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INDONESIA INVESTMENT COORDINATING BOARD

Investment Updates : reform and maintaining growth

invest in

© 2013 by Indonesian Investment Coordinating Board. All rights reserved

Ikmal Lukman Director of Sectoral Promotion - Deputy for Investment Promotion

The Investment Coordinating Board of the Republic of Indonesia

2

1 Why Invest in Indonesia

2 Investment Performance

3 Investment Policy and Facility

4 Investment Opportunities

Indonesia Investment Updates

Outline

Remarkable Indonesia

Why Invest in Indonesia


4

Land Area 1,904,443 sq km

Sea Area 3,116,163 sq km

Total Area 5,020,606 sq km

Coastal Line 81,000 km

Population 245.6 Million people (4th biggest population)

Main Towns

Jakarta (Capital) Surabaya Bandung Semarang Medan Samarinda Makassar

9,608 2,765 2,394 1,556 2,097 727 1,339

Population (‘000)

Jakarta (Capital) East Java West Java Central Java North Sumatera East Kalimantan South Sulawesi

16.4 14.8 14.6 8.5 5.2 6,1 2.3

GDP Share (%)

The rising population share of Indonesia’s

middle class, those who spend USD2 - USD20

per day (% of population):

37.7% 2003

56.5% 2010

GDP Size (PPP) USD 1,323 Bn

GDP percapita (PPP) USD 5,280

Source: World Bank

Source: various

GDP/Capita (USD ‘000)

9.9 2.3 1.9 1.5 2.3 10 1.6

Why Indonesia: Remarkable Indonesia

Country Snapshot: The Biggest Archipelago


5

Sound Economy: Maintaining the pace of growth.

Source: CEIC

GDP growth rates (%) Real GDP per capita (1996=100)

-15

-10

-5

0

5

10

15

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

0

20

40

60

80

100

120

140

160

180

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

Indonesia Korea Malaysia Thailand Philippines

0

1

2

3

4

5

6

7

8

9

10

0

20

40

60

80

100

120

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Public Debt (% of GDP) (LHS) Budget Deficit (% of GDP) (RHS)

Public Debt and Budget Deficit (% of GDP)

Indonesian economy grew by 6.5% in 2011, and 6.23% in 2012. Indonesia currently is the second fastest growing economy among G20 members.

Indonesia is fiscally and monetarily more sound compared to some European countries.


6

Indonesia Population

IN 2010 INDONESIA’S POPULATION --------------WAS--------------

238 MILLION 4th most populous nation in the world

Age 100+

Age 0

Year 2010 Year 2030E Year 2050E

Of the 238 million people in Indonesia, over 60% of the population is under 39 years old, providing a dynamic workforce.

High Expectation Of Growth IN MIDDLE CLASS INCOME (EXPENDITURE PER CAPITA US$2-US$20/DAY)

Sources: Bank Indonesia & BPS-Statistics Indonesia, 2012 (projection)

45 million (25%

population)

81 million (37.7% )

93 million (42.7%)

134 million (56,5%)

170 million (70%)

0

20

40

60

80

100

120

140

160

180

1999 2003 2009 2010 2015

Why Indonesia : Remarkable Indonesia


7

45 million (25%

population)

81 million (37.7% )

93 million (42.7%)

134 million (56,5%)

170 million (70%)

0

20

40

60

80

100

120

140

160

180

1999 2003 2009 2010 2015

Sources: Bank Indonesia & BPS-Statistics Indonesia, 2012 (projection)

Number of population in middle class income

(per capita expenditure per day $2-20)

Note: Per capita expenditure per day is adjusted to the 2005 purchasing power parity terms. Source: SUSENAS and World Bank staff calculations.

Proportion of the population based on per capita expenditure per day

5.5% 18.0% = 40 million people =

Why Indonesia: Remarkable Indonesia

Growing Middle Class: Higher Demands for Better Services and Products

more than the total population of Malaysia and Singapore combined.


