Indonesia’s government said it aims to slash the time it takes to process investments applications
Indonesian investment applications to shorten due to government intervention
Indonesian investment applications can take up to five years in some sectors, to as little as one day as it tries to boost growth in Southeast Asia’s largest economy.
Incoming Foreign direct investment [FDI] represented less than 2% of global investment on average in 2012-2016, and it is rebounding now, Bank Indonesia’s balance of payments data shows. The central Bank recorded a nearly 40% increase in the first half of 2017, to $8.82 billion.
Indonesia president: Speed up investment approvals
“In 2018, we want to be on par with the most advanced countries in license processing,” coordinating minister of economics Darmin Nasution said.
President Joko Widodo, who unveiled measures in a new package of government policies, attacked a lack of progress in tackling red tape to improve the investment climate.
The new Indonesian investment applications measures include setting up task forces in ministries and regional governments, and ensuring that officials share data so no investment applications are held up.
The goal of the new measures is to create a single submission system for investors so they only have to go one place to get all required licences, said coordinating minister of economics Darmin Nasution.
In January 2015, within months of becoming president, Mr Widodo launched a similar move, setting up what he called “one-stop service” for investment licensing at the Indonesia Investment Coordinating Board (BKPM).
This year, Mr Widodo’s administration aims to cut the time needed to get a full investment licence from three-five years to a matter of months, and then try a new method of processing from January to cut the time to just a day.