Pursuant to Article 25 (4) of Law Number 25 in 2007 on Investment, it is stipulated that any investment companies that will carry on business activities in Indonesian Republic teritory is obliged to obtain license in accordance with provisions law and regulations from the authorized agency unless otherwise specified in the law. Investment license as described, may be obtained through One Stop Service (PTSP) for Indonesia Investment Coordinating Board (BKPM)/ Provincial Investment Agency (PDPPM)/ the Agency Organizing One Stop Service in the Province/ the Regency/ Municipality Investment Agency (PDKPM)/ the Agency Organizing One Stop Service in the Regency/ Municipality.
Procedures for obtaining investment licensing and non-licensing in Indonesia, one of them is regulated in Regulation of Chairman of BKPM Number 5 in 2013 on Licensing and Non-Licensing Investment Procedures, that has been amanded by Regulation of Chairman of BKPM Number 12 of 3013 on Amandements to Regulation of Chairman of BKPM Number 5 in 2013 on Investment Licensing and Non-Licensing Procedures.
Such regulation is intended as guidelines for implementation of Investment Services related to procedures for submission and requirements of investment licensing and non-licensing application which are addressed to the officials at the agency Organizing One Stop Service in Investment field and business actors and other community.
In addition to matters above, such regulation also aim at:
As for Procedures of Submission and Requirements for Investment Licensing and Non-Licensing Application which are regulated in such regulation are as follows:
Principle License of Investment
A. Application for Principle License of Domestic Investment (PMDN)
a. For establishment of a new business the Application may be submitted by:
b. Joint Venture Company (PMV) may become a shareholder of the Investment Company on condition that in accordance with provisions of laws and regulations.
c. Equity participation (penyertaan modal) by Joint Venture Company the shares of it owned by Domestic Investor or any element of foreign capital, is required as national equity participation.
d. Equity participation of Joint Venture Company is temporary and may not exceed period of 10 (ten) years and mey be extended a maximum of 5 (five) years.
e. Application is submitted to One Stop Service for Indonesian Investment Coordinating Board (PTSP BKPM), One Stop Service in the Province or One Stop Service in the Regency/ Municipality in accordance with its authority, using an application form as specified in attachment I-A, Regulation of Chairman of Indonesia Investment Coordinating Board (BKPM) No. 5 in 2013 in conjunction with No. 12 in 2013.
f. In the process of issuance of Principle License for Investment in Trade business field and/ or certain business field,w hen necessary the Applicant/ Company must give a presentation before the officials of One Stop Service in accordance with its authority.
g. Application for Principle License as intended is completed with the following requirements:
B.Application for Principle License of Foreign Investment
Foreign investment is an investment by building, buying or acquisition of the company. Foreign investment is investment activity in Indonesian teritory either full foreign investment or as a partnership with the local investment. (Article 1 law No 25 in 2007).
Application may be submitted before or after the company has obtained Indonesian legal entity in the form of Limited Liability Company (PT) that has been legalized by the minister of Law and Human Rights. For application for Principle License submitted by the legal business entity from June 1, 2014 must be conducted online through online-spipise.bkpm.go.id
In case of the Application, before having a status of Indonesian legal entity, it can be submitted by:
Application for Principle License of Foreign Investment after the company obtained a status of Indonesian Legal Entity in the form of Limited Liability Company is submitted by the Board of Directors/ Management of the company.
Principle License may not be issued if the application does not comply with:
Application for Principle License for Foreign Investment is submitted to One Stop Service for Indonesian Investment Coordinating Board (PTSP BKPM), One Stop Service for Free Trade Zone and Free Port Zone (PTSP KPBPB), One Stop Service for Special Economic Zone (PTSP KEK) in accordance with its authority, using an application form as specified in attachment I-A, Regulation of Chairman of Indonesia Investment Coordinating Board (BKPM) No. 5 in 2013 in conjunction with No. 12 in 2013, being completed with the following requirements:
a. For the applicant has not yet obtained in Indonesia legal entity and the application is:
Other national government, attaches a document (surat) from the government agency of the relevant country or document issued by the Embassy/ representative office of the relevant party in Indonesia.
Foreign individual, attaches a copy of valid passport specifying clearly the name and signature of the owner.
Foreign business entity attaches a copy of articles of association/ incorporation in English or its sworn translation in Indonesian Language specifying the formation of the latest Board of Directors.
For Indonesian individual attaches Resident’s ID Card and copy of Taxpayer Registration Number (NPWP) and for Indonesian legal entity attached Deed of Establishment of the Company and its Amendments completed with legalization/ notification from the Minister of Law and Human Rights and copy of Taxpayer Registration Number (NPWP)
b. For the applicant that has obtained Indonesian legal entity in the form of Limited Liability Company attaches:
Copy of the Company’s Deed of Establishment and its amendments completed with legalization/ notification from the Minister of Law and Human Rights as well as copy of the Company’s Taxpayer Registration Number.
Personal identity of shareholder, in the event of the shareholder is:
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