Indonesia's Investment Coordinating Board
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.