indonesia investment coordinating board (bkpm)jakarta, 9 march 2017. 1. the investment coordinating...

INDONESIA INVESTMENT COORDINATING BOARD (BKPM)

© 2016 by Indonesia Investment Coordinating Board. All rights reserved

Ir. M. M. Azhar Lubis, M.ADeputy Chairman of Indonesia Investment Coordinating Board

Investing in IndonesiaInvestment Opportunities and Policy in Indonesia’s Fisheries IndustryJakarta, 9 March 2017

1

The Investment Coordinating Board of the Republic of Indonesia2

CONTENT

1. Investment Target and Japan Investment in

Indonesia

2. Open & competitive Investment Environment

3. New Initiative for Improvement


Investment Target and Japan

Investment in Indonesia

WHEREON EARTH

The world’s 16th

largest economy


Investment Realization Target

343.7 386.4 429 543.7 569.9

2223.7

1121.7175.8 208.4 249.8

319.3 363

1294.8

513

0

500

1000

1500

2000

2500

3000

3500

4000

2015 2016 2017 2018 2019

DDI

FDI

2015 2016 2017 2018 2019 2015-2019 2010-2014 % increase

Target Target Target Target Realization

Total 545.4 678.8 863.0 932.9 3,518.5 1,634.7 115.2

39.1 41.0 44.7 46.1 51.0 64.9 70.1 264.5 122.9

DDI 179.5 249,8 319.3 363.0 1,294.8 513.0 152.4

FDI 365.9 429,0 543.7 569.9 2,223.7 1,121.7 98.24

In trillion Rupiah

Target Real

519.5

175.8

343.7

Target Real

594.8

208.4

386.4

612.8

216.2

396.6

Y-o-Y13.8%

Y-o-Y12.4%

Y-o-Y14.1%

Y-o-Y27.1%

Y-o-Y7.5%

DDI/FDI Investment Realization in Jan-Des 2016: IDR. 612.8 T (103.0% from target)Y-o-Y: 12,4%, Exchange Rate : USD 1 = IDR 13,300

Total in USD Billion

JapanPresence in Indonesia

FDI Realization in Indonesia 2012 - 2016Investment Realization in 2012 – 2016Investment Commitment in 2012 – 2016Fishery Investment Realization & Commitment in 2012 - 2016


Investment Realization by Country of Origin

Rank Countries 2012 2013 2014 2015 2016 Total

1 Singapore 4,856 4,672 5,832 5,901 9,179 30,440

2 Japan 2,457 4,713 2,705 2,877 5,401 18,153

3 South Korea 1,950 2,205 1,127 1,213 1,066 7,561

4 Malaysia 530 711 1,776 3,077 1,116 7,210

5 USA 1,238 2,436 1,300 893 1,162 7,028

6 Netherlands 967 928 1,726 1,308 1,475 6,404

7 China 141 297 800 628 2,665 4,532

8 Hong Kong, PRC 310 376 657 937 2,248 4,529

9 United Kingdom 934 1,076 1,588 503 307 4,408

10 British Virgin Island 856 786 624 731 1,157 4,154

Total (Top-10 Countries) 14,238 18,200 18,135 18,068 25,775 94,419

Total (116 Countries) 24,565 28,616 28,530 29,276 28,964 139,951

Top-10 Indonesia’s Source of Investment, Based on Investment Value (USD million) 2012 – 2016

Excl. Upstream oil and gas, and financial sectors


No. SECTOR 2012 2013 2014 2015 2016 Total (2012-2016) %

1 Mining - 5.5 49.9 117.6 94.5 267.6

2 Fishery 3.3 0.1 5.5 0.1 5.1 14.1 0.08%3 Food Crops and Plantation 0.1 - 0,0 1.6 0.1 1.8 4 Forestry - 0.2 0.0 0.2 5 Livestock - - -

PRIMARY SECTOR 3.4 5.6 55.4 119.5 99.7 283.7 1.6%

6 Transport Equipment and Other Transport Industry 1,510.4 3,000.7 1,260.7 1,180.7 1,876.0 8,828.5

7 Metal, Machinery, and Electronic Industry 459.2 579.6 512.9 426.2 840.4 2,818.3

8 Chemical and Pharmaceutical Industry 65.1 171.6 126.3 72.7 733.5 1,169.2 9 Food Industry 45.9 136.3 137.6 88.0 206.5 614.3

