Problems relating to Trade and Investment on Indonesia

8. Investment recipient organization
Issue	Issue details	Requests	Reference

(1) Inadequacy in Articles 25-29 of Law on Investment No.25, 2007 and Flaw in Operation of Presidential Regulation No.27, 2009 on One-Door Integrated Service	- Vexatiously complex and delayed procedures (i.g; acquisition of permissions from Ministry of Energy and Mineral Resources, Ministry of Industry, trade etc. on land, environment, business licence discharge etc. individually ) for acquiring variety of licences and approvals. - In past years, it took a few years for a member firm to obtain the governmental approval from the filing date of application. The new administration has declared promotion of private sector investment by the administrative one-stop service, with BKPM serving as the single window. Ministry of energy and mineral resources, ministry of environment and forestry, and other ministries and agencies are grappling with reaching the goal toward labour saving. - Change of office address is no easy matter, as all licences and permits already obtained at old addresses, require renewal, which costs dearly in both time and cost. Pending completion of all such renewals, applicants must suspend conducting practical business. Example: No import is possible without first obtaining import rax payment No.	- It is requested that BKPM (Investment Coordinating Board) takes initiative in materialising One Stop Service all across Ministries and Agencies, and rigorously controls the time schedules. - It is requested that GOI and GOJ watch the progress made toward the goal of setting up one stop service at G-to-G consultation table, as well. - In the event of move of office address, it is requested that GOI continues to accept the licences and approvals already obtained at the old address except for the address change procedure.	- Undang Republik Indonesia Nomor 25 (25-29) Tahun 2007 Tentang Penanaman modal - Inadequacy on "Playanan Terpadu Satu Pintu" 27/2009 President regulation
	(Action) - On 9 September 2015, President Joko Widodo unveiled the 1st economic policy package toward economic recovery, including curtailment of overlapping regulations, of which 89-regulations have been repealed out of the 154-regulations. In addition, 17-Decrees, 11-Presential Orders, and 63-Ministerial Orders will be promulgated.
	(Improvement) - On 26 January 2015, BKPM (investment coordinating board) officially initiated "one-stop investment licensing service (PTSP-Pelayanan Terpadu Satu Pintu)" aimed at expediting issuance of licenses and permits by and among 22-ministries and agencies in concern. PTSP has been placed nationwide, including the local governments. - On 29 September 2015, GOI announced measures to boost economy, "substantial reduction in the days required for grant of investment licence" and "expedited approval procedures on approval of large scale business investment". Compared to the neighbouring countries such as Singapore and Malaysia, it used to take by far more days for grant of approvals in Indonesia. Streamlining the procedure has been an outstanding problem. Franky Sibarani, BKPM Head, said the license could be issued in three hours, on a project in which the new investment amount exceeds 1,000 billion rupiah (8 hundred million yen) of an enterprise entering the bonded industrial zone, with more than 1,000 employees. - On 1 December 2015, the investment coordinating board (BKPM) expanded the scope of the licence types applicable to "within 3-hours licencing" concerning the foreign investment into industrial/bonded zones. - On 2 March 2010, ministry of trade promulgated regulation (enforced on 2 March 2016) that simplifies the application procedures for both commercial license (SIUP) and company registration certificate (TDP), issuance of which is made available online by the local integrated one stop service (PTSP) [Reference] ministry of trade regulation No.14, 2016 (in Indonesian) is available for download at: (http://www.kemendag.go.id/files/regulasi/2016/03/02/14m-dagper32016-id-1458209864.pdf)

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