Presidential Regulation No 91/2017 on Acceleration of Doing Business

Transcription

1 Investment Policy Updates: Presidential Regulation No 91/2017 on Acceleration of Doing Business INDONESIA INVESTMENT COORDINATING BOARD Farah Ratnadewi Indriani Deputy Chairman for Investment Climate Development Jakarta, 28 February by Indonesia Investment Coordinating Board. All rights reserved

2 Global Perception on Indonesia INDONESIA COMPETITIVENESS The Investment Coordinating Board of the Republic of Indonesia 2

3 Strong Reform Commitments Ease of Doing Business Indonesia, Indikator Ranking DB 2017 DB Indonesia s DB Rank Starting a Business Indonesia vs other emerging economies Country DB 2017 DB 2018 Russia Indonesia China India Dealing with Construction Permits Getting Electricity Registering Property Getting Credit Protecting Minority Investors Paying Taxes Trading across Borders Enforcing Contract Brazil Resolving Insolvency 76 38

4 Indonesia keep showing a progressive performance toward business environment Indonesia Investment Grade from International Credit Rating Agencies BBB- /Positive BBB/ Stable BBB- / Stable Baa3 / Positive BBB- / Positive BBB- / Positive

5 Indonesian Competitiveness World Economic Forum: the Global Competitiveness Report Indonesia increase its competitiveness rank from 41 st to 36th The Investment Coordinating Board of the Republic of Indonesia 5

6 Investment Performance in Indonesia INVESTMENT TARGET AND REALIZATION The Investment Coordinating Board of the Republic of Indonesia 6

7 Investment Target Strategic Plan of Investment Investment Target Total 1 FDI ,205.5 DDI ,285.5 IDR 3,491 trillion total investment targeted in % increase from period (IDR 1,632.8 trillion) 12.3 % average growth targeted in period Total ,491.0 Growth 12.2% 14.5% 14.1% 12.7% 8.1% (IDR trillion) Excl. Financial Sectors and Upstream Oil and Gas FDI DDI % average share of total investment target in % average share of total investment target In Source: BKPM, 2018 The Investment Coordinating Board of the Republic of Indonesia 7

8 Japan is the 2nd biggest investor in Indonesia FDI Realization by Country Based on Capex, not including financial, oil & gas sectors (US$ million) No Country Total 1 Singapore 5,565 5,123 4,856 4,671 5,832 5,901 9,178 8,441 49,569 2 Japan 713 1,516 2,457 4,713 2,705 2,877 5,400 4,996 25,377 3 USA 931 1,488 1,238 2,436 1, ,161 1,992 11,439 4 South Korea 329 1,219 1,950 2,205 1,127 1,213 1,065 2,024 11,132 5 Netherland 608 1, ,726 1,308 1,475 1,489 9,855 6 Malaysia ,776 3,077 1,115 1,213 9,513 7 China ,665 3,361 8,194 8 Hong Kong ,248 2,116 7,345 9 British Virgin Islands 1, , , UK ,076 1, ,8 5,878 Total 10 Countries 11,249 12,517 14,283 18,199 18,135 18,068 25,775 27, ,432 Total (123 Countries) 16,215 19,475 24,565 28,618 28,530 29,276 28,964 32, ,848 Source: BKPM, 2018 The Investment Coordinating Board of the Republic of Indonesia 8

9 692.8 Rp. Trillion (US$ 53.2 Billion) Investment Realization +13.1% Investment Growth (y/y) % DDI Growth (y-o-y) +8.5% FDI Growth(y-o-y) Investment in Indonesia Investment Realization Jan-Dec 2017 The Investment Coordinating Board of the Republic of Indonesia 9

10 ECONOMIC POLICY REFORM The Investment Coordinating Board of the Republic of Indonesia 10

11 Economic Policy Packages I XV Phase I, 9 Sept 15 Improving national industry competitiveness Phase II, 29 Sept 15 Easing permit requirement and simplifying export proceeds requirement Phase III, 7 Oct 15 Financial services facilitation, export financing and elimination of business unnecessary burden Phase IV, 15 Oct 15 Social safety net and betterment of people welfare Phase V, 22 Oct 15 Improving industry and investment climate through tax incentives and deregulating of sharia banking Phase VI, 6 Nov 15 Stimulating economic activities in border areas and facilitating strategic commodities availability Phase VII, 7 Dec 15 Stimulating business activities in labor-intensive industries nation-wide through incentives in the form of accelerating land certification process for individuals Phase VIII, 21 Dec 15 Resolving land acquisition disputes, intensifying domestic oil production, stimulating domestic parts and aviation industries Phase IX, 27 Jan 16 Accelerating electricity generation, stabilizing meat prices and improving rural urban logistics sector Phase X, 11 Feb 16 Revising Negative investment List and improving protection for SMEs Phase XI, 29 Mar 16 Stimulating national economy through facilitation to SMEs and industries Phase XII, 28 Apr 16 Improving Indonesia s rank on Ease of Doing Business (EODB) Phase XIII, 25 Aug 16 The reduction of bureaucracy to boost the construction of low-cost housing for the poorer segments Phase XIV, 10 Nov 16 E- commerce Road Map that focuses on providing facilities and incentives to e-commerce and creative industries Phase XV, 15 Jun 16 Focused on national logistics system improvements to accelerate business development and competitiveness of national logistics sectors 9 REGULATION REVOKED To reduce economic barriers Packages Milestones: 35 REGULATION MERGED To simplify license and regulation 31 REGULATION REVISED To eliminate certain conditions that hamper economic growth 89 REVOKED OLD REGULATION 49 NEW REGULATION To accomodate new government policy To addjust old irrelevant regulation Objective of Reform - 15 Economic Policy Packages: To improve the competitiveness of national industries, exports and investments. Rationalization (harmonization and streamlining) of regulations, simplifying bureaucratic process and ensuring law enforceability. These packages cover deregulation of 222 regulations of 167 ministries/agencies and 52 regulations at the Presidential level.

