Investment Permit to be done in Three Hours

KATADATA ? Government promises that the investment permit process can be done in three hours. This quick process includes the capital investment, certificate to establish a company, and legalization as a legal body in Indonesia as well as to deal with the mandatory tax ID number (NPWP).

The Coordinating Minister for Economic Affairs Darmin Nasution said that the policy is only given to the industries that have plans to invest at least IDR 100 billion or absorb more than 1,000 workers.

The government has prepared rules to grant this facility, which are the Government Regulation (PP) about industrial estate, and then the rules of the Indonesia Investment Coordinating Board (BKPM), and the Finance Ministerial Regulation.

?The BKPM rule is done today. The PP just needs the President?s signature, while the Finance Ministerial Regulation will be done by this Friday,? Darmin said in his office, Jakarta, Tuesday (29/9).

All this time the investment permit process can take up to 500 days. But then the government had accelerated it to become 8 days. And now, especially for industrial estate, the permit can be done in three hours.

The attempt to accelerate this rule is by changing several permits to just becoming standards or norms. And so, the investor candidates would not be burdened with the obligation to come directly to the related ministries.

But, Darmin is still reluctant to mention the target or the potential from the foreign direct investment (FDI) that is acquired from this change of policy.

BKPM head Franky Sibarani said that later on the investors would only need to sign the commitment for the norms that the technical ministry had set. For example, the industrial estate already has the environment assessment (Amdal), and so the investors need to build waste management according to the terms and condition regarding the quality of it.

?The President has asked us to cut certain permits. Industries will be the backbone of our economy in the days ahead,? Franky said.

And to get the permits, the new investor candidates must come directly and submit their proposals to the One Stop Service in BKPM. The permits given later on will also function as the construction permit to start investment activities in the industrial estate. But previously, the company needs to fulfill all the norms or standards for the investment to happen.

The norms here mean taxes, listing the company (TDP), inconvenience permit, building permit, location permit, technical consideration for the lands, the right to use building, environmental assessment (amdal), traffic amdal assessment, the workers, and the workers social and health insurance (BPJS).