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BKPM Annuls $23b in Investment Permits

From The Jakarta Post
March 20, 2015

Thousands of unrealized investment permits for projects totaling US$23 billion has been repealed by The Investment Coordinating Board (BKPM), a measure taken for the first time in at least seven years. The board annulled 6,541 licenses granted to foreign investors between 2007 and 2012.

According to BKPM chief Franky Sibarani, the permits sat unrealized amid a host of obstacles that ranged from problems with land acquisition to the lack of supporting permits from local administrations.

The so-called “principal permits” serve as an initial step for investors to complete their projects in Indonesia, where investment is the second-biggest driver of growth after domestic consumption. It usually takes several years for investors to realize their project after acquiring the principle permit.

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