8

McKinsey Global Institute:

The Archipelago Economy:

Unleashing Indonesia's

Economic Potential

September 2012

Why Indonesia

Indonesia Today…


9

McKinsey Global Institute

September 2012

Why Indonesia

Indonesia Today Indonesia in 2030

Indonesia Investment Update

Investment Performance


11

(in IDR Trillion) 2010 2011 2012 2013 2014 Total

FDI 147.9 172.8 204.1 272.6 329.0 1,126.4

DDI 60.6 67.2 79.4 117.7 177.9 502.8

Total Target 208.5 240.0 283.5 390.3 506.9 1,629.2

(USD 181.0 Billion)

Assumption: USD 1 = IDR 9.000

Total Investment realization to achieved in 2010-2014: USD 181.0 billion

Achievement 208.5 251.3 313.2 N/A N/A 773.0

(USD 85.9 Billion)


Overall Investment Target: BKPM Strategic Plan 2010-2014

Source: BKPM

0

200

400

600

2010 2011 2012 2013 2014

FDI DDI

Investment Realization Target (in IDR Trillion)


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Singapore: USD 4.9 Bn

(19.8%)

Japan: USD 2.5 Bn

(10%)

South Korea: USD 1.9Bn

(7.9%)

United States: USD 1.2 Bn

(5.1%)

Mauritius: USD 1.1 Bn

(4.3%)

Others: USD 13 Bn

52.9%

The cumulative of investment realization from January to

December 2012 is IDR 313.2 trillion (USD 34.8 billion) or 110.5% from target in 2012 (Rp 283.5 trillion).

Compared to same period in 2011 (Rp 251.3 trillion), it

increased about 24.6%.

Source: BKPM

Investment Realization by Origin Country 2012

2,3 3,9 2,3 4,2 6,8 8,4 10,2 6

10,3 14,9 10,8

16,6 19,5

24,6

2006 2007 2008 2009 2010 2011 2012

DDI FDI

8.3

14.2 17.1

15.0

23.4

27.9

34.8


Overall Investment Realization

Source: BKPM

(USD Billion)


13

Food Industry Rp.11,2 T (12,1%)

Non Metallic Mineral Industry

Rp.10,7 T (11,6%)

Mining Rp.10,5 T (11,5%)

Food Crops and Plantation

Rp.9,6 T (10,4%)

Transportation, Storage and

Telecommuni-cation

Rp.8,6 T (9,3%)

Others Rp.41,6 T (45,1%)

Mining USD.4,3 B (17,3%)

Transportation, Storage and

Telecommunication USD.2,8 B (11,4%)

Chemical and Pharmaceutical

Industry USD.2,8 B

Metal, Machinery and Electronic

Industry USD.2,5 B (10,0%)

Motor Vehicles & Other Transport

Equipment Industry USD.1,8 B

(7,5%)

Others USD.10,4 B

(42,5%)


Overall Investment Realization : Jan-Dec 2012, Based on Sector

Foreign Direct Investment Domestic Direct Investment

Source: BKPM


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West Java USD.4,2 B

(17,1%)

Jakarta USD.4,1 B

(16,7%)

Banten USD.2,7 B (11,1%)

East Java USD.2,3 B

(9,4%)

East Kalimantan USD.2,0 B

(8,2%)

Others USD.9,2 B

(37,5%)

East Java Rp.21,5 T (23,3%)

West Java Rp.11,4 T (12,3%)

Jakarta Rp.8,5 T (9,3%)

East Kalimantan Rp.5,9 T (6,4%)

Central Java Rp.5,8 T (6,3%)

Others Rp.39,1 T (42,4%)

Foreign Direct Investment Domestic Direct Investment


Overall Investment Realization : Jan-Dec 2012, Based on Location

Source: BKPM


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Java 59%

Outside Java 41%

Java 56%

Outside Java 44%

A series of improvement of investment climate in both central and local

government’s services have been responded positively by domestic and foreign

investors, and increased the investment distribution outside Java Island.

