The following news is based on the press release of the BKPM on May 9, 2019:

The Investment Coordinating Board (BKPM) continues to improve the system to facilitate the continuing increase of foreign and domestic investment. One of them is through a memorandum of understanding (MOU) with the Ministry of Law and Human Rights (Kemenkumham) regarding the Integration of Business Licensing Systems with Information Systems Immigration Management in the Framework of Increasing Investment. The MOU was signed by BKPM Deputy Investment Services Division, Mr. Husen Maulana and the Director General of Immigration Ministry of Law and Human Rights, Mr. Ronny F. Sompie at the BKPM office, in Jakarta on May 9, 2019.

Mr. Maulana said that the spirit of the MOU is to improve the coordination, synergy and effectiveness of system integration between BKPM and Kemenkumham. “It is expected that the government online system is getting stronger and integrated, so that it can improve coordination between internal government institutions in order to improve the investment climate in Indonesia, Mr. Maulana explained in an official statement to the media.

This MOU covers five areas of cooperation, including: a. System integration of visa approval and transfer of status services; b. Integration of system checks of the national passport recording on Immigration Management Information System (SIMKIM); c. Integration of revocation system of principle permits of capital investment, registration of capital investment, and business registration number; d. Provision of data communication networks; and, e. Increase of human resource capacity.

According to the Mr. Sompie, the MOU can be the basis for integrating the BKPM’s Business Licensing System with the Kemenhumkam’s System Information on Immigration Management that can increase capital investment. “The goal is for us to have clear guidelines for system integration. For the technical, we make SOP,” said Mr. Sompie. The business licensing system managed by BKPM includes the Information and Licensing Service System Electronic Investment (SPIPISE) and Online Single Submission (OSS). SPIPISE is an electronic system integrated licensing and non-licensing services between BKPM and other ministries/government institutions that has licensing and non-licensing authority.

Through the MOU, BKPM and Kemenkumham will jointly collaborate through the exchange of information related to required policies and regulations. Then, together the two institutions can help companies or investors and oversee the course of the investment climate in Indonesia.

According to BKPM data, investment realization in Indonesia has continued to increase. For the Quarter I (January-March) of 2019 investments reached Rp 195.1 trillion, or 5.3% increase compared to that same period of 2018, which was Rp 185.3 trillion. The investment value during the First Quarter of 2019 for Domestic Investment (PMDN) was Rp. 87.2 trillion and Foreign Investment (PMA) was Rp 107.9 trillion with a total workforce absorbed reaching 235,401 Indonesian workers.