ty

Contribute to efforts of

conserving nature

➢ Impact in enhancing welfare in the community

➢Must be able to satisfy visitors

Touristfriendly

Communifriendly

Naturefriendly

ECOTOURISM-BASED TOURISM

ulauan Seribu K

North Maluku

Tanjung Puting

AW. Gunung Mas

WW. Cilember

TN. Gn. RinjaniWW. Pulau Mer

Aah

: Destinasi EkowisataEast Java

KEK/Kawasan Ekonomi Khusus Pariwisata

43

Tanjung LesungBanten

Borobudur

Central Java

Bromo Tengger Semeru

1 0 D E S T I N A S IP R I O R I T A S D A ND E S T I N A S IE K O W I S A T A

TN.Kalimutu

Komodo Island

East Nusa Tenggara

TN. Merapi

WW. Kawah PutihTN. BTS

W. Rancabali TN.Kalim

TN. Alas Purwo TWA Tunak

TN. Komodo

TWA. Tangkuban Perahu

AW. Malabar

B. Bogor TN. Wakatobi

KB. Eka Karya

TWA. Kawah Ijen

BTS TN. Bali Barat

KB. Cibodas

Pulau MorotaiMandalikaWest Nusa Tenggara

Wakatobi

Southeast Sulawesi

Tanjung Kelayang

Bangka BelitungLake Toba

North Sumatera

President Joko WidodoIn his Primary Presidential Speech, 20 October 2019

President Joko Widodo’s main priorities in his second term of presidency…

HR Development

Advancing Infrastructure Development

Regulation Simplification

Cutting Down Red Tapes

Economic Reforms

… which is then translated into these following Key Performance Indicators

4

Progress in EODB Ranking

Investment Realization for Major Projects

Encouraging major investors to partner with local business communities

Equal distribution of Major Investment

Focused Investment Promotion based on sectors and country of origins

Boosting domestic investment particularly in small medium enterprises

Green Investment in Indonesia: Law & Development RoadmapAcceleration of Investment Realization

Special Permit / Recommendation

Certification

Ministerial Recommendation

Ministry Regulations

32.6%Licensing

17.3%Land Acquisition

15.2%Regulation and Policy

Solutions:

Based on recorded 190 investment issues in Task

Force 4 (POKJA) of Coordinating Ministry of Economic

Affairs, the main investment constraints are:

Online Single Submission (OSS)

In accordance with GovernmentRegulation Number 24/2018 regardingIntegrated Investment Online Service

Enforcing One Stop Service Center in BKPM

Based on Presidential RegulationNumber 97/2014 regarding One StopService Center

To better implement OSS, paradigm shift is significantly required:

6

PNS as civil

servant

Shifting service

paradigm to

compliance of

standard and

commitment

Assigning

Technical Officials

in One Stop

Service Center

In implementing OSS in regional level, the following matters need to be resolved:

7

1

2

3

4

Resolving RDTR IssuesCurrently thare were only 47 RDTR recorded from 514Districts/Cities, which means there is only 9.14%, and only 10RDTR being integrated to OSS

Regional Regulation Review

System Integrationbuilt in regional level, integrated into OSS, to achieve nationaldata integration

Licensing ServicesMust be performed through OSS system

Regarding regional licensing and retribution, must be in accordance with Central Government Standard of Procedures (NSPK)

Supporting Factors:

Hardware & Software

Internet Coverage

Permanent Official Assignment

HR Development for Civil Servant

President Jokowi’s directive regarding Investment License and Fiscal Incentives

8

President Jokowi has given direction to Chairman ofBKPM and related Minisitries/Institution to delegateinvestment license to BKPM

BKPM is also given the authority to decide whether acompany is eligible to be awarded Tax Holiday and TaxAllowance. Regulation adjustment will follow.

