Post on 14-Aug-2015
INDONESIA INVESTMENT COORDINATING BOARD
invest in
Prepared for 4th South East Asia Auto Summit 2015| Jakarta, 8-9 April 2015
Automotive and Auto Component Industry
Deputy for Investment Climate Development
The Investment Coordinating Board of the Republic of Indonesia
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Indonesia in ASEANASEAN is the third largest market in Asia, after China & India.
Indonesia represents: 40% of ASEAN population38% of ASEAN’s economySource: IMF, 2014
The Investment Coordinating Board of the Republic of Indonesia
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Rank 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1 China China China China China China China China Indonesia India
2 India India India India India India India India India Indonesia
3 Thailand Vietnam Vietnam Vietnam Vietnam Vietnam Thailand Indonesia Thailand China
4 Vietnam Thailand Thailand Russia Thailand Thailand Vietnam Thailand China Thailand
5 USA USA Russia Thailand Russia Brazil Indonesia & Brazil Vietnam Vietnam Vietnam
6 Russia Russia USA Brazil Brazil Indonesia - Brazil Brazil Mexico
7 Korea Brazil Brazil USA USA Russia Russia Mexico Mexico Brazil
8 Indonesia Korea Indonesia Indonesia Indonesia USA USA Rusia Myanmar USA
9 Brazil Indonesia Korea Korea Korea Korea Malaysia USA Russia Russia
10 Taiwan Taiwan Taiwan Taiwan Malaysia Malaysia & Taiwan Taiwan Myanmar USA Myanmar
The most promising country for overseas business
(Japan Bank for International Cooperation Survey 2005 - 2014)
Source: JBIC, November 2013
Reason (Positive Factors)1. Future growth potential of local market
2. Current size of local market3. Inexpensive source of labor
4. Supply base for assembler5. Base of export to third countries
Issues of Concern1. Rising labor costs2. Execution of legal system unclear 3. Intents competition with other companies4. Underdeveloped infrastructure 5. Difficult to secure management-level staff
Competitiveness And Perspective The Business World
The Investment Coordinating Board of the Republic of Indonesia
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Java with a focus: high technology industry, services and trade. Outside Java : industry that give added value, such as : industries import substitution, labor-intensive industry, agricultural
sector (plantation industry and farming), fisheries industry, mining industry Especially to Papua and West Papua: encouraging economic distribution with investment expansion of agricultural sector
and the processing, fisheries industry and the processing, mining industry and the processing, chemical industry.
INVESTMENT FOCUS 2015
Rp 75,2 Trillion in Sumatera
Rp 282,6 Trillion in Java
Rp 74,5 Trillion in Kalimantan
Rp 27,8Trillion in Sulawesi
Rp 19 Trillion in Bali and Nusa Tenggara
Rp 7,3 Trillion in Maluku
Rp 33,2 Trillion in Papua and West Papua
The Investment Coordinating Board of the Republic of Indonesia
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Power Generation 35 GW new projects
7 GW projects in
the pipeline
Labor-intensive industry Textile Food &
Beverages Furniture Toys
