Doing business in Indonesia 2012

COMPAR I N G R EG U L ATIO N FO R D O M EST IC FIRMS IN 20 C IT IES AND WIT H 1 83 ECONOMI ES

Doing Business in

Indonesia 2012

COMPA RI NG REGU L AT IO N FO R D O M E STIC FIRMS IN 20 CITIE S A ND W ITH 18 3 ECO N OM I E S

A COPUBLICATION OF THE WORLD BANK AND THE INTERNATIONAL FINANCE CORPORATION

fax: 202-522-2422. 222 Rosewood Drive. Doing Business 2009.worldbank. A copublication of The World Bank and the International Finance Corporation. Danvers. Internet: www. doingbusiness.org All rights reserved. Doing Business 2010: Reforming through Difficult Times. USA. Doing Business in Indonesia 2012 and other subnational and regional Doing Business studies can be downloaded at no charge at www. telephone: 978-750-8400. The World Bank does not guarantee the accuracy of the data included in this work. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law.C. should be addressed to the Office of the Publisher. The World Bank. USA. Washington. Copies of the Doing Business global reports: Doing Business 2012: Doing Business in a More Transparent World.. fax: 978-750-4470.org. The findings. MA 01923. Doing Business 2011: Making a Difference for Entrepreneurs.com.org/subnational.org. and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.© 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington. please send a request with complete information to the Copyright Clearance Center. . The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly.doingbusiness. Doing Business in 2006: Creating Jobs. Rights and Permissions The material in this publication is copyrighted. interpretations.copyright. Inc. Doing Business 2008. For permission to photocopy or reprint any part of this work. 1818 H Street NW. including subsidiary rights. All other queries on rights and licenses. Doing Business 2007: How to Reform. This volume is a product of the staff of the World Bank Group. e-mail: pubrights@worldbank. Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004: Understanding Regulations may be obtained at www. 20433 Telephone 202-473-1000 Internet www. D. DC 20433.

and Pontianak. Comparisons with other economies are based on Doing Business 2012—Doing business in a more transparent world—the ninth in a series of annual reports published by the World Bank and International Finance Corporation. The indicators in Doing Business in Indonesia 2012 are also comparable with 352 cities from 54 economies benchmarked in other subnational Doing Business studies. Regulations affecting 3 stages of the life of a business are measured at the subnational level in Indonesia: starting a business. Surabaya. Palangka Raya. Surakarta. and registering property. Banda Aceh. Gorontalo. and other factors in consultation with the State Ministry for Administrative Reforms (Menpan). saving time. Manado. The selection criteria include the level of urbanization. . Doing Business investigates the regulations that enhance business activity and those that constrain it.org. Jakarta. In 2010. Denpasar. the Ministry of Home Affairs (MoHA) and the Regional Autonomy Watch (KPPOD). and lowering the cost of doing business. This year. The indicators are used to identify business reforms and the extent to which these have been effective in simplifying the procedures.org and www. These indicators were selected because they cover areas of local jurisdiction or practice. quantitative indicators on business regulations were analyzed for 14 cities: Balikpapan. Doing Business in Indonesia 2012 documents improvements in the 14 cities previously measured and expands the analysis to 6 new cities across the nation: Batam. Medan. population. Palembang. All data and reports are available at http:/ /subnational.doingbusiness. Mataram. political and geographical diversity. economic activity. dealing with construction permits. and Yogyakarta. The data in Doing Business in Indonesia 2012 are current as of July 2011.Contents 1 6 13 20 26 Executive summary About Doing Business and Doing Business in Indonesia 2012 Starting a business Dealing with construction permits Registering property 31 37 40 Data notes Indonesia city tables Doing Business indicators List of procedures 42 68 83 Starting a business Dealing with construction permits Registering property 98 Acknowledgments Doing Business in Indonesia 2012 is the second subnational report of the Doing Business series in Indonesia.doingbusiness. Pekanbaru. Bandung. Jambi. Makassar. Semarang.

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helps. This is also important for women entrepreneurs in a country where 60% of medium-size firms are owned or operated by women. cities that improved their business regulations since they were last measured are surpassing their peers and moving closer to the top performers. Semarang is now one of the cities where it is easier to start a business and Banda Aceh is now one of the cities where it is easier to deal with construction permits. For example. deal with construction permits in Balikpapan. It is most difficult to start a business in Manado and register property in Batam. When comparing the results from 2012 with those from 2010. Source: Doing Business database. it is easiest to start a business in Yogyakarta. Yogyakarta maintained its position among the top performers in starting a business. and register property in Bandung and Jakarta. poor infrastructure and an onerous regulatory framework are 3 major bottlenecks to business expansion. while no building permits for commercial warehouses have been issued in Gorontalo since 2008.3 Improving economic competitiveness by creating a more salutary business climate is one of Indonesia’s national priorities for 2010 to 2014. at a projected rate of 6. Across Indonesia. some ranking changes can be attributed to the addition of TABLE 1. consistent performers stay at the top. Jakarta represents the country in the annual Doing Business report. Thanks to recent business reforms. which compares regulatory practices in 183 economies around the world. despite its strong economic performance. However. encourage investments and boost employment in cities across the country. Second.1 Where is it easier to start a business. This report updates the information presented in 2010 and tracks the progress in implementation of business reforms. Yet. to provide a more comprehensive map of business regulation in the country. The summary results are presented here (table 1. Dealing with construction permits is most burdensome in Jakarta.1 Overview Ambitious and fast rising—these words aptly describe modern Indonesia. yet creating an investment climate conducive to starting and running a business. nearly 30% of firms in Indonesia start operations without being formally registered. where complying with regulations brings more benefits than costs. Amidst a global economic slowdown. dealing with construction permits and registering property. deal with construction permits or register property? Ease of Ease of dealing with Ease of starting a construction registering property permits business 7 5 12 15 9 6 8 18 17 20 10 19 2 11 16 13 4 14 3 1 1 4 8 10 17 NO PRACTICE City Balikpapan Banda Aceh Bandung Batam* Denpasar Gorontalo* Jakarta Jambi* Makassar Manado Mataram* Medan* Palangka Raya Palembang Pekanbaru Pontianak* Semarang Surabaya Surakarta Yogyakarta 12 12 1 20 12 5 1 7 9 15 4 7 16 3 18 9 19 11 17 6 19 2 11 18 12 6 14 3 15 7 8 16 12 5 Note: The ranking on each topic is based on the simple average of the percentile rankings on its component indicators. Indonesia was the third fastest growing economy among the G-20 for 2009 and it continues to post strong economic growth.5 Doing Business studies business regulations from the perspective of a small to mediumsize domestic firm. within Indonesia. Doing Business in Indonesia 2010 was the first report to go beyond Jakarta. . Indonesia faces challenges that stifle private-sector development. local regulations and practices vary from city to city. to capture these differences in 13 other cities on 3 Doing Business topics: starting a business. compared to 2 years ago.4% for 2012.1). Third. In fact. There is no single blueprint for how to grow and prosper. *Cities not benchmarked in Doing Business in Indonesia 2010 report. Skilled labor shortages. another of Indonesia’s key national development objectives.4 Making it easier to do business and invest also helps promote sustainable urbanization. First. where effective and harmonious policy design and implementation at the local level are crucial for the development of small to medium-size domestic firms—the backbone of Indonesia’s economy. It also expands the analysis to cover 6 additional cities. a few trends emerge. This is especially important in a country as decentralized as Indonesia. and Bandung in registering property. See Data notes for details. Business reforms can facilitate business start-ups.2 One of the key causes of this high rate of informality in Indonesia is the heavy regulatory burden borne by firms.1 The World Bank’s Enterprise Surveys show that Indonesian firms identify an inadequately educated workforce and high rates of informality as two of the top 10 constraints to firm investment.

