Sabtu, 13 Juni 2015

BKPM TO LURE INVESTMENT INTO SPECIAL ECONOMIC ZONES

 By Andi Abdussalam
       Jakarta, June 13 (Antara) - The government is developing eight special economic zones (KEK) in various parts of the country and will later open seven additional zones to drive economic activities and help boost economic growth.
         In order to accelerate the development of economic zones, the Capital Investment Coordinating Board (BKPM) has begun promoting the development of integrated investment license service systems in the KEK area.
         BKPM Chief Franky Sibarani said in a written statement in Jakarta on Saturday last week that his agency will cooperate with KEK administrators, local governments in provinces and districts to assure the availability of standard operational procedures (SOP) within the KEK zones.
         The KEK zones need SOPs on the implementation of regulations, such as the length of time for the issuance of an investment permit in special economic zones.
         "The integrated investment license service is expected to produce concrete impacts and lure investments in the KEK areas, as well as boost economic activities. Therefore, we will focus on the special economic zones," Sibarani said.

 
         He added that the KEK played a strategic role as a center of economic growth and absorption of workers. Efforts are needed to expedite the licensing process so that investors would be attracted to invest in the KEK zones.
         The BKPM chief cited the Mandalika KEK area as an example in West Nusa Tenggara Barat, which is able to offer jobs to 58,000 direct workers and 200,000 indirect workers during its construction period.
         The efforts to integrate the licensing services in the KEK, he stated, are made as part of the One Door Integrated Service (PTSP) system between the central and regional governments being launched by the BKPM.
         The integration of the investment licensing services between the central and regional governments is the follow up of the investment license reform policy which was marked by the launch of the PTSP in the central government by President Joko Widodo on January 26, 2015.
         Based on the BKPM data, collected through June 1, there have been 705 PTSPs that have been set up in various regions. Of this figure, 34 are in the provincial level PTSPs, 370 are district level, 97 are in the municipality level, four in the free trade and port areas (KPBPB) and two in the KEK zones.
         Thus, 46 districts, one municipality, one KPBPB and six KEK zones in the country have not yet set up PTSPs.
         Sibarani said that the integration of the investment licensing service is aimed at attracting investors to the KEK zones to generate the needed dynamics for economic development. "Therefore, we are focusing on attracting investment to the KEK zones. We integrate the services of the PTSP in provinces, districts/municipalities and the KEK administrators," the BKPM chief said.
         Until now, the government has set up eight KEK zones, namely the Sei mangke KEK in North Sumatra, the Tanjung Api-Api KEK in South Sumatra, the Tanjung Lesung KEK in Banten, the Mandalika KEK in West Nusa Tenggara, the Maloy Batuta Trans Kalimantan KEK in East Kalimantan, the Palu KEK in Central Sulawesi, the Bitung KEK in North Sulawesi and the Morotai KEK in North Maluku.
        In the coming five years, the government is planning to set up seven more KEK zones. Four of them are expected to be located in Papua and West Papua provinces, namely in Merauke, Sorong, Teluk Bintuni and Raja Ampat.
         In the meantime, President Director of PT Jababeka Setyono Djuandi Darmono stressed  the need for the government to offer a special incentive and special regulation to attract investors to the KEK zone.
         "Investors need special treatment and policies from the government with regard to the legal aspect, fiscal incentive, non-fiscal infrastructure incentive, immigration and other aspects that would ease their investments," he said on Tuesday.
         The government also needs to know the type of incentives required by investors so they could obtain incentives from the government.   
    "The government could directly ask the investors about the incentives they need," said Darmono, whose company operates the Tanjung Lesung KEK zone in Pandeglang, Banten.

         He also pointed out the need to differentiate the fiscal and non-fiscal incentives for investors operating a KEK and investors who are not KEK operators, so that investors are lured to develop KEK.
         The government is aware of the need for certain regulations, with regards to business operations in the KEK zones. More comprehensive legal certainties are needed to ensure that businesses have guidance to develop special economic zones (KEK).
         "We know that in the economic sector, legal certainties are crucial. Without them, economic players will have no guidance," Chief Economic Minister Sofyan Djalil stated during a discussion at his office on Tuesday on legal development in creating KEKs.
         "A legal umbrella is important to boost the development of KEKs in Indonesia. We have a lot of work to complete the legal aspects of KEKs," he noted.
         Djalil observed that this condition, if not handled well, could hamper the development of KEKs, which is why regulations should be improved to boost their development.***3***

(T.A014/INE)

(T.A014/A/BESSR/F. Assegaf) 13-06-2015 13:58

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