Source: BKPM


Investment Challenge: More Equal Investment Distribution

Total Investment 2012 Total Investment 2011


16

German Investment to Indonesia 2000-2012

(USD Million)

98,52

8,48

169,71

53,33

124,37

17,01 15,89 6,45

197,75

112,07

157,59 158,13

75,78

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


German Investment to Indonesia

Rank Country Number of

Project Investment

(USD Thousand) Percentage

1 Singapore 804 4,856,351.1 27.730%

2 Japan 405 2,456,940.9 19.770%

3 South Korea 421 1,949,704.1 10.002%

4 US 96 1,238,274.7 7.937%

5 Mauritius 23 1,058,785.3 5.041%

6 Netherland 131 966,541.1 4.310%

7 UK 97 934,360.4 3.935%

8 British Virgin Islands 168 855,900.2 3.804%

9 Australia 137 743,592.2 3.484%

10 Taiwan 85 646,948.4 3.027%

…

18 India 58 78,135.9 0.318%

19 Germany 71 75,781.6 0.308%

20 Thailand 17 68,026.0 0.277%

Total 4,577 24,564,670.2 100.000%

FDI to Indonesia by Origin Country 2012

Source: BKPM


17

West Java; USD 583,6

Jakarta; USD 287,4

Banten; USD 253,6

Bali; USD16,5 East Java;

USD 15,7

Others; USD 38,4

Motor Vehicles & Other

Transport Equipment Industry;

USD 326,4

Chemical and Pharmaceu-

tical Industry; USD 245,5

Non Metallic Mineral

Industry; USD 166,3

Metal, Machi-nery and

Electronic Industry;

USD 129,2

Trade and Repair;

USD 127,1

Others; USD 200,6


German Investment to Indonesia 2000-2012 (USD Million)

Based on Location Based on Sector


Investment Policy and Facility


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INVESTMENT LAW (UU No.25 Year 2007)

INVESTMENT FACILITIES

Mandate equal treatment for foreign and domestic investors

No minimum capital requirement, freedom to repatriate capital.

All business sectors or business types shall be open to investment

activities, except for business sectors or business types that are declared to

be closed and open with requirements.

Simplification of business start up and licensing procedures, including the

“one-stop shop” (PTSP) licensing provision at the Investment Coordinating

Board (BKPM).

Rolling-out of Electronic Information Services and Investment Licensing

(SPIPISE) in 105 PTSP.

Launching of the National Single Windows for Investment.

Establishing an Investor Relation Unit at BKPM for information facilitation

and queries handling from existing and potential investors.

Implementing a regional champion program to help select local

governments accelerate investments in their respective regions.

Launching of investment tracking system.

An acceleration of the VAT refund system for exporters Establishment of a complaint management system and a code of conduct

for tax officials

TAX REFORMS


On going reforms in investment climate....


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Regulated on MoF Regulation No.176/PMK.011/2009 granted for industries which produces goods or services.

Exemption from import duty on the import of machines for a period of 2 (two) years.

Exemption from import duty on the imports of goods and materials for production for a maximum period of 2 (two) years.

Exemption from import duty on the imports of goods and materials for production for a period of 4 (four) years, is granted to a company which is using the locally-produced machines at least 30% of the total value of machines for its production.

Service industry which is eligible for the facility: 1. Tourism and culture 2. Transportation (for public transportation services) 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port

Exemption from import duty may be granted to the extent that the machines, goods and materials: • are not produced in Indonesia; • are produced in Indonesia but the they do not meet the required specifications; • are produced in Indonesia but the quantity is not sufficient for the need of the industry,

pursuant to the list of machines, goods and materials as determined by the minister who is in charge of industry.

IMPORT DUTY FACILITIES


On going reforms in investment climate....


