Jakarta. Indonesia's Investment Coordinating Board, or BKPM, has proposed a list of companies currently constructing factories to enjoy streamlined import processing via the Finance Ministry's directorate general of customs and excise, in a bid to attract fresh investments and boost realization, a senior official has said.
Franky Sibarani, BKPM chairman, said the agency is focusing on shorter customs clearance processing times for 48 companies, whose investment plans are worth a combined Rp 127.7 trillion ($9.66 billion). The investments will create 13,219 jobs, Franky said.
"Currently, most of the newly established companies will be categorized as high-risk and [its shipments] should fall under the red channel in customs clearance," Franky said.
The red channel requires physical examination at entry points across Indonesia, as opposed to the green channel which can pass straight through.
Faster custom clearance processes can accelerate construction and expansion, Franky said.
Companies must demonstrate to BKPM that they are currently constructing factories which will benefit from government tax incentives. BKPM requires investment activity reports, factory development plans and a pledge to not misuse imported equipment.
Heru Pambudi, director general of customs and excise at the Finance Ministry, said the office has considered easing inspection processes. However, he warned the directorate will conduct random inspections.
The BKPM recorded investment plans worth Rp 1,660.5 trillion in the January to November period.
In the January t0 September period, investment realization reached Rp 400 trillion, or 77 percent of the Rp 519.5 trillion target. The agency targets investment realization to reach Rp 594.8 trillion next year.