Professional Documents
Culture Documents
Theopita I. Tampubolon
Deputy Director
Indonesia Investment Promotion Centre (IIPC) London
2
INTRODUCTION
Indonesia $1,010
Thailand $437
Phillipines $321
Malaysia $309
Singapore $305
Vietnam $215
Myanmar $66
Cambodia $22
2017
2018
EODB Indicators
Change
Dealing with construction permit 116 108 8
Registering property 49 38 11
Getting electricity 118 106 12
Paying taxes 62 55 7
Trading across boders 70 43 27
Getting credit 104 114 10
Protecting minority investor 108 112 4
Enforcing contract 166
The Investment Coordinating Board of the Republic of Indonesia
145 21
7
Resolving insolvency 76 38 38
Indonesia Investment Grade Rating (May 2018)
Rating : BBB
Outlook: Stable December 20th 2017
Rating : Baa2
Outlook: Positive April 13th 2018
Rating : BBB-
Outlook: Stable May 19th 2017
Rating : BBB+
Outlook: Stable February 9th 2018
Japan Credit Rating Agency, Ltd.
“During 2010-2017, there are 322 projects from Spain. And more than a half of projects (217 projects) are on the Other
services, Trade and Reparation, and Hotel and Restaurant”
Total FDI Realization in 2010-2017 from Spain: Based on Investment Value
Spain Outward Investment Destination 2008 - April 2018
*USD - millions
Source: www.fdimarkets.com
Spain Outward Investment Based on Industry Sectors 2008 - April 2018
*USD - millions
Source: www.fdimarkets.com
Spain Outward Investment Based on Parent Companies 2008 - April 2018
*USD - millions
Source: www.fdimarkets.com
LISTS OF BUSINESS FIELDS THAT ARE CONDITIONALLY
OPEN FOR INVESTMENT*
Tourism Industry
Agricultures
*) Presidential Regulation Number 44 of 2016 Concerning Lists of Business Fields That Are Closed To Investment and Business Fields
That Are Conditionally Open For Investment
Business Fields That Are Open under Specific Conditions:
Tourism Industry
Foreign Operation of historical and archaeological Foreign Exploitation of natural tourism through
investment: remains, such as temples, Sultan’s palaces, investment: provision of ecotourism facilities,
Max. of 67% inscriptions, ruins, ancient buildings; Max. of 51% activities and services within the forestry
2 star hotels; areas, including water tours, natural
adventure tours, and Spelunking tours.
ASEAN
1 star hotels; countries’
investors:
Non-star hotels; Max. of 70%
Art Galleries;
Art Theatres;
Operation of karaoke;
Operation (exploitation) of coin/card-
operated games;
Operation of natural tourism objects
other than in conservation areas.
Business Fields That Are Open under Specific Conditions:
Tourism Industry
Catering ASEAN
Foreign
investment: countries’
Max. of 67% Motel investors
Max. of 51%
Billiards houses
ASEAN
countries’ Bowling alleys
investors: Max.
