| Badan Koordinasi Penanaman Modal BKPM | |
 | |
| Agency overview | |
|---|---|
| Formed | 1973 |
| Preceding agency |
|
| Jurisdiction | Government of Indonesia |
| Headquarters | Jl. Jend. Gatot Subroto No. 44, Jakarta 12190 P.O. Box 3186, Indonesia |
| Agency executive |
|
| Website | www |
The Investment Coordinating Board (Indonesian : Badan Koordinasi Penanaman Modal, BKPM) is Non-Ministerial Government Body in Indonesia for formulation of government policies in the field of investment, both domestically and abroad.
ICB was established in 1973, replacing the function carried out by the Investment Technical Committee (Indonesian : Panitia Teknis Penanaman Modal) which was formed previously in 1968. In 1982, ICB absorbed Ministry of Development for Domestic Product (Indonesian : Kementerian Peningkatan Penggunaan Produksi Dalam Negeri). In 1988, ICB transformed into State Ministry of Investment (Indonesian : Kementerian Menteri Negara Penanaman Modal). In 1998, ICB/State Ministry of Investment was merged into Ministry of State Owned Enterprises. The merging decision was reverted in 2001. [1] [2]
With the enactment of the Law on Investment in 2007, ICB became a Government agency that is the coordinator of investment policy, both among government agencies, the government and Bank Indonesia, as well as the government with regional governments as well as regional governments with regional governments. ICB is also mandated as an advocacy body for investors. [1]
In 2021, president signed the presidential regulation on investment. However, the presidential regulation became controversy as the regulation regulated the investment on alcoholic beverages. The alcoholic beverages investment regulation annex was repealed. [3]
On 30 March 2021, Joko Widodo submitted a Presidential Letter No. R-14/Pres/03/2021 to People's Representative Council contained a proposal for major change his cabinet. In his Presidential Letter, Ministry of Investment, will be spin off from existing Coordinating Ministry for Maritime and Investments Affairs to be independent ministry on its own, but still under its coordination. [4]
On 9 April 2021, People's Representative Council, approved the changes. [5]
The form of the ministry is not yet known at that time of announcement of approval. It was speculated that the new ministry either split off from part of Coordinating Ministry for Maritime and Investments Affairs or elevation of existing Indonesia Investment Coordinating Board. [6] However, it later confirmed that the ministry actually elevation of Indonesia Investment Coordinating Board. If done, this ministry is continuation of previously Suharto era and early Reformasi era's Habibie State Ministry of the Promotion of Investment, which existed during 1993 to 1999, during Sixth Development Cabinet and Development Reform Cabinet, respectively. [7]
On 13 April 2021, Ali Mochtar Ngabalin, spokesperson and expert professional of Deputy IV (Information and Political Communication) Presidential Staff Office, announced that the second reshuffle will take place on second week of April 2021. [8] However, due to many reasons, the second reshuffle finally announced at 28 April 2021. Unusual for reshuffle happened in Indonesia, this reshuffle was the first of its kind which not only reshuffled the ministers, but also disbanding ministry institutions during the mid-term. In this reshuffle, Bahlil Lahadalia appointed as the first holder of Minister of Investment. [9] All appointed officials inaugurated and their respective new offices were established with Presidential Decision No. 72/P/2021. [10]
BKPM has the task of coordinating policies and services in the investment sector based on the provisions of laws and regulations. In carrying out these main tasks, BKPM carries out the following functions:
On 29 July 2021, the structure of the ministry and the board amended with the issuance of Presidential Decree No. 63/2021 (Ministry of Investment) [11] and No. 64/2021 (Indonesia Investment Coordinating Board). [12] With the amendment, the structure and responsibilities between the ministry and the board are clearly separated, not mixed as before.
The board, as the Presidential Decree No. 64/2021 outlined, had the role as the executioner and controlling the implementation of the investment policies in Indonesia. The board organized in following manner: [12] [13]
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