10 Textile Industry 56.3 215.8 64.7 59.9 69.4 466.1 11 Rubber and Plastic Industry 33.9 82.5 102.9 86.6 127.0 432.9 12 Paper and Printing Industry 87.8 138.9 88.7 65.4 27.3 408.0 13 Non Metallic Mineral Industry 14.2 32.0 8.1 6.1 118.9 179.3 14 Wood Industry 1.0 14.2 0.6 0.3 80.9 97.0 15 Other Industry 18.4 7.0 16.7 7.5 19.2 68.8

16 Medical Instrument, Precision, Optic,and Watch Industry 1.8 0.0 - 0.0 0.1 1.9

17 Leather Goods and Footwear Industry - - - 1.5 1.5

SECONDARY SECTOR 2,294.0 4,378.8 2,319.1 1,993.5 4,100.6 15,085.9 83.1%

18 Real Estate, Industrial Estate, and Office Building 38.4 71.5 71.2 519.9 330.1 1,030.9

19 Electricity, Gas, and Water Supply 56.2 111.4 13.7 134.4 604.1 920.0 20 Trade and Reparation 44.0 85.6 58.5 36.0 145.0 369.2

21 Transportation, Warehouse, andTelecommunication 15.1 17.5 37.3 45.7 56.4 172.0

22 Other Services 4.7 34.3 60.2 11.7 49.6 160.5 23 Construction 0.0 1.0 81.2 2.2 10.4 94.8 24 Hotel and Restaurant 1.2 7.2 8.5 14.1 4.9 35.8

TERTIARY SECTOR 159.6 328.5 330.6 764.0 1,2005 2,783.2 15.3%TOTAL 2,456.9 4,712.9 2,705.1 2,877.0 5,400.9 18,152.9 100%

Investment Realization from Japan to Indonesia in 2012 - 2016

*) Value in Million USD


No. SECTOR 2012 2013 2014 2015 2016 Total (2012-2016) %

1 Mining 2.3 2.0 505.8 32.0 1.3 543.5

2 Fishery 5.3 6.2 - 78 - 19.4 0.07%

3 Food Crops and Plantation 1.3 - - 2.9 1.3 5.5 4 Livestock - 3.8 - - - 3.8 5 Forestry - - 1.0 - - 1.0

PRIMARY SECTOR 8.9 12.0 506.8 42.7 2.6 573.1 2.0%

6 Transport Equipment and Other Transport Industry

7,867.0 2,709.9 1,237.7 1,654.6 250.3 13,719.5

7 Metal, Machinery, and Electronic Industry 664.3 567.4 882.2 135.2 135.1 2,384.2

8 Food Industry 164.6 248.1 63.7 95.4 112.7 684.4 9 Non Metallic Mineral Industry 26.1 72.5 151.6 211.0 92.9 554.1

10 Paper and Printing Industry 220.7 11.2 95.0 41.0 15.9 383.8 11 Rubber and Plastic Industry 52.7 199.0 59.1 18.3 49.1 378.1 12 Chemical and Pharmaceutical Industry 58.5 142.9 29.9 60.1 70.8 362.2 13 Textile Industry 70.5 89.9 25.6 17.8 21.1 224.9 14 Other Industry 7.0 19.6 2.0 5.0 37.9 71.4 15 Food Industry 5.8 3.3 2.4 2.3 0.7 14.6

16 Medical Instrument, Precision, Optic,and Watch Industry

2.1 - - - - 2.1

17 Leather Goods and Footwear Industry

- - 1.9 - - 1.9

SECONDARY SECTOR 9,139.3 4,063.8 2,551.0 2,240.6 786.6 18,781.3 66.8%18 Electricity, Gas, and Water Supply 0.4 8.7 1.2 5,029.4 29.2 5,068.9

19 Real Estate, Industrial Estate, and Office Building

230.9 257.7 571.7 452.8 367.5 1,880.5

20 Trade and Reparation 235.5 154.0 129.7 83.6 99.7 702.5 21 Other Services 104.7 84.7 87.6 53.9 50.6 381.4

22 Transportation, Warehouse, andTelecommunication

35.1 40.4 58.0 14.2 118.7 266.3

23 Hotel and Restaurant 15.3 44.9 61.0 89.1 25.8 236.2

24 Construction - 14.8 76.4 124.8 5.9 221.8

TERTIARY SECTOR 621.8 605.2 985.5 5,847.7 697.3 8,757.6 31.2%TOTAL 9,770.0 4,681.0 4,043.3 8,131.1 1,486.6 28,112.0 100%

Investment Commitment from Japan to Indonesia in 2012 - 2016

*)Value in Million USD


Fishery Investment from Japan in Indonesia

2012 2013 2014 2015 2016 Total (2012-2016)