In the area of starting a business. While the economic impact has yet to be measured in Indonesia. this report shows that national and local business reforms have already resulted in time and cost savings for local entrepreneurs. For example. while online systems for filing taxes cut the time it takes to pay taxes by more than half—from 560 hours in 2006 to 266 hours in 2011. labor and social security registrations in several cities. has changed over time—i.2). For example.. In dealing with construction permits time was shortened by 15%—from 186 days in 2005 to 158 days in 2011. The national government also issued legislation mandating the simplification of local licensing requirements in an effort to further encourage the development of the formal sector across the country. The data refer to the 174 economies included in Doing Business 2006. Additional economies were added in subsequent years. Doing Business in Indonesia 2012 tracks progress over time. For starting a business. INDONESIA IN THE GLOBAL PERSPECTIVE Indonesia has been active in reforming business regulations in recent years. Two years later. represented by Jakarta. *Represented by Jakarta Source: Doing Business database. how far it has moved toward the most efficient practices and regulations seen in areas covered by CITIES ACROSS INDONESIA ARE IMPROVING COMMERCIAL REGULATIONS Doing Business in Indonesia 2010 identified good practices. pointed out bottlenecks and . all Indonesian cities benefited from the nationwide reintroduction6 of a computerized system for company registration—Sistem Administrasi Badan Hukum (SABH)—and the creation of standard incorporation forms for limited liability companies. improving the quality and accuracy of the information financial institutions use in assessing the risk profiles of borrowers. In the area of starting a business. improved efficiency at the local branches of national agencies reduced the time needed for tax. improvements reduced the start up time by 70%—from 151 days in 2006 to 45 days in 2011—and the number of procedures from 12 to 8. introducing statutory time limits and eliminating or reducing fees for local licenses. According to Doing Business 2012. These consistent improvements have been recognized in the annual Doing Business report.1). The findings are encouraging: 22 business reforms at the local level have made it easier to do business since 2010. Borrowers now have the right to inspect their credit data at the Bank of Indonesia.3% of profit in 2006 to 34. Comparing an economy’s performance on set indicators at 2 points in time helps assess how much the economy’s regulatory environment. following a 2007 ministerial decree encouraging the establishment of one-stop shops nationwide.1 Tracking Indonesia’s* progress over time in the areas measured by Doing Business 2006– 2012: Distance to the frontier Distance to the frontier (percentage points) 0 HIGHEST PERFORMANCE GLOBALLY 10 20 30 40 50 60 70 80 90 100 LOWEST PERFORMANCE GLOBALLY provided recommendations for improvements across 14 cities in Indonesia. DB2012 DB2006 Starting a Dealing with Registering business construction property permits Getting credit Protecting investors Paying taxes Trading across borders Enforcing Resolving contracts insolvency Note: The distance to frontier measure illustrates the distance of an economy to the “frontier”—a synthetic measure based on the most efficient practice or highest score achieved by any economy on each of the indicators in 9 Doing Business indicator sets (excluding the employing workers and getting electricity indicators). and 0 the most efficient regulatory environment (frontier practice). 6 new cities. Some local governments have taken advantage of the national call to simplify local licensing requirements by merging procedures. 10 out of 14 cities show improvements (table 1.2 DOING BUSINESS IN INDONESIA 2012 FIGURE 1. Although these 2 licenses are governed at the national level by the Ministry of Trade. Doing Business. In addition.e. some of which have businessfriendly regulatory frameworks. The vertical axis represents the distance to the frontier. the issuance of these licenses is under the authority of the local governments.5% in 2011. all 14 cities measured for the second time show improvements. and among the top 5 within the East Asia and the Pacific region. The results for Indonesia show that the pace of change varies widely across the areas measured (figure 1. For dealing with construction permits. Indonesia. as measured by Doing Business. Palangka Raya. but implementation of the new regulations still varies across the cities. This affected the required business trading license—Surat Izin Usaha Perdagangan (SIUP)—and the company registration certificate—Tanda Daftar Perusahaan (TDP). The total tax rate was reduced from 37. The national government set statutory time limits and eliminated or reduced fees for these 2 licenses. is among the top 50 economies improving the most to close their gap with the top performers globally. among this year’s top performers in dealing with construction permits is Jambi—a city that was not measured in Doing Business in Indonesia 2010.

Denpasar. Location and zoning clearances.501. complying with local requirements is fast—just 1 procedure over 5 days to obtain the business trading license. This is 13 days faster and 8% cheaper than 2 years ago. in charge of the technical aspects. almost half of the cities measured abolished the fees of several local licenses— including the business trading license (SIUP) and the company registration certificate (TDP). Surabaya and Surakarta—completely overhauled their building permit process. Results have been promising. the administrative efficiency of involved agencies was improved. Banda Aceh and Surabaya no longer require a certificate of company domicile from all businesses. starting a business is easiest in Yogyakarta and most difficult in Manado. Eleven9 of the 14 cities previously measured raised the tax-free value.767).850).7% of income per capita—on this indicator. Furthermore. Some cities—such as Banda Aceh.123) to IDR 19.247. companies had to go through 9 different steps.874) and wait for 103 days before they could start construction. the architectural assessment. requirements for simple commercial buildings were simplified. for example. improvements in the water delivery system and telephone network cut the time required to connect to these utilities by 13 days and 55 days.523). Within the country. can be completed in 1 day in Banda Aceh. Banda Aceh merged preconstruction clearances with the procedures to obtain the building construction permit—Izin Mendirikan Bangunan (IMB). in line with national regulation.2 Twenty-two Doing Business reforms at the local level made it easier to do business since the 2010 report Local reforms National reforms Starting a business                               City Balikpapan Banda Aceh Bandung Denpasar Jakarta Makassar Manado Palangka Raya Palembang Pekanbaru Semarang Surabaya Surakarta Yogyakarta Starting a business       Dealing with construction permits to formally register their lands by raising the tax-free limit on properties as their market values increased across Indonesia. following the enactment of the Law on Regional Tax and User-Charges7. but allows regions to grant higher tax exemptions.645 ($2. the government continues to encourage entrepreneurs . At 22% of income per capita.851. where the business licensing process was consolidated at one-stop shops. 10 out of the 14 cities measured in both 2010 and 2012 improved the construction permitting process. the average time required to deal with construction permits decreased by one month from 106 days in 2010 to 77 days in 2012. The 2010 sets a floor of IDR 60 million. Back in 2010. which calculates the fees and issues the permits. the planned infrastructure cross-check and the border verification are now carried out internally by the Civil Work Agency. Surakarta and Yogyakarta consolidated all local business licenses into a single package.063 ($1. COMPARING BUSINESS REGULATIONS ACROSS 20 CITIES Starting a Business Starting a business takes. 33 days and costs 22% of income per capita. Specifically. These joint efforts by national and local governments have paid off. Similarly. But overall. The same registration takes 2 weeks in Jakarta. Differences are due to local licensing requirements. Jakarta and Balikpapan have followed suit.290 ($1.093. in coordination with the one-stop shop. the country still lags behind the Asia-Pacific Economic Cooperation (APEC)11 average—6 procedures. Labor registration. Data for Jakarta are from Doing Business 2012. in Pontianak. nine10 of these only up to the minimum. As a result. 9 procedures. The reforms occurred between August 2009 and July 2011.063 ($1. Indonesians wait about 1 month longer than Malaysians and spend 4 times as much as Thai entrepreneurs to start a business. The average cost dropped from IDR 22. By contrast. thanks to the one-stop shop operating since 2010. a new national law8 allows local governments to implement regulations to increase the tax-free limit. In the last 2 years. on average. In Yogyakarta and Palangka Raya. the company registration certificate and the location permit. respectively. Semarang. The average time and cost to start a business in Indonesian cities were reduced by more than 25% since the 2010 report. 23 days and 7. In addition. One-stop shops were created. Similarly. The old national law of 2008 imposed a maximum non-taxable value at IDR 60 million ($5. an entrepreneur has to apply separately for each license and wait 15 days. fees reduced or eliminated and the utility infrastructure improved. Now construction begins after only 5 procedures that are carried out in 26 days at an expense of IDR 15. Public notary fees constitute the biggest  Doing Business reforms making it easier to do business Note: A reform is counted as 1 reform per city per indicator. the local branches of national agencies are not equally efficient in all locations. In the area of registering property. pay IDR 19. the average cost to start a business in Indonesia is almost 3 times higher than the APEC average. Source: Doing Business database.OVERVIEW 3 TABLE 1.

