| 4. In which ways is the initiative creative and innovative?
Paksi Pinrang be unique from other region of investment policy for collecting 4 investment policy in an integrated package.
For example, (1) Other Region have OSS and licensing service online system (SPIPISE) but do not have the local tax incentives (KID) and regional aid policy (KKD); (2) Other region offer guarantees of land and electricity but did not have one of these investment policies, it will hinder the investment process itself; and (3) Other region have a KID and KKD the region but do not have a policy of OSS and SPIPISE, it will hinder investment as long as the licensing process is not integrated with the Indonesian Investment Coordination Board (BKPM).
Approaches were made to realize this innovation as follows:
1. Philosophical approach : covering public services will be successful if all stakeholders participate as regent commitment, Parliament, OPD, vertical Agencies, etc.
2. Sociological Approaches : covering public awareness of the importance of the development process by providing the land that will be used whenever possible do not generate high costs.
3. Juridical approach : covering investment policy-making, socialization, with a consistent policy implementation, and M & E.
| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
This innovation is implemented by the DPMPTSP since the Year 2012 by issuing Paksi Pinrang such as local tax incentives (KID), regional aid policy (KKD), one stop service (OSS), and licensing service online system (SPIPISE). DPMPTSP consists of four fields include:
1. Division of Development and Investment Promotion tasked to set up policies and promotion opportunities and investment potential in Pinrang;
2. Division of Data Processing and Information Systems in charge of setting up an online service system;
3. Division of Licensing Services tasked with licensing services quickly and thoroughly; and
4. Division of control for the implementation duty to direct and supervise the implementation of the investment.
The measures used to ensure this successful innovations are:
1. The economic growth of at least 7% annually;
2. Absorbed 5-6% productive workforce in new jobs, or about 4,000 people annually;
3. Realized regional investment increased by 20% -30% annually; and
4. Regional investment interest increased 10-20% annually.
| 6. How was the strategy implemented and what resources were mobilized?
Action plan of Paksi Pinrang, includes the following activities:
1. Introduction of Investment Opportunities
a. One on One Meeting
The meeting between the DPMPTSP with potential investors in an event BKPM or independently by inviting investors through Embassies targets.
b. Investment promotion
Good investment exhibition activities carried out at the local, provincial, national, and international.
c. Temu Potential Investors
The meeting, facilitated by local entrepreneurs to meet with potential investors.
2. Investment interest
a. Prospective investors will expose to introduce our company profile and investment plans.
b. The consultation meetings to discuss investment policies that will be given to potential investors related to investment plans.
c. Field trips, to see firsthand the location of the investment plan.
3. Signing of Memorandum of Understanding (MoU)
a. The drafting of a MoU to ensure the rights and obligations of each party, namely the Pinrang and Potential Investors, including time and place.
b. The signing of a MoU between the Pinrang with Potential Investors.
4. Regional Aid Policy (KKD)
a. Paksi Pinrang will provide data and information on investment opportunities such as data commodity, land, production, and so on.
b. Paksi Pinrang can provide infrastructure such as road widening and pathfinding or access to the project, and so on.
c. Paksi Pinrang could provide or facilitate land, such as the local government land (industrial area) with the Public Private Partnership system, facilitating the search of land that guaranteed cheap and safe, and so on.
d. Paksi Pinrang can provide technical assistance, such as the supply of labor in the labor market online, training local manpower, etc.
e. Paksi Pinrang will help accelerate licensing, such as charging and permits, both within the local government as well Pinrang Provincial and Central Government.
5. The One Stop Servive (OSS)
a. Paksi Pinrang will simplify the number of licenses, such as disturbance permit, environmental permit, building permit, location permit, etc.
b. Paksi Pinrang will simplify the document, such as potential investors simply provide a single document for all kinds of permissions needed.
c. Paksi Pinrang will facilitate the licensing in the province and BKPM, such as the maintenance of Principle License (FDI), the import duty engines, etc.
6. Licensing Service Online System (SPIPISE)
a. Paksi Pinrang would facilitate the potential investors to acquire online rights ases.
b. Paksi Pinrang will facilitate the licensing through SPIPISE, such as input permission FDI through SPIPISE.
c. Paksi Pinrang would facilitate the potential investors to acquire access rights investment activity report (LKPM) Online, such as input LKPM periodically conducted online.