of 70%
Golf courses
Impresario services
Foreign Geothermal surveying services Domestic Oil and gas construction services: Onshore oil and natural gas
capital: upstream production installation
Investment:
Max. of 95% 100% Oil and gas construction services: Onshore pipeline installation
Geothermal drilling services Oil and gas construction services: Horizontal / vertical tanks,
onshore oil and natural gas storage and marketing installation
Oil and gas support services: Oil and gas design and engineering
Power construction and services
installation: Electrical utility
construction Oil and gas support services: Technical inspection services
Indonesia won Dive Magazine’s Travel Award 2017 (Dive Magazine’s Travel Award, London)
• Best Destination:
• Indonesia (1st Winner for 2 years)
• Best Resort, and Spa
• Siladen, Bunaken (1st Winner)
• Wakatobi (3rd Winner)
14th• Best
UNWTO Live Aboard
Awards for Innovation in Tourism, Spain, 18th January 2018
• Pelagian, Sulawesi (2nd Winner)
• Tourism Inovation Non-Governmental Organizations (NGO);
• TripOnYu (1st Winner)
rd
Ten New Bali: National Tourism Priority Destination
Lake Toba Tanjung Kelayang Borobudur Wakatobi Morotai
Area : 1175 Ha Investment : Area : 324 Ha Area : 309,5 Ha Investment Area : 532 Ha Investment : Area : 300 Ha Investme
USD 1,6 Billion Investment : USD 1.4 Billion : USD 1.5 Billion USD 1,5 Billion USD 2,9 Billion
Labuan Bajo
Tanjung Lesung Kep. Seribu & Kota Tua Bromo Tengger Semeru Mandalika
Area : 400 Ha Investment
Area : 1500 Ha Investment : Area : 1009 Ha Investment : USD Area : 325 Ha Investment : USD Area : 1175 Ha Investment
USD 1,2 Billion
USD 4 Billion 1,5 Billion 1,4 Billion : USD 3 Billion
35 GW
Electricity
program
Capacity
No Type Location COD Target Province
(MW)
Source: BKPM 42
NEGATIVE INVESTMENT LIST
Aceh
10.4
North Sumatera East Kalimantan
9.3 10.2
Riau North & Central
10.1 West Kalimantan Sulawesi
12.4 12.1 Papua
13.5
Bangka
West Sumatera 13.7
8.1
South & Central Maluku
South Sumatera Kalimantan 17.3
7.9 9.0
Lampung South Sulawesi
7.8 12.1
Java-Bali
6.5 West Nusa Tenggara East Nusa
13.7 Tenggara
17.5
Project
Financing Process Procurement
Sponsors
Process
Shareholders
Agreement
Financing Agreement Power Purchase
Agreement
Special Purpose
Lender(s)
Company
O&M Contract
Source: PLN
Source: PLN
The Investment Coordinating Board of the Republic of Indonesia
47
DIRECT ASSIGNMENT TO PLN SUBSIDIARIES (IP/PJB)
RUPTL
Document reviewed by
Document reviewed by
PT Indonesia Power
Price Waterhouse Coopers (as PJB’s consultant)
(Legal and Financial Aspects) duration 3 weeks
RFP RFP
(Shortlisted) (Shortlisted)
One-on-One Meeting
One-on-One Meeting
Partnership scheme: Partnership scheme:
• PT Indonesia Power (Share 51%); • PT Indonesia Power (Share 51%);
• PT Indonesia Power (Share Equity 10%);
• PT Indonesia Power (Share Equity 10%); • Max 2 entities (Local/Foreign)
• Max 2 entities (Local/Foreign)
Contact:
Contact: Nyoman Ngurah Widyatnya
Henry Asdayoka Kepala Divisi Strategi Bisnis , Produk dan Pemasaran
Kepala Divisi Pengembangan Bisnis HP: +62-8121718108
HP: +811-250-480 The Investment Coordinating Board of the Republic of Indonesia
49
PRIVATE POWER UTILITY (PPU)
Procedure on Determining of the Business Area (Penetapan Wilayah Usaha)
(Due Diligence)
Meeting by MEMR, PLN, and BKPM By Team Directorate
to response the application of certain General of Electricity and
Business Area Local government
2
Recommendation / Official
Report on the Release of
Determination of the Business Area
Business Area
Establishment of IUPTL
By Local Government / Regional
DPMPTSP
(UU No. 23/2014)
Commercial Operation Date
Source: Ministry of MEMR Regulation No. 28 Year 2012 j.o Ministry of MEMR Regulation No. 7 Year 2016
IndonesiaInvestment Coordinating Board
50
Business Flowchart for Electricity Project
1. Company Establishment
2. Licensing Process
- Investment License
Principle License
- Certificate of incorporation
Location Permit
- NPWP / Tax registration
- TDP / Company registration
Temporary IUPTL
- RPTKA / Employment plan
- IMTA / Working permit Contracts
- APIP / Import identification & Financing
Land Acquisition
- NIK / Customs registration
PPA
- Letter of land availability
Financial Close
4. Commercialization
3. Construction Phase
A business license must be granted before an entity can supply electrical power or run an electrical power-supporting business. Business licenses for the supply of electrical power consist
of the following:
a) An IUPTL to supply electricity for public use, which may be issued for a maximum validity period of 30 years and may be extended; and
b) An Izin Operasi to supply electricity for own use (i.e. for PPUs) with electricity capacity of more than 200 kVA, which may be issued for a maximum validity period of ten years and may
be extended
The Investment Coordinating Board of the Republic of Indonesia
51
Investment Regulatory Reform
PRO INVESTMENT POLICY
One
place
22 ministries
All integrated
sectors 3-hour
Investment
167 permits Licencing
are delegated
to BKPM
One-Stop
Service
One-Stop
Service 3-hour
Integrated
Industry,
power
generation, (PTSP) at Investment
Licencing
Services
oil &
gas, tourism BKPM Service for
Infrastructure
and mineral
at one place
resources
96% KLIK
Regional PTSP Direct
formed.68%regi Construction
onal PTSP Facility for
implement e- Investment
licensing. project
Exception for investment plan in infrastructure sector (power, • Arrive at BKPM directly from the Wait at the lounge while Obtain eight documents & letter of
transportation, public works and ICT) and oil and gas sector
airport. documents are processed by land availability within three hours
• Consult with Director of BKPM, in-house notary, ministries, to start your business.