Import-substitution industry
Chemical & Pharmaceutical Iron & Steel
Export-oriented industry
ElectronicsCPO &
derivative products
Wood products, pulp
& paperAutomotive
Machinery Rubber products
Fish & derivative products
Shrimp
Downstream industry of natural resources Cacao Sugar Smelter
Maritime Shipping Ship building Sea port Cold storage ICT for maritime
Tourism Strategic tourism areas MICE
Investment Strategic Plan 2015-2019
Investment Priority Sectors
The Investment Coordinating Board of the Republic of Indonesia
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Investment Realization Target for 2015 – 2019 (In USD Billion)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
DDI 6.7 8.4 10.2 13.5 15.2 14.8 17.5 20.7 25 30.5
FDI 16.2 19.5 24.6 28.6 28.3 28.9 32.5 36.3 41.6 47.9
5
15
25
35
45
55
65
75
85
22.927.9
34.842.1 43.5 43.7
50.057.0
66.6
78.4Investment Target
Note:Kurs 2015-2019: 1 USD = Rp. 12.000 (RAPBN 2015)
Note: Kurs 2010-2012: 1 USD = Rp 9,000; Kurs 2013: 1 USD = Rp. 9,450; Kurs 2014: 1 USD = Rp 10.500 *) Asumption: 2014 target is achieved
2015-2019Growth average: 15,1%Source of investmentFDI : 63,6%; DDI : 36,4%SectorPrimer : 15,7%; Secondary : 53,5%; Tertiary: 30,8%LocationJava : 46,5%; Outside Java: 53,5%
2010-2014Growth average: 28,3%Source of investmentFDI : 69,0%; DDI : 31,0%Sector Primary: 21,8%; Secondary : 41,8%; Tertiary: 36,4%LocationJava : 59,4%; Outside Java : 40,6%
The Investment Coordinating Board of the Republic of Indonesia
7I = Investment (Rp Trillion)
Progress of Investment Realization 2010 –2014: Based on Primary, Secondary, Tertiary Sector
DDI2010 2011 2012 2013 Jan-Dec 2014
Total2010-2014
I % I % I % I % I % I %
Primary 13.4 22.2 16.5 21.7 20.4 22.1 25.7 20.1 16.5 10.6 92.5 18.0Secondary 24.4 40.3 38.5 50.7 49.9 54.1 51.2 39.9 59.0 37.8 223.0 43.5Tertiary 22.7 37.5 21.0 27.6 21.9 23.8 51.3 40.0 80.6 51.6 197.5 38.5Total 60.5 100.0 76.0 100.0 92.2 100.0 128.2 100.0 156.1 100.0 513.0 100.0
FDI2010 2011 2012 2013 Jan-Dec 2014
Total
2010-2014 I % I % I % I % I % I %
Primary 27.7 18.7 44.0 21.7 53.4 22.1 61.1 20.1 75.2 24.5 261.4 23.3Secondary 30.5 20.6 61.1 50.7 105.9 54.1 149.9 39.9 140.1 45.6 487.5 43.5Tertiary 89.8 60.7 70.2 27.6 61.7 23.8 59.4 40.0 91.7 29.9 372.8 33.2Total 148.0 100.0 175.3 100.0 221.0 100.0 270.4 100.0 307.0 100.0 1,121.7 100.0
2010 2011 2012 2013 Jan-Dec 2014
Primary 41 60.5 73.8 86.8 91.7
Secondary 54.8 99.6 155.8 201 199.13
Tertiary 112.7 91.2 83.7 110.8 172.27
Total 208.5 251.3 313.3 398.6 463.099999999999
50150250350450
Rp T
rilli
on
(27%)
(19%)
(54%)
(40%)
(24%)
(36%)
(50%)
(24%)
(26%)
(50%)
(22%)
(28%)
(43%)
(20%)
(37%)
The Investment Coordinating Board of the Republic of Indonesia
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*)Investment Target 2015 Strategic Planning BKPM 2015 – 2019 **) Against target 2015
Investment Realization Progress Quarter I 2015
The value of investment in Quarter I 2015 is direct investment realization which is done during three months period of report (January – March 2015) which is based on investment realization report by the DDI and FDI companies.
