BKPM REGULATION NO 14 OF 2017 Guidelines and Procedures for Investment Supervision and Controlling 28 February 2018 Deputy Chairman for Supervision and Controlling Investment Coordinating Board
Investment Realisation Target 2015-2019 4,000 3,500 3.491,0 3,000 2,500 1.284,6 113,6% 2,000 1,500 1,000 500 0 21,9% 1.634,7 10,4% 13,0% 513.0 12,4% 932,9 765,0 2.206,4 545,4 612,8 692,8 363.0 287,6 1,121.7 179,5 216,2 262,3 365,9 396,6 430,5 477,4 569.9 2015 2016 2017 2018 2019 2015-2019 2010-2014 2015 2016 2017 2018 2019 2015-2019 2010-2014 % Target Realisation Target Realisation Target Realisation Target Target Target Realisation increase Total 519,5 545,4 594,8 612,8 678,8 692,8 765,0 932,9 3.491,0 1.634,7 113,6% Total (US$ Billion) 39,1 41,0 44,7 46,1 51,0 51,9 57,5 70,1 262,4 122,9 113,5% DDI 175,8 179,5 208,4 216,2 249,8 262,3 287,6 363,0 1.284,6 513,0 150,4% FDI 343,7 365,9 386,4 396,6 429,0 430,5 477,4 569,9 2.206,4 1.121,7 96,7% FDI & DDI Investment Realisation period Jan-Dec 2017: Rp 692.8 T (102.1 % of the target) Y-o-Y 2016: 12.7%, US$ Rate Q I and II 2016: US$ 1 = Rp 13,000.- US$ Rate Q III and IV 2016: US$ 1 = Rp 13,500.- US$ Rate Q I and II 2017: US$ 1 = Rp 13,300.- US$ Rate Q III and IV 2017: US$ 1 = Rp 13,400.- 2
Investment Realisation Target 2015-2019 2015-2019 : Rp 3.491 Trillion US$ 262,4 Billion Increase 2010-2014 (Realisation) : Rp 1.634,7 Trillion US$ 122,9 Billion 113.6% 2015-2017 (Realized Target) : Rp 1.851,0 Trillion US$ 140,3 Billion 53.0% of Target 2015-2019 Source: Indonesia Investment Board, January 2018
Investment Commitment 2015-2017 Rp 5,388.3 Trillion US$ 410.2 Billion PMA Rp3,106.8 Trillion (57.7%) PMDN Rp2,281.5 Trillion (42.3%) Sumatera Rp 1,010.6 Trillion (18.8%) Jawa Rp 2,553.8 Trillion (47.4%) Sulawesi Rp 700.1 Trillion (13.0%) Bali & Nusa Tenggara Rp 266.2 Trillion (4.9%) Kalimantan Rp 763.6 Trillion (14.2%) Maluku & Papua Rp 93.9 Trillion (1.7%)
INVESTMENT SUPERVISION AND CONTROLLING GUIDANCE (Norm Standard Procedure & Criteria / NSPK) Presidential Regulation No. 91 of 2017 on Acceleration of Business Operations Investment Activities Guidance BKPM Regulation No 13 of 2017, and BKPM Regulation No 14 of 2017 5
General (Article 4) SCOPE OF SUPERVISION AND CONTROLLING MONITORING OUTPUT Data on investment realisation and investment problems IMPLEMENTATION Investor Report : - Inv. Activities Report (LKPM): Construction Stage (quarterly) Production Stage (6 months) - Representative Office Report - Checklist Commitment Update SUPERVISION & CONTROLLING SUPERVISION Understanding the rules and regulation as well as facilitation of investment problems Supervision and socialization on investment regulation Supervision and Investment problems facilitation Facilitation on Investment realisation acceleration ACHIEVED INVESTMENT TERGET Quality Quantity CONTROLLING On Track Investment Activities Controlling on : Evaluation on IP/PI/IU including Commitment checklist Indication of violation on regulatory requirements Utilization of Import Duty Exemption Industrial Business License and Expansion Business License application 6
MONITORING BEFORE AFTER (Article 18 (Article 20 BKPM 11 13Regulation BKPM Regulation no. 17/2015) no. 17/2015) (Article 10-14 BKPM Regulation no. 14/2017) Construction stage Project : report quarterly Operation stage Project : report every 6 months LKPM LKPM Construction stage Project : report quarterly Operation stage Project : report every 6 months Company with Business License (IU) without investment registration (PI) report every 6 months after provide notification of started production Realisation on import duty exemption facility Must be reported 7 days after SPPB date Realisation on Import Identification Number Must be reported quarterly Import Realisati on Import Realisati on Realisation on import duty exemption facility must be reported 7 days after SPPB date Realization on Import Identification Number must be reported quarterly KPPA report yearly KP3A report every 6 months Rep. Office Activities Rep. Office Activities Foreign Company Representative Office/KPPA & Foreign Company Trade Representative Office/KP3A report every 6 months Foreign Company Construction Representative Office/BUJKA report yearly: At January 10, in the year after Update on Commitment checklist Company with temporary Business Licenses Must update its commitment checklist every month thru updating company folder 7
