Indonesia Investment Coordinating Board (BKPM) confirms on Google’s investment plans in Indonesia this year. BKPM is sure the permit issuance will be smooth and there will be no regulation difficulties that may hinder Google from investing. “They (Google) have confirmed their investment here,” said Gita Wirjawan, Chief of BKPM.
However, Gita admitted that he hasn’t known yet about the numbers invested. He predicted investment value in Indonesia will be bigger than the ones in Thailand, Singapore and Malaysia. “According to calculation, the value will be much bigger,” he stated. For BKPM, this plan is a positive signal for global business that Indonesia can be a profitable investment destination. “This can be a good branding for Indonesia. It shows to all investors in the world that a company as big as Google trusts its investment portfolio in Indonesia.”
The Director of Investment Deregulation, Indra Darmawan, adds Google needs to settle all matters regarding regulations in online advertising and security of data center. This far Indonesia hasn’t yet had clear and firm regulations about those subjects particularly about advertising through online media. “Google asks for clarity on whether or not it is permissible to generate revenue through online advertising because so far it’s not clear yet,” he said.
BKPM admits on the rigidity to regulate businesses involve in cross-border internet trading. On the other hand, a company as big as Google wants the policies, rules and regulations firm and standardize. Moreover, as stated by Indra, BKPM hasn’t yet had any instruction from Ministry of Information and Communication regarding policies on data center. He promised to monitor the progress closely and find the best solution so that this grand investment plan can go smoothly. BKPM informs that it has communicated all aspects of regulations regarding development of data center to Google. “We help in terms of making sure that no problem occurs in issuing business permit. But, so far all is clear,” he said. For more reading, go to “About Google’s Plan in Indonesia, The Minister of Economics is Not Yet Sure”