President Joko Widodo in Closed Meeting with Cabinet Members 11 November 2019

9

FDI: Foreign Direct Investment

DDI: Domestic Direct Investment

Quarter III 2019 y-o-y q-o-q

DDI 18.9% 5.3%

FDI 17.8% 0.1%

TOTAL 18.4% 2.6%

Jan-Sept 2019 y-o-y

DDI 17.3%

FDI 8.2%

TOTAL 12.3%

Q I 2018 Q II 2018 Q III 2018JAN-SEPT

2018Q I 2019 Q II 2019 Q III 2019

JAN-SEPT2019

Target2019*)

Achievement**)

TOTAL 185.3 176.3 173.8 535.4 195.1 200.5 205.7 601.3 792.0 75.9%

FDI 108.9 95.7 89.1 293.7 107.9 104.9 105.0 317.8 483.7 65.7%

DDI 76.4 80.6 84.7 241.7 87.2 95.6 100.7 283.5 308.3 92.0%

0100200300400500600700800

Rp

Tri

lion

Indonesia Investment Performance (Jan - September 2019)

The value of investment in Quarter III 2019, the investmentrealization during three months period of report (July –September 2019), is based on investment realization reportfrom DDI and FDI companies.

Oil and Gas, Banking, Non-Bank Financial Institution, Insurance,Leasing, Home Industry and Small and Medium Enterprise areexcluded.

The investment value is in Rupiah Trillion (T), the currency ratefor Q1 and Q4 2018 is US$ 1= Rp 13,400 based on NationalBudget 2018, and the currency rate for Q1 anda Q2 2019 is US$1= Rp. 15,000 based on National Budget 2019.

Investment realization in Quarter III 2019: Rp 205.7 T, increasesaround 18.4% from Quarter III 2018 (Rp 173.8 T).

Investment realization in January – Sept 2019: Rp 601.3 T,increases around 12.3% from that in January – September 2018(Rp 535.4 T)

SingaporeUS$ 5.4 B(25.5%)

ChinaUS$ 3.3 B(15.6%)

JapanUS$ 3.2 B(15.1%)

Netherlands

US$ 2.1 B(9.9%)

Hong Kong

US$ 1.7 B(8.0%)

OthersUS$ 5.5 B(25.9%)

Transportation and Telecommunication

Rp 111.1 T(18.5%)

Electricity, Gas, And Water

Rp 95.9 T (16.0%)

ConstructionRp 48.9 T

(8.1%)

Housing & Real EstateRp 47.4 T

(7.9%)

MiningRp 44.7 T

(7.4%)

OthersRp 253.3 T

(42.1%)

by Sector

by Country of origins

Investment Performance on Tourism (Jan-September 2019)

10

NO LOCATIONINVESTMENT(Rp Billion)

PROJECT

1 Special Territory of Jakarta 41,622.60 1,932

2 East Java 37,780.77 2,301

3 West Java 35,647.86 2,108

4 Riau 21,117.55 557

5 East Kalimantan 16,940.39 859

6 Cental Java 14,967.48 1,748

7 North Sumatera 14,289.51 729

8 Banten 12,476.47 1,303

9 South Sumatera 11,102.03 479

10 North Sulawesi 7,405.99 146

11 Central Kalimantan 7,110.61 291

12 South Kalimantan 6,825.08 279

13 West Kalimantan 6,142.45 394

14 Bali 4,794.34 406

15 Riau Islands 4,561.96 579

16Special Territory of Yogyakarta

4,476.05 249

17 North Kalimantan 4,085.25 132

18 Southeast Sulawesi 3,642.53 106

19 Jambi 3,279.22 330

20 Central Sulawesi 3,020.84 162

21 East Nusa Tenggara 2,951.54 219

22 South Sulawesi 2,601.80 506

23 Aceh 2,550.78 242

24 West Nusa Tenggara 2,545.59 190

25 Bengkulu 2,251.77 115

26 West Sumatera 2,147.19 312

27 Lampung 1,940.15 162

28 Bangka Belitung Islands 1,908.99 227

29 West Sulawesi 941.16 34

30 North Maluku 664.00 34

31 Gorontalo 631.96 63

32 Papua 551.16 52

33 Maluku 283.17 57

34 West Papua 264.54 26

TOTAL 283,522.75 17,329

NO LOCATIONINVESTMENT(US$ Million)