21

Government Regulation no. 94 of 2010 on Calculation of Non Taxable Income and

Payment of Income Tax in the Current as the umbrella regulation of tax holiday.

The Regulation of the Minister of Finance No.130/PMK.011/2011 (according to Article 2), a taxpayer can be granted a tax holiday facility for a period of between 5

and 10 years. This fiscal facility is available for investors in the pioneer industry that has strong

backward and forward linkage; and engage in five business sectors, namely basic metals, oil refinery and petrochemicals, machineries, renewable resources, and telecommunications equipment industry. In addition, there is another possibility that the Minister of Finance can add other sectors to the list after considering the importance and strategic values of the business sector to improve national industrial competitiveness.

After the expiration of the tax holiday, the taxpayer will be entitled to an income tax reduction of 50% for a further 2 years.

By considering the purpose of maintaining the competitiveness of national industries and the strategic value of certain business activities, the duration of the tax holiday and the tax reduction can be extended based on a decision by the Minister of Finance.


TAX HOLIDAY


22

TAX ALLOWANCE

Government Regulation No. 12 of 2001 jo No. 31 of 2007 Exemption of value added tax of imported capital goods, machinery,

or equipment (except spare parts) which cannot be produced domestically

Submit tax-free letter to the Director General of Taxes

Government Regulation No.52 year 2011, 30% reduction of corporate net income based on investment value for six

years, 5% each year. The imposition of income tax on dividends paid to foreign tax subject

amounting to 10%, or a lower rate according to Tax Treaty Agreement.

Tax facilities that could be granted to investors under certain conditions has been issued. By this regulation, the tax allowance will be eligible for 129 business segments, expanded from 38 segments in the previous regulation.

VAT FACILITIES



23

Tax Allowance: Infrastructure Sector - Government Regulation Number 52 of 2011 Appendix 1

BUSINESS FIELD KBLI COVERAGE REQUIREMENT

CIVIL BUILDING CONSTRUCTION

Building Construction Processing, Distribution and Storage of Drinking Water, Wastewater and Drainage

42212

This category includes business development, maintenance and repair of buildings in the city sewage (domestic sewage collection tissue / human and industrial waste water) and wastewater treatment buildings, residential drainage, retention basins, pump building and construction of similar buildings

Investment > Rp. 50 billion (US$ 5.5 million)

Workforce > 300

WATER SUPPLY Shelter, water purification and distribution of Clean Water

36001

This category covers activities of taking water directly from springs and groundwater and surface water purification of water sources and water channeling water directly from the terminal, tank car (from the tank car is still in the administration management of the water company) to be sold to consumers or customers, such as households, institutions / organizations / government agencies, social agencies, state owned enterprises, corporate / private businesses such as hotels, industrial processing and retail


Workforce > 300

Drinking water which meets Indonesian National Standard (SNI) requirements

WASTE MANAGEMENT AND RECYCLE Non hazardous garbage collection

38110

This category includes the collection of solid waste which is not hazardous in some areas, such as garbage collection households and businesses to use the bins, wheeled bins, containers and other trash that included a mix of materials that can be recovered, the collection of materials and collection of recyclable waste from the bins in public places


Workforce > 300

WASTE MANAGEMENT AND RECYCLE Non hazardous Waste Management and Disposal

38211

This category includes the business operation of the land for which no hazardous waste disposal, hazardous waste disposal is through the method with or without the products with electrical or steam, substitute fuels, biogas, ashes or other follow-up products for further use and management of organic waste for disposal


Workforce > 300



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Tax Allowance: Infrastructure Sector - Government Regulation Number 52 of 2011 Appendix 2

BUSINESS FIELD KBLI COVERAGE REGION REQUIREMENT

CIVIL BUILDING CONSTRUCTION

Highway construction

42111

Business development, improvement, maintenance and highway improvements.