Oil and Gas, Banking, Non-Bank Financial Institution, Insurance, Leasing and SMEs are excluded
The investment value is in Rp Trillion (T) and for Quarter I 2014 the exchange rate of US$ 1 = Rp 10,500,- based on State Budget 2014, for Quarter IV 2014 the exchange rate of US$ 1 = Rp 11,600,- based on Revised State Budget 2014 and for Quarter I 2015 the exchange rate of US$ 1 = Rp 12,500,- based on Revised State Budget 2015
Investment Realization in Quarter I 2015 : Rp 124.6 T, an increase around 16.9 % from Quarter I of 2014 (Rp 106.6 T) and increase about 3.5% from Quarter IV 2014 (Rp 120.4 T)
DDI : domestic direct investment FDI : foreign direct investment
Quarter I 2015 y-o-y q-o-q
DDI 22.8% 1.9%
FDI 14.0% 4.3%
TOTAL 16.9% 3.5%
Quarter I 2015 : In Comparison With Quarter I 2014 and Quarter IV 2014
Q I 2014 Q IV 2014 Q I 2015 Target 2014*) Achievement**)
DDI 34.6 41.7 42.5 175.8 0.241751990898749
FDI 72 78.7 82.1 343.7 0.238871108524876
TOTAL 106.6 120.4 124.6 519.5 0.239846005774783
25.0 75.0
125.0 175.0 225.0 275.0 325.0 375.0 425.0 475.0
Rp T
rillio
n
The Investment Coordinating Board of the Republic of Indonesia
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NO SECTORS
INVESTMENT
(US$ Milllion)
PROJECTS
1 Mining 1,135.6 235
2 Metal, Machinary and Electronic Industry
765.4 323
3 Food Crops and Plantation598.4 134
4 Transport Equipment and Other Transport Industry
582.1 143
5 Food Industry 533.8 272
6 Chemical and Pharmaceutical Industry
486.3 184
7 Electricity, Gas, and Water Supply 442.2 81
8 Real Estates, Industrial Estates and Business Activities
436.8 118
9 Trade and Reparation 297.0 599
10 Transportation, Warehouse and Telecommunication
282.5 101
11 Construction 198.5 68
12 Hotel and Restaurant 152.3 195
13 Rubber and Plastic Industry 144.5 101
14 Non Metalic Mineral Industry 128.9 52
15 Other Services 107.7 244
16 Paper and Printing Industry 104.6 34
17 Textile Industry 63.0 92
18 Fishery 39.8 18
19 Other Industries 27.5 59
20 Wood Industry 19.0 19
21 Leather Goods and Footwear Industry
11.9 38
22 Forestry 3.1 16
23 Livestock 2.3 14
24 Medical Instrument, Precision, Optic and Watch Industry
0.2 3
TOTAL 6,563.5 3,143
FDI
PMDNNO SECTORSINVESTMEN
T(Rp Billion)
PROJECTS
1 Construction 6,933.7 22
2 Electricity, Gas, and Water Supply 6,201.2 46
3 Food Industry 6,167.0 140
4Transportation, Warehouse and Telecommunication
5,212.4 36
5 Chemical and Pharmaceutical Industry
3,995.2 52
6 Non Metalic Mineral Industry 3,878.0 41
7 Food Crops and Plantation 3,818.2 99
8Metal, Machinary and Electronic Industry
1,183.2 49
9 Paper and Printing Industry 935.1 27
10 Mining 770.2 36
11 Rubber and Plastic Industry 578.6 39
12 Hotel and Restaurant 556.2 51
13 Textile Industry 455.1 32
14Real Estates, Industrial Estates and Business Activities
432.5 49
15 Fishery 271.7 3
16 Other Services 263.2 25
17 Forestry 245.9 10
18 Trade and Reparation 234.6 72
19Transport Equipment and Other Transport Industry
232.5 21
20 Livestock 132.5 18
21 Wood Industry 27.5 5
22 Other Industries 0.0 2
23 Leather Goods and Footwear Industry
0.0 1
TOTAL 42,524.5 876
Quarter I 2015 : Sector, Location, Country of Origin, and Economic CorridorQuarter I 2015 Realization : Based on Sector