SUPERVISION BEFORE AFTER (Article 18 20 BKPM Regulation no. 17/2015) (Articlel 17-18 BKPM Regulation no. 14/2017) Supervision or holding workshop or technical guidance or direct dialogue with investor Facilitating company to accelerate investment projects in a form of ease of doing business Providing consultation Fasilitating Investment Problems Escorting company with investment licenses to accelerate national strategic projects Blocking access rights (flag) can be imposed on the company that has disputing problem among shareholders and may be reopened after reaching an agreement. Coordination with Task Force in facilitating problems exist in business licenses. The results of facilitation (debottlenecking), are recorded in standard note and monitored regularly. 8
SUPERVISION FLOW OF FACILITATING PROBLEMS ON INVESTMENT ACTIVITIES (Article 18) Lined Ministries RegionaI institution Other parties FACILITATION REQUEST Identification and verification Coordination with technical ministries, region institution & other Coordination with National Task Force, Provinces, and Districts results (optional) 9
CONTROLLING BEFORE (Article 21-22 BKPM Regulation 17/2015) Evaluation based on Investment Licenses and non Licenses; Indication of violation; Utilization of Import Duty Exemption, and non fiscal facilities (manpower). AFTER (Article 19-23 BKPM Regulation no. 14/2017) Evaluation on IP/PI/IU including Commitment checklist; Indication of violation on regulatory requirements; Utilization of Import Duty Exemption; Industrial Business License and Expansion Business License application; 5 Supervision request from Deputy for Investment Services and/or lined Ministries Prosess of sanction; Proposed revocation of investment licenses. Investigation report (BAP) for Industrial Business License (IUI) No later than 5 working days Investment 100B Investment < 100B Rejection of investigation Report 10
CONTROLLING CONTROLLING FOR INDUSTRIAL BUSINESS LICENSE (Article 20) 1 Investment < Rp 100 B Investment Rp 100 B Information Technology On site supervision 2 Information Technology 11
ADMINISTRATIVE ACTIONS BEFORE (Article 24-39 BKPM Regulation no. 17/2015) Administrative Action, consists of : Cancellation of Investment License; Revocation of Investment License; Imposition of sanction. AFTER (Article 26-30 Regulation BKPM 14/2017) Administrative Action in Investment Controlling Activities Article 26 Article 27 Revocation based on company request Revocation based on Court decision CANCELLATION Article 29 Article 30 Closing of Representative Office Imposition of sanction 12
ADMINISTRATIVE SANCTIONS Base : Proposed by BKPM, DPMPTSP Province, District/City, Board of FTZ dan Special Economic Zone Administrator Proposed by lined Ministrities Reasons : Evaluation results from Investment Activities Controlling Unit Fail to fulfill obligations Fail to fulfill responsibilities Committing an offense Meet the criteria for sanction imposition of lined Ministries Fail to fulfill Commitment Checklist and fail to start construction Stages of Sanction imposition : 1. Online written warning; 2. Suspension of business, and/ investment facilities; 3. Termination of business activities; 4. Revocation of business activirties. Stages pof sanction imposition : 1. Online written warning; 2. Restriction on business activities; 3. Suspension of business, and/ investment facilities; 4. Revocation of business activities and / licenses and / investment. 13
EFFECTIVE DATE (Article 43-44) BKPM Regulation No. 14 of 2017 will be fully implemented on: DPMPTSP Provinces, FTZ/KPBPB and SEZ/KEK 14
Thank you Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jln. Jend. Gatot Subroto No. 44 Jakarta 12190 - Indonesia t +62 21 5292 1334 f +62 21 5264 211 e info@bkpm.go.id www.bkpm.go.id Thank You