All area except in Java Island

Investment > Rp. 1 T (US$ 111 million)

Workforce >

300

WAREHOUSING AND SUPPORTING TRANSPORT SERVICES Cargo handling (goods loading and unloading)

52240

This category includes business services of international transshipment port (pier, building, towing vessels, pilotage services, anchoring, mooring services, service dock and stacking of goods / containers, container terminal, liquid bulk terminals, dry bulk terminal)

Batam Island

Integrated with KBLI 52101, 52102, 52109, 52221



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No. Sectors More Open More Restrictive

1. Agriculture - 2

2. Forestry 1 -

3. Maritime and Fishery 1 -

4. Energy and Mineral Resources 1 -

5. Industry 2 3

6. Public Works 1 -

7. Trade 1 -

8. Culture and Tourism 17* 1

9. Transportation 4* 1

10. Communication and Information 2 2

11. Manpower and Transmigration 2 -

12. Health 8* -

13. Security - 1

Total 40 10

*) Including business field open with condition for ASEAN Investors


Negative Investment List Presidential Regulation No.36 of 2010

The regulation come into

force as of May 2010

The Negative Investment List

is reviewed every 3 years

40 business sectors are

more open for investors


26

Negative List on Investment: Infrastructure Sector (Presidential Regulation Number 36 of 2010)


No. Business Fields KBLI Conditions Remarks

1 Piped Water Supply 36001 Max 95% Foreign Capital Ownership

2 Power Plants (more than 10 MW)

35101 Max 95% Foreign Capital Ownership (Power plants with less than 10 MW are currently reserved for small and medium enterprises and hence closed to foreign investment)

Transmission of Electricity 35102 Max 95% Foreign Capital Ownership

Distribution of Electricity 35103 Max 95% Foreign Capital Ownership

3 Toll Road 52213 Max 95% Foreign Capital Ownership

4 Seaport Services 52221 Max 49% Foreign Capital Ownership

5 Airport Services 52230 Max 49% Foreign Capital Ownership

6 Local Fixed Telecommunication Network

61100 Max 49% Foreign Capital Ownership

Closed Fixed Telecommunication Network

61100 Max 65% Foreign Capital Ownership

Mobile Telecommunication Network (Cellular/Satelite)

61200 61300

Max 65% Foreign Capital Ownership

7 Railway (Construction Work) 42113 Max 67% Foreign Capital Ownership


27

Presidential Regulation No 67/2005 jo No. 13/2010 jo No. 56/2011: Better Investment Climate on PPP ... (1)


1. LIST OF

READY FOR

OFFER

PROJECT

Projects which are offered to the Business Entity and Foreign Legal Entity are:

arranged in a list of projects, and

if necessary, obtain any principle approval of support from the Minister / Head of the

Institution / Head of Regional and / or any principle approval of guarantee from

Indonesia Infrastructure Guarantee Fund (IIGF)

2. TENDER

PARTICIPANT

Tender participant and project initiator:

Business entity in the form of Indonesian Legal Entity and Foreign Legal Entity

Winning Bidder have to found a business entity in the form of an Indonesian Legal Entity

3. UNSOLICITED

PROJECT

PPP Infrastructure Projects which are initiated by a Business Entity and/or a Foreign Legal

Entity, which criteria are:

not included in the master plan in the project’s sector;

technically integrated with the master plan in the project’s sector;

economically and financially viable, and

does not require government support in the form of fiscal contribution (financial)


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4. COMPENSATION FOR UNSOLICITED PROJECT

Providing additional value (a maximum of 10%), or

Right to match, or

Purchasing the Project initiative, including intellectual property rights

5. SUCCESS FEE

Costs incurred in the preparation of the PPP Project and within the procurement

planning and execution of Business Entity:

the cost of preparing pre-feasibility study and / or transactional fee until financial

close; and

reasonable remuneration, in terms of project preparation conducted by the

government agency / institution,

can be charged to the winning bidder and must be included in the public tender

document

6. LAND ACQUISITION

Procurement of land held by the Minister / Head of the Institution / Head of the

Region prior to the inclusion of tender document

7. LANGUANGE AND LAW

Partnership Agreement in Bahasa Indonesia or if needed, can be formulated in Bahasa

Indonesia and English

Applicable law: Indonesian Law


29

8. GOVERNMENT GUARANTEE

Government guarantees are:

- financial compensation and / or

- other form of compensation

given by the Minister of Finance through risk-sharing scheme, regarding the principles of management and control of financial risk in the state budget.

