Indonesian Government to Grant More Authority to BKPM

to issue investment-related permits and licenses

Based on Presidential Instruction No.7/2019 regarding the ease of doing business, BKPM can issue business licenses, previously handled and signed by 20 ministries and state institutions, such as mining permit, construction license, factory & industrial area license, trade license, and many more.

The Chairman of BKPM (Indonesia Investment Cordinating Board), Bahlil Lahadalia, revealed that, under the new regulation, every ministry or institution has to release a letter mentioning the transfer of power to BKPM. Besides, representatives from 22 ministries and state institutions will also operate at BKPM. “In principle, the investors will start their venture at BKPM and end it there, too,”Bahlil explained in Indonesia Economic and Investment Outlook 2020 on 17 February.

The Presidential Instruction instantly transforms BKPM, from a simple administration office for capital investment to a super state-owned institution,deciding the flow of investment. BKPM’s new authority marks the government’s effort to simplify permit bureaucracy by concentrating the procedure in one place.