Investment Policy Updates: Presidential es ator No 91/2017 on Acceleration of Doing Business nes eee) Ney MIU Urol Ue) Farah Ratnadewi Indriani Deputy Chairman for Investment Climate Development INDONESIA COMPETITIVENESSStrong Reform Commitments BKPM. Ease of Doing Business aia 2013-2017 t ART 2015 2016 mz0i7. Dealing with 116 108 Construction Permits Getting Electricity 49 38 Indonesia vs other emerging economies Registering Property 118, 106 Protecting Minority 70 43 Investors Paying Taxes 10a a4 pod) Trading across Borders 108 112 — = of 100 Enforcing Contract 166 as <>] Brazi 123 Yow Resolving Insolvency 16 38 = Indonesia keep showing a progressive performance ¥ toward business environment Indonesia BKPM Investment Grade from International Credit Rating Agencies Bama TAA BBB- /Positive ie BBB/ Stable S&P Global Moopy’s FitchRatings BBB- / Stable Baa3 / Positive BBB-/ Positive BBB- / PositiveIndonesia increase its competitiveness rank from 41*to 36th World Economic Forum: the Global Competitiveness Report ae ae Economy Score' Prev? Trend? ‘The Global Competitiveness Report e Singapore 674 Bhi eeaases 017-2018 e Malaysia B17 25 @ mara 472 34 @ Vveiram 498 60 @ Privpines 495 67 Investment Performance in indonesia INVESTMENT TARGET AND REALIZATIONSU SUSE: wv Strategic Planof investment 2015-2019 3 491 trillion Investment Target eat total investment targeted {rein 2016-2028 period {iBR' 622.8 viion). NRIs 11 7 increase 343.7 386.4 429.0 476.5 569.9 2,205.5 12. average growth 175.8 208.4 249.8 2885 363.0 1,285.5 taipeted in 2015-2019 period By -»s 594.8 678.8 765.0 932.9 3,491.0 gum caverageshre @ 2% 145% 14.1% 12.7% 8.1% inieissois et (IDR trillion) Excl. Financial Sectors and svexgeshre reckless GB 4 ore. ices BPM 038 nt ni tt i ot ni oa Japan is the 2nd biggest investorin indonesia ¥ FDI Realization by Country Based on Capex ,not including financial, cil & gas sectors (US$ millior oe CES 1 Singapore Sats 523 4856 46715832 Som 947s ean 49568 Japan EC eee ee > USA 93 14es 1238 2495 200 693 26h 00211489 4 south Korea yo 219 sso 2a 471281088 20m Lae 5 Netheand cos us se7 at ams wavs 148s ass 6 Mala im 6 580 ths us sans 7 china e100 ea 266s sense 8 Hong Kong eo 1 OTe sas aaa ate 7388 fe filtshvinin aig sty ase 788 sake 730 ux 6a ae 076 sos 06 aa sae scource: PM, 2038692.8 its 21, 3% Rp. Trillion (US$ Inve 53. 2 pilin) . DDI SI rowth FDI inert o-y) ECONOMIC POLICY REFORMEconomic Policy Packages I — XV Phase |, 9 Sept 15 Phase Il, 28 Sept 15 Phase il, 7 Oct 15 TV, 15 Oct 18 ‘Soul eft et db Phase V, 22 Oct 15 Improving inst ad invert climate hugh Vi, 6 Nov 15 Phase Vil, 21 Dec 15 ResaWving land squisiton eisptes, intenstying Phase Xi, 29 Mar 18 ‘Stimutting nation Phase Xil, 28 Apr't6 Besiness (E008) Phase Xill, 25 Aug "16. constriction of tweceat housing ft Phase XIV, 10 Nov "16 Phase XV, 15 Jun BKPM. Packages Milestones: Toreduce _To-liminate certain To accomodate ‘econamicbarrers _coneitionsthat new government hamper economic" poley worth Tosimpliylicense Toaddjust old ‘andregulation —ltrelevant regulation Objective of Reform - 15 Economic Policy Packages: To improve the competitiveness of national industries, exports and investments. Rationalization (harmonization and streamlining) of regulations, simplifying bureaucratic process and ensuring law enforceability ‘Those packages cover deregulation of 222 regulations of 167 ministries/agencies and 52 regulations at the Presidential level. Taskforce To Monitor Economic Policy Packages Cerri pats Campaign 2 Compliance (3 Regulatory Impact © Damage Control Channel/The Bottleneck 5 Supporting Unit business matching, CEO meeting, talkshow/dlalog * Supporting the administration of the working group ¥ BKPM FUNCTION ‘Campaign, socialization, clssemination, roadshow, ‘Completing all of the regulation and technical regulation necessary forthe Implementation of ‘ecanomic deregulation ‘Ensuring the regulation compliance + Observing analyzing, and evalueting the Implementation of plicy/tegulaton and impact ‘+ Reviewing forthe “next” deregulation + Asan complaint channel fo the implementation of ‘regulation policy + Handling the cases related to the implementation cof deregulation policy Coordinating with the ministryboard and local government + Business clinic and public private consultation for ‘esting the policy effectiveness ‘To monitor the implementation of economic policy packages, the Government established Task Forces ‘on the Implemention Acceleration and Efficacy of Economic PackagesECONOMIC POLICY PACKAGE XVI: PRESIDENTIAL DECREE NO. 91/2017 ACCELERATION OF DOING BUSINESS Acceleration of Doing Business Policy: Regulation Framework BKPM * — aaa mma, aa) ae DECREE emis oso NO. 91/2017 Pees ee COdF ACCELERATION OF [PM Ontine single Submission (Integrated Business Licensing) System) DOING BUSINESS ert eesConcept of Doing Business Policy a 1 2a. Safeguarding Issuance of the Paradigm shift if, (end to end) fe) ) Z oA \( ESablgh tas Frees to ensure issuance of) investor can start their business activity in 5) From regulator to cil | business permits in all governmentlevel || FTZ, Industrial Zone, and Tourism Zone servant \ without competing permis inthe beginning 2b. 4 Data Sharing of, license and its requirements Integrated system Business Licenses Regulation Eliminate redundancy/repetition ‘Simpler, faster, cheaper of license and recommendation ‘ ‘and more accurate Online Single Submission A Breakthrough On Investment Services (1) BUSINESS LICENSE, Investment Registration +7 Licenses* + Register Statement roel — Starting January 2018A Breakthrough On Investment Services (2) a BUSINESS | LICENSE Investment Registration +3 Licenses* Import Duty Tax Facility || Allowance Starting January 2018 Acceleration Doing Business Policy: ONLINE SINGLE SUBMISSION BKPM = The licenses data of all ministries/agencies and Sistem OSS local governments are managed in single integrated licenses service system Investor = Single submission of data and information = Single and synchronous processing of data and information = Single decision making on the issuance of business licensesW D raion! Indonesia Investment Promotion Centre (IIPC Badan Koordinasi invest in Penanaman Modal remarkable (BKPM) indonesia Investment Coordinating Board Jalan Jend. Gator Subj@te No: 4 Jakarta 12190 - Indonesia