Government guarantees should be included in the public tender document.

Government guarantees in the form of financial compensation can be awarded by the Minister of Finance through PT PII (Indonesia Infrastructure Guarantee Fund – IIGF)

9. GOVERNMENT SUPPORT

Government support in the form of:

– Licensing

– land acquisition,

– partially support the construction,

– tax incentives,

– fiscal contribution in the form of financial and / or

– other forms

determined by the Minister / Head of Institution / Head of Regional Government

Government support should be included in the public tender document

Government support in the form of fiscal contributions should be listed in the state budget and / or regional government budget




30


Article Issue Note

5 Land Procurement for developmeny

Related parties must relinquish their land when implementing land acquisition for public interest.

23 (1-5)

Short dispute settlement ( 3 months 14 days)

• If there is any objection, the related party can propose a lawsuit to the Local State Administrative Court at least 30 (thirty) working days since the issuance of the determination of the location.

• Administrative Court has 30 days to accept or decline the lawsuit. • Related party could propose cassation to the Supreme Court of the Republic

of Indonesia if they object with the decision of the Administrative Court within period of 14 days.

• The Supreme Court must give a decision in no later than 30 (thirty) working days.

47(1) Implementation of procurement for public purpose

The release of the land should be implemented not exceed 60 (sixty) days after the determination of the construction site

• One of the main challenge in the infrastructure project especially in toll roads, railways, and airports is the land procurement.

• Regulation on Land Procurement For Development (Law No 2 of 2012) which has been signed by President on 14 January 2012.

• Some of important issues are as follow:

Latest Development on PPP Related Policy: Law on Land Procurement


Investment Opportunities


32

BKPM and PPP Investment Opportunities

BKPM is the Investment Coordinating Board of the Republic of Indonesia.

As the primary interface between business and government, BKPM is mandated to boost domestic and foreign direct investment through creating a conducive investment climate.

Restored to Ministerial status in 2007, and reporting directly to the President of the Republic of Indonesia, this investment agency’s goal is not only to seek more domestic and foreign investment, but also seek quality investments that reduce social inequality and unemployment.

The agency works as a proactive advocate for investments as well as a matchmaker for investors.

BKPM’s main duty based on Presidential Regulation No. 90 of 2007:

Coordinate policies and services in the field of investment under the provisions of the legislation.

BKPM Inclusion in PPP and Other Infrastructure Projects:

Based on the MoU between the Ministry of Finance, Head of Bappenas and Head of Indonesia Investment Coordinating Board, which established on 18 August 2010.

Based Presidential Regulation No. 12 of 2011 as the amendment of Presidential Regulation No. 42 of 2005, concerning the Committee for the Acceleration of Infrastructure Provision, established on 24 February 2011.


33

1. Packaging information on infrastructure projects that are ready to offer, so that the project attractive to investors, including setting:

a. PPP project that will be the pioneer project (showcase project) and a target completion of each showcase project until the obtainment of project’s funding (financial close)

b. action and role plan of each relevant stakeholders of the showcase projects.

2. Finding and identifying potential investors and offering infrastructure projects to investors.

3. Facilitating marketing of infrastructure projects that are offered through activities such as :

a. Market Sounding b. Road Shows c. Business Forum

4. Facilitating cooperation with prospective investors and

government support.

