VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

President Joko Widodo has decided to return all investment licensing authority from the ministry to the Investment Coordinating Board -BKPM. Cabinet Secretary, Pramono Anung said that as a follow up, all ministers are asked to revoke 40 ministerial regulations considered to hamper investment and ease of doing business at least late December 2019.

After attending a limited meeting about the acceleration of ease of doing business at the Presidential Office in Jakarta, last Thursday (11/21), Pramono Anung said that his side has made an official letter to BKPM in accordance with President Joko Widodo's direction that once again the licensing authority becomes the full responsibility of BKPM. According to Pramono, the decision is aimed at improving the ease of investing or doing business in Indonesia.

In a World Bank report released last October, the rank of the ease of doing business (EEDB) in Indonesia was 73, down from 72 in 2018. The government targets Indonesia to be 50^th rank in the ease of doing business in 2021, then 40^th rank in the following years. Thus, President Joko Widodo assesses that there is a need for licensing reform. Pramono explained that licensing is made at the one door of BKPM because in such a world condition, Indonesia could not possibly move forward if obstacles in the government still exist.

Meanwhile, Head of BKPM, Bahlil Lahadalia emphasized that his side has begun to change the paradigm. So far in obtaining permit, the investors have been through some ministries by the assistance of BKPM. This case is considered difficult. Through President Joko Widodo's instructions, investors can invest their capital in Indonesia and they no longer need to go back and forth to the ministries to arrange a permit so that they can choose any regions across Indonesia to invest.

As new Head of BKPM, Bahlil added that there was an unexecuted  investment worth Rp 708 trillion. After a month in office or until last week, there has been an investment worth Rp 89 trillion which has been executed. Bahlil also pointed out that the government would form a one-stop system in managing ship permits.