Investment Coordinating Board (Indonesia)

The Investment Coordinating Board (Indonesian: Badan Koordinasi Penanaman Modal, BKPM) is Non-Ministerial Government Body in Indonesia for formulation of government policies in the field of investment, both domestically and abroad.

Investment Coordinating Board
Badan Koordinasi Penanaman Modal
BKPM
Ministry of Investment/Investment Coordinating Board Logo
Agency overview
Formed1973 (1973)
Preceding agency
  • Investment Technical Committee
JurisdictionGovernment of Indonesia
HeadquartersJl. Jend. Gatot Subroto No. 44, Jakarta 12190 P.O. Box 3186, Indonesia
Agency executive
Websitewww.bkpm.go.id/en/

History

ICB was established in 1973, replacing the function carried out by the Investment Technical Committee (Indonesian: Panitia Teknis Penanaman Modal) which was formed previously in 1968. In 1982, ICB absorbed Ministry of Development for Domestic Product (Indonesian: Kementerian Peningkatan Penggunaan Produksi Dalam Negeri). In 1988, ICB transformed into State Ministry of Investment (Indonesian: Kementerian Menteri Negara Penanaman Modal). In 1998, ICB/State Ministry of Investment was merged into Ministry of State Owned Enterprises. The merging decision was reverted in 2001.[1][2]

With the enactment of the Law on Investment in 2007, ICB became a Government agency that is the coordinator of investment policy, both among government agencies, the government and Bank Indonesia, as well as the government with regional governments as well as regional governments with regional governments. ICB is also mandated as an advocacy body for investors.[1]

Alcoholic Beverages Investment Controversy

In 2021, president signed the presidential regulation on investment. However, the presidential regulation became controversy as the regulation regulated the investment on alcoholic beverages. The alcoholic beverages investment regulation annex was repealed.[3]

Ministry of Investment

On 30 March 2021, Joko Widodo submitted a Presidential Letter No. R-14/Pres/03/2021 to People's Representative Council contained a proposal for major change his cabinet. In his Presidential Letter, Ministry of Investment, will be spin off from existing Coordinating Ministry for Maritime and Investments Affairs to be independent ministry on its own, but still under its coordination.[4]

On 9 April 2021, People's Representative Council, approved the changes.[5]

The form of the ministry is not yet known at that time of announcement of approval. It was speculated that the new ministry either split off from part of Coordinating Ministry for Maritime and Investments Affairs or elevation of existing Indonesia Investment Coordinating Board.[6] However, it later confirmed that the ministry actually elevation of Indonesia Investment Coordinating Board. If done, this ministry is continuation of previously Suharto era and early Reformasi era's Habibie State Ministry of the Promotion of Investment, which existed during 1993 to 1999, during Sixth Development Cabinet and Development Reform Cabinet, respectively.[7]

On 13 April 2021, Ali Mochtar Ngabalin, spokesperson and expert professional of Deputy IV (Information and Political Communication) Presidential Staff Office, announced that the second reshuffle will take place on second week of April 2021.[8] However, due to many reasons, the second reshuffle finally announced at 28 April 2021. Unusual for reshuffle happened in Indonesia, this reshuffle was the first of its kind which not only reshuffled the ministers, but also disbanding ministry institutions during the mid-term. In this reshuffle, Bahlil Lahadalia appointed as the first holder of Minister of Investment.[9] All appointed officials inaugurated and their respective new offices were established with Presidential Decision No. 72/P/2021.[10]

Head of ICB

Main Responsibilities and Functions

BKPM has the task of coordinating policies and services in the investment sector based on the provisions of laws and regulations. In carrying out these main tasks, BKPM carries out the following functions:

  1. Reviewing and proposing a national investment plan
  2. Coordination of the implementation of national policies in the investment sector
  3. Reviewing and proposing investment service policies
  4. Determination of norms, standards and procedures for the implementation of investment service activities
  5. Development of investment opportunities and potential in the region by empowering business entities
  6. Making a map of investment in Indonesia
  7. Coordination of promotion implementation and investment cooperation
  8. Development of the investment business sector through investment development. among others, increasing partnerships, increasing competitiveness, creating fair business competition, and disseminating information as widely as possible within the scope of investment management.
  9. Fostering the implementation of investment, and providing assistance in solving various obstacles and consulting on problems faced by investors in carrying out investment activities
  10. Coordination and implementation of one-stop integrated services
  11. Coordination of domestic investors who carry out their investment activities outside the territory of Indonesia
  12. Providing licensing services and investment facilities
  13. Guidance and general administration services in the fields of general planning, administration, organization and management, personnel, education and training, finance, law, public relations, archives, data and information processing, equipment and household; and
  14. Implementation of other functions in the field of investment in accordance with the provisions of the legislation.