DDI
The Investment Coordinating Board of the Republic of Indonesia
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NO LOCATIONINVESTMENT(US$ Million)
PROJECT
1 West Java 1,942.5 8472 East Kalimantan 498.4 443 Banten 490.5 3044 Special Territory of Jakarta 447.4 6925 West Kalimantan 427.2 1136 Central Sulawesi 404.8 327 East Java 357.7 1908 North Sumatera 308.1 1239 Papua 295.2 2810 Riau Islands 262.6 6411 South Sumatera 188.7 4312 Central Kalimantan 164.1 2313 West Nusa Tenggara 133.3 4314 Lampung 114.4 1315 South Kalimantan 106.3 2816 Central Java 94.4 10317 Southeast Sulawesi 55.7 4218 Riau 53.1 6119 South Sulawesi 41.7 2020 Bali 37.7 7821 North Maluku 32.5 1522 West Papua 18.7 1623 Jambi 17.9 3824 East Nusa Tenggara 13.8 1525 Aceh 13.1 2126 West Sumatera 10.0 3027 North Kalimantan 9.5 628 Bangka Belitung Islands 8.4 1529 Special Region of Yogyakarta 8.3 1930 North Sulawesi 4.0 3831 Bengkulu 2.9 932 West Sulawesi 0.5 533 Gorontalo 0.1 1034 Maluku 0.0 15
TOTAL 6,563.5 3,143
FDIDDI Investment Realization in Quarter I 2015 : Based on Location
NO LOCATIONINVESTMENT(Rp Billion)
PROJECT
1 West Java 10,618.4 172
2 East Java 6,930.0 1123 Special Territory of Jakarta 5,280.0 58
4 Central Java 4,399.7 545 South Sumatera 3,444.3 26
6 West Kalimantan 2,468.8 40
7 Aceh 1,952.1 568 Riau 1,589.9 329 East Kalimantan 1,529.7 22
10 North Sumatera 905.1 5311 Banten 801.7 49
12 Central Kalimantan 639.5 1013 South Kalimantan 558.9 12
14 Bengkulu 211.5 115 West Sumatera 199.1 20
16 Bangka Belitung Islands 181.7 6
17 North Kalimantan 150.5 3
18 Lampung 132.9 9
19 Special Region of Yogyakarta 110.5 12
20 West Nusa Tenggara 107.4 2
21 Jambi 98.0 2622 South Sulawesi 69.6 2223 Riau Islands 63.9 40
24 West Papua 29.7 325 North Maluku 27.8 1
26 Bali 15.3 627 Central Sulawesi 4.7 3
28 Papua 1.8 629 East Nusa Tenggara 1.0 1
30 North Sulawesi 1.0 1231 Southeast Sulawesi 0.0 5
32 West Sulawesi 0.0 2TOTAL 42,524.5 876
Quarter I 2015: Sector, Location, Country of Origin, and Economic Corridor
The Investment Coordinating Board of the Republic of Indonesia
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Rank Source Share
1 Japan 23.2%
2 Germany 22.1%
3 United States 19.5%
4 France 5.9%
5 China 5.2%
6 South Korea 4.4%
7 Italy 7.1%
8 Sweden 1.4%
9 India 3.1%
10 Canada 1.3%
Others 6.7%
Total (55 countries) 100.0%
Rank Destination Share
1 China 20.0%
2 Brazil 10.5%
3 United States 10.0%
4 Mexico 8.4%
5 India 8.0%
6 Russia 5.4%
7 UK 4.0%
8 Thailand 3.0%
9 Spain 2.7%
10 Canada 2.0%
11 Indonesia 2.0%Others 24.0%
Total (109 countries) 100.0%
2009 2010 2011 2012 2013
20,000
40,000
60,000
80,000
Rank Company Share
1 Volkswagen 8.8%
2 GM 6.7%
3 Fiat 6.5%
4 Daimler AG 5.9%
5 Toyota Motor 5.7%
6 Nissan 5.6%
7 Ford 5.5%
8 Hyundai Motor 3.4%
9 Honda 2.8%
10 Peugeot-Citroen 2.8%
Others 46.3%
Total (793 companies) 100.0%
51%
10%
9%
9%
6%
15%
AutomobilesGasoline engines & engine partsLight trucks & utility vehiclesHeavy duty trucksOther motor vehicle partsOthers
USD41.1 bio.
USD74.0 bio.
USD3.6 bio.
FDI to the world in automotive & auto component industry USD290 billion invested in 2009-2013,ASEAN received 6.2% of global FDI
To ASEAN
To the world
Source: Financial Times, 2014.