Investment Service. & other government institutions.
• Submit the required documents
9 documents obtained & data.
NO TYPE OF SERVICES REGULAR SERVICE
Certainty to start Certainty to import 1. Temporary Business License for Electricity 20 Working Days
a business capital goods 2. Temporary Business License for Oil / Fuel / LPG Storage 32 Working Days
• Investment license
• Certificate of incorporation • APIP / Import identification
• NPWP / Tax registration • NIK / Customs registration
32 Working Days for Processed
• TDP / Company registration
Products
3. Temporary Business License for Storage of Processed Products / CNG ---------
Certainty to work Accurate land
• RTKA / Employment plan
40 Working days
• IMTA / Working permit
information for CNG
• Letter of land availability
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
ource: BKPM, 2017
ESDM3J service is given if the company has
3 Hours Investment
fulfilled the checklist of administrative and
Licensing Service For Energy technical requirements as regulated on MEMR 7. Temporary Business License for Natural Gas Processing 32 Working Days
And Mineral Resources Ministerial Decree No. 15 of 2016.
Sector 8. Temporary Business License for General Trade of Oil/Fuel 40 Working Days
RECEIVE
BKPM Requested licensing products
9 Type of Licensing
Issued by ESDM3J service
WAITING
In Priority Lounge
• OSS : One Stop Service (PTSP) 9. Temporary Business License for General Trade of Processed Products 40 Working Days
• MEMR : Minister of Energi and Mineral Resources
Direct Construction
Investors can directly start their project construction before
No Requirements
• No minimum investments or workers is required.
obtaining construction permits. This service is supported • Available for 47 selected industrial parks in 12 provinces and
by both Central and Regional Governments. 12 existing SEZs.
• Construction permits can be obtained in parallel with construction
process.
145
1. Basic metal industries; produced machines/equipment
2. Oil refinery industries ; business fields (min.30%).
3. Petrochemical industries from oil, gas, or coal;
4. Basic an-organic chemicals Eligible for tax allowance,
5. Basic an-organic chemicals from agriculture, plantation, or forestry; expanded from 143 segments
6. Basic material industry for pharmaceutical ;
7. Semi-conductor and other computer main component industries; in the previous regulation
8. Main component industry for telecommunication; with additional segment:
9. Main component industry for medical devices; clothing industry. Industries
10. Machinery industries; Which produces goods and/or services,
11. Machinery industries for automotive; including:
12. Main component industry for robotic;
13. Main component industry for marine transportation; 1) Tourism and culture
14. Main component industry for aiIDRlane; Under certain requirements among others: 2) Public transportation
15. Main component industry for railway; 3) Public health services
16. Electric Power Generation industries; investment value or export orientation, manpower 4) Mining
17. Economic infrastructure. absorbtion, local content, and project location 5) Construction
(especially outside Java island). 6) Telecommunication
7) Port
trillion
IDR
0,5
Minimum investment plan
(USD 38 million).
Thank You
THEOPITA I. TAMPUBOLON
DEPUTY DIRECTOR OF IIPC LONDON