The Coordinating Board of Investment (BKPM) was introducing new mechanism in permit application for consultation service business. BKPM official Lestari Indah stated that the application of this new procedure was needed considering that the nature of consultation service was widely varied. On the other hand, the realization level in this sector was low. To enhance realization, BKPM was re evaluating the duration of application for principle permit in consultation business before proposing a new mechanism. This was disclosed by the Public Relations Dept. of BKPM (30/7).
The new mechanism was designed to step up quality in the sectors of service, to step up quality in the sectors of service, especially consultation, to ensure that the mechanism of permit application would go well, and BKPM had a through explanation on investors on investor’s business plan. The new mechanism would be tested in August 2015 and evaluated in September 2015. The evaluation outcome would serve as reference in completing the Regulation draft of BKPM head to replace the Regulation of BKPM Head No. 12/2013 on the revision of Regulation No 5/2013 on the guidelines for permit and non permit capital investment.
Lestari remarked further that in this new mechanism, before obtaining basic permit, candidate investors whenever necessary would be asked to make a presentation on business activities, production, service and investment value.
Beside issuing permit, BKPM would also make sure whether the investment would be realized or not. The duration from issuance of principle permit to business permit was shortened from 12 months to 6 months. In the consultation sector, a period of 6 months was rated as enough for realizing investment plan.
BKPM noted that through Semester I 2015 there were 5,032 projects which had been given Principle Permit for Capital Investment (including there in consultation services) at total value of Rp.721.9 trillion. The total investment consisted of PMDN Rp.189.2 trillion and PMA Rp.532.7 trillion. The investment plan for Semester 1/2015 showed increase of 40% against 2014 at Rp.517.1 trillion.
As investment plan remained high in Semester I 2015, it showed that the zest to invest in Indonesia was still high. With implementation of PTSP One Stop Service at BKPM and simplification of permit application process in coordination with Provincial governments, it was expected that investment realization through 2015 at the value of Rp.519.5 trillion could be well realized. (SS)
Business New - August 5, 2015