The Investment Coordinating Board of the Republic of Indonesia
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Rank Source Share
1 Japan 61.8%
2 United States 11.0%
3 China 9.5%
4 Germany 7.4%
5 France 2.5%
6 Sweden 1.8%
7 Hong Kong 1.7%
8 India 1.0%
9 South Korea 1.0%
10 Russia 1.0%
Others 1.2%
Total (20 countries) 100.0%
Rank Destination Share
1 Thailand 48.6%
2 Indonesia 31.4%3 Malaysia 5.4%
4 Vietnam 5.3%
5 Myanmar 4.0%
6 Philippines 3.3%
7 Singapore 1.1%
8 Cambodia 0.7%
9 Laos 0.2%
10 Brunei -
Total (10 countries) 100.0%
2009 2010 2011 2012 2013
20,000
40,000
60,000
80,000
Rank Company Share
1 Toyota Motor 19.8%
2 Nissan 8.3%
3 Suzuki Motor 7.3%
4 Volkswagen 4.6%
5 Mitsubishi 4.2%
6 Honda 4.1%
7 Ford 3.4%
8 GM 2.8%
9 Isuzu Motors 2.8%
10 Shanghai AIC 2.5%
Others 40.4%
Total (141 companies) 100.0%
USD41.1 bio.
USD74.0 bio.
USD3.6 bio.
FDI to ASEANin automotive & auto component industry USD18 billion invested in 2009-2013,Indonesia received 31.4% of FDI
To the world
To ASEAN
53%
11%
8%
7%
7%
13%
AutomobilesGasoline engines & engine partsOther motor vehicle partsHeavy duty trucksLight trucks & utility vehiclesOthers
Source: Financial Times, 2014.
The Investment Coordinating Board of the Republic of Indonesia
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Rank Subsector 2013 2009-2013 %
1 Spareparts and accessories 2,258 4,360 61.6%
2 Coachwork (karoseri) and trailer truck 660 903 12.8%
3 Four or more wheeled vehicle 417 1,010 14.3%
4 Motorcycle 357 807 11.4%
Total 3,692 7,081 100.0%
2009 2010 2011 2012 2013 -
500
1,000
1,500
2,000
2,500 FDI Realization by SubsectorBased on Capital Expenditure (USD million) in 2013
Source: BKPM, 2014.
Rank Subsector 2013 2009-2013 %
1 Spareparts and accessories 528 1,242 66.6%
2 Four or more wheeled vehicle 104 395 21.2%
3 Motorcycle 49 226 12.1%
4 Coachwork (karoseri) and trailer truck - 2 0.1%
Total 681 1,865 100.0%2009 2010 2011 2012 2013
-
100
200
300
400
500
600 DDI Realization by SubsectorBased on Capital Expenditure (IIDR billion) in 2013
USD2,258 mio.
IDR528 bio.
Direct Investment in Indonesia in automotive & auto component industry > 60% invested in spareparts and accessories industries, dominated by FDI (>95%)
FDI
DDI
The Investment Coordinating Board of the Republic of Indonesia
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Rank Country 2013 2009-2013 %
1 Japan 3,000.5 5,479.2 77.4%
2 Join countries 438.7 898.8 12.7%
3 Singapore 111.6 147.7 2.1%
4 US 81.6 133.9 1.9%
5 Thailand 33.8 38.5 0.5%
6 India 15.8 20.2 0.3%
7 Germany 7.1 304.4 4.3%
8 South Korea 1.5 5.4 0.1%
9 Taiwan 1.0 27.1 0.4%
10 Malaysia 0.4 24.8 0.4%
Total (12 countries) 3,692.1 7,080.8 100.0%
Source: BKPM, 2014.
2009 2010 2011 2012 2013 -
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
FDI Realization by CountryBased on Capital Expenditure (USD million) in 2013
Rank Approval Company Country 2013
1 29-Dec-10 Astra Daihatsu Motor Japan 656.8
2 12-Mar-12 Honda Prospect Motor Japan 595.2
3 20-Jan-12 Toyota Motor Japan 350.5
4 26-Jun-13 Toyota Motor Japan 225.0
5 9-Aug-12 Musashi Auto Parts Join 123.6
6 31-May-11 Suzuki Indomobil Motor Japan 117.2
7 2-Dec-11 Hino Motors Japan 108.9
8 15-May-09 Yamaha Motor Singapore 107.9
9 3-Jul-12 Nissan Motor Japan 98.6
10 19-Mar-13 JTekt Indonesia Join 73.5
11 6-Jul-11 General Motors US 65.0
12 27-Dec-11 Pakarti Riken Japan 62.6
13 20-Jun-12 G-Tekt Indonesia Japan 61.5
14 8-Dec-11 Futaba Industrial Japan 59.5
15 26-May-11 Nissan Manufacturing Japan 58.9
Total (229 projects) 3,692.1
USD3,000 mio.
