Jokowi Calls Spatial Problems And Licensing Makes Investment In The Region

JAKARTA - Indonesian President Joko Widodo (Jokowi) said that the problem of spatial planning and licensing for building development that is often inconsistent and complicated is an obstacle to investment in the regions.

This was said by Jokowi in his remarks at the Regional Head Coordination Meeting (Rakornas) and the 2023 Regional Leadership Coordination Forum (Forkopimda), at Sentul International Convention Center, Bogor, West Java, Tuesday 17 January.

During the meeting, Jokowi highlighted two major problems that often block the smooth investment in the regions, namely first spatial planning and secondly building construction permits.

These two things, called the Head of State, often allow investment permits to take up to months.

"Be careful there are two big problems that we face in the regions. The first is regarding spatial planning, which is a big problem for our investment," said Jokowi at the opening of the event which was broadcast live on the official YouTube channel of the Presidential Secretariat.

The President reminded that he was referring to a regulation that is now called the Compliance of Spatial Utilization Activities (KKPR).

According to the president, currently the KKPR is a problem for half of the regions in Indonesia in inviting investment.

"In all of our regions, we still have not completed the KKPR, so I ask the chairman of the DPRD to immediately resolve this matter," said Jokowi.

The second problem that the President highlighted was licensing for building construction, which he said had been seen since the decision to change the name of the Building Construction Permit (IMB) became the Approval for Building Buildings (PBG).

According to the President, the nomenclature is not only inconsistent and complicated, but in fact it does not make licensing come out faster.

"The names are two words, that's enough. Permit of the building, that's it. In the past, IMB permits to build a building, this is a change of approval for the building. Oh, my. That's the building permit. That's all, it's finished, the most important thing is not the name, the fast settlement is like that," said Jokowi.

The President revealed that the two problems he raised were ranked first and second in complaints from investors when investing in the regions.

Therefore, he asked the participants of the 2023 Regional Head Coordination Meeting-Forkopimda to immediately settle all investment licensing affairs in their respective regions.

"Because we know that the investment in our country is currently 53 percent outside Java. This is very good, equality occurs because a lot of infrastructure has been built outside Java, so the investment is heading outside Java, it is very good for our equity," said Jokowi.

The President reminded that in 2022 Indonesia will be able to get investment realization of IDR 1,207 trillion, exceeding the target of IDR 1,200 trillion.

Furthermore, the President said, the realization of the investment has directly created 1.3 million jobs.

"So once again, investment is the key to our economic growth," said Jokowi.