Based on MoU between the Ministry of Finance, Head of Bappenas and Head of Indonesia Investment Coordinating Board, BKPM task of accelerating the implementation of PPP infrastructure are as follows:

5. Delivering the list of potential investors and supporting documents to the person in charge of cooperation projects to the Ministry / Agency or Local Government (contracting agency) for further processing.

6. Facilitating issuance of necessary license and non-license in the implementation of PPP projects through One Stop Integrated Services for Investment (PTSP) in the field of investment.

7. Monitoring the implementation of action plans and targets of

each relevant stakeholders showcase project. 8. Coordinating settlement-related issues encountered

showcase project (clearing house agent).

BKPM As The Front Office: MOU Between MOF, Bappenas and BKPM Investment Opportunities


34

Potential Project

Ready for

Offer

Priority Project

Sector/ Sub-sector

Quantity Project Cost (US$ Million)

Air Transportation - -

Land Transportation

- -

Marine Transportation

1 36.00

Railways - -

Toll Road 1 628.00

Water Resources - -

Water Supply - -

Solid Waste and Sanitation

1 100.00

Power - -

Oil and Gas -

Total 3 764.00

Sector/ Sub-sector


Air Transportation 1 214.00

Land Transportation

- -


- -

Railways - -

Toll Road 13 32,519.53

Water Resources - -

Water Supply 5 590.67


3 150.00

Power 4 4,716.50

Oil and Gas

Total 26 38,190.70

Sector/ Sub-sector


Air Transportation 3 1,140.00

Land Transportation

3 136.00


3 2,839.12

Railways 3 4,783.00

Toll Road - -

Water Resources - -

Water Supply 13 1,388.15


2 203.00

Power 2 -

Oil and Gas - 1,762.00

Total 29 12,251.27

Source : PPP Book, Bappenas (2012)

Total (all PPP projects) 58 Projects US$ 51,205.97 million

Ready for Offer : Bidding Document has been completed, PPP procurement team has been established and ready to operate, procurement team has been established, procurement schedule has been defined, government support has been approved (if required)

Priority Project : Included in PPP Potential Project Plan, feasible (from legal, technical and financial aspect), risk identification and allocation has been identified, PPP mode has been defined, Gov’t support has been identified.

Potential Project : Conformity with the national/regional mid term development plan and the infrastructure sector’s strategic plan, conformity of the project’s location , linkage between the infrastructure sectors and the regional areas, cost recovery potential, preliminary study.

PPP Book 2012 : Ready for offer, Priority and Potential Project Investment Opportunities


35

Selected Projects – Ready to be tendered at the end of 2013 – 2014 Investment Opportunities

No. Projects GCA Investment Cost

(US$ million)

1 Cisamdawu Toll Road Ministry of Public Works/BPJT US$ 1,015 Million

2 Pandaan – Malang Toll Road Ministry of Public Works/BPJT

US$ 420 Million

3 Manado - Bitung Toll Road Ministry of Public Works/BPJT

US$ 353 Million

4 Kertajati International Airport Government of West Java

US$ 130 Million

5 Integrated Terminal Gedebage Railway Government of West Java

US$ 133 Million

6 Lamongan Regency Water Supply Government of Lamongan US$ 16.67 Million

7 West Semarang Water Supply Government of Semarang US$ 78 Million

8 Solid Waste Treatment & Final Disposal Putri Cempo, Solo Government of Solo US$ 30 Million

9 Karama Hydro Power Plant PT. PLN US$ 1,336 Million

10 Jambi Coal Fired Power Plant PT. PLN US$ 1,040 Millions


36

Showcase Projects 2010-2014 based on PPP Book 2010 by Bappenas

Investment Opportunities

North Sumatera

D.K.L. Jakarta

Central Java

East Java

Bali

Medan-Kualanamu –Tebing Tinggi Toll Road, North Sumatera

Umbulan Water Spring Project, East Java

2X1000 MW Coal Fired Power Plant, Central Java

Tanah Ampo Cruise Terminal, Bali

Soekarno Hatta Airport-Manggarai Railway Development, DKI Jakarta

: already tendered

: preparing to be tendered


37

Investment Opportunities: Indonesia Economic Corridors masterplan

Basically MP3EI is based on these strategic initiatives: 1. Encourage a large scale investment