FDI Realization by ProjectBased on Capital Expenditure (USD million) in 2013
FDI in Indonesia in automotive & auto component industry
The Investment Coordinating Board of the Republic of Indonesia
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Type 2008 2009 2010 2011 2012 Increasing Rate2009-2012 Share
Sedans 5,923 2,367 4,081 3,231 4,869 15.9% 0.5%
Non Sedan Cars 4x2 415,997 346,245 477,252 530,762 693,421 22.6% 65.1%
SUVs 4x4 9,503 3,560 15,191 27,870 45,211 103.5% 4.2%
Cars 431,423 352,172 496,524 561,863 743,501 23.8% 69.8%
Pickups/Trucks 166,249 110,316 201,878 271,943 316,757 23.7% 29.7%
Bus 2,956 2,328 4,106 4,142 5,299 27.1% 0.5%
Commercial Vehicles 169,205 112,644 205,984 276,085 322,056 23.7% 30.2%
Total 600,628 464,816 702,508 837,948 1,065,557 23.8% 100.0%
Daihatsu39.6%
Mitsubishi11.4%
Toyota14.6%
Suzuki12.5%
Nissan6.2%
Honda5.2%
Isuzu3.0%
Hino6.1%
Hyundai0.5%
Others1.0%
Source : KIET, 2013
Automobile Productionin Indonesia
1.21million cars are produced in 2013, mainly for domestic market. 4x2 type covered 70% and pick up/truck 23%.For comparison, Indonesia’s car production is still well behind Thailand which produced more than 2.4 million cars in 2013.
The Investment Coordinating Board of the Republic of Indonesia
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Daihatsu14.6%
Mitsubishi7.6%
Toyota36.3%
Suzuki11.3%
Nissan6.0%
Honda6.2%
Isuzu3.0%
Hino5.7%
Mazda1.2%
Hyundai-Kia
3.5%
Others4.5%
Type 2008 2009 2010 2011 2012 Increasing Rate2006-2012 Share
Sedans 34,300 22,100 33,128 25,741 34,221 11.8% 3.1%
Non Sedan Cars 4x2 388,790 335,053 504,510 569,768 739,168 24.0% 66.2%
SUVs 4x4 2,177 2,214 3,837 5,521 7,396 35.6% 0.7%
Cars 425,267 359,367 541,475 601,030 780,785 23.3% 69.9%
Pickups/Trucks 175,646 121,712 219,058 288,020 311,609 21.9% 27.9%
Bus 2,861 2,469 4,177 3,853 4,472 19.2% 0.4%
Commercial Vehicles 178,507 124,181 223,235 291,873 335,445 23.1% 30.1%
Total 603,774 483,548 764,710 892,903 1,116,230 23.2% 100.0%
1.23million cars are sold in 2013, 4x2 type covered 64% and pick up/truck 27%.
171,000 cars were exported and 154,000 cars were imported in 2013
1:20 ratio of cars to people in Indonesia, well below Singapore (1:9) and Thailand (1:5).
1.3million cars to be sold this year (projected) and more than 2 million by 2018.
Automobile Sales in Indonesia
The Investment Coordinating Board of the Republic of Indonesia
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TAX HOLIDAY
TAX ALLOWANCE
IMPORT DUTY
FACILITY(Government Regulation No.18/2015) (MoF Regulation No.176/PMK.011/2009)(MoF Regulation No. 192/PMK.011/2014 juncto.
MoF Regulation No.130/PMK.011/2011)
143business
segments
Eligible for tax allowance, expanded from 129 segments in the previous regulation.
30 % of investment value Reduction of corporate net income tax for 6 years, 5% each year.
Under certain requirements among others: minimum amount of investment value and workforce, and certain project location (especially outside Java island).
