Improving the Service to Increase the Investment Realization on Infrastructure


In Acceleration of National Development, the government requires a lot of fund to build infrastructure projects in Indonesia. According to the National Development Planning Agency (Bappenas), the cost of infrastructure development until 2019 reached Rp 5519.4 trillion, which is 40.1% (USD 2215.6 million) of the costs derived from the State Budget (APBN). Although it still not able to cover the budget required, the role of investment or investment from the private sector can contribute to the financing of infrastructure development projects. The government also made various attempts to improve investment service to investors.

In the 2 (two) years of Joko Widodo and Jusuf Kalla government, the improvement of investment services is continually strive to create positive impact and increase the investment realization. The steps that have been taken are improvement on the regulation. The reformation on the regulation include the provision of land in the sake of infrastructure development, licensing acceleration under the coordination of BKPM, and the permission to the foreign companies to participate in private-government cooperation project without having to establish a local company in advance.

The government also established two limited companies to increase the investment realization in Indonesia. PT Penjaminan Infrastruktur Indonesia (PII) company which appointed to give government financial warranty in the private-government cooperation project, and PT Sarana Multi Infrastruktur that support the preparation process to financial closing.

Currently, there are various steps that have been taken to improve the service quality to increase the investment realization. According to the chairman of Investment Coordinating Board (BKPM), Thomas Lembong, those steps are a real evidence of the hard work taken by BKPM to actualize the vision of President Joko Widodo to facilitate investors both foreign and domestic to invest in Indonesia. “President Joko Widodo always promotes openness and awareness that currently we are in the era of competition, so that we should win in the competition in attracting investment with competitor countries”

Three days after his inauguration, President Joko Widodo gave direct order to BKPM to improve the investment service. Three months after, President Joko Widodo launch the One Stop Service (OSS) Center in January, 26th 2015. OSS Center involves 22 ministries/institutions under BKPM and serves 162 kinds of licensing and non-licensing which incorporated in one office.

BKPM also make other breakthroughs to improve the investment service which includes in the economy policy packages. Vice President Jusuf Kalla launched the 3-Hour Investment Service in the early 2015 which is part of the Second Economy Policy Packages, and the Negative Investment List (DNI) on the 10th Economy Policy Packages. The 3-Hour Investment Service can be used by investors from various sectors, include infrastructure. This service has being used by about 130 domestic and foreign investors and produce about Rp 291 trillion of investment value plan and aim to absorb about 77.424 labors.

From the BKPM’s data, there is increment in the amount of 14.8% in January-June 2016 investment realization compared with the same period in 2015. The investment value that received in this period reached Rp 298.1 trillion. Foreign investment also increase about 12.3% with Rp 195.5 trillion contribution. Until the third quarter of 2016, the investment realization amount is estimated increase about 75% or Rp 445.5 trillion from the 2016 target. BKPM is optimistic that this year investment target of Rp 594.8 trillion can be achieved. source :BKPM