Neighboring countries—Malaysia.3 Best practices in Indonesia compared internationally Global rank (183 economies) How Indonesia would compare globally 4 Indicator Number of procedures to deal with construction permits Days to deal with construction permits Days to register property Cost to deal with construction permits Number of procedures to register property Number of procedures to start a business Cost to start a business Days to start a business Cost to register property Source: Doing Business database. Jakarta. However. Yogyakarta Gorontalo. it is cheapest to deal with construction permits in Jambi (32% of income per capita). Denpasar. the average cost to register property in Indonesia is about triple the cost of its neighbors—in the East Asia and the Pacific region.4 DOING BUSINESS IN INDONESIA 2012 TABLE 1. a new business has to pay an additional billboard tax and a yearly cleanliness fee—IDR 513. Obtaining a location permit.3). Best performing city within Indonesia Medan.1% of the property value and in APEC countries. Variations are mainly due to the time required to obtain all the municipal clearances and permits. costs IDR 750. Thailand and Vietnam—have formed regulatory reform committees to improve the regulatory framework for businesses. Among the 20 cities measured. registering property takes only 12 days—almost twice as fast as in Mandaluyong. for example. Following the example of Banda Aceh could yield a construction permit in only 42 days. the same process takes as long as 158 days. This provides a good example of a public-private partnership that helped inform and monitor the implementation of the national business climate reform agenda. National governments can also use Doing Business data to monitor how efficiently the local branches of their agencies implement national regulations. Yogyakarta Jakarta.8% in Pontianak to 30. cheaper than in 141 of 183 economies worldwide. Looking beyond its borders to regional and global good practices could help close the gap between cities in Indonesia and the global leaders on these indicators. The same is true for the cost of registering property. cities in Indonesia have a lot to gain from adopting the regulations and practices that are working elsewhere in the country—especially in the area of construction permits. Surakarta. an Indonesian entrepreneur carries out an average of 6 procedures over 33 days. Benchmarking exercises like Doing Business inspire governments to improve business regulations.000 ($72) in Pekanbaru but just IDR 50.8% in Manado. All necessary clearances and permits can be obtained in just 42 days in Banda Aceh.281 ($49)—before obtaining the permits needed to start a business. China. The Malaysian government. has set up a regulatory reform committee (Pemudah)12 reporting directly to the prime minister. In Jakarta. because local governments have a hard time explaining why doing business in their city may be harder than in neighboring locations. an entrepreneur in Makassar must pay more than 4 times as much (131. Across the 20 cities surveyed. Palangka Raya.5% of income per capita).7%. Palangka Raya Jakarta 42 days 12 days 32% of income per capita 6 procedures 5 27 42 83 a construction permit could be obtained with only 7 procedures (table 1. In contrast.5 times faster than Malaysia and twice as fast as in Thailand—there are considerable variations among cities. The example of the Philippines is telling. Pontianak. Taiwan. for example. Eighteen of the 20 cities measured require 6 standard procedures. paying 11% of property value to transfer a property title. the fastest city in the Philippines. Subnational comparisons between cities within the same country can be even stronger drivers of reform. In Manado. They uncover potential challenges and identify where policy makers can look for good practices. The good news is that sharing a national legal framework facilitates the implementation of existing good local practices within a country. Dealing with Construction Permits The number of requirements to build a warehouse and connect it to utilities ranges from 7 in Medan and Yogyakarta to 14 in Manado.000 ($5) in Banda Aceh. adoption of the good practices that exist within Indonesia would still leave the country lagging behind more than 100 other economies globally. for starting a business. but Semarang and Batam require 1 additional procedure in the process. . the total start-up cost ranges from 17. Property transfer fees vary according to the tax rates on land and building acquisitions set by the provincial governments. the average is just 3. In fact. the average cost is 4. where it takes 22 days. Variations in cost are connected to the cost of the building construction permit (IMB).81% of property value 109 111 117 151 expense—half of the total cost. Semarang Balikpapan. Yogyakarta Performance 7 procedures Banda Aceh Manado Jambi All cities except Batam. Registering Property Across the 20 cities measured. Although the average time required to deal with construction permits is 74 days—3. with members from the government and the private sector. Adopting Jambi’s cost structure for dealing with construction permits would translate into an entrepreneur paying just 32% of income per capita. In Manado. allowing this hypothetical city to rank 5th globally for its speed. At 11% of the property value. If a hypothetical city in Indonesia were to adopt the practices of Medan and Yogyakarta. LEARNING FROM EACH OTHER Cities today have the advantage of learning from the experience of others by introducing business reforms that have been successfully implemented by neighbors. Doing Business in the Philippines 2011 showed that 65% of the cities benchmarked for the second time since 2008 made positive 8 procedures 18% of income per capita 27 days 10. Local licensing fees vary among cities.

Singapore. 5. 4. 3. These 11 cities are: Balikpapan.14 That amounted to savings for firms equivalent to £3. Vietnam. In 2010.org. World Bank. 2010. Based on this experience. at both local and national level. Law No. Available at http://www. speeding up the start-up process by an average of 16 days. Ibid. 12. Japan.” IMF Country Report No. Washington. China. 2009. Brunei Darussalam. Surakarta and Yogyakarta. Indonesia Country Profile. Law No.uk. but they also pay attention to managing the flow of new regulations. Russian Federation.pemudah. Palembang.13 The experience of Davao City highlights how reform-minded local governments can use Doing Business indicators to motivate and sustain reform efforts. . Enterprise Surveys.OVERVIEW 5 business reforms in at least 1 of the 3 areas measured—starting a business. Jakarta. a new target was set: to cut the ongoing costs of regulation by another £6. Online at http://www.689) and Surabaya to IDR 75 million ($ 7. Consistent reformers have a long-term agenda and continually push forward. In the United Kingdom. Davao City introduced a single assessment of all business-permit fees at its City Treasurer’s Office. Australia. Indonesian Women’s Business Association available at http://iwapi-pusat.K. introduces business reforms every year. 2. Nineteen U. They stay focused by setting specific goals and regularly monitoring progress. Surabaya. instead of requiring visits to different agencies. World Bank. 2010.my. Jakarta raised the tax-free value to IDR 80 million ($ 7. NOTES 1. 28 of 2009. The computerized system was first introduced in 2001. Chile. or mayor—is central to success. Thailand. Other policy makers—such as the Dutch Advisory Board on Administrative Burden (Actal) and the Better Regulation Executive in the United Kingdom—not only routinely assess existing regulations.5 billion by 2015. Davao City was one of the most improved cities in terms of business regulations in Doing Business in the Philippines 2011.208). Political will and vision coming from a reform champion—whether the president. China. Indonesia’s Ministry of Law and Human Rights reopened access to the computerized system. Indonesia. “Indonesia: 2010 Article IV Consultation. Hong Kong SAR. DC: World Bank Group. Thanks to this and other reforms. International Monetary Fund. China. 6. Taiwan. New Zealand. 14. As a result of its business reforms. The 2010–2014 National Medium-Term Development Plan (RPJMN 2010–2014) is the second phase of implementation of the 2005–2025 National Long-Term Development Plan (RPJPN 2005–2025). Pekanbaru. Malaysia. New initiatives are under way. United States. Mexico. Republic of Korea. Cooperation across different parts of a bureaucracy. at IDR 60 million. Available at http:// www. government departments participated in the program. Doing Business in the Philippines 2011.5 billion. Semarang. such as the UK’s “one in. 11. The top-ranked economy on the ease of doing business. Denpasar. gov.gov. 10/284. 15. according to the government. and allowed businesses to start operations without waiting for inspections from its City Planning and Development Office or its Bureau of Fire Protection. one out” system and its Red Tape Challenge. Canada. 7. these inspections now take place after a business is up and running. 2011.5 billion. but was halted in mid2009 due to a legal dispute between the government of Indonesia and the technology vendor. Doing Business 2012: Doing Business in a More Transparent World. registering property and dealing with construction permits. 9. Papua New Guinea. Davao City cut 7 procedures.org/home. but the tax-free value remained the same as in 2010. 28 of 2009. Peru. Banda Aceh. which started with an extensive quantification exercise in the summer of 2005. is necessary for wide-ranging reforms. a program implemented from 2005 to 2010 reduced the burden of regulatory compliance on businesses by 25%. World Bank. Singapore.enterprisesurveys. 8. consistent reformers are inclusive—involving all relevant actors and institutionalizing the reform effort. 13. Bandung implemented this law. 10. minister.bis. In May 2010 the target was met: a total cost reduction for businesses of £3. Makassar.15 Cumulative business reforms across a range of topics produce the best results. Washington. DC: World Bank Group. Philippines. Moreover. article 87 (4).

