Investing in Indonesia

Transcription

1 Investing in Indonesia Investment Opportunities and Policy in Indonesia s Fisheries Industry Jakarta, 9 March 2017 INDONESIA INVESTMENT COORDINATING BOARD (BKPM) Ir. M. M. Azhar Lubis, M.A Deputy Chairman of Indonesia Investment Coordinating Board 2016 by Indonesia Investment Coordinating Board. All rights reserved 1

2 CONTENT 1. Investment Target and Japan Investment in Indonesia 2. Open & competitive Investment Environment 3. New Initiative for Improvement 2

3 Investment Target and Japan Investment in Indonesia WHERE ON EARTH The world s 16 th largest economy 3

4 In trillion Rupiah 4000 Investment Realization Target Y-o-Y 13.8% Y-o-Y 12.4% Y-o-Y 14.1% Y-o-Y 27.1% % increase Y-o-Y 7.5% DDI FDI Target Real Target Real Target Target Target Target Realization Total , , Total in USD Billion DDI , , FDI , , , DDI/FDI Investment Realization in Jan-Des 2016: IDR T (103.0% from target) Y-o-Y: 12,4%, Exchange Rate : USD 1 = IDR 13,300 4

5 Japan Presence in Indonesia FDI Realization in Indonesia Investment Realization in Investment Commitment in Fishery Investment Realization & Commitment in

6 Investment Realization by Country of Origin Top-10 Indonesia s Source of Investment, Based on Investment Value (USD million) Excl. Upstream oil and gas, and financial sectors Rank Countries Total 1 Singapore 4,856 4,672 5,832 5,901 9,179 30,440 2 Japan 2,457 4,713 2,705 2,877 5,401 18,153 3 South Korea 1,950 2,205 1,127 1,213 1,066 7,561 4 Malaysia ,776 3,077 1,116 7,210 5 USA 1,238 2,436 1, ,162 7,028 6 Netherlands ,726 1,308 1,475 6,404 7 China ,665 4,532 8 Hong Kong, PRC ,248 4,529 9 United Kingdom 934 1,076 1, , British Virgin Island ,157 4,154 Total (Top-10 Countries) 14,238 18,200 18,135 18,068 25,775 94,419 Total (116 Countries) 24,565 28,616 28,530 29,276 28, ,951 6

7 Investment Realization from Japan to Indonesia in No. SECTOR Total ( ) 1 Mining Fishery % 3 Food Crops and Plantation 0.1-0, Forestry Livestock PRIMARY SECTOR % 6 Transport Equipment and Other Transport Industry 1, , , , , ,828.5 % 7 Metal, Machinery, and Electronic Industry , Chemical and Pharmaceutical Industry , Food Industry Textile Industry Rubber and Plastic Industry Paper and Printing Industry Non Metallic Mineral Industry Wood Industry Other Industry Medical Instrument, Precision, Optic, and Watch Industry Leather Goods and Footwear Industry SECONDARY SECTOR 2, , , , , , % 18 Real Estate, Industrial Estate, and Office Building , Electricity, Gas, and Water Supply Trade and Reparation Transportation, Warehouse, and Telecommunication Other Services Construction Hotel and Restaurant TERTIARY SECTOR ,2005 2, % TOTAL 2, , , , , , % *) Value in Million USD 7

8 Investment Commitment from Japan to Indonesia in No. SECTOR Total ( ) 1 Mining Fishery % 3 Food Crops and Plantation Livestock Forestry PRIMARY SECTOR % Transport Equipment and Other Transport Industry 7, , , , , Metal, Machinery, and Electronic Industry , Food Industry Non Metallic Mineral Industry Paper and Printing Industry Rubber and Plastic Industry Chemical and Pharmaceutical Industry Textile Industry Other Industry Food Industry Medical Instrument, Precision, Optic, and Watch Industry Leather Goods and Footwear Industry SECONDARY SECTOR 9, , , , , % 18 Electricity, Gas, and Water Supply , , Real Estate, Industrial Estate, and Office Building , Trade and Reparation Other Services Transportation, Warehouse, and Telecommunication Hotel and Restaurant Construction % *)Value in Million USD TERTIARY SECTOR , , % TOTAL 9, , , , , , % 8

