Before you do business in Indonesia, you must first get yourself familiar with BKPM. So, what is bkpm exactly? BKPM is short for Badan Kerjasama Penanaman Modal; in English it should translate to Investment Coordinating Board. BKPM started its life as Technical Committee on Investment in 1967, which in turn was established by Foreign Capital Investment Advisory Government. The BKPM took form after it replaced the committee in 1973. In 1982, the Board merged with Ministry Development for Domestic Product and again merged with different instance in 1985—this time with Ministry of Mobilization for Capital Investment. The Board evolved into State Ministry of Investment Government in 1988, followed by the issuing of Negative List for Investment. The Ministry of State-owned Enterprises brought the Board under its wing in 1998 until 2001 where the Board separated from the Ministry and stood on its own. BKPM acts as a medium that connects the government with a business and is responsible for helping both domestic and foreign direct investment improve by providing an investment climate that is conducive. The Board gained its status of ministry in 2009, after which it is responsible of reporting to the President directly. The Board does not merely look for and facilitate domestic and foreign investment as it also seeks to procure investment with high quality that will reduce inequality in society and bring down unemployment level.
The Board comes with nine general responsibilities it must uphold: protecting and providing security for all citizens, establishing trusted, democratic, effective, and clean governance, empowering regions and rural areas within the country, improving life quality of all Indonesians, reforming legal system and upholding it, improving people’s productivity and competitiveness in international level, manifesting economic independence, revolutionizing nation’s characteristics, and enforcing diversity and social restoration.
The Board is mandated by the President of the Republic of Indonesia with three major tasks. It should be the agency that facilitates simplification of business licensing for both domestic and foreign investments. It must be able to facilitate and provide assistance for investment projects. It should also be the one medium that is capable of enhancing the result of an investment project. The President grants these tasks directly to the Board and everything it does to carry out said tasks must be in line with all of the nine priorities mentioned above. Everything else you want to know about the Board can be observed directly on their official website.