REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Investment Coordinating Board (BKPM) said it will simplify the licensing procedure for general port projects.

Head of BKPM Franky Sibarani said on Monday that simplification is needed to reduce the number of days needed to complete the licensing procedure from normally 3 years.

The country plans to build more ports to implement the government's vision to make the country a world maritime axis, Franky said when visiting Teluk Lamongan , Surabaya on Monday .

The government hopes to build 24 new ports until 2019.

"If a port project would need three years only for licensing procedure it would be almost impossible to carry out and finish development of 24 port projects in five years until 2019," he said.

He said in the electricity sector the licensing procedure has been simplified reducing the number of days needed to wrap up licensing procedure to 256 days from normally 930 days.

The same method of simplification could be made in the port sector, he said.

He said BKPM would coordinate with related ministries or agencies to accelerate the process of licensing.

"In a meeting with Pelindo III (state-owned port operator), BKPM and the Integrated Service Capital Investment Board for One Stop Service (BPM-PTSP) Gresik , an agreement has been reached to simplify the procedure," he said.

"We will make a list of licenses to see among the licenses for which we could finish the process faster," he added.

He said the experience of Pelindo III in seeking the license would be a great help in studying the plan.

Franky also visited an industrial estate project, Java Integrated Industrial Port Estate (JIIPE).

The industrial estate in Manyar, Gresik District, is built by PT AKR Corporindo in cooperation with PT Pelabuhan Indonesia (Pelindo) III.

Franky said the government gives priority to development of industrial estate to encourage investment.

In the period of 2015-2019, the government plans to build 15 new industrial estates including 13 outside Java. So far development of industrial estate have been concentrated in Java.

"Through visit like this, BKPM wants to make sure that investment projects would run as expected and at the same time we could see problem that need sorting out and find a solution. That is part of the duties of BKPM called the bottle-necking, Franky said.

Licensing procedure is a potential drag for the development of the 24 ports to be built by the government, he added.

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