seven business priority for investment priority business ... · company tax number npwp/nppkp tax...

The Investment Coordinating Board of the Republic of Indonesia

14

Priority Business Fields For Investment: Indonesia Sea Toll Programs (24 Seaport, consist of 5 hub ports and 19 feeder ports)

Seven Business Priority for Investment

MARITIME LOGISTIC SECTOR REFORM TO SUPPORT “SEA TOLL” PROGRAM: 1. Port sector reform 2. Shipping sector reform 3. Dock yard sector reform

4. Navigation Aid sector reform 5. Logistic sector reform 6. Maritime education sector reform

Source: Bappenas, 2015


19

Sea Port/ Special Terminal License Matrix Type of License / Non Licensing Institution SLA (Day)

Bu

sin

ess

Enti

ty Operating License PTSP BKPM 7

Company Legal Entity Ministry of Law &Human Right 1 Company Tax Number NPWP/NPPKP Tax Office, Ministry of Finance 1

Company Registration Permit (TDP) PTSP Regency/ Municipality 3

Sea

po

rt/

Spec

ial T

erm

inal

Lo

cati

on

Det

erm

inat

ion

Li

cen

se

Land Technical Consideration Ministry of Agraria/BPN 7

Site Location License PTSP Regency/ Municipality 14

Borrow and Use Permit of Forest (IPPKH) PTSP BKPM 52

Environmental Impact Assessment (ANDAL) Consultant 150

Environmental License Ministry of Environment and

Forestry 10

Head of Regency/Major Recommendation Regency/ Municipality 14 District of Navigation Office Ministry of Transportation ....................

Shahbandar Recommendation Ministry of Transportation ....................

Special Terminal Master Plan Head of Regency/ Mayor 14

Feasibility Study Consultant 150

Last Year Financial Report Public Accountant 7

Survey result covers hydrooceanografy, topography, sea port benchmark location with geographical coordinate

Consultant 7

National bank reference for companies with asset > Rp. 50 Trillion. Bank 1 Land right Ministry of Agraria/BPN 50 Sea port/ Special Terminal Location Determination License Ministry of Transportation 5

Co

nst

ruct

ion

Building Construction Permit PTSP Regency/ Municipality 14

Foreign worker obligation to report Man worker Service 23

Utility (water, telephone) Water Supply Company/

Telephone Company 14

BPJS Ketenagakerjaan dan BPJS Kesehatan BPJS 1 Import Duty Exemption for Capital Goods PTSP BKPM 7

Co

nst

ruct

ion

an

d

Op

erat

ion

Li

cen

se

Shahbandar Recommendation Ministry of Transportation ....................

Last two years audited financial report Public Accountant 7

Study for Safety of Shipping includes Shipping Channel Result Consultant 30

Certificate of Availability of qualified and competent Workers in technical sea port operation

Ministry of Transportation .....................

Sea Port/Special Terminal Construction and Operation License Ministry of Transportation 19

Total: 20 licenses and 9 non licenses requirement Total: 11 Organizations


20

List of Ministries/Agencies Involved In Maritime Sector

Challenges in Maritime Sector

Shipbuilding Industry Sea Port

Ministry of Industry

Ministry of Trade

Ministry of Finance

Provincial Government

City/Municipality Government

Ministry of Transportation

Ministry of Finance

Ministry of Environment and Forestry

Ministry of Agraria/BPN

Provincial Government

City/Municipality Government


21

Ministry of Transportation License Simplification

Challenges in Maritime Sector

Special Terminal Construction and Operation License

From 60 days, now 19 days

Special Terminal Location Determination License


Special Terminal Determination License


License for Construction and Operation Terminal for

Public Use



24

TAX HOLIDAY TAX

ALLOWANCE IMPORT DUTY

FACILITY

(Government Regulation No.18/2015) (MoF Regulation No.176/PMK.011/2009) (MoF Regulation No.130/PMK.011/2011)

143business segments Eligible for tax allowance, expanded from 129 segments in the previous regulation.

30 % of investment value Reduction of corporate net income tax for 6 years, 5% each year.

Under certain requirements among others: investment value or export orientation, menpower absorption, local content, and project location (especially outside Java island).

5-10 years Tax relief facility, starting from the commencement of commercial production.

Pioneer industry 1. Basic metal industries; 2. Oil refinery industries and/or basic

organic chemicals; 3. Machinery industries; 4. Industries of renewable resources; 5. Communication devices industries.

50 % for a further 2 years Reduction of income tax after the expiration of the tax holiday and can be extended by MoF.

IDR 1 trillion

Minimum investment plan (USD100 million).

