IN INDONESIA MOVING FORWARD NEW OPPORTUNITIES IN THE EXCITING TIMES - - PowerPoint PPT Presentation

IN INDONESIA MOVING FORWARD

“NEW OPPORTUNITIES IN THE EXCITING TIMES AHEAD”

Saribua Siahaan

Directorate of Regional Promotion Facilitation Indonesia Investment Coordinating Board (BKPM) Jakarta, 20 November 2019

Globalization in Transition: The Future of Trade & Value Chain

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In 2018, Global FDI flows dropped by 13.4 %

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170 131 147 171 230 299 339 392 385 431 393 284 22 43 61 76 92 128 156 179 216 262 329 284

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 FDI DDI

192.3 174.2 208.0 246.7 322.6 427.5 494.7 571.5 601.7 693.8 721.3 601

↑ Y-o-Y 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FDI

• 23.10%

12.58% 15.85% 34.99% 29.91% 13.12% 15.79%

• 1.69%

11.95%

• 8.99%

DDI 96.21% 39.86% 25.36% 21.29% 39.02% 21.83% 14.95% 20.49% 21.33% 25.25%

2018 Realization compared with the target:

94.3%

Indonesia’s Investment Realization 2008 – 2019 (Jan –Jun)

(Rp. Trillion)

Investment realization in 2018 reached Rp 721,3 Trillion

• DDI growth reached 25.3%
• FDI declined -8,8%
• Factors: political condition (Indonesia’s general election/Pemilu), the trade war which caused investors to “wait

and see”;

Source: BKPM, 2019

2018: Indonesia’s Investment Realization was growing but FDI was slowing down at -8.9% 5

Top 10 - Investment Realization in Quarter III 2019 based on Sector

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Source: BKPM, 2019

Human Capital Development

improve healthcare, education and vocational training, invite global talent for cooperation, improve digital talent, & raise the endowment Fund

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Infrastructure Development

Access toindustrial estate and tourism destination as well as improving logistic performance

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Regulation Reform

Omnibus Law on Labour and Small, Medium, Enterprises

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Bureaucracy Reform

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Economic Transformation

From natural resources to manufacturing industry and services

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President Jokowi has stated that for 2020 – 2024, Indonesia will focus on

*) Inauguration of President Joko Widodo and Vice President of Republic Indonesia K.H Ma’ruf Amin , 20 October 2019

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6 Key Performance Indicators (KPI) of BKPM

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Improve the Ease of Doing Business Index Accelerate the Investment Realization

• f

big investment Support big investors to make a partnership with local company Ensure the Spread of Quality Investment Investment Promotion focused on targeted sector and countries Increase the domestic direct investment realization, especially the SMEs

We are facilitating the 21 projects of potential investment realization accounted for about IDR 708 Trillion that facing challenges

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17

Projects

Investment facing challenges

Rp 481.5 Trillion

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Big Projects

Rp 226.5 Trillion

10

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Investment Plan of Big Projects

708,0

Rp Trillion

21 Projects

Source: BKPM, 2019

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Projects

Rp 264.3 Trillion

Chemical Industry

Investment facing challenges

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Projects

Rp 152.8 Trillion

Investment Plan of Big Projects

Note: Assumption: 1$ = IDR 14,000

Negative Investment List 2016: More open to foreign investments

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Online Single Submission (OSS), an integrated online system with data sharing to improve the ease of doing business

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Investment Incentive to Strengthen the Quality of Indonesia’s Human Resources and Innovation (Regulation (PP) No. 45/2019 & MoF Regulation No. 128/2019 )

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Investment Incentives: New tax holiday policy

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18 Group Sectors Eligible to Apply for Tax Holiday

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Other Investment Incentives

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Mandate of President Jokowi about investment licensing & fiscal incentives

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• President has assigned tasks to the Chairman
• f BKPM and affiliated Minister to return all

the investment permit to BKPM.

• BKPM has also been given the authority to

determine the Tax allowance and Tax Holiday to investors and to reform its regulations. President Joko Widodo at Cabinet Meeting 11 November 2019

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Indonesia Investment Promotion Centre (IIPC)

Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board

Jalan Jenderal Gatot Subroto No. 44 Jakarta 12190 - Indonesia

t +62 21 525 2008 | f +62 21 525 4945 | e info@bkpm.go.id

bkpm.go.id | investindonesia.go.id