The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) and the Indonesian Central Bank (BI) signed a Cooperation Agreement (PKS) on financial sector licensing in Jakarta on Wednesday, November 13,2024.
Deputy Minister of Investment and Downstream, Todotua Pasaribu, who signed the cooperation agreement, expressed his appreciation to the Indonesian Central Bank for the strong cooperation that has been established to encourage a conducive investment climate in Indonesia.
He said that this cooperation agreement is a follow-up to the memorandum of understanding, signed last August by the Minister of Investment and the BI Governor of BI as a concrete step to strengthen strategic cooperation between the two institutions in improving the ease of the licensing process and provide certainty for investors, especially in the financial sector.
Eight-percent growth target
Both institutions are optimistic that Indonesia’s economic growth target of 8 percent can be realized.
Todotua Pasaribu revealed that one of the indicators of achieving the target is an increase in investment and downstreaming.
“In the next five years, in order to achieve the 8 percent economic growth target, the National Development Planning Agency (Bappenas) has suggested the creation of approximately Rp13,560 trillion (US$853 billion) in investment,” Todotua said as quoted in a statement on Friday, November 15,2024.
He added that this investment target can only be achieved with comprehensive work.
“Talking about investment and downstreaming means we are talking about strategy. It starts from the entry of the investment, but the most important thing is how the realization of the investment, which has added value,” Todotua said.
Agreement on financial licensing
The cooperation agreement between the Ministry of Investment and Downstreaming/BKPM and the Central Bank is one of the factors to encourage the creation of ease of investment in terms of digital financial transactions.
Senior Deputy Governor of BI, Destry Damayanti, said in her speech that this PKS is a form of commitment between the two institutions to realize business licensing services in the financial sector with PASTI (Professional, Accountable, Simple, Transparent, and Informative) principles.
“The more efficient of the service in the financial sector licensing system will certainly reduce the process of doing business. So this supports the government’s ideals in terms of Ease of Doing Business in Indonesia which must be getting better,” Destry said.
This cooperation will be realized by utilizing data and information on business licensing in the financial sector from both institutions. The data includes data on the Indonesian Standard Industrial Classification (KBLI) and licensing in the financial sector published by BI and Business Identification Number (NIB) data issued by the Ministry of Investment and Downstream/BKPM through the Online Single Submission System (OSS) system.
In addition, through this PKS, for convenience for business actors in the financial sector, both institutions will implement Hyperlink in the form of placing the OSS logo and link on the front page of the BI licensing application, and vice versa the logo and link of the Indonesian Central Banks licensing application on the OSS System.
