BKPM Head Ultimatum: Don’t Let Officials Difficult for Investors! Page all

JAKARTA, – The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, asked the authorities not to make it difficult for investors to realize their investments.

The request of the Head of BKPM Bahlil was conveyed during his visit to the PT Indonesia Morowali Industrial Park (IMIP) Industrial Estate in Morowali, Central Sulawesi, in order to oversee investment execution during the period of adaptation to new habits.

“We came here as part of an investment escort effort. This (Covid-19 pandemic) is a difficult time for all parties, both capital owners and workers. Therefore, there must be a sense of empathy among us,” Bahlil said. Among, Monday (7/20/2020).

“Do not let anyone make it difficult for investment. We already have an agreement with the Attorney General and the National Police. Do not let the authorities make it difficult for investors in the field,” Bahlil said.

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Bahlil hopes that even though the Covid-19 pandemic has not yet ended, the company’s activities in the Morowali Industrial Estate have not stopped and there will be no layoffs.

Morowali Industrial Park was established in 2013 on 2,000 hectares of land. This area has absorbed an investment of around 126.5 million US dollars which provides employment for around 40 thousand Indonesian workers and around 4 thousand foreign workers.

Based on BKPM’s observations, several production activities continue to run well in this region. There are 21 companies in the region, including PT Indonesia Tsingshan Stainless Steel, PT Dexin Steel Indonesia, and PT Huayue Nickel Cobalt.

During his visit to Morowali, Bahlil also had the opportunity to see a mockup of a nickel laterite project plan using the hydrometallurgical method at PT Huayue Nickel Cobalt.

The project is the processing and refining of nickel laterite by the first hydrometallurgical method in Indonesia, with an area of ​​188 hectares.

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“This project permit will soon go to BKPM. The local government and local authorities must also support and jointly maintain investment here. Moreover, this is a magnet for the absorption of labor for the region,” Bahlil said.

Based on the BKPM Investment and Operations Command Command Center, investment realization in the first quarter of 2020 in the Central Sulawesi Province for Domestic Investment (PMDN) was IDR 1.15 trillion with 92 investment projects.

While the realization of Foreign Investment (PMA) of 345 million US dollars (around Rp4.9 trillion) with 72 projects.

Cut investment targets

BKPM itself has again cut its investment target to Rp 817.2 trillion by the end of this year. Down from the initial target of IDR 886 trillion in 2020.

Bahlil said the revised projection was based on a calculation scheme by looking at the development of the Covid-19 pandemic case in Indonesia.

Also read: BKPM Reduces Investment Target to IDR 817.2 Trillion in 2020

Initially with the Covid-19 estimation scheme completed in May 2019, the investment target is estimated to reach Rp 855.6 trillion this year. In fact, the pandemic is not over, so BKPM has revised its target again.

“Because the month of July has not ended yet, and covidently there is no sign of it (ending), so we lowered the target to Rp 817.2 trillion,” he said.

In addition to reducing the target, the pandemic also helped hamper the completion of the stalled investment process. Bahlil said, there was Rp. 708 trillion in investment stalled since he entered the BKPM in October last year.

President Joko Widodo’s direction wants this stalled investment to be fully completed in July 2020, but now that is difficult. At present, BKPM has realized Rp. 410 trillion of the stalled investment.

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“So now we have been able to execute around 58 percent (of stalled investment). The President’s order is completed until this July. However, because Covid-19 is rather difficult to complete,” Bahlil said.

To note, BKPM recorded the realization of direct investment of Rp 210.7 trillion during the first quarter of 2020. This realization grew 8 percent annually or year on year (yoy) compared to the first quarter of 2019 which was valued at Rp 193.9 trillion, also compared to the quarter IV-2019 grew 1.2 percent.

In detail, the realization of Domestic Investment (PMDN) during January-March 2020 was Rp 112.7 trillion, growing 29.3 percent compared to the same period last year which was Rp 87.2 trillion.

While the achievement of Foreign Investment (PMA) during the first quarter of 2020 amounted to Rp 98 trillion, dropped by 7 percent compared to the realization of the same period in 2019 which was valued at Rp 107.9 trillion.

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(Source: Artha Uly | Editor: Bambang P. Jatmiko)