The Doing Business project takes a different approach from perception surveys. primarily small and medium-size companies and measures the regulations applying to them through their life cycle. published in 2003. The objective: regulations designed to be efficient in their implementation. Here.6 About Doing Business and Doing Business in Indonesia 2012 A vibrant private sector—with firms making investments. drew on perceptions data from expert or business surveys that capture often onetime experiences of businesses. The project has benefited from feedback from governments. governments around the world have implemented wide-ranging reforms. They also pay attention to the laws. Such surveys can be useful gauges of economic and policy conditions. such as completing business start-up formalities in a one-stop shop. in the 1980s. and registering property as they apply to domestic small and medium-size enterprises. This year’s report covers 11 indicator sets and 183 economies. Doing Business in Indonesia 2012 encompasses 2 types of data. Based on standardized case studies. Peru. Until 10 years ago. A fundamental premise of Doing Business is that economic activity requires good rules. But few perception surveys provide indicators with a global coverage that are updated annually. These include rules that establish and clarify property rights. A regulatory process such as starting a business or registering property is broken down into clearly defined steps and procedures. Doing Business builds on Hernando de Soto’s pioneering work in applying the time and motion approach first used by Frederick Taylor to revolutionize the production of the Model T Ford. some Doing Business indicators give a higher score for more regulation. The report covers only those 3 areas of business . to be accessible to all who need to use them and to be simple in their implementation. creating jobs and improving productivity—promotes growth and expands opportunities for poor people. De Soto used the approach in the 1980s to show the obstacles to setting up a garment factory on the outskirts of Lima. transactions. This approach complements the perception surveys in exploring the major constraints for businesses. The second are time and motion indicators that measure the efficiency and complexity in achieving a regulatory goal (such as granting the legal identity of a business). practitioners and reviewers. It looks at domestic. as experienced by the businesses themselves and set out in the regulations that apply to them. Ten topics are included in the aggregate ranking on the ease of doing business. Some give a higher score for a simplified way of implementing existing regulation. Doing Business goes beyond identifying that a problem exists and points to specific regulations or regulatory procedures that may lend themselves to reform. cost estimates are recorded from official fee schedules where applicable. And its quantitative measures of business regulation enable research on how specific regulations affect firm behavior and economic outcomes. such as stricter disclosure requirements in related-party WHAT DOING BUSINESS IN INDONESIA 2012 DOES NOT COVER Just as important as knowing what Doing Business in Indonesia 2012 does is to know what it does not do to understand what limitations must be kept in mind in interpreting the data. But governments committed to the economic health of their country and opportunities for its citizens focus on more than macroeconomic conditions. it presents quantitative indicators on business regulation that can be compared across 183 economies and over time. Accordingly. covered 5 indicator sets and 133 economies. To foster a vibrant private sector. Limited in scope Doing Business in Indonesia 2012 focuses on three topics. regulations and institutional arrangements that shape daily economic activity. The first Doing Business report.1 The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business. dealing with construction permits. The first come from readings of laws and regulations. academics.2 WHAT DOING BUSINESS IN INDONESIA 2012 COVERS Doing Business in Indonesia 2012 provides a quantitative measure of the national and local regulations for 3 Doing Business indicators: starting a business. however. Within the time and motion indicators. with the specific aim of measuring the regulation and red tape relevant to the life cycle of a domestic small to medium-size firm. there were no globally available indicator sets for monitoring such microeconomic factors and analyzing their relevance. and rules that increase the predictability of economic interactions. including price liberalization and macroeconomic stabilization programs. Rules and regulations are under the direct control of policy makers—and policy makers intending to change the experience and behavior of businesses will often start by changing rules and regulations that affect them. The first efforts. Accordingly: Doing Business in Indonesia 2012 does not measure all 11 indicators covered in the global Doing Business report.

They include measures of the extent of price controls. The choice also reflects one focus of Doing Business: expanding opportunities for entrepreneurship. there is a high correlation (0. Where relevant. the European Union’s body of laws (acquis) has now grown to no fewer than 14. One way to test whether Doing Business serves as a proxy for the broader business environment and for competitiveness is to look at correlations between the Doing Business rankings and other major economic . requires combining insights from Doing Business with data from other sources. growth and job creation. entrepreneurs may spend considerable time finding out where to go and what documents to submit. the underlying strength of institutions or all aspects of the quality of infrastructure. but they inevitably come at the expense of generality. for example. The indicator sets also do not cover all aspects of regulation in the particular area. Similarly. And it puts us on watch to change behaviors in ways that will improve not only our cholesterol rating but also our overall health. Or they may avoid legally required procedures altogether by not registering for social security. Doing Business in Indonesia 2012 measures just 3 phases of a company’s life cycle. Doing Business in Indonesia 2012 assumes that entrepreneurs are knowledgeable about all regulations in place and comply with them. In areas where regulation is complex and highly differentiated. But Based on standardized case scenarios The indicators analyzed in Doing Business in Indonesia 2012 are based on standardized case scenarios with specific assumptions. more areas of economic activity are being regulated.3 All this may be even more so for female-owned businesses. Small and medium-size enterprises are key drivers of competition. the licensing and permit system. and registering property.7 The answers were unequivocal: women and men alike pin their hopes above all on income from their own business or wages earned in employment. Such assumptions allow global coverage and enhance comparability.82) between the rankings on the ease of doing business and those on the World Economic Forum’s Global Competitiveness Index. Closest to Doing Business in what it measures is the set of indicators on product market regulation compiled by the Organization for Economic Co-operation and Development (OECD). corruption. have poorer access to credit and employ fewer workers and their workers remain outside the protections of labor law.000 poor people around the world how they thought they might escape poverty. according to country-specific research. in any city.500 rule sets. the labor skills of the population. In practice. Nor does it focus on regulations specific to foreign investment. several of them large emerging markets—are highly correlated with those on the ease of doing business (the correlation here is 0. The World Bank study Voices of the Poor asked 60. the standardized case assumes a limited liability company. These indicators are designed to help assess the extent to which the regulatory environment promotes or inhibits competition. such as the World Bank Enterprise Surveys.72). The rankings on these indicators—for the 39 countries that are covered. can get started in business and where good firms can invest and grow. the administrative burdens and legal and regulatory barriers. Inflation statistics. Enabling growth and ensuring that poor people can participate in its benefits requires an environment where new entrants with drive and good ideas. the standardized case used to construct each Doing Business in Indonesia 2012 indicator needs to be carefully defined. This choice is in part empirical: private. regardless of their gender or ethnic origin. through 3 specific indicators. or all regulatory goals. and a broader perspective on policy challenges.6 A bigger question is whether the issues on which Doing Business focuses matter for development and poverty reduction. Gaining a fuller understanding of the broader business environment. As economies and technology advance. A cholesterol test does not tell us everything about the state of our health. generating more jobs. Doing Business in Indonesia 2012 does not measure all aspects of the business environment that matter to firms or investors or all factors that affect competitiveness. the soundness of public institutions and the sophistication of the business community. and the degree of government control over business enterprises. such as that the business is located in one of the 20 cities in Indonesia measured by the report. Doing Business in Indonesia 2012 does not cover all regulations. macroeconomic stability.5 benchmarks. For example. limited WHY THIS FOCUS  Doing Business functions as a kind of cholesterol test for the regulatory environment for domestic businesses. are often based on prices of consumer goods in a few urban areas. Economies that do well on the Doing Business indicators tend to do well on the OECD market regulation indicators and the Global Competitiveness Index and vice versa. liability companies are the most prevalent business form in most economies around the world. measure security. Focused on the formal sector In constructing the indicators. the prevalence of discriminatory procedures. Doing Business measures one set of factors that help explain the occurrence of informality and give policy makers insights into potential areas of reform.ABOUT DOING BUSINESS 7 regulation that are the provenance of the local governments and where local differences exist starting a business. for example. Investors are encouraged to venture into business when potential losses are limited to their capital participation. It does not. But it does measure something important for our health. particularly in developing countries. a much broader measure capturing such factors as macroeconomic stability. aspects of human capital. dealing with construction permits. the degree of simplicity of rules and procedures. levels of informality are higher. Where regulation is particularly onerous. Informality comes at a cost: firms in the informal sector typically grow more slowly.4 Firms in the informal sector are also less likely to pay taxes. For example. Economic indicators commonly make limiting assumptions of this kind. for example. the indicators on starting a business do not cover all aspects of commercial legislation.