PROJECT

1 West Java 4,428.58 3,984

2 Special Territory of Jakarta 3,602.41 5,789

3 Central Java 2,151.19 898

4 Banten 1,419.92 1,886

5 Central Sulawesi 1,029.98 164

6 Riau Islands 968.32 962

7 Riau 770.14 277

8 Papua 735.03 113

9 North Maluku 732.96 96

10 South Java 599.77 1,330

11 South Sumatera 565.13 270

12 East Kalimantan 501.61 374

13 Southeast Sulawesi 496.25 86

14 West Kalimantan 404.40 300

15 Bali 324.16 1,695

16 North Sumatera 299.39 602

17 South Kalimantan 291.45 122

18 West Nusa Tenggara 219,47 945

19 Central Kalimantan 213.07 199

20 South Sulawesi 208.20 217

21 North Sulawesi 153.19 177

22 Lampung 147.08 121

23 West Sumatera 142.23 164

24 Gorontalo 140.45 31

25 Aceh 131.32 97

26 East Nusa Tenggara 108.90 270

27 Bengkulu 107.83 50

28 North Kalimantan 78.87 49

29 Bangka Belitung Islands 78.53 86

30 Jambi 43.02 119

31 West Papua 40.22 54

32 Maluku 32.60 34

33Special Territory ofYogyakarta

12.26 162

34 West Sulawesi 10.12 14

TOTAL 21,188.05 21,737

FDIDDI

NO SectorsINVESTMENT(Rp Billion)

PROJECT

1 Construction 3,177.9 12

2 Hotel and Restaurant 698.8 57

3Housing, Industrial Estate, and Office Building

243.3 14

4 Trade and Reparation 173.1 133

5 Other Industries 132.5 26

6 Other Sectors 240.6 208

TOTAL 4,666.2 450

DDI + FDI

Investment Realization in Tourism valued at

IDR 4,7 T (Jan-Sep 2019)

Fiscal Incentive Regulation

1111

TAX ALLOWANCEGovernment Regulation No. 9 of

2016

145business fields

Eligible for tax allowance, expanded from 143 segments in the previous regulation with additional segment: clothing industry.

30 % of investment

value Reduction of corporate net income tax for 6 years, 5% each year.

For those taxpayers who have :•Principal licenses (IP) and its changes issued by BKPM;•Principal Licenses for Expansion (IP-PL) and its changes issued by BKPM; or•Investment licenses issued by other authorized agency

These three types of license must be issued after 5 May 2015

Taxpayers who have applied for import duty facility or corporate income tax reduction according to Article 29 of Government Regulation No. 94 of 2010 is rejected by Ministry of Finance.

Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project location (especially outside Java island).

Notes:Certain business fields and location are based on on Attachment I and II of Government Regulation No. 18 of 2015 Jo. No. 9 of 2016

SOP to process TA facility is25 working days

Equitable and Non discriminatory treatment against country of origin

Transportation and Warehouse• Urban transportation• Cargo handling

Power Generation• Geothermal• Renewable energy

Oil and Gas Industry• Oil refineries• Liquefied Natural &

Petroleum Gas• Lubricants

Manufacturing Industry• Iron and Steel• Clothing• Semi conductors• Electronic components• Computer• Communication devices• Television• Wheel

• Pharmaceutical• Cosmetics• Fish and Shrimp processing

NOTE• The Government under Ministry of Finance is now

finalizing the new regulation for tax allowances, taxholidays, tax deductions for small and mediumenterprises (SMEs), as well as incentives forcompanies that carried our research and development(R&D) activities.

• The government would expand the number ofbusiness sectors that would be eligible for theincentives.

• There will be simpler procedures to obtain theincentives.