BKPM Receives the 2018 Top 99 Public Service Innovation Award

Jakarta - The Indonesia Investment Coordinating Board (BKPM) received the Top 99 Public Service Innovation Award from the Ministry of Administrative and Bureaucratic Reform (MenPAN-RB) as one of the agencies providing the best service innovation through the 3-Hour Investment Licensing Service (Izin Investasi 3 Jam or II3J). From 2015 to June 2018, the II3J has yielded investment value worth IDR 2,789.5 trillion, 549 companies and 404,835 Indonesian workers. This is because the licensing service for investors only took 3 hours, the process was not complicated.

The innovation from BKPM which has been awarded the Top 99 of 2018 Public Service Innovation includes the Online Single Submission (OSS) policy which was inaugurated by the Coordinating Minister for Economic Affairs, Darmin Nasution on 9 July 2018.

The BKPM’s Caretaker Deputy of Investment Service, Azhar Lubis, explained that all this time investors have complained that licenses are slow, not integrated and long-winded. “But, with this innovation, investors get 8 + 1 licensing and information products in 3 hours,” explained Azhar.

The investment products referred to by Azhar are investment licenses, The Deed of Establishment and legal entity approval from the Ministry of Justice and Human Rights of the Republic of Indonesia, Tax ID number (NPWP), Company Registration Number (TDP), Foreign Worker Employment Plan (RPTKA), Foreign Worker Employment Permit (IMTA), Producer Importer Identification Number (API-P), Custom Registration Number (Nomor Identitas Kepabeanan or NIK), and Letter on Land Availability Information. Azhar also explained that to get this 3-hour permit the investment value must be at least IDR 100 billion and/or employ a minimum of 1,000 Indonesian workers.

In Azhar opinion, President Joko Widodo’s administrative pays much attention to investor protection and legal certainty in investing. There are three priorities according to the mandate of President Jokowi, which are the improvement of investment licensing services through BKPM’s One Stop Service (PTSP) Center, facilitating the realization of investment, and increasing investment through a conducive investment climate.

To get this service, investors must go to BKPM One Stop Service (PTSP) Center, meet the Service Director, and submit the required documents. After that, investors can wait in the lounge, while the Investment Priority Officer coordinates with the other ministries/institutions involved in the PTSP Center. “And after the process is completed, within 3 hours (the investors) can get 8 + 1 licenses and information,” he said.

Other requirements for certain industries are: the company must be in the regions that have free trade facilities within the country, part of the production chain, take part in tax amnesty, and part of the national strategic projects submitted directly by the prospective shareholders.

It is explained that in this revolutionary innovation, BKPM is integrated with five other government institutions. These five institutions are the Ministry of Manpower, Ministry of Finance, Ministry of Agrarian and Spatial Planning / National Land Board (ATR / BPN), Ministry of Trade, and Ministry of Law and Human Rights.

To expand the improvement of Indonesia’s investment climate, Azhar hopes that not only BKPM will carry out such innovations. Local governments are also expected to ‘pick up the ball’ to run this II3J program, especially in areas with high investment opportunities, like Batam. “The most important thing is that in the regions, the requirements are simple and the licenses are issued quickly,” he said.

*Adapted from: https://www.menpan.go.id/site/ berita-terkini/tiga-jam-investor-dapat-8-1-produk-perijinan-di-bkpm