15 Lowering entry costs can boost legal certainty: businesses entering the formal sector gain access to the legal system. Economies with efficient business registration have a higher entry rate by new firms as well as greater business density. Doing Business in Indonesia 2012 provides 2 takes on the data it collects: it presents absolute indicators for each city for each of the 3 regulatory topics it addresses. success tends to depend more on whom you know than on what you can do. in capturing some key dimensions of regulatory regimes. While cross-country correlations can appear strong. to the benefit of both themselves and their customers and suppliers. As cities develop. For example. In this sense Doing Business values good rules as a key to social inclusion. to create jobs. Reducing start-up costs for new firms was found to result in higher take-up rates for education. have enabled a growing body of research on how specific areas of business regulation and regulatory reforms in those areas relate to social and economic outcomes. Firms may be prevented from entering the formal sector by excessive bureaucracy and regulation. and it provides rankings of cities by indicator. they strengthen and add to regulations to protect investor and property rights. they find more efficient ways to implement existing regulations and cut outdated ones.8 investment may rank lower than others that appear to be less dynamic. Judgment is required in interpreting these measures for any city and in determining a sensible and politically feasible path for reform. credit bureaus.2% increase in wage employment. Some cities may rank unexpectedly high on some indicators. Doing Business 2004 found that faster contract enforcement was associated with perceptions of greater judicial fairness suggesting that justice delayed is justice denied. Any benchmarking for individuals. efficient and implemented in a simple way. communications and utilities. The literature has produced a range of findings. global demand or technology. while competition from new entrants lowered prices by 0. how much the regulatory environment for local entrepreneurs improves matters more than their relative ranking. Meanwhile. such as a more positive economic situation. it becomes easier for any aspiring entrepreneurs. such as firm creation and employment. And some cities that have had rapid growth or attracted a great deal of . to operate within the rule of law and to benefit from the opportunities and protections that the law provides.8 DOING BUSINESS IN INDONESIA 2012 in these economies up to 80% of economic activity takes place in the informal sector. Reviewing the Doing Business rankings in isolation may show unexpected results.11 Economies where registering a new business takes less time have seen more businesses register in industries where the potential for growth is greatest. Even firms operating in the formal sector might not have equal access to transparent rules and regulations affecting their ability to compete. Recent research focuses on how business regulations affect the behavior of firms by creating incentives (or disincentives) to register and operate formally.13 There is also evidence that more efficient business entry regulations improve firm productivity and macroeconomic performance. But where regulation is transparent.12 Reforms making it easier to start a business tend to have a significant positive effect on investment in product market industries such as transport. Other studies have investigated policy changes that affected only certain firms or groups. innovate and grow. can be useful for benchmarking. to innovate and to increase productivity. It also provides a basis for studying effects of regulations and their application. So how do we know whether things would have been different without a specific regulatory reform? Some studies have been able to test this by investigating variations within an economy over time.14 Simpler business registration translates into greater employment opportunities in the formal sector. which are often sheltered from competition. and insolvency and collateral laws in providing incentives for creditors and investors to increase access to credit. together with other data sets. But for reform-minded local governments. such as those that have experienced expansionary shifts in DOING BUSINESS IN INDONESIA 2012 AS A BENCHMARKING EXERCISE Doing Business in Indonesia 2012. while many poor economies still work with regulatory systems dating to the late 1800s.2%.17 Other research found that the same licensing reform directly led to a 4% increase in new start-ups and that the WHAT RESEARCH SHOWS ON THE EFFECTS OF BUSINESS REGULATION Nine years of Doing Business data. regardless of their connections. it is difficult to isolate the effect of regulations given all the other potential factors that vary at the country level.9 Much attention has been given to exploring links to microeconomic outcomes. higher rates of job creation for high-skilled labor and higher average productivity because new firms are often set up by high-skilled workers. Generally.332 working papers are available through Google Scholar.6% and the income of incumbent businesses by 3. Lower costs for business registration encourage entrepreneurship and enhance firm productivity.16 Assessing the impact of policy reforms poses challenges. cross-country correlations do not show whether a specific outcome is caused by a specific regulation or whether it coincides with other factors. Where regulation is burdensome and competition limited. firms or economies is necessarily partial: it is valid and useful if it helps sharpen judgment. and about 2. Some 873 articles have been published in peer-reviewed academic journals.10 Many studies have also looked at the role played by courts. less so if it substitutes for judgment. One finding of Doing Business: dynamic and growing economies continually reform and update their regulations and their way of implementing them. Several country-specific impact studies conclude that simpler entry regulations encourage the establishment of more new firms: In Mexico one study found that a program that simplified municipal licensing led to a 5% increase in the number of registered businesses and a 2.

25 Similarly. In structuring their reform programs for the business environment. Yet the debate typically proceeds to a deeper discussion exploring the relevance of the data to the economy and areas where reform might make sense.20 The same licensing reform led to an aggregate productivity improvement of around 22% for firms affected by the reform. and apply those lessons and see how they work in our environment.as a source of good practices for business regulation reform. whether public or private. Research also shows that an economy’s ability to enforce contracts is an important determinant of its comparative advantage in the global economy: among comparable economies.6% in Colombia as more viable firms opted for reorganization instead.the region’s strongest performer on Doing Business indicators . are both associated with a higher ratio of private credit to GDP. and by identifying where policy makers might look for lessons and good practices.23 A sound regulatory environment leads to stronger trade performance.35 The introduction of improved insolvency regimes that streamlined mechanisms for reorganization reduced the number of liquidations by 8.27 Another study shows that in many developing economies production of high-quality output is a precondition for firms to become exporters: institutional reforms that lower the cost of high-quality production increase the positive effect that trade facilitation can have on income. No. all of whom bring important issues and concerns into the . It also increased the probability of repayment by 28% and lowered interest rates on loans by 1—2 percentage points. and highly productive firms entering the market saw larger increases in real output than less productive firms. and collateral. Enterprise surveys conducted by the World Bank show that access to credit is a major constraint to businesses around the world. For example. But we can take certain things. Many countries in Africa look to Mauritius . both by exposing potential challenges.000 inhabitants compared with economies that did not implement the reform. We are all different. customs efficiency.31 Creditor rights and the existence of credit registries. those with good contract enforcement tend to produce and export more customized products than those with poor contract enforcement. credit information systems. It’s not like baking a cake where you follow the recipe.7% on average.28 Research shows that removing barriers to trade needs to be accompanied by other reforms.4% in Belgium and by 13.8% larger gains in real output than states with less flexible labor regulations. another study identified the government’s ability to formulate and implement sound policies and regulations that promote private sector development. among other things. quality of infrastructure and access to finance as important factors in improving trade performance.30 Good credit information systems and strong collateral laws can help alleviate financing constraints. States with more flexible employment regulations saw a 25% larger decrease in informal firms and 17.33 Country-specific research assessed the effect of efficient debt recovery and exit processes in determining conditions of credit and in ensuring that less productive firms are either restructured or exit the market: The establishment of specialized debt recovery tribunals in India sped up the resolution of debt recovery claims and allowed lenders to seize more collateral on defaulting loans.19 Simpler entry regulation and labor market flexibility were found to be complementary. Most reformers start out by seeking examples.26 The same study found that economies with more constrained access to foreign markets benefit more from improvements in the investment climate than those with easier access.32 And greater information sharing through credit bureaus is associated with higher bank profitability and lower bank risk. and Doing Business helps in this (boxes 1 and 2). creditor and insolvency laws—play a role in easing access to credit. Most reforms relating to Doing Business topics were nested in broader programs of reform aimed at enhancing economic competitiveness. such as making labor markets more flexible. improved the protection of creditors.2% after the creation of a one-stop shop for businesses.ABOUT DOING BUSINESS 9 program was more effective in municipalities with less corruption and cheaper additional registration procedures.34 Following a broad bankruptcy reform in Brazil in 2005 that. And reformers respond to many stakeholders and interest groups. governments use multiple data sources and indicators. a common first reaction is to doubt the quality and relevance of the Doing Business data. the former minister of commerce. Saudi Arabia used the company law of France as a model of for revising its own. the cost of debt fell by 22% and the aggregate level of credit rose by 39%.24 One study found that an inefficient trade environment was among the main factors in poor trade performance in Sub-Saharan African countries.21 In Colombia new firm registrations increased by 5. In the words of Luis Guillermo Plata.36 In Colombia the new law better distinguished viable from nonviable firms.29 Regulations and institutions that form part of the financial market infrastructure—including courts. Analysis in 12 transition economies found that reforms strengthening collateral laws increased the supply of bank loans by 13. Over the past 9 years there has been much activity by governments in reforming the regulatory environment for domestic businesses. Efforts to streamline the institutional environment for trade (such as by increasing the efficiency of customs) have been shown to have positive effects on trade volumes. industry and tourism of Colombia.22 In Portugal the introduction of a one-stop shop for businesses led to a 17% increase in new firm registrations and 7 new jobs for every 100. to achieve higher productivity and growth. making survival more likely for financially distressed but viable firms.18 In India the progressive elimination of the license raj led to a 6% increase in new firm registrations. certain key lessons. For governments. HOW GOVERNMENTS USE DOING BUSINESS Quantitative data and benchmarking can be useful in stimulating debate about policy.

