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It is not after the enactment of Law on Foreign Investment in 1967 that the Government of Indonesia recognized the urgency for coordinating between all relevant departments and other related government organizations. To this end, the Government created the Foreign Capital Investment Advisory Board (Badan Pertimbangan Penanaman Modal Asing, BPPMA) in 1967. The Board's main task was to give advice to the President with respect to the implementation of foreign investment.

In 1968 the Government passed a law on domestic investment. The need to improve the institutions involved in the processing of investment is unavoidable. As a result, on September 1968, the Indonesian Government established a new body called the Technical Committee on Investment (Panitia Teknis Penanaman Modal) and, hence, dissolved BPPMA. The Committee's main task was to study and evaluate investment applications, both foreign and domestic, to secure that all requirements had been fulfilled. In its daily operation, however, the Committee did not have the authority to issue investment permits and has to rely on technical departments for evaluating investment applications.

During the course of time, there is obvious need to improve the coordination in the issuance of investment permits. In addition, the need to improve the level of investment through promotion is also evident. The Government responded to this need by creating a new body called Investment Coordinating Board (Badan Koordinasi Penanaman Modal, BKPM) to replace the Technical Committee on Investment in 1973.


BKPM is an investment service agency of the Indonesian Government created with the purpose to effectively implement the enactment of law on foreign as well as domestic investment. At the time, BKPM is a non-departmental government agency serving under and directly responsible to the President of the Republic of Indonesia . BKPM is chaired by Head of BKPM. For the period of 2001-2004 Mr. Theo F. Toemion chairs this agency.


BKPM's main function is to implement the government mission in the field of investment. In order to carry out its main function, BKPM performs he following duties:


to assess and formulate national investment policy;


to coordinate and perform investment promotion;


to coordinate functional activities in performing its activities;


to coordinate the development of investment activities among government institutions;


to carry out managerial services in planning, administration, organization, personnel, financial, archive, encoding, supplies and logistic.


In order to carry out the above-mentioned functions, BKPM has the following authority:


to prepare macro-level national planning on investment;


to formulate investment policies to support macro-level development;


to establish investment information systems;


to grant approvals and to control investments with highly sophisticated and high risk strategic technology in its implementation;


Other authorities in compliant to other regulations related to the preparation and implementation on investment.


BKPM is currently restructuring its organization. The top-level management of BKPM, as stipulated by a Presidential Decree, consists of the following positions:


Head of BKPM


responsible for governing BKPM, preparing national level as well as general policies, making technical policies on BKPM functions, developing and implementing coordination with other government institutions/organizations;






responsible for the coordination, planning, development and control of programs, administration and resources in BKPM;




Deputy for the Development of Investment Climate


responsible for the formulation and implementation of policies that set the tone for investment;




Deputy for Investment Promotion


responsible for the formulation and implementation of policies on investment promotion;




Deputy for Investment Relation;


responsible for the formulation and implementation of policies on investment relation;




Deputy for Investment Services


responsible for the formulation and implementation of policies on investment services;




Deputy for Investment Realization Control


responsible for the formulation and implementation of policies on investment realization control.


BKPM has put a lot of effort to improve its services in order to implement the government mission in the field of investment. The ultimate goal of BKPM is to provide a “one stop service” to investors, both foreign and domestic, to accomplish their intention to invest in Indonesia . In order to reach this goal, BKPM is committed to provide the following services.


Investment Information Services BKPM provides information on


Investment potentials and opportunities (see Regional Potentials);

Prospective Indonesian/foreign business partners for foreign/Indonesian investors wishing to carry out joint venture with Indonesian/foreign partners (see Matchmaking); and

Government policies, laws and regulations and other related information with respect to investment (see Laws and Regulations).

BKPM also disseminate publication on a periodical basis such as Investment Statistics (see Facts and Figures) and brochures.

In addition, BKPM also update its homepage ( from time to time in order to present the most current information on investment in Indonesia .


Investment Licensing and Approval


BKPM provides guidance and advise to investors in preparing applications for new investment, expansion of investment and change of investment projects (see Approvals, Licenses and their Procedures).


Investment Monitoring and Evaluation


BKPM undertakes monitoring and evaluation on the progress of investment projects. In addition, BKPM also provide guidance and advise to investors in overcoming problems and constraints encountered during the project implementation.





Investment Coordinating Board
(Badan Koordinasi Penanaman Modal - BKPM)
Jalan Jenderal Gatot Subroto No. 44
Jakarta 12190


Phone: (62-21) 525-2008, 525-2649, 525-4981
Facsimile: (62-21) 525-4945


P.O. Box 3186 Jakarta







    Copyright2005@KBRI Kuala Lumpur