Plantation sector is one of areas that is open to Foreign Investor. Based on Presidential Regulation No.39 of 2014 on List of Business Fields That Are Closed to Investment and Business Fields that Are Conditionally Open For Investment (“Negative Investment List”), Foreign Investor are allowed to own up to 95% shares in Plantation Business in Indonesia.
However, before starting up a Plantation Business in Indonesia, it is compulsory for the Foreign Investor to obtain Plantation Technical Recommendation first as regulated on Directorate General of Plantation Decision No. 214/KPTS/HK. 320/8/2014 on Plantation Technical Recommendation In The Frameworks of Investments. The Plantation Technical Recommendation is a technical considerations given by the Indonesia Government through Director General of Plantation used for obtaining foreign investment licenses, especially the following licenses:
Plantation Technical Recommendation can be acquired by submitting application letters addressed to the Director-General of Plantation of the Indonesian Ministry of Agriculture. The Ministerial has Assessment Team to check the correctness and completeness of that application letters and requirement documents.
If the application is not yet complete, the Assessment Team will return it to the applicant and ask them revise the application. Further, if the application meets all requirements, the Assessment Team will deliver it to the Secretariat of Director General of Plantation to be examined within 15 days. After that such of examinations, the Director General of Plantation of the Indonesian Ministry of Agriculture will issue the Plantation Technical.
However, if the application is rejected, the Director General of Plantation will return the application back to the applicant with the reasons of that rejection. Overall, the process to obtain Plantation Technical Recommendation will take approximately 30 working days since the submission of the first application.
All requirements needed to obtain Plantation Technical Recommendation will be tailored to the purpose of the requested recommendation. In general, the documents needed for getting Plantation Technical Recommendation are as follows:
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HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting is an Indonesian Corporate Legal Services. We assist foreign investors run their business in Plantation areas and to secure Plantation Technical Recommendations. Our knowledge, experience, and connections make us the law firm to be your legal partner in Jakarta, managing your investments in Indonesia.
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