9 Fishery Investment from Japan in Indonesia Total ( ) Commitment (in Million USD) Realization (in Million USD) Realization to Commitment 62.3% 1.6% 0.0% 1.3% 0.0% 72.7% Fishery Commitment to Total Japan Commitment Fishery Realization to Total Japan Realization 0.1% 0.1% 0.0% 0.1% 0.0% 0.1% 0.1% 0.0% 0.2% 0.0% 0.1% 0.1% Japan Fishery Commitment to Total FDI Fishery Commitment Japan Fishery Commitment to Total National Fishery Commitment (DDI & FDI) *) Japan Fishery Realization to National Fishery Realization (FDI) Japan Fishery Realization to Total National Fishery Realization (DDI & FDI) *) 9.7% 8.0% 0.0% 10.9% 0.0% 3.8% 9.1% 5.1% 0.0% 9.8% 0.0% 3.2% 11.4% 1.0% 15.6% 0.2% 11.8% 8.1% 10.8% 1.0% 14.7% 0.1% 11.7% 7.0% *) using APBN/APBN-P exchange rate 9

10 Open & Competitive Investment Environment INDONESIA The New Negative Investment List 2016 (Presidential Regulation No.44/2016) Fisheries Sector Fiscal Incentives WHERE ON EARTH The world s 16 th largest economy 10

11 11 Indonesia has shown progressive achievement in the past years Indonesia s Ease of Doing Business rank, Japan Credit Rating Agency: Indonesia Obligation Rating BBB-/stable outlook (investment grade) - (1 Feb 2016) Stable Positive - (7 March 2017) Moody s Investor Service: Indonesia Obligation Rating Stable Positive (17 Feb 2017)

12 NEGATIVE INVESTMENT LIST (PRESIDENTIAL REGULATION NO. 44/2016) Marine and Fisheries Business Field with the Partnership Terms for Investment No. Business Field KBLI* 1 Hatchery of marine fish Hatchery of brackish water fish Hatchery of freshwater fish Rearing of marine fish Rearing of brackish water fish Rearing of freshwater fish Fishery product processing business: salting/ drying of fish and other water biota industry 8 Fishery products processing business: smoking fish and other water biota industry 9 Fishery products processing business: yeasting/fermentation fish and other cooked products (for extraction and fish jelly) industry 10 Fishery products processing business: Minced fish and surimi processing based industry 11 Marketing, distribution, wholesale and export businesses of fish products *KBLI: Indonesia Standard Industrial Classification Code 12

13 Investment Regulation Foreign Capital Ownership Negative Investment List according to Presidential Regulation No. 44/2016 All processing fish and sea product open for FDI 13

14 FRAMEWORK FOR INVESTMENT FISCAL INCENTIVES TAX HOLIDAY TAX ALLOWANCE IMPORT DUTY FACILITY Law No. 25/2007, GR No. 94/2010 MoF Reg No. 159/PMK.010/2015 GR No. 9/2016 MoF Reg No. 76/PMK.011/ ~20 Year Amenities tax deductions, commencing from commercial production 30 % Of the investment value Reduction of corporate tax from net profit for 6 years (5% per year) Machinery, goods, materials for the production of 2-year or 4-year tax exemption for companies that use a machine with a local component (min.30%) % Reduction of corporate income tax from the amount of corporate income tax payable Pioneers Industry: 1. Metal Industry Upstream 2. Petroleum Refining Industry 3. Basic Organic Chemical Industry sourced from Petroleum and Natural Gas 4. Machinery Industry that produces industrial machinery 5. Manufacturing is based on Agriculture, Forestry, and Fisheries 6. Telecommunications Information and Communication Industry 7. Marine Transportation Industry 8. Manufacturing Are the Primary Industry in Special Economic Zones 9. Infrastructure Economic Cooperation Scheme Using other than the Government and Enterprises (KPBU) 143 The business sectors are eligible for a tax allowance (14 segments increased from the previous regulations) An additional period of 1-2 years may be granted under certain requirements, among others: the business is done in an industrial area and / or the bonded area, using local raw materials component min.70%, absorbing Indonesian workers 500/1000 of people, the cost of R and D min.5%, business expansion was financed from profits after tax, min.30% of total export sales. Including fish and sea product processing industry Industry Producing goods and / or services, including: 1. Tourism and culture 2. Public transport 3. Community health services 4. Mining 5. Construction 6. Telecommunication 7. Port 8. Assembly industry of motor vehicles (including motor vehicle parts industry) Including fish and sea product processing industry IDR 1 Trillion Minimum Investment Plan 14

