Indonesian Investment Coordinating Board (BPKM)

Indonesian Investment Coordinating Board, also known as BPKM (Badan Koordinasi Penanaman Modal), is a government agency that aims to facilitate and promote investment in Indonesia. As one of the most important government agencies in Indonesia, BPKM plays a crucial role in the country’s economic growth and development. In this article, we will discuss the role of BPKM in facilitating investment in Indonesia, its functions, and its achievements.

What is BPKM?

BPKM was established on September 12, 2007, under the Presidential Regulation No. 44 of 2007. The agency was created to replace the Indonesian Investment Coordinating Board (BKPM) and to improve the investment climate in Indonesia. BPKM is responsible for coordinating and monitoring investment activities in Indonesia, as well as promoting and providing support for investment projects.

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BPKM’s main objective is to attract investment to Indonesia, particularly foreign direct investment (FDI). The agency works closely with other government agencies, such as the Ministry of Finance and the Ministry of Trade, to create a favorable investment climate in Indonesia. BPKM is also responsible for granting investment licenses to companies and providing them with various incentives to encourage investment.

Functions of BPKM

BPKM has several functions, including:

1. Investment Promotion

BPKM promotes Indonesia as an attractive investment destination through various activities such as investment seminars, business meetings, and investment fairs. The agency works with Indonesian embassies and trade missions to promote investment opportunities in Indonesia to potential investors abroad.

2. Investment Facilitation

BPKM provides support and guidance to investors who wish to invest in Indonesia. The agency assists investors in obtaining investment licenses, permits, and other necessary documents. BPKM also provides information on investment opportunities in various sectors of the economy.

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3. Investment Coordination

BPKM coordinates investment activities and policies between various government agencies. The agency ensures that investment policies are consistent and that conflicting regulations are resolved. BPKM also oversees the implementation of investment projects and monitors their progress.

4. Investment Protection

BPKM is responsible for protecting the interests of investors in Indonesia. The agency provides a platform for investors to raise their concerns and grievances and works to resolve any disputes that may arise between investors and the government or between investors and other entities.

Achievements of BPKM

BPKM has achieved several milestones since its establishment in 2007. These include:

1. Increased FDI

Since the establishment of BPKM, Indonesia has seen a significant increase in FDI. In 2019, Indonesia received US$ 29.3 billion in FDI, an increase of 12.6% from the previous year. BPKM’s efforts to improve the investment climate in Indonesia have contributed to this increase.

2. Streamlined Investment Procedures

BPKM has simplified and streamlined investment procedures in Indonesia. The agency has reduced the time and cost required to obtain investment licenses and permits. This has made it easier and more attractive for investors to invest in Indonesia.

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3. Improved Investment Climate

BPKM’s efforts to improve the investment climate in Indonesia have led to greater investor confidence. The agency has worked to reduce corruption, improve infrastructure, and provide incentives for investment. As a result, Indonesia has become more attractive to investors.

Conclusion

BPKM plays a crucial role in promoting and facilitating investment in Indonesia. The agency’s efforts to improve the investment climate in the country have led to increased FDI and greater investor confidence. BPKM’s functions, including investment promotion, facilitation, coordination, and protection, have contributed to the growth and development of the Indonesian economy. As Indonesia continues to attract more investment, BPKM’s role in facilitating and protecting investment will become increasingly important.

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