Commitment (in Million USD) 5.3 6.2 0 7.8 0 19.4

Realization (in Million USD) 3.3 0.1 5.5 0.1 5.1 14.1

Realization to Commitment 62.3% 1.6% 0.0% 1.3% 0.0% 72.7%

Fishery Commitment to Total Japan Commitment 0.1% 0.1% 0.0% 0.1% 0.0% 0.1%

Fishery Realization to Total Japan Realization 0.1% 0.0% 0.2% 0.0% 0.1% 0.1%

Japan Fishery Commitment to Total FDI Fishery Commitment 9.7% 8.0% 0.0% 10.9% 0.0% 3.8%

Japan Fishery Commitment to Total National Fishery Commitment (DDI & FDI) *)

9.1% 5.1% 0.0% 9.8% 0.0% 3.2%

Japan Fishery Realization to National Fishery Realization(FDI)

11.4% 1.0% 15.6% 0.2% 11.8% 8.1%

Japan Fishery Realization to Total National Fishery Realization (DDI & FDI) *)

10.8% 1.0% 14.7% 0.1% 11.7% 7.0%

*) using APBN/APBN-P exchange rate


Open & Competitive Investment Environment

INDONESIA

The New Negative Investment List 2016 (Presidential Regulation No.44/2016)

Fisheries Sector Fiscal IncentivesWHERE

ON EARTH

The world’s 16th

largest economy

Indonesia has shown progressive achievement in the past years

11

120

109

91106

129

2013 2014 2015 2016 2017

Indonesia’s Ease of Doing Business rank, 2013-2017

15

Japan Credit Rating Agency:Indonesia Obligation RatingBBB-/stable outlook (investment grade) - (1 Feb 2016)Stable Positive - (7 March 2017)

Moody’s Investor Service:Indonesia Obligation RatingStable Positive(17 Feb 2017)


NEGATIVE INVESTMENT LIST (PRESIDENTIAL REGULATION NO. 44/2016)

No. Business Field KBLI*1 Hatchery of marine fish 032122 Hatchery of brackish water fish 035253 Hatchery of freshwater fish 032264 Rearing of marine fish 032115 Rearing of brackish water fish 032516 Rearing of freshwater fish 032217 Fishery product processing business: salting/ drying of fish

and other water biota industry10211

8 Fishery products processing business: smoking fish and other water biota industry 10212

9 Fishery products processing business:yeasting/fermentation fish and other cooked products (for extraction and fish jelly) industry

1021510779

10 Fishery products processing business: Minced fish and surimi processing based industry 10216

11 Marketing, distribution, wholesale and export businesses of fish products 46206

Marine and Fisheries Business Field with the Partnership Terms for Investment

*KBLI: Indonesia Standard Industrial Classification Code


Foreign Capital Ownership Negative Investment List according to Presidential Regulation No. 44/2016

Investment Regulation

All processing fish and sea product open for FDI


FRAMEWORK FOR INVESTMENT FISCAL INCENTIVESTAX ALLOWANCE

GR No. 9/2016

30 %Of the investment valueReduction of corporate tax from net profit for 6 years (5% per year)

143The business sectors are eligible for a tax allowance (14 segments increased from the previous regulations)

An additional period of 1-2 years may be granted under certain requirements, among others: the business is done in an industrial area and / or the bonded area, using local raw materials component min.70%, absorbing Indonesian workers 500/1000 of people, the cost of R and D min.5%, business expansion was financed from profits after tax, min.30% of total export sales.

IMPORT DUTY FACILITY

MoF Reg No. 76/PMK.011/2012

Machinery, goods, materials for the production of 2-year or 4-year tax exemption for companies that use a machine with a local component (min.30%)

IndustryProducing goods and / or services, including:1. Tourism and culture2. Public transport3. Community health services4. Mining5. Construction6. Telecommunication7. Port8. Assembly industry of motor vehicles

(including motor vehicle parts industry)

TAX HOLIDAY

Law No. 25/2007, GR No. 94/2010MoF Reg No. 159/PMK.010/2015

5-15~20

YearAmenities tax deductions, commencing from commercial production

10-100%

Reduction of corporate income tax from the amount of corporate income tax payable

Pioneers Industry:1. Metal Industry Upstream2. Petroleum Refining Industry3. Basic Organic Chemical Industry sourced

from Petroleum and Natural Gas4. Machinery Industry that produces industrial

machinery5. Manufacturing is based on Agriculture,

Forestry, and Fisheries6. Telecommunications Information and

Communication Industry7. Marine Transportation Industry8. Manufacturing Are the Primary Industry in

