Professional Documents
Culture Documents
environment for the private sector, particularly in the last three years.
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WHY INDONESIA WHY NOW?
Steady economic growth in the past 10 years Most aggressive infrastructure development in
5th largest economy in the world by 2030 Extra incentive for investments in industrial, tourism
180 million population in productive age by 2030 Fiscal reform for long term sustainable growth
EVEN DURING GLOBAL ECONOMIC SLOWDOWN, INDONESIA STILL 2017 ALSO MARKS THE TIME INDONESIA REGAINED INVESTMENT
RECORD REPUTABLE GROWTH THAN MOST COUTRIES GRADE ACROSS ALL MAJOR RATING AGENCY
16 Indonesia 941
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Source How will the global economic order change by 2050, PwC 2017 4
WHY INDONESIA?
GROWING PRODUCTIVE POPULATION AND CONSUMING CLASS
We are once again confronting challenging times in Indonesia.
The world looks full of uncertainty and risk.
What does it all mean?
It means that today is the time to invest - the best time to
invest.
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WHY NOW?
NEW CENTERS FOR ECONOMIC GROWTH
NEW ECONOMIC ZONES TO SPUR MORE EQUAL AND DIVERSED GROWTH
Special Economic Zones
Industrial Zones
Strategic National Tourism Zones
Source: Coordinating Minister for Economic Affairs, 2017 7 Increase the capacity of existing oil refineries
WHY NOW?
ECONOMIC POLICY PACKAGES FOR BUSINESS AND INVESTORS
STIMULUS TO HELP BUSINESS AND INVESTORS DURING GLOBAL ECONOMIC SLOWDOWN
I 9 Sep 2015 II 29 Sep 2015 III 7 Oct 2015 IV 15 Oct 2015 V 23 Oct 2015 INDONESIA 2015-2019
Deregulation 3 Hours Permit Lowering Fuel and Fair Wages system, Decrease in Tax
Strategic Project
Acceleration
Issuance Program
The abolition of VAT
Electricity Price
Simplification of
simple and can be
projected
Revaluation of
Assets
ECONOMIC
Encouraging for the transport Land Permit for The ease and Eliminating double P O L I C Y PAC K AG E
housing for low- industry Investment activity affordability of taxation of REITs
income Integrated Logistics Expanding Small Small Business
Facility Business Loan Loans
Recipients
VI 5 Nov 2015 VII 4 Dec 2015 VIII 21 Dec 2015 IX 27 Jan 2016 X 11 Feb 2016 XI 29 Mar 2016
Development of SEZ Acceleration of Land One Map Policy Acceleration of Ease of Investment Publishing REITs and
KURBE (export-
Ease of Water Certification Process Refinery Construction for Restrictions
oriented business
Supply Tax Incentives for construction Electrical loans)
Simplifying the labor intensive Incentives for the Infrastructure Indonesia Single Risk
Import Licensing for industry Aviation Industry Meat Price Management - ISRM
Pharmaceutical Stabilization Pharmaceutical
products Deregulation in the Industry Development
Logistics Sector
XII 28 Apr 2016 XIII 24 Aug 2016 XIV 10 Nov 2016 XV 15 Jul 2017 XVI 31 Aug 2017
Simplification of Accelerating Creating a roadmap Cost reduction for Task Force for business
Licensing development of for the nation's e- freight and logistics licensing process,
Procedures, affordable housing, commerce industry: Opportunities for checklist licensing at
Duration and Cost of by reducing, easing and logistic insurance and economic zones and data
Starting a Business integrate, and widening access vessel maintenance sharing for licensing
in Indonesia accelerate the to funding Strengthening Regulator reforms and
licensing process offer tax National Single single submission system
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incentives, etc. Window
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WHY NOW?
CONCRETE MEASURES FOR LAW REFORM
LAW REFORM PACKAGES TO IMPROVE BUSINESS AND INVESTMENT CLIMATES
Areas of Law Reform package I : Central Government Task Force and Provincial Units
1. Legislation management Multi-sectors, from logistics, public services to education
2. Reforming law enforcement agencies 17,600 reports in the first 50 days
3. Creating legal culture By July 2017 : 917 sting operations, 1834 suspects processed
and Rp 17 billion confiscated
II 17 Jan 2017
SIMPLIFICATION OF REGULATION
Areas of Law Reform package |I :
1. Simplification of regulations Presidential directive to halve 42,000 existing regulations by 2019
2. Accessibility of legal assistance By end of 2016, 324 regulations were revoked and 75 regulations
3. Early warning system for radicalism and were revised across 20 Ministries and 3,143 regulations in
terrorism Ministry of Home Affairs and at Local Governments level
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Source: Setkab, 2016, Kompas 2017, Detik 2017
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WHY NOW?
HIGH CONFIDENCE ON INDONESIA
TRUST OF INDONESIAN CITIZENS TO THE INVESTORS WILLINGNESS TO INCREASE
GOVERNMENT IS AT ALL TIME HIGH INVESTMENTS PLACED INDONESIA AS 3rd in ASIA
Source: Government at a Glance 2017, OECD Source: Asia Business Outlook Survey 2017, Thewww.kominfo.go.id
Economist Corporate Network 2017
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WHY NOW?
COMPETITIVENESS AND REGULATORY ENVIRONMENT
GLOBAL COMPETITIVENESS RANK
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WHY NOW?
PRESIDENTIAL DECREE NO.74/2017: INDONESIA DIGITAL ECONOMY ROADMAP
31 INITIATIVES TO BE COMPLETED IN 1-YEAR-TIME
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SUPPLEMENT 1
PALAPA RING
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2. Value Added Tax and Sales Tax on Luxury Goods (PPN and PPnBM)
Import: not imposed
Transaction between entities in Special Economic Zone: not imposed
Transaction between entities in different Special Economic Zone: not imposed
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17 Source: Bank Indonesia, 2017, Bloomberg 2017
SUPPLEMENT 4
INVESTORS CONFIDENCE
CONSISTENT INCREASE IN INVESTMENTS IN THE PAST GROWTH OF GDP CONTRIBUTION IS OBSERVED ACROSS
THREE YEARS ALL TOP SECTORS (in USD b, YoY growth 2016)
4.3%
3.3%
3.9%
5.2%
1.1%
7.7%
8.9%
3.2%
8.9%
3.8%