BKPM Chief Claims Resolution of Rp128 Trillion in Stalled Investments

The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, stated that 24 companies are prepared to invest Rp708 trillion across various business sectors in Indonesia. However, these investments had stalled at the commitment level due to significant barriers to investing in the country. Since assuming his role as BKPM head two months ago, his team has resolved Rp128 trillion of this potential investment. For instance, the BKPM recently settled a land dispute between PT Krakatau Steel (Persero) Tbk and Lotte Chemical, an investment valued at USD 4.2 billion. “Previously, a power plant in West Java was also resolved, with an investment value of Rp37 trillion. So, in almost two months, we at BKPM, together with the BKPM team and the Attorney General’s Office, have managed to realise around Rp128 trillion. This is potential investment that will begin realisation in 2020. So, my debt from the Rp700 trillion is now down to Rp500 trillion,” Bahlil said at his office in Jakarta on Friday. The resolution of these stalled investment potentials will involve the Attorney General’s Office. “Tomorrow we will resolve an investment case with a potential value of Rp60 trillion in Batam, related to the management of an industrial estate on one island,” he added. The most frequently encountered problems relate to land, licensing, and incomplete Environmental Impact Analyses (AMDAL), among others. “We have cooperated with the Attorney General’s Office to resolve these, including those within the Rp700 trillion figure of stalled investment potential,” he said. Bahlil admitted he does not yet know exactly when the remaining Rp500 trillion in potential investment can be resolved, as many cases involve local governments, specifically governors and regents, due to issues concerning the Regional Spatial Plan (RTRW). “If you ask how long it will take, this is related to the RTRW. The remaining Rp500 trillion is still tied to the RTRW, which falls under the authority of the regent in relation to the governor’s regional regulation,” he said.