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BKPM Sets Industrial Zones for Direct Investment Licensing

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3 November 2015 17:02 WIB

A logo of the Indonesian Investment Coordinating Board (BKPM)TEMPO/Dasril Roszandi

TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) is preparing two provinces, Central Java and South Sumatra, for the pilot project of the direct investment permit in the construction sector—designated for several types of industries.

The two provinces cover five industrial areas that are being prepared as pilot locations for this service.

"We have received the proposals from both provinces stating their readiness," BKPM chief Franky Sibarani said through an official statement on Monday, November 2.

The policy is an answer to investors' complaint about how location is often a problem when it comes to investing in Indonesia.

Franky said that based on locations, the industrial zones are targeted to expand to areas outside Java by up to 53.5 percent.

Tamba Hutapea, BKPM's deputy for investment planning, said that industrial zones are needed to help meet the government's investment target over the next five years. The target, pegged at Rp3,518 trillion, is twice the amount set for the previous 5-year period (2010-2014), which was Rp1,629 trillion. The target also signifies a 15.1 percent annual growth.

In the next five years, Tamba said, investment will be prioritized on the infrastructure, agriculture, maritime, zones, and tourism sectors.

According to BKPM's data, Indonesia has 85 central industrial zones with 50,000 hectares of land available. The government is planning to add 14 more industrial estates outside Java, covering an area of 29,000 hectares.

"With a land size that big, there is no reason not to speed-up the licensing process," Tamba said.

AHMAD FAIZ IBNU SANI



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