Indonesian President Joko Widodo officially launched the integrated one-stop service center (in Indonesian Pelayanan Terpadu Satu Pintu, abbreviated PTSP) at the Indonesia Investment Coordinating Board (BKPM) at the start of the week. This new service aims to smoothen and simplify licensing procedures for investment projects. From now on, investors will not need to visit various ministries or government agencies to obtain necessary permits but can simply turn to the BKPM’s one-stop service center.

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The Indonesia Investment Coordinating Board (BKPM) conducted a trial of its new one-stop integrated service on Thursday (15/01). This soft launch was attended by various Indonesian ministers. The introduction of the one-stop service aims to attract more (foreign) investment as it speeds up licensing procedures. Currently, Indonesia is characterized by a high degree of bureaucracy resulting in a lengthy licensing process as investors need to obtain permits from various ministries as well as local government institutions.

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In order to improve communication and avoid language barriers, the Indonesia Investment Coordinating Board (BKPM) plans to open a special service desk for Chinese investors. BKPM, the investment services agency of the Indonesian government, sees language barriers between Chinese investors and Indonesians as a major obstacle; one that blocks foreign direct investment from China into Indonesia. The new desk, specifically for investment from China or Hong Kong, should improve communication hence improving realization of China's investment plans.

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The World Investment Report 2015 states that inflows of foreign direct investment (FDI) into Indonesia grew 20 percent (y/y) to USD $23 billion in 2014. As such FDI growth in Indonesia outpaced FDI growth recorded in Singapore (+4 percent y/y to USD $68 billion) and Vietnam (+3 percent to USD $9.2 billion), causing optimism that Indonesia - Southeast Asia's largest economy - will continue to form a lucrative investment destination in the Asian continent for foreign investors in the years ahead.

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Investment realization in Indonesia in the first quarter of 2015 totaled IDR 124.6 trillion (USD $9.7 billion), up 16.9 percent from the same quarter last year. Domestic direct investment climbed 22.8 percent (y/y) to IDR 42.5 trillion, while foreign direct investment (FDI) rose 14 percent (y/y) to IDR 82.1 trillion in Q1-2015. These data, released by the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/04), brought some positivity in Indonesia after listed companies’ weak Q1-2015 financial results led to concern and capital outflow.

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The Indonesia Investment Coordinating Board (BKPM) announced that foreign and domestic direct investment realization in Indonesia totalled IDR 463.1 trillion (USD $37 billion) in 2014, a 16.2 percent increase from the previous year and exceeding the target that was set previously. This is a positive result as 2014 was expected to be a rather bleak year in terms of direct investment amid political uncertainties triggered by the (fragmented results) of the country’s legislative and presidential elections.

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