Import duty on Machineries and Equipments, goods, and raw materials for production • Exemption of import duty on

machineries and equipments • 2 years exemption of import duty on

raw materials • Additional 2 years import duty

exemption for raw materials if company using locally-produced machineries and equipments (min 30%)

Which produces goods and/or services, including:

1. Tourism and culture 2. Public transportation 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port

Industries

Incentives


25

Government Guarantee and Support for Infrastructure Projects

PPP Infrastructure Project Offered to Private Sector

IMPROVEMENT ON INFRASTRUCTURE PROCUREMENT PROCESS To simplify the procurement procedures of PPP Infrastructure projects, The foreign companies or business entities are eligible to follow the tender without setting up a local company first in Indonesia. They may also enter into the tender in the form of consortium with local or international partner. However, once they are announced as the winning bidder, they have to set up an Indonesia business entity; Pre-qualifacilitation process now will only be repeated once. Procurement of land is also held by Contracting Agency prior to the inclusion of tender document.

GOVERNMENT GUARANTEE

Provided by Minister of Finance through Indonesia Infrastructure Guarantee Fund (IIGF)/PT Penjaminan Infrastruktur Indonesia (PT PII)

GOVERNMENT SUPPORT

Viability Gap Fund (VGF), Land Fund, Geothermal Fund, Permits and Licensing, Land acquisition, Use of State Assets, Feed in Tariff for renewables energy

PROJECT PREPARATION

Through PT. Sarana Multi Infrastruktur (PT. SMI) for preparing of pre-feasibility study; peparing of tender documents; providing assistance during the tender process; and providing support towards realization of financial close

FISCAL FACILITIES

1. Tax allowance are eligible to infrastructure and renewable energy; Tax Holiday are eligible to Oil Refinery project

2. Geothermal Fund 3. Feed in Tariff (Hydropower Energy, Solar Energy, and Solid Waste to Energy)


26

Medan

Kebun Sei Mangkei

Kuala Tanjung Economic Development Plan


Source: Ministry of Transportation


27

MEDAN KM. 0+000

LUBUK PAKAM KM. 29+366

TEBING TINGGI KM. 80+542

SIANTAR KM. 48+467

KISARAN KM. 153+739

TANJUNG BALAI KM. 174+442

RANTAU PRAPAT KM. 113+872

PERLANAAN KM. 114+053

GUNUNG BAYU

BANDARTINGGI KM. 98+291

RENC. KUALATANJUNG

KM. 18+250

RENC. SEI MANGKEI

BELAWAN KM. 21+607

BINJAI KM.

20+889

BESITANG

KUALA KM.

41+750

5 KM

21 KM

PORT OF BELAWAN PORT OF KUALA TANJUNG

Existing Railway Route

KETERANGAN :

Railway Route Plan SEI MANGKEI

INDUSTRIAL

ZONE

Port of Kuala Tanjung in Relation with Industrial Zone




28

CPO TERMINAL

MULTIPURPOSE

TERMINAL

Total Area for Port Development : 1400,02 Ha

Container : 1078.00 Ha

Container Depot : 114.47 Ha

Liquid Bulk : 44.26 Ha

Dry Bulk : 143.00 Ha

Multipurpose : 15.40 Ha

Office Area : 4,99 Ha

Depth : -17 meter Possibility to handle ULCC with capacity of 18.000 TEUs Maximum Capacity: 20 Million TEUs Source: Ministry of Transportation

Port of Kuala Tanjung Development Project



29

CPO TERMINAL

MULTIPURPOSE

TERMINAL

Total Area for Port Expansion: 1,400.02 Ha

Container : 1,078 Ha

Container Depot : 114,47 Ha

Liquid Bulk : 44,26 Ha

Dry Bulk : 143 Ha

Multipurpose : 15,4 Ha

Office Area : 4,99 Ha

Project Timeline : Review Port Masterplan & Market Sounding : year of 2015 - 2016 Tender for Concession : year of 2017 Estimated Cost : CT Phase I Container Yard : 360,000 m2 Reclamation : 4.5 Million m3 Wharf : 1000 m length Total estimated investment : ± USD 651 M Executing Agency : Director General of Sea Transportation

Masterplan of Kuala Tanjung Port has been established by Minister of Transportation Decree No. PM 20 Year 2012

Has been starting

for construction

DESIGNATED AS INTERNATIONAL HUB PORT FOR WESTERN PART OF INDONESIA

CLOSE TO MALACCA STRAIT AND EAST-WEST WORLD TRADE ROUTE

NATURAL DEEP SEA PORT CAPABLE TO HANDLE ULTRA LAGE CONTAINER CARRIER (ULCC)

Port of Kuala Tanjung Development Project



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