Investors Will Be Able to Begin Construction While Obtaining Permits in 2027

The Ministry of Investment and Downstreaming/Indonesian Investment Coordinating Board (“BKPM”) is preparing a Draft Regulation of the Minister (“Draft Regulation”) on non-fiscal incentives for industrial estates. One of the incentives being prepared is the expansion of the Direct Investment Construction Facilitation (“KLIK”) program, which is targeted to be implemented starting in 2027.

Ichsan Zulkarnaen, Deputy for Investment Planning at the Ministry of Investment and Downstreaming/BKPM, explained that the KLIK facility allows investors to begin physical construction in industrial zones while simultaneously processing permits.

This expansion is expected to reduce the waiting time for permits before construction begins, enabling investment projects to be built and operationalized more quickly.

“With this facilitation, it is hoped that more industrial zones will receive the facility so that business actors can begin operations immediately and increase investment realization,” Ichsan told Hukumonline.

Ichsan added that the preparation of the Draft Regulation is still being coordinated with the Ministry of Industry. The government hopes the KLIK facility can be expanded to cover all industrial zones in Indonesia.