for example. faster and easier to do business in the region by 2015. Doing Business measured the required minimum capital regardless of whether it had to be paid up front or not. Kazakhstan. aiding data checking and quality assurance. including using principal components and unobserved components. Taiwan (China) and Vietnam in East and South Asia. see data notes). the Syrian Arab Republic. regulations and fee schedules. The World Bank Group uses a vast range of indicators and analytics in this policy dialogue. which capture often one-time perceptions and experiences of businesses. 1. These include India. METHODOLOGY AND DATA Doing Business in Indonesia 2012 covers 20 cities. into separate steps to ensure a better estimate of time. Information sources for the data Most of the indicators are based on laws and regulations. A bankruptcy judge deciding dozens of cases a year will have more insight into bankruptcy than a company that may undergo the process. the paid-in minimum capital has been used since 2004. More than 20 other economies have formed such committees at the interministerial level. For some indicators part of the cost component (where fee schedules are lacking) and the time component are based on actual practice rather than the law on the books. Leading academics collaborate in the development of the indicators. Mexico and Peru in Latin America. Initially. Georgia. the Kyrgyz Republic. A corporate lawyer registering 100—150 BOX 2 HOW REGIONAL ECONOMIC FORUMS USES DOING BUSINESS The Asia-Pacific Economic Cooperation (APEC) organization uses Doing Business to identify potential areas of regulatory reform. such as starting and legally operating a business. Doing Business breaks down each process or transaction. and Guatemala.” http:/ /aimp. Doing Business respondents both fill out written surveys and provide references to the relevant laws. getting credit. Morocco. Drawing on a firm survey. The Doing Business approach has therefore been to work with legal practitioners or professionals who regularly undertake the transactions involved. who will register a business only once or maybe twice. businesses a year will be more familiar with the process than an entrepreneur. avoiding a narrow focus on improving Doing Business rankings and encouraging broad-based reforms that enhance the investment climate. such economies as Colombia. Therefore. This year’s report removes procedures related to getting an electricity connection from dealing with construction permits indicators.org. all indicators are available to the public at http:/ / data. (For a detailed explanation of the Doing Business in Indonesia 2012 methodology. The tests show that each set of indicators provide sufficiently broad coverage across topics. Development of the methodology The methodology for calculating each indicator is transparent. “APEC Ease of Doing Business Action Plan (2010-2015). APEC (Asia-Pacific Economic Cooperation). Eight of the background papers underlying the indicators have been published in leading economic journals. the simple averaging approach is used. In many economies only part of the minimum capital has to be paid up front. Korea (enforcing contracts). including its Global Poverty Monitoring Indicators. Moldova and Tajikistan in Eastern Europe and Central Asia. Liberia. Other approaches were explored. the United Arab Emirates and the Republic of Yemen in the Middle East and North Africa. This has been done to avoid double counting as the Doing Business report includes an . The data are based on national and local laws and regulations as well as administrative requirements. In 2010 and 2011 several of the champion economies organized workshops to develop programs for building capacity in their area of expertise.worldbank. the Arab Republic of Egypt. Logistics Performance Indicators and many others. Governments have reported more than 300 regulatory reforms that have been informed by Doing Business since 2003. Singapore (trading across borders) and Hong Kong SAR. APEC economies then selected 6 champion economies for the priority areas: New Zealand and the United States (starting a business). For starting a business. enforcing contracts. To reflect the actual potential barrier to entry. reform debate.1 The action plan sets specific targets. ensuring academic rigor. World Bank Group dialogue with governments on the investment climate is designed to encourage critical use of the data. to champion economies that can help others improve and to set measurable targets. Japan (getting credit). such as making it 25% faster to start a business by reducing the average time by 1 week. With the open data initiative.apec. the minimum capital requirement can be an obstacle for potential entrepreneurs. sharpening judgment. objective and easily replicable. The principal components and unobserved components approaches turn out to yield results nearly identical to those of simple averaging. planners identified 5 priority areas: starting a business. Malaysia.10 DOING BUSINESS IN INDONESIA 2012 BOX 1 HOW ECONOMIES HAVE USED DOING BUSINESS IN REGULATORY REFORM PROGRAMS To ensure coordination of efforts across agencies.org/ Improvements to the methodology The methodology has undergone continual improvement over the years. This introduces a degree of subjectivity. Kenya. Doing Business uses a simple averaging approach for weighting sub-indicators and calculating rankings. these changes have been incorporated into the Doing Business in Indonesia 2012. most of the cost indicators are backed by official fee schedules. In 2009 APEC launched the Ease of Doing Business Action Plan with the goal of making it 25% cheaper. Rwanda and Sierra Leone have formed regulatory reform committees reporting directly to the president that use the Doing Business indicators as one input to inform their programs for improving the business environment. Saudi Arabia. Following the standard methodological approach for time and motion studies. In addition. Changes have been made mainly in response to country suggestions. trading across borders and dealing with permits. The time estimate for each step is given by practitioners with significant and routine experience in the transaction. China (dealing with construction permits). Malawi and Zambia in Sub-Saharan Africa. In accordance with the Doing Business methodology. 2010. The Doing Business approach to data collection contrasts with that of enterprise or firm surveys.

Paul Frijters and R. Robert Chambers. DC.” Policy Research Working Paper 4937. 2007. De Soto. Washington DC. DC: World Bank Group. Simeon. Branstetter. Washington. Center for Global Development. Robin Burgess. Lewin and Quesada Delgado 2009. “Entry Costs and Cross-Country Differences in Productivity and Output. “Institutional Enforcement. 12.” Department of Economics. Francisco Lima.Norman. Levon. If errors are confirmed after a data verification process. Bonn. “The Regulation of Entry. University Linz. Voices of the Poor: Crying Out for Change. Kaplan.” Policy Research Working Paper 3469. Washington. org. 2007.” Scandinavian Journal of Economics 108: 317–37. 2010. David. 2005. Enterprise Analysis Unit. Levon. 2007. Leora. Leora.” Policy Research Working Paper 4322. “Entry Regulation and Business Start-Ups: Evidence from Mexico. Silvia Ardagna. Anusha. Lowell J. DC: World Bank Group. Chari.” Quarterly Journal of Economics 117 (1): 1–37. Calderon. “The Regulation of Entry: A Survey. and Paolo Volpin. Germany./ 5. Barseghyan. “Entry Regulation.E. All changes in methodology are explained in the data notes section of this report as well as on the Doing Business website. Stephen Redding and Fabrizio Zilibotti. “Regulation and Investment. Winter- Ebmer. the European Economic Association 3 (4): 791-825. “Identifying the Aggregate Productivity Effects of Entry and Size Restrictions: An Empirical Analysis of License Reform in India. 4. Sharma.” Journal of the European Economic Association 3 (4): 791–825. 9.” Desarrollo y Sociedad. “The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India. Djankov. DC. Djankov. Limited Enforcement. Deepa. http://enterprisesurveys. In addition.” Enterprise Note 22. Enrico.enterprisesurveys. no. 2000. “The Economic Effects of Employment Protection: Evidence from International Industry-Level Data. Alberto Chong and Gianmarco Leon.” American Economic Journal: Economic Policy 3: 66–96. Klapper. “Informality Traps. Simeon. L pez-de-Silanes and Andrei Shleifer. Philippe. World Bank. “Regulation of Entry and the Distortion of Industrial Organization. Benjamin. and Elias Papaioannou. Dulleck. 2006. Simeon. The World Economic Forum’s Global Competitiveness Report uses part of the Doing Business data sets on starting a business. “Red Tape and Delayed Entry.” American Economic Journal: Economic Policy 3: 66–96. they are expeditiously corrected.37 Doing Business in Indonesia 2012 has reflected the removal of procedures related to getting an electricity connection from dealing with construction permits to allow for international comparability. 22. 17. 2009. Anusha. Chari. DC. Amin. Klapper.” Journal of the European Economic Association 5 (2-3):444-58. 2010. and Inessa Love. “The Impact of Business Environment Reforms on New Firm Registration. employing workers. NOTES 1. Eduardo Piedra and Enrique Seira. 2011.” Journal of Financial Economics 82 (3): 591–629. Washington. and Sandra Rozo. Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else.” Enterprise Survey Working Paper. Mauricio.” Emerging Markets Review 8 (1): 38–49. “Entry Regulation as a Barrier to Entrepreneurship. Miriam. Anat Lewin and Juan Manuel Quesada Delgado. Aghion. Florencio 2007. Bruhn. 10. 2009. World Bank. World Bank. and Economic Performance. “Do Entry Regulations Deter Entrepreneurship and Job Creation? Evidence from Recent Reforms . DC. Antunes.” Journal of Applied Economics 13 (1): 91–120.org 6. 8. This has included a review by the World Bank Independent Evaluation Group (2008) as well as ongoing input from the International Tax Dialogue. 19.” Review of Economics and Statistics 92 (1): 166–73. The Mystery of 3. 2008. World Bank Group. and Carmen Pagés. Labor Laws and Informality: Evidence from India. 23. DC. Nicoletti and Fabio Schiantarelli. Yusufcan. Business density is defined as the total number of businesses as a percentage of the working-age population (ages 18-65). “Trading on Time. and the Hidden Economy. César. Information on data corrections is provided in the data notes and on the website. Fisman. 2005. 2005. 63: 211–43.” Journal of Economic Growth 13 (2): 145–67. “The Political Economy of Entry: Lobbying and Financial Development. “License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico. 2009. 18. Rafael La Porta. and Tiago Cavalcanti. 2003–07. Alejandro. Friedrich. Alesina. 2003. DC.” Review of Economics and Statistics 93 (1): 382–86. Washington. data time series for each indicator and city are available on the website. Giuseppe “Firm Informality in Colombia: Problems and Solutions. “Do Regulatory Reforms Stimulate Investment and Growth? Evidence from the Doing Business Data. 2008. http://www.com) and the Social Science Citation Index. Pham. 7. Barseghyan.” IZA Discussion Paper 2433.google. Ana Maria Oviedo and Luis Serven. 2005.” World Bank Research Observer 24 (2): 183–203. New York: Basic Books. Alberto.” European Economic Review 51 (1): 203–24. “The Informal Sector in 145 Countries. According to searches on Google Scholar (http://scholar. “The Impact of the Business Environment on the Business Creation Process.” B. 2011. Raymond. 2006. Masatlioglu. Washington. Leora. Giuseppe Nicoletti and Fabio Schiantarelli. Miriam. Alberto.” Working Paper 159. Aggregate Productivity Effects of Entry and Size Restrictions: An Empirical Analysis of License Reform in India. 2011. 2009. Ciccone. Uwe. 2009. Institute for the Study of Labor (IZA). Caroline Freund and Cong S. Alesina.ABOUT DOING BUSINESS 11 11th indicator this year . 2005. 20. 13. Washington. Antonio. 2008. 2008.” Policy Research Working Paper 5493. “Regulation and Macroeconomic Performance. Perotti.. 2011. 15. Washington. “License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico. 2002. 11.” American Economic Review 98 (4): 1397–412. 2010. 2011. Djankov. 2000. Cardenas. 2011. Silvia Ardagna. Klapper. Lee G. Schneider. 21. protecting investors and getting credit (legal rights). Meer Kaul Shah and Patti Petesh. Bruhn. and Jamele Rigolini. 16. “Entry Costs and Cross-Country Differences in Productivity and Output. “Reducing Start-up Costs for New Firms: The Double Dividend on the Labor Market. “Labor Productivity. Firm-Size and Gender: The Case of Informal Firms in Argentina and Peru. A transparent complaint procedure allows anyone to challenge the data. “Regulation and Investment. Loayza. and Virginia Sarria-Allende. Journal of Economic Analysis & Policy 8 (1).” Journal of Economic Growth 13 (2): 145-67. Micco. “Start Up Costs.” Review of Economics and Statistics 93 (1): 382–86. Eifert. 2006. World Bank Group.” Paper presented at the American Finance Association 2005 Philadelphia Meetings. Antonio. World Bank. Doing Business in 2004: Entry rate refers to newly registered firms as a percentage of total registered firms. Luc Laeven and Raghuram Rajan. 2. World Bank. Washington. The website also makes available all original data sets used for background papers. Siddharth. Klapper. Labor-Market Rigidities. Hernando. Mohammad. “Identifying the Narayan. Understanding Regulation. Enterprise Analysis Unit. 14.” Journal of Taylor and Ana Venâncio.Getting Electricity.

