The Indonesian Investment Coordinating Board (BKPM) has set the country’s investment target to IDR 631.5 trillion (USD 50,5 million) for 2017 compared to IDR 594.8 trillion ( USD 47.6 million) for this year. At a hearing with the House of Representatives on Monday BKPM Chief Franky Sibarani was positive next years target can be achieved. In the first quarter of 2016, investment in Indonesia already reached 24.6 percent of this year's target, accounting for IDR 146.5 trillion (USD 11.7 million) in total.
According to Franky, one of the biggest problems hindering investment inflows in the country is the perception among many investors the licensing process is difficult. To encourage domestic as well as foreign investment the BKPM will improve its services: Besides others a three-hour investment license service, a direct construction investment facility, the inclusion of online investment services, more supporting infrastructure and facilities at one-stop integrated service units are planned. The Board will also create a map of potential investment to develop assets in strategic sectors. Further steps include increasing the scope of products receiving tax allowances for labor-intensive investment, Franky added.
The latest plans and targets of the BKPM to boost investments within and from outside the country (FDI) come after Indonesia opened up 35 new sectors to investment in February 2016. As part of the 10th economic package, the government decided that 35 new sectors (i.e. cold storage, crumb rubber, tourism, e-commerce above a market value of USD 8 million, raw medicine materials) are opened to 100 percent foreign ownership. These changes to Indonesia’s negative Investment List (DNI) also allow for 67 percent ownership of businesses offering flight logistics or health care besides others. 20 other sectors such as utilization of natural corals for aquariums, accessories and souvenirs or architectural design services are closed for or restricted for FDI to protect national SME’s.