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    West Java as Main Target Investment Area

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    JAKARTA-West Java Governor Ahmad Heryawan accompanied by Regional Assistant of Economics and Development (Asda II) Deny Juanda attended the signing of the Memorandum of Understanding of the Direct Investment in Facility Construction at the State Palace in Jakarta on Monday (22/2).

    The MoU was signed directly in front of President Joko Widodo (Jokowi). The agreement was signed between the Head of the Investment Coordinating Board (BKPM) and the Governor, Chief of Police, the Regent and Mayor who has industrial area in implementing the ease construction direct investment. It is a form of readiness of BKPM to implement a policy breakthrough of ease construction direct investment (KLIK). KLICK Service, is a license granted to a company that will invest in the certain industrial area.
    West Java Governor Ahmad Heryawan (Aher) said the provincial government ready to become the pilot areas for these KLIK service that in accordance with the instructions of the president. The provincial government should be able to complete the license for three days even three hours.
    Furthermore Aher said, there are five industrial areas that will implement this policy. "Alhamdulillah, there are five industrial areas in West Java, where the two areas was in Bekasi, and three areas in Karawang. In that region starting from today will apply this fast investment," he said.
    "KLIK can be faster because the spatial plan has already finished and because the industrial area was placed in that spatial region. The spatial industrial area has finished which is indeed for the industry, where the placement was very specific, automotive, electronics, manufacturing, and others. Outside the industrial area still takes time which cannot be careless because it could threaten our society,” he said.
    The five industrial areas in West Java has agreed the policy includes: 
    1. MM2100/Bekasi Fajar Industrial Estate with an area of 1500 ha where the area has been used 1 200 ha, and the unused area of 300 ha, located in Bekasi, with dominant industry including Automotive, Steel, and Electronics. It’s currently as many as 241 Japanese Company occupied this region.
    2. Delta Silicon, with total area of 158.9 hectares, 60.3 hectares area is used, and 98.6 ha unused area. Located in Bekasi. Housing dominant industry, Warehousing, and Mall. There are 16 companies, 4 Individuals.
    3. KIIC Karawang, with total area of 1200 ha, 900 ha area is used, 300 ha unused area, located in the Karawang regency. Type of dominant industries are components of motor vehicles. There are + - 130 companies.
    4. Surya Cipta City Industry, with total area of 1400 ha area, 1,100 ha area is used, and which is still unused to 300 ha, located in the Karawang regency. The dominant industrial are electronics and communications, with the number of companies + - 100.
    5. GT Techno Park, with total area of 400 ha, 300 ha area is used, and unused area of 100 ha, located in the Karawang regency. The dominant industrial is manufacture. The number of companies are 3 companies (Gajah Tunggal).
    West Java was the main target of investment area, where the economic growth has grown above the national growth. In the third quarter of 2015, it grew 5.03%, while the national 4.73%..
    West Java is expected to contribute 14.4% against a target of investment (domestic/PMA) nationwide in 2015 - 2019. The total for the next 5 years Rp 505.6 trillion, or with average of Rp 101.3 trillion, while the national of Rp 3518.8 trillion. West Java become the first rank in 2015 in terms of investment realisation, amounts of Rp 98 trillion, or increased 9% compared in 2014.
    Head of BKPM Franky Sibarani explained, the company after obtaining the permit, both of PTSP Central or PTSP in the local area, can immediately undertake construction while in parallel taking care of Building Permit (IMB), an environmental permit (UKL/UPL), and permits of the implementation after have met the requirements, norms/standards and rules of investment industrial estate. There is no minimum limit value of the investment of TKI in KLIK service. The industrial area will be determined by the head of BKPM.
    Franky added, the industrial areas determined by the readiness of the legal aspects, the environment, the land availability, infrastructure readiness, their area operator, as well as the full support of the local government.
    Quick service investment license within 3 hours and permit direct rapid construction was supported by a reduction in total clearance in the sector from 14 to 6 license permission. Then accelerated tax allowance incentive request services from 28 days to 25 days, and a tax holiday of 65 days to 45 days.
    Furthermore, the PPN exemption for shipbuilding, rail, and aerospace and industrial components (PP No.69 / 2015). Development of the Integrated Logistics Centre in Cikarang, West Java for the manufacturing industry, and Merak (Banten) for fuel storage.
    Ease of direct investment can be benefited by investors in all sectors, without limitation minimum value of the investment or the number of workers. The requirement is in specific industrial areas determined by the government.
    "Investors in all sectors can benefit this facility. There is no minimum limit value of the investment or the number of workers, all located in specific industrial areas determined by the government," he said.
    Ease of the construction direct investment policy to encourage national and regional synergies to accelerate the realisation of the investment. Ease of construction direct investment is expected to support the achievement of government investment this year of Rp 594.8 trillion. The value of this investment increased from realisation positions in 2015 at the rate of Rp 545.4 trillion.


     

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