The growth of investment in the industrial sector continues to increase. This can be seen in the absorption of labor in Banten, Indonesia. In 2019 alone, investment activities in Banten managed to absorb 48,258 workers. The industrial sector is considered the most dynamic in generating regional income, as it consists of sub-sectors that are able to produce goods and services with certain added value.
To build a conducive environment for the increasing growth of investment in the industrial sector, the government continues to push various policies that are pro-investment, including through the second and third policy packages. The Indonesia Investment Coordinating Board (BKPM) has implemented a three-hour investment permit management system in the Industrial Zones since November 2015. Prospective investors who will invest in the industrial zone only need to obtain a commitment permit to start their projects in Indonesia. Previously, prospective investors in the industrial zone required 8 days to obtain a business permit and 526 days to obtain other permits, but now they can obtain approval for the company’s establishment within just three hours. The government promised that the licensing process would be completed within one year and the company would also receive a tax identification number (NPWP).
The BKPM’s policy is appropriate. The trial step is part of the effort to localize investors to invest in the designated areas. This will prevent the disruption of the region’s spatial plan.
The Investment and One-Stop Integrated Service Agency (DPMPTSP) of Banten Province continues to encourage investors in the industrial sector to invest in the industrial zone. Besides simplifying the licensing process, investing in the designated area will maintain the region’s investment climate and competitiveness.
The benefits include investors not needing to obtain location permits, disturbance permits, and site plan approvals. The Industrial Zone’s management will facilitate licensing and industrial relations, such as building permits, electricity connections, and others.
By comparison, investors outside the Industrial Zone require eight days to obtain a business permit. This is in addition to obtaining 11 permits for construction, which takes 526 days. If investment is made within the Industrial Zone, the time required to obtain a business permit is only eight days, and the 11 other permits are not required because they are excluded for companies operating in the Industrial Zone.
The ease of the investment licensing process in the industrial zone is expected to increase investment interest, thus boosting economic growth, especially in Banten. Moreover, to attract investors to invest in Banten, mapping investment areas is a must. The aim is for investors to have a better understanding of the potential available in the region. Investors who intend to invest in Banten need to be given guidance and a general overview of the investment potential in Banten.
In conclusion, investing in the Industrial Zone provides benefits for both investors and the region. With a simplified licensing process and facilitated industrial relations, investors can focus on developing their projects while contributing to regional economic growth. Meanwhile, the region can attract more investment and create employment opportunities, thus enhancing the local economy.
