The Investment Coordinating Board (BKPM) is a government agency which is responsible to formulate the national investment policies and planning, promotion, licensing, control and evaluation. The investment approvals and consecutively the operational licenses issued by BKPM, are based on the delegations of authority to BKPM by 13 sectoral Ministers who are responsible for the national management of the respective sectors. The investment approval also includes the granting of incentives and facilities.

Investment in this regard refers to any direct capital investment which is made under the framework of the Law No. 1/1967 on Foreign Capital Investment and the Law No. 6/1968 on Domestic Capital Investment. Thus, investment incentives and facilities are incorporated in any BKPM approval and license.

In addition to BKPM, each of the provinces in Indonesia has a regional investment service agency, namely the Regional Investment and Promotion Board (BPMP). BPMP is headed by a Chairman, who is a subordinate of and responsible to the Provincial Governor.

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