Special Economic Zones9. Infrastructure Economic Cooperation

Scheme Using other than the Government and Enterprises (KPBU)

IDR 1 TrillionMinimum Investment Plan

Including fish and sea product processing industry Including fish and sea

product processing industry


3-hour Investment Licensing Service

Direct Construction Facility

Green Line Acceleration Facility

34 provinces & 514 regions,

decentralized

WHEREON EARTH

New Initiative for Improvement

INDONESIA

BKPM

• Arrive at One-stop Service at BKPM directly from the airport.

• Consult with Director of Investment Service.

• Submit the required documents & data.

3-hour Investment Licensing Service

Available for investors with minimum investment of IDR 100 billion (USD 8 million)

and/or employing 1,000 local workers.

8 documents obtained

Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions.

Obtain eight documents & letter of land availability within three hours to start your business.

Certainty to work• RPTKA / Employment plan• IMTA / Working permit

Certainty to start a business• Investment license• Certificate of incorporation• NPWP / Tax registration• TDP / Company registration

Certainty to import capital goods• APIP / Import identification• NIK / Customs registration

Accurate land Information• Letter of land availability

Investment Service Reforms

16

• Director ARRIVES at Central OSS.• SUBMIT required documents.

RECEIVERequested licensing products BKPM

9 Type of LicensingIssued by ESDM3J service

REQUIREMENTSESDM3J service is given if thecompany has fulfiiled the checklist ofadministrative and technicalrequirements as regulated on MEMRMinistrial Decree No.15 of 2016

3 HOURS INVESMENT LICENSING SERVICE FOR ENERGY AND MINERAL RESOURCES SECTOR

NO TYPE OF SERVICES REGULAR SERVICE

1. Temporary Business License for Electricity 20 Working Days

2. Temporary Business License for Oil / Fuel / LPG Storage 32 Working Days

3. Temporary Business License for Storage of ProcessedProducts / CNG

32 Working Days for Processed Products

---------40 Working days

for CNG

4. Temporary Business License for LNG Storage 32 Working Days

5. Temporary Business License for Oil Refinery 32 Working Days

6. Temporary Business License for Processing Oil Residue Industry

32 Working Days

7. Temporary Business License for Natural Gas Processing 32 Working Days

8. Temporary Business License for General Trade of Oil/Fuel 40 Working Days

9. Temporary Business License for General Trade ofProcessed Products

40 Working Days

WAITINGIn Priority Lounge

• OSS : One Stop Service (PTSP)• MEMR : Minister of Energi and Mineral Resources

17

3 HOURS INVESMENT LICENSING SERVICE FOR ENERGY AND MINERAL RESOURCES SECTOR

10Project

Investment

IDR 12.8 Trillion

2 Project Oil & Gas Processing

5 Project Oil & Gas Storage

1 Project Oil & Gas Commerce

2 Proyek Power Plants

(as of 8 March 2017)

3-HOUR INVESTMENT LICENSING SERVICE

(as of 17 February 2017)284 2016

251 Project

2017

33 Project

170,657Indonesian Workers

2016

162,100 Indonesian Workers

2017

8,557 Indonesian Workers

IDR 691.5Trillion

2017

IDR 50.1 Trillion

2016

IDR 641.5 Trillion

Japan

project

6 project

Japan689 Indonesian Workers

JapanIDR 2.8 T

1 company from Japan submit for license with investment commitment IDR 239 Million in power plants

18


Direct ConstructionNo Requirements

• No minimum investments or workers is required. • Available for selected industrial parks. • Construction permits can be obtained in parallel

with construction process. Investors can directly start their project construction before obtaining construction permits. This service is

supported by both Central and Regional Governments.

Obtain investment licence at One-stop Service (PTSP) at national or regional level.

• Survey a land within selected industrial parks.

• Acquire the land for your industry.

• Start the construction of your project. No other permits are required.

• Apply for building construction permit & environmental permit, in parallel with construction process.