7. Regional Tax Incentive (KID)
a. Paksi Pinrang will provide reductions, waivers, or regional tax exemptions, such as land & build tax, the underground water tax, advertisement tax, etc.
b. Paksi Pinrang will provide a reduction, relief or exemption levies, such as build permit, usiness licenses fisheries, etc.
c. Paksi Pinrang will provide funds stimulants, such as seedlings or seeds or fertilizers to help farmers to increase productivity.
d. Paksi Pinrang will provide capital assistance, such as aid to farmers' groups, etc.
8. Construction stages
a. Ensure that the licensing documents and the environment and meets the requirements have been met.
b. Ensure safety in the construction phase.
9. Commercial operation
a. Ensure investors have had a project operating license in accordance with law.
b. Ensure security during commercial operations.
c. To provide guidance and oversight to investors on a regular basis.
| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
Stakeholders or implementers Paksi Pinrang as follows:
a. Regent Pinrang : Paksi initiator Pinrang
b. DPMPTSP : investment policy design (4 policy) and ensures consistently implemented Paksi Pinrang
c. Regional Organizations (OPD) : facilitation Paksi Pinrang such as infrastructure, regional tax incentives, guidance and supervision, and technical assistance / capital.
d. Civil Society Organizations (CSOs): Paksi Pinrang ensure appropriate statutory provisions.
e. Canadian International Development Agency and the Corruption Eradication Commission (KPK) : assistance (support) improved public services.
| 8. What were the most successful outputs and why was the initiative effective?
Output Paksi Pinrang form of potential investors who are interested in investing in Pinrang as follows:
a. Shipbuilding industry (ship repair - ship building): Investors Japanese (Tsuneishi Group) in collaboration with local entrepreneurs (PT. Baruga Asrinusa Development) to form a joint venture as an investor FDI. Needs 100 hectares of land, 450 billion investment plan (phase I), the absorption workforce of 3,000 people.
b. Hydroelectric Power Plant (HEPP): Investor Malaysia in collaboration with national employers (PT. Mega Karya Energi) as a domestic investor for a capacity of 2 x 40 MW. 10 hectares of land requirement, the investment plan of 1.3 trillion rupiah (phase I), the absorption workforce of 1,000 people. Investors as well as SOEs namely PLN for hydroelectric power capacity of 2 x 65 MW land area of 5 hectares.
c. Property development such as housing: there are 11 local investors (PT. Sarana Sukses Persada, PT. Hartha Mas Abadi, CV. Simple, PT. Faralindo Intama Sari, CV. Golden Queen, PT. Widya Tunggara Karya, CV. Ilham Jaya Batara, CV . Bambu Kuning Perkasa, CV. Pole Waliwali, PT. Sinergi Jaya land, and CV. Kalloloe) to use an average of 1-3 hectares of land, estimated total investment of 150 billion rupiah and labor absorption 30 -50 people per project.
d. Commercial Facility Development (fuel depot): National Investor (PT. Bumi Sarana Migas) for the construction of fuel depot for the MFO, requires two hectares of land, plans investment of 15 billion rupiah, and the absorbance of a workforce of 50 people.
e. Seaweed Processing Industry (carrageenan): Chinese Investors FDI (PT Biota Laut Ganggang) for development activities seaweed processing factory, needs 32 hectares of land, the realization of investment of 300 billion rupiah, and labor absorption of 400 people.
f. Wood Processing Industry: Domestic (PT. Albasia Pinrang Sejahtera) for the construction of timber processing plant into plywood and exports to several countries, needs 5 hectares, the realization of investment of 150 billion rupiah, and labor absorption of 300 people.
| 9. What were the main obstacles encountered and how were they overcome?
Obstacles or barriers in the implementation of Paksi Pinrang, include:
a. Regional Tax Incentive Policy (KID), the main obstacle is a demand incentive that exceeds the provisions of the legislation, such as the United Nations exemption granted exemption for three years, but sometimes want a longer potential investors. Such cases will be approach to potential investors by offering relief payment of taxes or other levies, such Disturbance Permit, build permit.
b. Regional Aid Policy (KKD), the main obstacle is the pricing of land by investors sometimes below market prices, for example, the market price of 25,000 rupiah / m2 but offered more below. Cases like this will do the negotiations with the land owners with local government facilities by offering other benefits.
c. The One Stop Service (OSS), the main obstacle is licensing at the Central Government level that require considerable time and should under all relevant ministries. The solutions that we do through BKPM for facilitation to the relevant ministries.
d. Licensing service online system (SPIPISE), the main obstacle is a disorder which result in slow data network licensing. The solution is to do a manual data input.