realization in 22 main economic activities 2. Synchronization of national action plan to

revitalize the real sector performance 3. The development of center of excellence

in 6 (six) economic corridors Main strategy of MP3EI: 1. Economic potential development through

economic corridor 2. Strengthening the national connectivity 3. Strengthening national human resources

capability and science and technology


38

Source: Coordinating Ministry for Economic Affairs, 2011

Sumatera Corridor

Kalimantan Corridor

Java Corridor

Sulawesi Corridor

Papua – Maluku Corridor

“Supporting the National Service and

Industry"

'‘Gate of Tourism and Supporting Provider of National Food and

Agriculture''

'‘Central of Production and Manufacture of National Agriculture, Plantation,

Fishery, and Nickel Mining'' “Central of Production and Manufacture of National Natural and

Energy Resources"

“Central of Production and Manufacture of National Mining and Energy Resources" “Central of

Development of National Food, Fishery,

Energy, and Mining”

Bali - Nusa Tenggara Corridor

Investment Opportunities: main potential


39

Investment Opportunities: main economic activities

Main Economic Activity Sumatera Java Kalimantan Sulawesi Bali – Nusa Tenggara

Papua – Maluku Islands

Steel √ √

Food and Beverages √

Textile √

Transportation Equipment √

Shipping √ √

Nickel √ √

Cooper √

Bauxite √

Palm oil √ √

Rubber √

Food agriculture √ √

Tourism √

ICT √

Coal √ √

Oil and Gas √ √ √

Jabodetabek Area √

Sunda Straits National Strategic Area √

Defence Equipment √

Animal Husbandry √

Timber √

Cocoa √

Fishery √ √ √


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CONSIDER Is it an open business field? What are the recommendation requirements? Is the proposed business field allowed to obtain fiscal facilities?

FILLING OUT OF APPLICATION

FORM Enclosing all required documents

SELF ASSESSMENT Check List

FRONT OFFICE Examination of the application form and

the attachments by FO Officer

APPLICATION RECEIVED Complete and correct

BACK OFFICE Process of Issuing the Approval/License

APPLICATION RECEIPT & PIN FOR

INVESTMENT TRACKING SYSTEM

APPLICATION RETURNED Due to incompleteness or incorrectness

with notes about the incomplete data, etc. ADMINISTRATION Administration of the

numbering of the

Approval/License

NO

YES

Investment Procedure

Mechanism for Approval and Licensing


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Investor

Notary

Ministry of Law and

Human Rights

Registration License

Principle License

Implementation Permits 1. Location Permit 2. Building Construction Permit (IMB) 3. Nuisance Permit UUG/HO 4. Company Registration Certificate (TDP), etc.

Non-Fiscal Facility Producer Importer Registration Number (API-P) Fiscal Facility 1. Customs Facility Approval for Capital

Goods 2. Corporate Income Tax Facility Proposal

Business License

Investor Registration

Application for Principle License

Submission of the Company’s Deed of

Establishment (Articles of Association)

Submission of Certificate of Incorporation

Application for Business License

COMMERCIAL PHASE

PREPARATION PHASE

CONSTRUCTION PHASE

1 1a



1b

1c

2

4

3

5

6

7 Fiscal Facilities

Customs Facility Approval for Raw Materials

8

Investment Procedure

Investment Phase


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THANK YOU

invest in

© 2012 by Indonesian Investment Coordinating Board. All rights reserved

Contact Us

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P.O. Box 3186, Indonesia

P : +62 21 5292 1334

F : +62 21 5264 211

E : [email protected]

International Representatives Office

mailto:[email protected]

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