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Investment Climate

Stronger Investment Climate Indonesia’s economic policies are on a firm footing. So are its measures to attract foreign investment. Below are a few of Indonesia’s latest improvements to our investment climate:

Investment Law No. 25/2007:

This updated investment law redefines “capital investment” as all investments, whether by domestic or foreign investors, for the first time offering equal treatment to all investors. There is no longer a limit of 30 years on foreign investment permits, and gone is the provision in Law 1/1967 for there to be divestment. Additionally, the new law allows for the unimpeded reparation of capital.

One-stop-shop (PTSP) and National Single Window (SPIPISE)

BKPM has launched a one-door integrated service (PTSP) and an electronic automation platform for investment licenses and non-licensing services (NSWi) to not only reduce the number of procedures and amount of documentation needed to invest in Indonesia, but also to bypass the need to physically come to our offices to apply for certain services. The new system has revamped internal processes and rectified human resource constraints to increase the speed and improve the quality of investor services. The system was first launched in January 2010 in the Free Trade Zone and Free Port of Batam.

Global Profile

All the improvements that have been and continue to be applied have placed Indonesia as #1 country for entrepreneurship in the recent 2011 BBC survey. It has also managed to jump 10 places to 44th from a total of 139 ranked countries in the World Economic Forum’s Global Competitiveness Report in 2011.

Moreover, Indonesia has also been listed as one of the top 10 most attractive destinations for FDI in UNCTAD’s World Investment Prospects Survey in 2010.

For more info on investment in Indonesia, check Indonesian BKPM website: www.bkpm.go.id.

(Source: BKPM Indonesia)

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