Organization

On 29 July 2021, the structure of the ministry and the board amended with the issuance of Presidential Decree No. 63/2021 (Ministry of Investment)[11] and No. 64/2021 (Indonesia Investment Coordinating Board).[12] With the amendment, the structure and responsibilities between the ministry and the board are clearly separated, not mixed as before.

The board, as the Presidential Decree No. 64/2021 outlined, had the role as the executioner and controlling the implementation of the investment policies in Indonesia. The board organized in following manner:[12]

  1. Office of the Chief of Indonesia Investment Coordinating Board.
  2. Office of the Vice Chief of Indonesia Investment Coordinating Board.
  3. Main Secretariat
    1. Office of General Inspectorate
  4. Deputy of Investment Planning (Deputy I)
  5. Deputy of Strategic Investment Downstreaming (Deputy II)
  6. Deputy of Development of Investment Climate (Deputy III)
  7. Deputy of Investment Promotion (Deputy IV)
  8. Deputy of Investment Cooperation (Deputy V)
  9. Deputy of Investment Services (Deputy VI)
  10. Deputy of Control of Investment Implementation (Deputy VII)
  11. Deputy of Investment Information and Technology (Deputy VIII)
  12. Centers
    1. Data Processing and Information Center
    2. Education and Training Center
    3. Legal Aid Center

References
  1. "Profile". Ministry of Investment/Investment Coordinating Board. Retrieved 13 March 2022.{{cite web}}: CS1 maint: url-status (link)
  2. "Timeline". Ministry of Investment/Investment Coordinating Board. Retrieved 13 March 2022.{{cite web}}: CS1 maint: url-status (link)
  3. Putri, Cantika Adinda (2 March 2021). "Aturan Miras Kontroversi & Dicabut, Ini Penjelasan Bos BKPM". CNBC Indonesia. Retrieved 13 March 2022.
  4. Budiman, Aditya (2021-04-09). "DPR Restui Keinginan Jokowi Bentuk Kementerian Investasi". Tempo (in Indonesian). Retrieved 2021-04-09.{{cite web}}: CS1 maint: url-status (link)
  5. Ramadhan, Ardito; Rastika, Icha (2021-04-09). "DPR Setujui Pembentukan Kementerian Investasi serta Kementerian Pendidikan, Kebudayaan, Riset, dan Teknologi". KOMPAS.com (in Indonesian). Retrieved 2021-04-09.{{cite web}}: CS1 maint: url-status (link)
  6. Purba, Sampe L. (2021-04-10). "Sampe L. Purba : Selamat Datang Kementerian Investasi - Opini Katadata.co.id". katadata.co.id (in Indonesian). Retrieved 2021-04-10.{{cite web}}: CS1 maint: url-status (link)
  7. Al Faqir, Anisyah (2021-04-10). "BKPM Jadi Kementerian Investasi, Jejak Orde Baru yang Kembali Terulang". liputan6.com (in Indonesian). Retrieved 2021-04-10.{{cite web}}: CS1 maint: url-status (link)
  8. detikcom, Tim. "Ngabalin: Insyaallah Reshuffle Kabinet Pekan Ini!". detiknews (in Indonesian). Retrieved 2021-04-13.
  9. Rizqo, Kanavino Ahmad (2021-04-28). "Ada Reshuffle, Ini Daftar Pejabat yang Dilantik Jokowi Hari Ini". detiknews (in Indonesian). Retrieved 2021-04-28.{{cite web}}: CS1 maint: url-status (link)
  10. Sekretariat Presiden, Biro Pers, Media dan Informasi (2021-04-28). "Presiden Jokowi Lantik Menteri Investasi, Mendikbudristek, dan Kepala BRIN". Presiden RI (in Indonesian). Retrieved 2021-04-28.{{cite web}}: CS1 maint: url-status (link)
  11. "Peraturan Presiden RI Nomor 63 Tahun 2021 tentang Kementerian Investasi". Presidential Decree No. 63 of 2021 (in Indonesian). President of Indonesia.
  12. "Peraturan Presiden RI Nomor 64 Tahun 2021 tentang Badan Koordinasi Penanaman Modal". Presidential Decree No. 63 of 2021 (in Indonesian). President of Indonesia.
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