3 HOURS INVESTMENT LICENSE SERVICE (APRIL 2017)


BKPM Regulation No. 14/2015 as amended under BKPM Regulation No. 6/2016 introduces new kind of license, namely the “investment license,”  which is basically  the same function as a principle license as preliminary license to carry out investment  activity. This investment license can be applied by new investors or existing PT.PMA or PT.PMDN for expansion project.

To obtain this investment license, there are certain criteria have to be satisfied (see Table below).  Subject to meeting all correct and complete applications, BKPM will process and issue the investment license within 3 hours.

As it has the same function as principle license, after obtain this investment license, it is still required to apply and obtain business license (IU) if the business is ready to start commercial activity.

Based on BKPM’s Press Release on 1 December 2015, within the three hours, the investors are supposed to receive eight preliminary permit documents including this investment license as follows:

 

1)      Deed of Establishment and its approval, issued by the Notary and Minister of Law and Human Rights

2)      Tax Registration Number (NPWP),  issued by the Ministry of Finance

3)      Company Registry Certificate (TDP) issued by the Ministry of Employment

4)      Foreign Worker Utilization/Placement Plan (RPTKA)’s issued by the Ministry of Employment

5)       Work Permit to Employ Foreign Worker ( IMTA) issued by the Ministry of Employment

6)      Import Identification Number for Producer (API-P) issued by the Ministry of Trade

7)      Custom Identification Number (NIK)  issued by Ministry of Finance

8)      the land availability information  issued by the Ministry of Agrarian and Spatial Planning.

 

To apply the investment license, all investors or candidate shareholders and candidate directors of the company are required to be present in BKPM to submit the application form and supporting documents directly to BKPM. If unable to present at BKPM, then they can be represented by another shareholder based on a power of attorney (original letter has to be brought).  Documents such as copy of identities and flowchart of business activities workflow from raw materials processing until finished products are also required to be brought.

The following are the basic criteria of investment that eligible to obtain the investment license:

 

 Criteria

 

 Minimum investment value

 Rp 100.000.000.000 (one hundred billion Rupiah) or its USD
 equivalent

 Minimum Indonesian workers

 1000 (one thousand) persons

 Investment activity

 Certain infrastructure projects in energy, telecommunication,
 transportation, and construction sectors

 Location

 -         At special economic zone (KEK); or

 -         Industrial zone; or

 -         Other locations which receive  Inland free trade facility

 

Disclaimer: This article is intended as general information only and it does not constitute a legal advice. We accept no responsibility for any loss that may arise from reliance on this information. Please contact us if you need full legal advice.