5-10
years
Tax relief facility, starting from the commencement of commercial production.
Pioneer industry1. Basic metal industries;2. Oil refinery industries and/or basic
organic chemicals;3. Machinery industries;4. Industries of renewable resources;5. Communication devices industries.
50 % for a further 2
years
Reduction of income tax after the expiration of the tax holiday and can be extended by MoF.
IDR 1
trillion
Minimum investment plan.
2 years import duty exemption or 4 years for companies using locally-produced machines (min.30%).
Machines, goods, materials for production
Which produces goods and/or services, including:
1. Tourism and culture 2. Public transportation 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port
Industries
The Investment Coordinating Board of the Republic of Indonesia18
GRAND LAUNCHING OF OSS CENTER AT BKPM
Launching OSS Center at BKPM by President Jokowi with 15 Ministers and Head of Govt. Agencies. Visit the Front Office and Back Office of OSS Center or PTSP Pusat
The Investment Coordinating Board of the Republic of Indonesia19
WORK PLAN AND TIMELINE OF OSS
BKPM’s Online
Licenses
December 2014
January2015
2016
Grand Launching of OSS Center
(26 Jan)
REGIONAL OSS24 Provinces – 120 Regencies/Municipalities
( Feb - December)
Regional OSS34 Province
514 Regencies/ Municipalities, 5 FTZ, & 8 SEZ
The Objective of OSS Center:Fast, simple, transparent and integrated licensing process
The Concept of OSS Center:• Investors only come to OSS Center in BKPM to apply and received the licenses related
to investment . Investor did not need to go around to every the Ministries / Agencies.• Investor can monitor the process of their license by online.• Investor gain certainty on the timeframe of their licenses.
Soft Launching of OSS Center
( 15 Jan)
SocializationOSS Center
( Jan - March)
Accelerate and simplify the
Licenses and Non licenses
( Feb-April)
February- December
The Investment Coordinating Board of the Republic of Indonesia20
ONLINE APLICATION IN OSS CENTER
• SPIPISE : Electronic system of information services and investments licensing.
• The Benefits of SPIPISE : • Having tracking system with clear SOP• Investors can access anywhere by online• Company data secured and safe
Online Licenses in BKPM since December 15th, 2014
No. Type of License SOP
1 Principal License (New) 3 Working days
2 Principal License (Expansion) 3 Working days
3 Principal License (Changing) 5 Working days
4 Permanent license (Changing) 5 Working days
5 Permit for foreign representative office 5 Working days
6 Permanent License 7 Working days
7 Permenent License (Expansion) 7 Working days
8 Permenent License (merger) 7 Working days
9 Facility of import duties exemption for machinery
7 Working days
10 Facility of import duties exemption for machinery goods and material
7 Working days
11 Principal License (merger) 10 Working days
The Investment Coordinating Board of the Republic of Indonesia21
22 MINISTRIES/AGENCIES INVOLVED IN OSS CENTER
Ministry of Agrarian & Spatial/BPN1 group license
Ministry of Energy & Mineral Resources10 group of licenses
Ministry of Industry11 group of licenses
Ministry of Agriculture5 group of licenses
Ministry of Trade7 group of licenses
Ministry Finance2 group of licenses
Ministry Transportation7 group of licenses
Ministry of Law and Human Rights1 group of license
Ministry of Environment and Forestry 35 group of licenses
Ministry of Health 9 group of licenses
Ministry of Tourism19 group of licenses
Ministry of Communication & Informatics14 group of licenses
Ministry of Manpower5 group of licenses
Ministry of Public Works & Public Housing7 group of licenses
National Police (POLRI)1 group of license
Ministry of Marine & Fishery1 group of license
Ministry of Education & Culture1 group of license
Ministry of Defense1 group of license
1 group of license
National Standardization Agency (BSN)1 group of license
National Encryption Agency (LEMSANEG)
PT. PLN Persero
From total 121 licenses delivered in OSS Center: 100 licenses delegated to BKPM and 21 licenses not delegated but served in OSS Central.