Investment Service Reforms


Business Environment

32 Industrial Estates for Direct Construction

Central JavaKI KendalKI Bukit Semarang BaruKI WijayakusumaKI Jatengland Industrial Park

East JavaJava Integrated Industrial & Port EstateKI MaspionKI Tuban

South SulawesiKI Bantaeng

BantenModern Cikande Industrial Estate

KI Terpadu WilmarKrakatau Industrial Estate Cilegon

West JavaBekasi Fajar Industrial Estate

KI Delta Silicon 8Karawang Internasional Industrial City

Suryacipta City of IndustryGT Tech Park

KI Artha Industrial HillKI Greenland International Industrial Center

KI Jababeka Tahap IIIKI Bukit Indah Industrial City

KI Indotaisei Kota Bukit Indah

North SumatraKI Medan

Java, Sumatra, Sulawesi are Indonesia’s most

populous islands

WHEREON EARTH

Riau IslandsBatamindo Industrial ParkBintang Industriall Park IIKabil Integrated Industrial ParkWest Point Maritime Industrial ParkKI Lobam

First ImplementationSecond Implementation

Riau KI Dumai Balikpapan

KI KariangauJakartaKawasan Berikat NusantaraKI Jakarta Industrial EstateKI Marunda Center

Blue font:Black font:


82Project/Company

121.73Investment Value in

Trillion Rupiah

1,117.36hectare

land areas

11 Industrial Estate

Commersial Production

9 Project/Company

Land area 28.09 ha, Investment IDR 2.08 Trillionin 3 industrial estate

CONSTRUCTION

16 Project/Company

Land area 202,19 haInvestment IDR 4.49 Trillionin 8 indsutrial estate

Preparation

57Project/Company

Land area 887.08 ha Investment IDR 115.16 trillion In 11 industrial estate

Direct Construction

2.53Investment Value in

Trillion Rupiah

45.38hectare

land areas

5 Industrial Estate14

Project/Company

Japan

Copyright © 2017 Indonesia Investment Coordinating Board. All rights reserved.22

Japan Company List Using Direct Construction Facility in 2017

No. Company Industrial Zone Investment Value (IDR Million)

1. PT. Ajinomoto Indonesia Karawang International Industrial City (KIIC) 935.347

2. PT. Aichikiki Autoparts Indonesia Karawang International Industrial City (KIIC) 66.150

3. PT. Denso Indonesia Bekasi Fajar Industrial Estaste (BFIE) 30.000

4. PT. Nof Mas Chemical Industries Bekasi Fajar Industrial Estaste (BFIE) 150.000

5. PT. Ogawa Indonesia Karawang International Industrial City (KIIC) 52.000

6. PT. Hoyu Indonesia Karawang International Industrial City (KIIC) 258.989

7. PT. FCC Indonesia Karawang International Industrial City (KIIC) 265.045

8. PT. Actmetal Indonesia Karawang International Industrial City (KIIC) 82.810

9. PT. Lautan Organo Water Modern Cikande Industrial Estate (MCIE) 30.000

10. PT. Tuffindo Nittoku AutoNeum Suryacipta of Industry (SCI) 87.100

11. PT. Mitsui Kinzoku Catalysts Jakarta Suryacipta of Industry (SCI) 123.500

12. PT. Iwatani Industrial Gas Indonesia Karawang International Industrial City (KIIC) 140.400

13. PT. Hiruta Kogyo Indonesia Karawang International Industrial City (KIIC) 143.000

14. PT. Sasakura Indonesia Kendal (KIK) 164.850

TOTAL 2,529.191

Land area 45.38 ha

© 2016 by Indonesia Investment Coordinating Board. All rights reserved

Green Line acceleration facilityImport Facility for Capital Goods

Acceleration and assurance of custom clearance process

Projects in the construction phase can begin operation immediately

Capital goods do not require screening

Valid since 14 December 2015

Improvements of Investment Service

Investment Service

As of February 2017, 89 companies have used the “Green Line” Facility

Before:2 days

After:half day


Green Line Realization

89 companiesSectors:Paper industries & printing; Basic chemical industries &pharmaceutical industry; Basic metals industry,machinery & electronic industries; Transportequipment industries; Non-metal minerals industry;Electricity, gas & water; Food industry; Rubber & plasticindustry; Real estate, industrial estate & officecomplex; Mining; Food crops & plantation; Hotel &restaurant; transportation, warehouse &telecommunication; textile industry; and leather &textile industries.

Investment Commitment

IDR 187.9 trillion*) as of 7 March 2017

From Japan: 8 Companies

Investment Commitment : IDR 18.4 trillion

Textile industry, transport equipment, non metal

minerals industry


Badan Koordinasi Penanaman Modal

(BKPM)Indonesia Investment Coordinating Board

Jln. Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesia

t . +62 21 525 2008

f . +62 21 525 4945

e . [email protected]

www.bkpm.go.id

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