BKPM Green Lights 24 Companies for Fast-Track Customs Clearance
Jakarta. Indonesia's Investment Coordinating Board, or BKPM, officially launched its fast-track customs clearance initiative on Monday, giving 24 companies shorter processing time in customs for their imported machines.
The move is the government's latest effort to attract more investment into Southeast Asia's largest economy.
"The goal of the service is to give support to investors that are in the construction process so that the projects are completed fast and according to schedule," BKPM chief Franky Sibarani said during the service's launch in Jakarta on Monday, which was attended by 400 local and foreign companies, as well as ambassadors.
The initiative seeks to speed up customs clearance for companies that ship machines from abroad in coordination with the Finance Ministry's customs and excise directorate general, after being pre-approved by BKPM. In doing so, it promises to clear the process within 30 minutes compared to the previous average waiting time of three to five days.
Companies would receive access to the green channel in customs, which allows goods to pass straight through, instead of the red channel typically reserved for high-risk businesses whose products require a physical examination at entry points to Indonesia.
To gain BKPM's recommendation, companies have to prove that construction of their respective projects is ongoing, submit their latest investment report and write a statement letter vowing not to abuse any imported goods.
BKPM first recommended 25 companies – with a total of $98 billion in investment value in December last year – to the customs and excise directorate general for the fast-track service, ranging from projects in pulp and paper to metal and transportation. More than 90 percent were foreign investors, led by projects from Singapore and Japan, BKPM reported.
So far, 24 of these have already gained approval from customs, according to BKPM, with one awaiting further verification. While some details are kept confidential by BKPM, here are five known companies that will receive the fast-track customs clearance treatment:
1) OKI Pulp & Paper Mills The subsidiary of listed paper maker Pabrik Kertas Tjiwi Kimia, which is controlled by Sinar Mas Group's Eka Tjipta Widjaja, is planning up to Rp 40 trillion ($2.89 billion) investment in the Ogan Komering Ilir distric, South Sumatra, for a pulp and paper mill that's touted to be the largest in Asia.
2) Krakatau Nippon Steel With a mission to manufacture steel for the automotive industry, the joint venture between state-owned steel maker Krakatau Steel and Japan's Nippon Steel has earmarked up to Rp 5.2 trillion for a plant in Cilegon, Banten.
3) Hamparan Perkasa Mandiri An oil palm plantation and manufacturer, the company is planning to build a Rp 860.5 billion facility in East Kalimantan.
4) Transon Bumindo Resources The industrial estate developer is planning to build a Rp3.7 trillion industrial estate that's integrated with a nickel manufacturing facility in the Morowali district of Central Sulawesi.
5) Megah Surya Pertiwi The nickel company is building a smelting plant in the South Halmahera district of North Maluku with a plan to invest up to Rp 3.6 trillion.
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