High Hopes for One Stop Permit Facility President Joko Widodo will launch national One Stop Integrated Service Centers, or PTSP, on Jan. 26, to ease the issuance of investment licenses in the country, a minister said on Monday. Sofyan Djalil, the coordinating minister for the economy, said the one roof policy was to help investors in taking care of permits in Indonesia, where the bureaucracy has a reputation for complicated procedures that cause confusion. With the national PTSP, investors will be given facilities to take care of their business license in one place through the BKPM [Indonesias Investment Coordinating Board], he said from his office. Meanwhile, BKPM chief Franky Sibarani said the PTSP was the governments commitment to easingthe issuance of permits, in return attracting more investors. Introduced under the Yudhoyono administration, the service was never implemented as intended, ostensibly due to a lack of cooperation between ministries, agencies and local governments. There are three principles of the one roof policy: acceleratingbusiness permits; completing the supporting elements such as high quality human resources and an online system for applications. I am optimistic that investment will increase with the launch of the national PTSP, said veteran businessman Franky. He explained that there would be a representative liaison officer from each relevant ministry to manage the permits from various sectors. The integrated one stop service facility is expected to gradually cut the permit administration process that presently can take up to 100 days. The government also plans to establish integrated investment facilities in the regions. There are currently 400 BKPM offices across Indonesia, and the agencys goal is to get all integrated with the nations al service by the end of 2015. The BKPM officially launched the online licensing service on Dec. 15, which allows all license applications to be submitted online. Investors can apply for the licenses from their own office without having to come to the BKPM office, and can even monitor the process through a tracking system, Franky said. The online service is the agencys first step in perfecting the one roof policy, which will streamline all licensing processes for both local and foreign investors. The BKPM aims to cut the time needed for licensingprocesses for business expansion by 50 percent next year. It is setting a target of Rp525 trillion ($42 billion) in realized investment for 2015. The agency has already received proposals for $18.7 billion worth of prospective investments in power plants, labor intensive manufacturing, agriculture processing, maritime industries, import substitution, infrastructure, and mineral processing from 43 investors since Joko took office in October. Duringthe first nine months of 2014, investment realization stood at Rp 343 trillion, up 17 percent from the same period a year earlier. Import substitution sectors, such as food processing plants, attracted the highest interest in the final quarter of the year, with 10 prospective investors and approximately $8.5 billion in estimated investment value, according to data from the BKPM. Projects in themaritime sector saw four prospective investors and around $4.2 billion of estimated investment value from just two of them. Downstream mining industry and oil and gas booked four prospective investors, with only one of them so far revealing the value of their project $2.7 billion. Source: The Jakarta Globe
Posted on: Mon, 19 Jan 2015 04:56:11 +0000
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