15 New Initiative for Improvement INDONESIA 3-hour Investment Licensing Service Direct Construction Facility Green Line Acceleration Facility WHERE ON EARTH 34 provinces & 514 regions, decentralized 15

16 Investment Service Reforms 3-hour Investment Licensing Service Available for investors with minimum investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers. 8 documents obtained Certainty to start a business Investment license Certificate of incorporation NPWP / Tax registration TDP / Company registration Certainty to work RPTKA / Employment plan IMTA / Working permit Certainty to import capital goods APIP / Import identification NIK / Customs registration Accurate land Information Letter of land availability BKPM Arrive at One-stop Service at BKPM directly from the airport. Consult with Director of Investment Service. Submit the required documents & data. Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions. Obtain eight documents & letter of land availability within three hours to start your business. 16

17 3 HOURS INVESMENT LICENSING SERVICE FOR ENERGY AND MINERAL RESOURCES SECTOR BKPM RECEIVE Requested licensing products WAITING In Priority Lounge 9 Type of Licensing Issued by ESDM3J service Director ARRIVES at Central OSS. SUBMIT required documents. NO TYPE OF SERVICES REGULAR SERVICE 1. Temporary Business License for Electricity 20 Working Days 2. Temporary Business License for Oil / Fuel / LPG Storage 32 Working Days REQUIREMENTS ESDM3J service is given if the company has fulfiiled the checklist of administrative and technical requirements as regulated on MEMR Ministrial Decree No.15 of Temporary Business License for Storage of Processed Products / CNG 32 Working Days for Processed Products Working days for CNG 4. Temporary Business License for LNG Storage 32 Working Days 5. Temporary Business License for Oil Refinery 32 Working Days 6. Temporary Business License for Processing Oil Residue Industry 32 Working Days 7. Temporary Business License for Natural Gas Processing 32 Working Days 8. Temporary Business License for General Trade of Oil/Fuel 40 Working Days OSS : One Stop Service (PTSP) MEMR : Minister of Energi and Mineral Resources 9. Temporary Business License for General Trade of Processed Products 40 Working Days 17

18 3-HOUR INVESTMENT LICENSING SERVICE project Japan 6 project ,100 Indonesian Workers ,557 Indonesian Workers Japan IDR 2.8 T (as of 17 February 2017) 251 Project Project 170,657 Indonesian Workers Japan 689 Indonesian Workers IDR Trillion 3 HOURS INVESMENT LICENSING SERVICE FOR ENERGY AND MINERAL RESOURCES SECTOR 10 Project (as of 8 March 2017) Investment IDR 12.8 Trillion 2 Project Oil & Gas Processing 5 Project Oil & Gas Storage 1 Project Oil & Gas Commerce 2 Proyek Power Plants 2016 IDR Trillion 2017 IDR 50.1 Trillion 1 company from Japan submit for license with investment commitment IDR 239 Million in power plants 18

19 Investment Service Reforms Direct Construction Investors can directly start their project construction before obtaining construction permits. This service is supported by both Central and Regional Governments. No Requirements No minimum investments or workers is required. Available for selected industrial parks. Construction permits can be obtained in parallel with construction process. Obtain investment licence at One-stop Service (PTSP) at national or regional level. Survey a land within selected industrial parks. Acquire the land for your industry. Start the construction of your project. No other permits are required. Apply for building construction permit & environmental permit, in parallel with construction process. 19

