Encourage Equitable Investment, BKPM Launches Regional Investment Potential

Jakarta, 4 October 2019 - To encourage higher and more equitable economic and investment development throughout all regions, the Indonesia Investment Coordinating Board (BKPM) upgraded the information content related to investment potentials in its previous Regional Investment Potential Information System (SIPID) and turned it into the Regional Investment Potential (PIR), which can be accessed through www.regionalinvestment.bkpm.go.id. The new system is developed because in the previous SIPID website, information was still limited and most regions had not yet updated the data. As a result, investors could not use it as a reference.

Chairman of BKPM Thomas Lembong emphasized, “Information needed by investors in settling investment in the regions must be easily accessible and comprehensive in one site.” This will be answered by the geospatial-based Regional Investment Potential through the host-to-host data updates with Ministries/Institutions and business associations such as the Association of Industrial Zone,” he explained in an official statement to the media, Jakarta, (Thursday, 04/19).

The Indonesian government has put efforts to reach more equitable development in economic and investment, including simplifying business licensing, providing a variety of investment incentives namely the importation facility of machinery equipment and auxiliary raw materials, tax reduction facilities (Tax Allowance, Tax Holiday and Super Deduction), and other facilities.

BKPM Director of Regional Potential Development Iwan Suryana stated, “Previously, information on investment potential was displayed on the page www.regionalinvestment.bkpm.go.id using the name SIPID website. Data update was carried out by each region, but apparently most regions have not updated it. This is the reason why we overhauled it, we changed it to the Regional Investment Potential (PIR). The published information in this system includes ‘why Indonesia’, investment opportunities, incentives, OSS licensing, infrastructure, and potential companies that are ready to partner with, completed with the collaboration/link data updates between Ministries/Institutions and business associations,” he explained.

Based on investment distribution data, 60% are still concentrated in Java. Among 514 regencies/cities, investments are centralized in around 30 regencies/cities only, triggering wider economic development gaps between regions. A problem faced by investors when assessing investment opportunity is lack of information regarding investment potentials and infrastructure support in the regions.

To stimulate competition among regions in upscaling investment potentials and updating investment data on the PIR website, there will be five promising and investment-friendly provinces being displayed on the web landing page, of which will be rotated every three months and encouraged to become regional investment champions. The first investment focus is Java Region which consists of West Java, DKI Jakarta, Central Java and East Java.