Some policy programs have been made by the Indonesian Government to create a better investment climate. In January 2016, the Indonesia Investment Coordinating Board (BKPM) launched the 3 Hours Investment License Service policy which is aimed to significantly cut down the length of investment license process.
In line with its title, 3 Hours Investment License Service policy sets the timeframe of investment license process in BKPM will be finished in maximum 3 hours. Previously, the process took more than 23 days, so it means 3 Hours Investment License Service drastically save time up to 552 hours for investors.
Indeed, 3 Hours Investment License Service policy is considered as a very good news for investors. 3 Hours Investment License Service not only cuts down the bureaucracy, but also the corruption practices potential that is usually vulnerably created by the long process.
In order to know more about the policy, here are 4 important things that you, especially investors, need to know about 3 Hours Investment License Service policy:
First, the different procedure and requirements based on the legal status of company who applies for investment license. If the company has not obtained its legal entity status, BKPM states all the shareholders must be physically present with their passport or other identity documents. Each shareholder may delegate his/her presence to another party based on the legitimate power of attorney.
Meanwhile, if the company has already obtained its legal entity status, all the shareholders do not have to be physically present. The company’s representatives, either shareholders or directors bring the deed of company establishment and its amendment, certificate of company registration, passport or identity card of the director, and flowchart on business activity workflow.
Basically, 3 Hours Investment License Service will produce 8+1 (nine) license types for company that has not obtained its legal entity status. The number of license types might be less depends on the company’s need, if the company has already obtained its legal entity status.
The 8+1 license types are investment license, deed of establishment and approval, tax registration number, certificate of company registration, foreign workers recruitment plan, work permit, importer identification number, customs registration number, letter on land availability information (if required).
The status of company’s legal entity will also influence the investment license process timeframe. As mentioned before, the process will take maximum 3 Hours as long as all the requirements are complete. But the timeframe would be faster, less than 3 hours if the company has obtained its legal entity status.
Second, the process of investment license, deed of establishment and approval, foreign workers recruitment plan and work permit will take most of the process time. The issuance of those four licenses will take around 48 minutes, while the rests will only take around 15 minutes.
Third, the cost must be borne by investors. Basically, the investor will be charged only for notary cost of establishment deed and its amendment and work permit cost. The notary cost of establishment deed is around Rp16,2 million until the official approval, and the notary cost for amendment is around Rp15 million. Meanwhile, the cost of work permit refers to the non-tax state revenue regulation.
Fourth, 3 Hours Investment License Service Policy is not only for new investors, but also the existing investors who want to convert their status, expansion business license and supply chain with the minimum investment realization Rp100 billion and/or absorb 1000 workers.
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