Facilitate Foreign Investment: BKPM Completes Revision of PP 5/2021 and Perpres 10/2021.

The government is finalizing several regulations to enhance the investment climate in Indonesia. Some of them allow the registration process for Foreign Investment (Penanaman Modal Asing– “ PMA ”) companies to be accelerated to 10 days and reduce the Negative Investment List (Daftar Negatif Investasi– “ DNI ”) in the country.

Assistant Deputy for Climate Investment Development, Ministry of Investment and Downstreaming/Investment Coordinating Board (Badan Koordinasi Penanaman Modal– “ BKPM ”), Ichsan Zulkarnaen, revealed that the progress of the revision of Regulation of the Government No. 5 of 2021 on the Organization of Risk-Based Business Licensing (“ PP 5/2021 ”) has been completed and is awaiting approval from the president. In this revision, BKPM will provide certainty to business actors on how to start business activities and run their business in Indonesia.

“Let’s say all basic requirements have been met with the issued permits, then the business actors can immediately know when they can start their business activities. Hopefully, this can provide certainty from the business permits that can be obtained quickly, making it more efficient,” said Ichsan to Hukumonline.

BKPM is also finalizing the draft revision of Regulation of the President No. 10 of 2021 on Investment Business Fields (“ Perpres 10/2021 ”). The revision aims to reduce the number of business sectors in the DNI that are subject to foreign investment requirements.

“Hopefully, these two regulations, which can be considered quick wins for the government, can attract foreign investors. We hope to issue a new Regulation of the President in the near future,” he concluded.