Principle License Replaced by Investment Registration
Thomas Lembong, Head of the Investment Coordinating Board (BKPM), says his agency targets a 10-14 percent (y/y) growth pace in terms of domestic and foreign direct investment in Indonesia in 2018. Specifically the e-commerce sector and services sector are expected to attract plenty of investment this year.
BKPM will also continue to make the investment process less difficult for investors. The government agency announced at the year-start that it replaced the Principle License (in Indonesian: Izin Prinsip, or IP) by the Investment Registration (Pendaftaran Investasi, or PI), and now also allows investors - for certain business fields - to directly obtain a Business License (Izin Usaha, or IU).
Replacing the Izin Prinsip by the Pendaftaran Investasi (through BKPM Regulation No. 13/2017) will speed up the bureaucratic process from three to one days, hence investors can realize their investment ambition in a more rapid manner. Lembong calls it the government's present for investors at the start of 2018. The change is a follow up of Presidential Regulation No. 91/2017 on the Acceleration the Implementation of Business Execution.
Meanwhile BKPM also continues its efforts to digitize investment licensing matters (in its quest to reach "paperless investment licensing"). The digitalization of licensing products has started since July 2017 with the launch of Izin Prinsip Penanaman Modal in the form of a digital document. Starting in January 2018, the digitalization process continues with the issuance of the digital Izin Usaha, involving 14 ministries that are allowed to issue this document to BKPM's One Stop Service (in Indonesian: Pelayanan Terpadu Satu Pintu, or PTSP).
