ECOTOURISM-BASED TOURISM Contribute to ➢ Impact in ➢ Must be able efforts of enhancing to satisfy visitors conserving welfare in the nature community Nature Community Tourist friendly friendly friendly Lake Toba Tanjung Kelayang Mandalika Wakatobi Pulau Morotai North Sumatera Bangka Belitung West Nusa Tenggara Southeast Sulawesi North Maluku KB. Cibodas Tanjung Puting KB. Eka Karya TWA. Kawah Ijen ulauan Seribu K TN. Wakatobi TWA. Tangkuban Perahu B. Bogor BTS TN. Bali Barat AW. Gunung Mas TN. Komodo TN. Merapi WW. Cilember Komodo Island WW. Kawah Putih TN. BTS East Nusa Tenggara AW. Malabar AW. Rancabali TN. Gn. Rinjani TN..Kalilimmutu WW. Pulau Merah 1 0 D E S T I N A S I TN. Alas Purwo TWA Tunak P R I O R I T A S D A N D E S T I N A S I Tanjung Lesung Borobudur Bromo Tengger Semeru : Destinasi Ekowisata E K O W I S A T A Banten Central Java East Java KEK/Kawasan Ekonomi Khusus Pariwisata 43 President Joko Widodo’s main priorities in his second term of presidency… HR Development Advancing Infrastructure Development Regulation Simplification Cutting Down Red Tapes Economic Reforms President Joko Widodo In his Primary Presidential Speech, 20 October 2019 … which is then translated into these following Key Performance Indicators Progress in EODB Ranking Investment Realization for Major Projects Encouraging major investors to partner with local business communities Equal distribution of Major Investment Focused Investment Promotion based on sectors and country of origins Boosting domestic investment particularly in small medium enterprises 4 AccelerationGreen ofInvestment Investment in Realization Indonesia: Law & Development Roadmap Based on recorded 190 investment issues in Task Force 4 (POKJA) of Coordinating Ministry of Economic Affairs, the main investment constraints are: Solutions: Online Single Special Permit / Submission 32.6% Recommendation (OSS) Licensing In accordance with Government Certification Regulation Number 24/2018 regarding 17.3% Integrated Investment Online Service Land Acquisition Ministerial Enforcing One Recommendation Stop Service Center in BKPM Ministry 15.2% Based on Presidential Regulation Regulation and Policy Regulations Number 97/2014 regarding One Stop Service Center To better implement OSS, paradigm shift is significantly required: Shifting service Assigning PNS as civil paradigm to Technical Officials compliance of servant standard and in One Stop commitment Service Center 6 In implementing OSS in regional level, the following matters need to be resolved: Resolving RDTR Issues Supporting Factors: Currently thare were only 47 RDTR recorded from 514 1 Districts/Cities, which means there is only 9.14%, and only 10 RDTR being integrated to OSS Regional Regulation Review Regarding regional licensing and retribution, must be in 2 accordance with Central Government Standard of Procedures (NSPK) Hardware & Internet Software Coverage System Integration built in regional level, integrated into OSS, to achieve national 3 data integration Licensing Services 4 Must be performed through OSS system Permanent Official HR Development Assignment for Civil Servant 7 President Jokowi’s directive regarding Investment License and Fiscal Incentives . President Jokowi has given direction to Chairman of BKPM and related Minisitries/Institution to delegate investment license to BKPM . BKPM is also given the authority to decide whether a company is eligible to be awarded Tax Holiday and Tax Allowance. Regulation adjustment will follow. President Joko Widodo in Closed Meeting with Cabinet Members 11 November 2019 8 Indonesia Investment Performance (Jan - September 2019) 800 Transportation and 700 Others Telecommunication 600 Rp 111.1 T 500 Rp 253.3 T 400 (42.1%) (18.5%) 300 Electricity, Gas, 200 100 And Water Rp Trilion Rp 0 Rp 95.9 T (16.0%) JAN-SEPT JAN-SEPT Target Achieve Q I 2018 Q II 2018 Q III 2018 Q I 2019 Q II 2019 Q III 2019 2018 2019 2019*) ment**) Construction TOTAL 185.3 176.3 173.8 535.4 195.1 200.5 205.7 601.3 792.0 75.9% Rp 48.9 T FDI 108.9 95.7 89.1 293.7 107.9 104.9 105.0 317.8 483.7 65.7% (8.1%) DDI 76.4 80.6 84.7 241.7 87.2 95.6 100.7 283.5 308.3 92.0% Mining Rp 44.7 T Housing & Real Estate FDI: Foreign Direct Investment (7.4%) Rp 47.4 T by Sector DDI: Domestic Direct Investment . The value of investment in Quarter III 2019, the investment (7.9%) realization during three months period of