” Journal of Law and Economics 53 (4): 833–64. Joel. and Marc J.” Economics Letters 101: 84–86. Nico.” Journal of Financial Economics 96 (3): 485–512. 2007. Poland. “Trade Policies. Houston. Synergistic Reforms.” Review of Economics and Statistics 92 (1): 166–73. “Relationship- Loan Repayment: The Microeconomic Impact of Debt Recovery Tribunals in India.” Journal of Financial Economics 84 (2): 299–329. 28. “Trading on Time. 2010. 2009. Incomplete Contracts. Information Sharing.” Quarterly Journal of Economics 122 (2): 569–600. the Slovak Republic. Roberto.” NBER Working Paper 16473. 2010. Cambridge. Germany.” Journal of Development Economics 90: 33–49. Simeon. Estonia. Hungary.org. Djankov. Andrei Shleifer. 2008. Chang. Pham. Cunat. 31. Latvia. http://enterprisesurveys. Simeon. 35. Seker. “Creditor Rights. Previous years’ data on dealing with con- struction permits are adjusted to reflect this change. National Bureau of Economic Research.” Small Business Economics 31 (4): 409–24. Rainer. and the Pattern of Trade. Bruno. Slovenia and Ukraine.” Journal of Development Economics 93 (2): 153–61. 2007. Linda Kaltani and Norman Loayza. “Private Credit in 129 Countries. “Do Reorganization Costs Matter for Efficiency? Evidence from a Bankruptcy Reform in Colombia. 29. and Exports. Funchal. Iwanow. 2007.” Review of Financial Studies 23 (2): 549–80. 37. Ibid. “Legal Reform and Aggregate Small and Micro Business Bankruptcy Rates: Evidence from the 1997 Belgian Bankruptcy Code. 27. Rauch. . Chen Lin. Labor Market Flexibility. “Trade Facilitation and Manufacturing Exports: Is Africa Different?” World Development 37 (6): 1039–50. and Cynthia Van Hulle. “How Law Affects Lending. Nathan. They are made available on Doing Business website under “historical data” (http://www. The countries studied were Bulgaria. 33. “Volatility. 2011. MA. 2010. Nunn. Thomasz. Xavier. Dewaelheyns. MA. 36. 2009. Ping Lin and Yue Ma. Vikrant Vig. 30. “The Effects of Specificity. 24. “Openness Can Be Good for Growth: The Role of Policy Complementarities. 2009. 25. Sujata. the Czech Republic. National Bureau of Economic Research. “Development through the 2005 Bankruptcy Reform in Brazil. Lithuania.” American Economic Journal: Applied Economics 1 (3): 59–81. Visaria. 34. Caroline Freund and Cong 32.” NBER Working Paper 13062.12 DOING BUSINESS IN INDONESIA 2012 in Portugal. Katharina Pistor and 2008. and Inessa Love.” MPRA Paper 29905. Romania. Melitz. Croatia.doingbusiness. University Library of Munich. Djankov. 2010. Murat.org). and Bank Risk Taking. and the Pattern of Comparative Advantage. 2010. Haselmann. 26. and Colin Kirkpatrick. “Legal Reform and Investment Climate. Caralee McLiesh and S. Giné. Cambridge. James. Alejandro.

limited liability company to start up and operate formally (figure 2. some local branches of national agencies perform more TABLE 2.13 Starting a business The global financial crisis intensified the policy focus on small and medium-size enterprises as engines of employment and growth. paid-in minimum capital and number of procedures to get a local limited liability company up and running? Cost (% of income per capita) Formal operation Paid-in minimum capital $ Number of proced ures Entrepreneur Preregistrati on Registr tion. Source: Doing Business database. It is 13 days faster and 8% cheaper than what was measured 2 years ago.3 In Mexico. local governments apply their own license practices and enforce national regulations differently.2 Research shows that more new firms are created and employment grows when business entry becomes easier.4 The effect was greater in states with less corruption and better governance.2%. starting a business takes. For example. See Data notes for details. The decentralization process initiated a decade ago provided regional governments with the authority to administer business licenses.6 But overall. there are marked differences among the cities measured.1 What are the time.6% of income per capita—as paid-in minimum capital. Indonesians wait almost 1 month more than Malaysians and spend 4 times as much as Thai entrepreneurs to start a business. In Indonesia. employees and governments alike. Doing Business uses a FIGURE 2. the country still lags behind the Asia-Pacific Economic Cooperation (APEC) average. To make the data comparable across 183 economies.000 new businesses registered in 2009. Formal incorporation also generates more tax revenue for governments.500. In addition.201)— the equivalent of 46. Formally registered companies have access to services and institutions—such as courts. Indonesian entrepreneurs are also required to deposit IDR 12. Australia and Singapore—starting a business takes no more than 3 days and 1% of income per capita. time and cost for a small to medium-size.1). cost and paid-in minimum capital to start a business. small and medium-size businesses contribute around 60% of the country’s gross domestic product. their employees can benefit from protections provided by the law. In addition to direct start-up costs. Most other APEC countries have abolished this requirement. . As a result. researchers found that a municipal license reform across states increased new firm registrations by 5% and employment by 2. And where firms are formally registered. after Malaysia reduced the cost of business registration as part of a recent economic stimulus package. on average. providing livelihoods for more than 90% of the country’s workforce. micro.1 RANK City Where is it easy to start a business—and where not? RANK City 1 2 3 4 5 6 7 8 9 10 Yogyakarta Palangka Raya Surakarta Semarang Banda Aceh Gorontalo Balikpapan Jakarta Denpasar Mataram 11 12 13 14 15 16 17 18 19 20 Palembang Bandung Pontianak Surabaya Batam Pekanbaru Makassar Jambi Medan Manado Note: Rankings are based on the average city percentile rankings on the procedures. time. verifications or inscriptions for the company and employees with relevant authorities. has a start-up capital equivalent to 10 times income per capita. These procedures include obtaining all necessary licenses and permits and completing any required notifications. Among the 20 Indonesian cities studied.7 Despite a shared national legislative framework that regulates business registration across Indonesia. In the region’s best performers—New Zealand. banks as well as new markets—that are not available to unregistered firms.5 Formal registration has many immediate benefits for business owners. a incorpor tion a Time (days) Postregistration standardized business that is 100% domestically owned.1 They also serve as the biggest source of employment. engages in general industrial or commercial activities and employs between 10 and 50 people. Doing Business measures the procedures. cost. 33 days and costs 22% of the national income per capita. 9 procedures.000 ($1. 320.