12 Taskforce To Monitor Economic Policy Packages Policy Campaign (Chaired by Minister of Trade) NO WORKING GROUP 1 Policy Campaign FUNCTION Campaign, socialization, dissemination, roadshow, business matching, CEO meeting, talk show/dialog 2 Compliance Completing all of the regulation and technical regulation necessary for the implementation of economic deregulation Ensuring the regulation compliance Damage Control Channel/The Bottleneck (Chaired by Minister of Law and Human Rights) Taskforce on the Acceleration and Efficacy Implementation of Economic Policies Compliance (Chaired by Chief of Presidential Staff) 3 Regulatory Impact 4 Damage Control Channel/The Bottleneck Observing, analyzing, and evaluating the implementation of policy/regulation and impact Reviewing for the next deregulation As an complaint channel for the implementation of deregulation policy Handling the cases related to the implementation of deregulation policy Regulatory Impact (Chaired by Senior Deputy of Bank Indonesia) 5 Supporting Unit Supporting the administration of the working group Coordinating with the ministry/board and local government Business clinic and public private consultation for testing the policy effectiveness To monitor the implementation of economic policy packages, the Government established Task Forces on the Implemention Acceleration and Efficacy of Economic Packages

13 ECONOMIC POLICY PACKAGE XVI: PRESIDENTIAL DECREE NO. 91/2017 ACCELERATION OF DOING BUSINESS The Investment Coordinating Board of the Republic of Indonesia 13

14 PHASE 2 PHASE 1 Acceleration of Doing Business Policy: Regulation Framework Safeguarding Issuance of the Licenses (end to end) Licenses Checklist System PRESIDENTIAL DECREE NO. 91/2017 ACCELERATION OF DOING BUSINESS Data Sharing of license Reform of Business Licenses Regulation Online Single Submission (Integrated Business Licensing) System) Roadmap OSS Trial System

15 Concept of Doing Business Policy Paradigm shift 1. 2a. Safeguarding Issuance of the Licenses (end to end) Licenses Checklist System From regulator to civil servant Establish task forces to ensure issuance of business permits in all government level (Central, Provincial, and District) 2b Data Sharing of license and its requirements Including for SMEs Reform of Business Licenses Regulation Investor can start their business activity in SEZ, FTZ, Industrial Zone, and Tourism Zone without completing permits in the beginning Integrated System Eliminate redundancy/repetition of license and recommendation Simpler, faster, cheaper and more accurate Online Single Submission

16 A Breakthrough On Investment Services (1) For Investment Projects in KEK/KPBPB/KI/KSPN Pemerintahan Penanama Pelayanan 1 2 persiapan 3 Daerah n Modal Publik Preparation Construction Production Investment Registration + 7 Licenses* + Register Statement Letter * Notes: 1. Notary deed and legalization from MoLHR, 2. Tax ID/NPWP, 3. Foreign Worker Plan/RPTKA, 4. Foreign Worker License/IMTA, 5. Company registration/tdp, 6. Import Identification Number/API, 7. Customs ID/AKSES KEPABEANAN Import Duty Facility 2 PERIZINA Regional N DAERAH Permits INVESTMENT FACILITY Tax Allowance IN PARALEL Tax Holiday PERIZINAN Technical TEKNIS Permits BUSINESS LICENSE Starting January 2018

17 A Breakthrough On Investment Services (2) For Investment Projects Located Outside KEK/KPBPB/KI/KSPN Pemerintahan Penanama Pelayanan 1 2 persiapan 3 Daerah n Modal Publik Preparation Construction Production Investment Registration + 3 Licenses* * Notes: 1. Notary deed and legalization from MoLHR, 2. Tax ID/NPWP, 3. registration/tdp, Import Duty Facility 2 PERIZINA Regional N DAERAH Permits INVESTMENT FACILITY Tax Allowance Tax Holiday PERIZINAN Technical TEKNIS Permits BUSINESS LICENSE Starting January 2018

18 Acceleration Doing Business Policy: ONLINE SINGLE SUBMISSION The licenses data of all ministries/agencies and local governments are managed in single integrated licenses service system Single submission of data and information Single and synchronous processing of data and information Single decision making on the issuance of business licenses Investor Front line Sistem OSS SKPD Pemkab/ Pemkot PTSP SKPD Pemprov K/L Lainnya will be applied on 1 March 2018 simultaneously

19 Thank You Terima Kasih Indonesia Investment Promotion Centre (IIPC) Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jalan Jend. Gatot Subroto No. 44 Jakarta Indonesia C all center : (BKPM) e. info@bkpm.go.id The Investment Coordinating Board of the Republic of Indonesia 19