report (July – September 2019), is based on investment realization report Others Quarter III 2019 y-o-y q-o-q Singapore from DDI and FDI companies. US$ 5.5 B US$ 5.4 B DDI 18.9% 5.3% (25.9%) . Oil and Gas, Banking, Non-Bank Financial Institution, Insurance, (25.5%) FDI 17.8% 0.1% Leasing, Home Industry and Small and Medium Enterprise are excluded. TOTAL 18.4% 2.6% . The investment value is in Rupiah Trillion (T), the currency rate for Q1 and Q4 2018 is US$ 1= Rp 13,400 based on National Hong Jan-Sept 2019 y-o-y Budget 2018, and the currency rate for Q1 anda Q2 2019 is US$ Kong China 1= Rp. 15,000 based on National Budget 2019. US$ 1.7 B US$ 3.3 B DDI 17.3% (8.0%) (15.6%) . Investment realization in Quarter III 2019: Rp 205.7 T, increases FDI 8.2% around 18.4% from Quarter III 2018 (Rp 173.8 T). Netherlan by Country of ds Japan origins TOTAL 12.3% . Investment realization in January – Sept 2019: Rp 601.3 T, US$ 3.2 B increases around 12.3% from that in January – September 2018 US$ 2.1 B (Rp 535.4 T) (9.9%) (15.1%) 9 Investment Performance on Tourism (Jan-September 2019) DDI FDI INVESTMENT INVESTMENT NO LOCATION PROJECT NO LOCATION PROJECT (Rp Billion) (US$ Million) 1 Special Territory of Jakarta 41,622.60 1,932 1 West Java 4,428.58 3,984 2 East Java 37,780.77 2,301 2 Special Territory of Jakarta 3,602.41 5,789 3 West Java 35,647.86 2,108 3 Central Java 2,151.19 898 4 Riau 21,117.55 557 4 Banten 1,419.92 1,886 5 East Kalimantan 16,940.39 859 5 Central Sulawesi 1,029.98 164 6 Cental Java 14,967.48 1,748 6 Riau Islands 968.32 962 7 North Sumatera 14,289.51 729 7 Riau 770.14 277 8 Banten 12,476.47 1,303 8 Papua 735.03 113 9 South Sumatera 11,102.03 479 9 North Maluku 732.96 96 10 North Sulawesi 7,405.99 146 10 South Java 599.77 1,330 Investment Realization in Tourism valued at 11 Central Kalimantan 7,110.61 291 11 South Sumatera 565.13 270 12 South Kalimantan 6,825.08 279 12 East Kalimantan 501.61 374 13 West Kalimantan 6,142.45 394 13 Southeast Sulawesi 496.25 86 IDR 4,7 T (Jan-Sep 2019) 14 Bali 4,794.34 406 14 West Kalimantan 404.40 300 15 Riau Islands 4,561.96 579 15 Bali 324.16 1,695 Special Territory of 4,476.05 249 16 North Sumatera 299.39 602 16 DDI + FDI Yogyakarta 17 South Kalimantan 291.45 122 17 North Kalimantan 4,085.25 132 18 West Nusa Tenggara 219,47 945 18 Southeast Sulawesi 3,642.53 106 19 Central Kalimantan 213.07 199 INVESTMENT NO Sectors PROJECT 19 Jambi 3,279.22 330 20 South Sulawesi 208.20 217 (Rp Billion) 20 Central Sulawesi 3,020.84 162 21 North Sulawesi 153.19 177 21 East Nusa Tenggara 2,951.54 219 22 Lampung 147.08 121 1 Construction 3,177.9 12 22 South Sulawesi 2,601.80 506 23 West Sumatera 142.23 164 2 Hotel and Restaurant 698.8 57 23 Aceh 2,550.78 242 24 Gorontalo 140.45 31 24 West Nusa Tenggara 2,545.59 190 25 Aceh 131.32 97 Housing, Industrial Estate, 25 Bengkulu 2,251.77 115 26 East Nusa Tenggara 108.90 270 3 243.3 14 and Office Building 26 West Sumatera 2,147.19 312 27 Bengkulu 107.83 50 27 Lampung 1,940.15 162 28 North Kalimantan 78.87 49 4 Trade and Reparation 173.1 133 28 Bangka Belitung Islands 1,908.99 227 29 Bangka Belitung Islands 78.53 86 29 West Sulawesi 941.16 34 30 Jambi 43.02 119 5 Other Industries 132.5 26 30 North Maluku 664.00 34 31 West Papua 40.22 54 31 Gorontalo 631.96 63 32 Maluku 32.60 34 6 Other Sectors 240.6 208 Special Territory of 12.26 162 32 Papua 551.16 52 33 Yogyakarta TOTAL 4,666.2 450 33 Maluku 283.17 57 34 West Papua 264.54 26 34 West Sulawesi 10.12 14 TOTAL 21,188.05 21,737 TOTAL 283,522.75 17,329 10 Fiscal Incentive Regulation For those taxpayers who have : TAX ALLOWANCE Government Regulation No. 9 of •Principal licenses (IP) and its changes issued by BKPM; 2016 •Principal Licenses for Expansion (IP-PL) and its changes issued by BKPM; or % of investment •Investment licenses issued by other authorized agency 30 value Reduction of corporate These three types of license must be issued after 5 May 2015 net income tax for 6 years, 5% each year. Taxpayers who have applied for import duty facility or corporate income tax business fields reduction according to Article 29 of Government Regulation No. 94 of 2010 is 145 rejected by Ministry of Finance. Eligible for tax allowance, expanded from 143 Transportation and Warehouse segments in the previous Manufacturing Industry NOTE regulation with additional • Iron and Steel • Urban transportation segment: clothing industry.