20 Business Environment 32 Industrial Estates for Direct Construction North Sumatra KI Medan Riau Islands Batamindo Industrial Park Bintang Industriall Park II Kabil Integrated Industrial Park West Point Maritime Industrial Park KI Lobam Black font: First Implementation Blue font: Second Implementation Riau KI Dumai Banten Modern Cikande Industrial Estate KI Terpadu Wilmar Krakatau Industrial Estate Cilegon West Java Bekasi Fajar Industrial Estate KI Delta Silicon 8 Karawang Internasional Industrial City Suryacipta City of Industry GT Tech Park KI Artha Industrial Hill KI Greenland International Industrial Center KI Jababeka Tahap III KI Bukit Indah Industrial City KI Indotaisei Kota Bukit Indah Jakarta Kawasan Berikat Nusantara KI Jakarta Industrial Estate KI Marunda Center Balikpapan KI Kariangau East Java Java Integrated Industrial & Port Estate KI Maspion KI Tuban Central Java KI Kendal KI Bukit Semarang Baru KI Wijayakusuma KI Jatengland Industrial Park South Sulawesi KI Bantaeng WHERE ON EARTH Java, Sumatra, Sulawesi are Indonesia s most populous islands 20

21 Direct Construction 82 Project/Company Japan 14 Project/Company Investment Value in Trillion Rupiah 2.53 Investment Value in Trillion Rupiah 1, hectare land areas hectare land areas 11 Industrial Estate 5 Industrial Estate Commersial Production 9 Project/Company Land area ha, Investment IDR 2.08 Trillion in 3 industrial estate CONSTRUCTION 16 Project/Company Land area 202,19 ha Investment IDR 4.49 Trillion in 8 indsutrial estate Preparation 57 Project/Company Land area ha Investment IDR trillion In 11 industrial estate 21

22 Japan Company List Using Direct Construction Facility in 2017 No. Company Industrial Zone Investment Value (IDR Million) 1. PT. Ajinomoto Indonesia Karawang International Industrial City (KIIC) PT. Aichikiki Autoparts Indonesia Karawang International Industrial City (KIIC) PT. Denso Indonesia Bekasi Fajar Industrial Estaste (BFIE) PT. Nof Mas Chemical Industries Bekasi Fajar Industrial Estaste (BFIE) PT. Ogawa Indonesia Karawang International Industrial City (KIIC) PT. Hoyu Indonesia Karawang International Industrial City (KIIC) PT. FCC Indonesia Karawang International Industrial City (KIIC) PT. Actmetal Indonesia Karawang International Industrial City (KIIC) PT. Lautan Organo Water Modern Cikande Industrial Estate (MCIE) PT. Tuffindo Nittoku AutoNeum Suryacipta of Industry (SCI) PT. Mitsui Kinzoku Catalysts Jakarta PT. Iwatani Industrial Gas Indonesia Suryacipta of Industry (SCI) Karawang International Industrial City (KIIC) PT. Hiruta Kogyo Indonesia Karawang International Industrial City (KIIC) PT. Sasakura Indonesia Kendal (KIK) TOTAL 2, Land area ha Copyright 2017 Indonesia Investment Coordinating Board. All rights reserved. 22

23 Investment Service Improvements of Investment Service Import Facility for Capital Goods Green Line acceleration facility Acceleration and assurance of custom clearance process Before: 2 days After: half day Projects in the construction phase can begin operation immediately Capital goods do not require screening Valid since 14 December 2015 As of February 2017, 89 companies have used the Green Line Facility 2016 by Indonesia Investment Coordinating Board. All rights reserved

24 Green Line Realization 89 companies Investment Commitment IDR trillion *) as of 7 March 2017 From Japan: 8 Companies Investment Commitment : IDR 18.4 trillion Textile industry, transport equipment, non metal minerals industry Sectors: Paper industries & printing; Basic chemical industries & pharmaceutical industry; Basic metals industry, machinery & electronic industries; Transport equipment industries; Non-metal minerals industry; Electricity, gas & water; Food industry; Rubber & plastic industry; Real estate, industrial estate & office complex; Mining; Food crops & plantation; Hotel & restaurant; transportation, warehouse & telecommunication; textile industry; and leather & textile industries. 24

25 Terima Kasih Indonesia Investment Promotion Centre (IIPC) Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jln. Jend. Gatot Subroto No. 44 Jakarta Indonesia t f e. info@bkpm.go.id 25