National Agency of Drug and Food Control (BPOM)
The Investment Coordinating Board of the Republic of Indonesia22
THE READINESS OF OSS CENTER
OSS Center ready to serve all investment licenses of any business field except for oil and gas and finance sector
77 Liaison Officers ( LO) derived from 22 the Ministries/Agencies ready to serve investors
LO placed in front office and back office: 1. The duty of LO front office : receive the application and consultation2. The duty of LO back office : processing the application
OSS Center has a contact center 0807-100-2576 (BKPM). The information services provide:
1. General information2. Services, licenses and regulation3. Service desk of BKPM online system 4. Information on related technical Ministries/Agencies5. Complaint
The Investment Coordinating Board of the Republic of Indonesia23
MECHANISM OF SERVICES IN OSS CENTER
Investor
Desk BKPM
Desk K/L
Desk K/L
1. Document submission
2. Consultation
K/L
K/L
Back Office
K/L
K/L
Desk K/L
Desk K/L
Online K/L
Front Office
Licensing process
Online K/L
Online SPIPISE*BKPM
Monitoring Online
* SPIPISE : Electronic system of information services and investments licensing
OSS CENTER in BKPM
The Investment Coordinating Board of the Republic of Indonesia24
BUSINESS PROCESS OF LICENSE AND NON-LICENSE IN OSS CENTER
INVESTOR
QUEUE NUMBER
OFFICERMINISTRY/AGENCY
DOCUMENT PROCESSED
MINISTRY/AGENCY
LEGALIZATION BY CHAIRMAN
OF BKPM
ADMINISTRATION
BUSINESS PROCESS OFFLINELICENSE AND NON-LICENSE IN OSS CENTER
INVESTOR
ONLINE SYSTEMMINISTRY/AGENCY
DOCUMENT PROCESSED
MINISTRY/AGENCY
LEGALIZATION BY CHAIRMAN
OF BKPM
ADMINISTRATION
BUSINESS PROCESS ONLINELICENSE AND NON-LICENSE IN OSS CENTER
The Investment Coordinating Board of the Republic of Indonesia25
Information page on OSS CenterOSS Center can be accessed through BKPM’s website : www.bkpm.go.id
INFORMATION SYSTEM OF OSS CENTER
The Investment Coordinating Board of the Republic of Indonesia26
1. Investors can find out the type of license, required documents, and completion period
2. Investors are able to track their documents
Information Page of OSS Center:
OSS SYSTEM INFORMATION CENTER
EXAMPLE of SOP
27
The Investment Coordinating Board of the Republic of Indonesia28
Online Monitoring (for investor)
OSS SYSTEM INFORMATION CENTER
The Investment Coordinating Board of the Republic of Indonesia29
OSS SYSTEM INFORMATION CENTER
Online Monitoring (for investor)
Regional OSS
Source: BKPM, data as of February 23th, 2015FTZ: Free Trade Zone (Kawasan Perdagangan Bebas dan Pelabuhan Bebas/KPBPB)SEZ: Special Economic Zone (Kawasan Ekonomi Khusus/KEK)Legal basis: Presidential Regulation Number 97 Year 2014.
NO. AREA TOTALOSS SPIPISE Delegation authority
for OSSInvestment Matters and
One Stop Service
Established Not yet Available Not yet Already Not yet Joined Separated
(1) (2) (3) (4) (5) (8) (9) (10) (11) (12) (13)
1 Province 34 34 0 33 1 34 0 27 7
2 Regency 416 364 52 236 180 356 9 227 137
3 City 98 97 1 69 29 96 0 53 44
4 FTZ 5 4 1 4 1 4 0 3 4
5 SEZ 8 2 6 1 7 2 0 1 1
TOTAL 561 501 60 343 218 492 9 311 190
Regional OSS Development:
• 60 regions have not yet established OSS• 218 regions not yet implement SPIPISE• 190 regions still separated investment matters from one stop service
30
Badan Koordinasi Penanaman Modal (BKPM)
Indonesia Investment Coordinating BoardJln. Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesiat . +62 21 5292 1334f . +62 21 5264 211 e . info@bkpm.go.id
www.bkpm.go.id
Thank You Merci
Terima Kasih
Indonesia Investment Promotion Centre (IIPC)