9 Semarang. these changes resulted in an overall reduction in the time to start a business in Semarang from 47 days to just 28 days.2). provincial and subnational governments.8 34 30 31 32 27 27 31 39 35 29 39 29 28 29 34 44 Starting a business is fastest in Gorontalo and Palangka Raya: just 27 days. Surakarta and Yogyakarta can be done in just 1 step. In almost all cities. Jakarta and Balikpapan have since streamlined their business licensing processes. Along with the elimination of the company domicile certificate and improved efficiency at the local tax office.4 22. Among APEC economies. cheapest in Pontianak Cost (% of income per capita) Indonesia 20 city average Cost Time Time (days) 42 45 Pontianak Jakarta Yogyakarta Palembang Banda Aceh Semarang Jambi Surakarta Medan Makassar Palangka Raya Gorontalo Mataram Batam Denpasar Surabaya Bandung Balikpapan Pekanbaru Manado 17.0 19. signing the act of establishment. the cost varies from 17. the one-stop shop in Semarang was reorganized to act not only as the recipient of documents but also an issuer of local licenses. Denpasar.8% in Manado. . However. Between 2 and 5 more steps are needed to comply with labor regulation and local licensing requirements. a business trading license and a company registration certificate.1).8% of income per capita in Pontianak to 30. The same registration takes 2 weeks in Jakarta. on average).3 26. starting a business is easiest in Yogyakarta and most difficult in Manado (table 2. Palangka Raya. the number of one-stop shops for local licenses8 increased from only 49 before 2006 to 274 by the end of 2009. Local licensing fees also vary among cities. Currently. Four initial requirements—reserving the company name.0 22. Denpasar.2 Time and cost to start a business in Indonesia—fastest in Gorontalo and Palangka Raya. in Palangka Raya. Moreover.2 20. Through continuous and integrated efforts by the national. only notaries can clear and reserve company names and validate the deed of incorporation issued by the Ministry of Law and Human Rights. similar to Thailand (figure 2.0 22. At 22% of income per capita. Palangka Raya. half of the cities Source: Doing Business database. Across the 20 cities surveyed. the average cost to start a business in Indonesia is almost 3 times higher than the APEC average.7 20. Jakarta. a nuisance permit. the total time needed to obtain the business trading license.8 17. service delivery improved and informational brochures were issued to help guide applicants through the local licensing requirements. it takes 45 days.6 28 29 30. where labor registration is conducted at the one-stop shop since 2010. The use of notaries for company incorporation is mandated by law. Following the enactment of the Law on Regional Tax and User-Charges10 in 2010. a single-package licensing system implemented in Denpasar in 2010 resulted in the elimination of 1 procedure and 1 week from the business registration process. In Jakarta. By contrast. half of the total time to start a business is spent on preincorporation steps—such as name reservation. Complying with all licensing requirements in Balikpapan. in Pontianak. which are administered at the local level. Public notary fees constitute the biggest expense in Indonesia. By contrast.2 22.3 26. too.14 DOING BUSINESS IN INDONESIA 2012 FIGURE 2. efficiently than others. Following a 2007 ministerial decree encouraging the establishment of one-stop shops nationwide. getting the act legalized and paying the administrative fee for incorporation—are mandatory across the country and administered nationally. the company registration certificate and the location permit is only 5 days. Similarly.5 24. Registration with the Ministry of Manpower can be completed in 1 day in Banda Aceh. only entrepreneurs in Papua New Guinea and Brunei Darussalam wait longer.2 22.3 19.5 19. an entrepreneur has to apply separately and wait 15 days to obtain the same 3 licenses. For example. The legalization of the company establishment by the Ministry of Law and Human Rights is usually issued in 7 days—1 week faster than in 2010. relative to income. The process is fastest where the businesslicensing process was consolidated. entrepreneurs across Indonesia must wait 7 additional days for the courier service used by the Ministry to deliver its approval to cities outside Jakarta. For example. A second set of 2 start-up steps are also mandatory in all cities.9 23.5 21. Within the country.7 22. entrepreneurs in Medan have to pay 4 different visits to obtain a domicile permit. reaching half of the total cost (around $350. Surakarta and Yogyakarta were among the first cities to consolidate registrations for all local business licenses. but executed at local level by branches of national agencies—namely tax and social insurance registrations. Variations in time among cities are also caused by different levels of performance by the local branches of national agencies responsible for postincorporation procedures. notarization of the company deed of incorporation and the act of business registration.9 18.

STARTING A BUSINESS 15 TABLE 2. Such is the case in both Makassar and Palangka Raya. Examples of reforms mandated at the national level and implemented at the local level include the elimination or reduction of fees for local licenses. There is no local decree governing the elimination of such fees.3 60 55 47 2012 after reform 45 Reforms resulted in faster business start up (selected cities) 2010 before reform 45 42 29 31 28 28 Jakarta Pekanbaru Semarang Denpasar Balikpapan Note: Reforms occurred between August 2009 and July 2011 Source: Doing Business database. this report tracks progress over time. a joint ministerial decree11 mandated the implementation of an integrated information system to transfer data among local and national government FIGURE 2. while the same costs IDR 50. the elimination of the certificate of company domicile and the introduction of statutory time-limits for issuing local permits and licenses.000 ($24) for TDP. Even in cities where supporting local regulation is still being formulated. To encourage formal-sector development and underpin sustainable economic growth across the country. the introduction of one-stop shops. at the Local Revenue Office. . improved efficiency at local branches of national agencies has resulted in time savings for tax. All cities benefited from the rollout of national reforms. By contrast. thanks to their mayors’ vision and strong leadership. including the business trading license— Surat Izin Usaha Perdagangan (SIUP)—and the company registration certificate—Tanda Daftar Perusahaan (TDP).000 ($72) in Pekanbaru.000 ($5) in Banda Aceh. In Manado. Two years later.2). before obtaining the permits to start a business. equivalent to $50. Furthermore. No such charges are required in any other city measured in this report. The results are impressive. Doing Business in Indonesia 2010 identified good practices. the central government issued legislation to consolidate and streamline local business-licensing requirements. where local licenses are now issued free of charge.000 ($48) for SIUP and IDR 250.2 It is easier to start a business now in all 14 cities benchmarked since 2010 Computerized system for company name reservation Introduced standard incorporation forms V V V V V V V V V V V V V V V V                 Improved efficiency at the local tax and Jamsostek offices Improved efficiency at the labor (Dinas) office Introduced statutory time limit for issuing local licenses Eliminated fees for local licenses  Introduced or improved OSS for local licenses  Eliminated domicile letter  Balikpapan Banda Aceh Bandung Denpasar Jakarta Makassar Manado Palangka Raya Palembang Pekanbaru Semarang Surabaya Surakarta Yogyakarta V National level  Local level V V V V V V V V V V V V V V Note: This table records all Doing Business reforms that occurred between August 2009 and July 2011. All 14 cities measured for the second time improved business entry (table 2. Obtaining a location permit costs IDR 750. such as the introduction of a new computerized company registration system in 2010—Sistem Administrasi Badan Hukum (SABH)—and the introduction of standardized and simplified incorporation forms for limited liability companies. but the decision was taken during interagency consultations led by their mayors. pointed out bottlenecks and provided recommendations for business startup reforms beyond Jakarta. some of the changes mandated at the national level have already been implemented. measured have eliminated several licensing fees. a new business has to pay an additional billboard tax and yearly cleanliness fee. labor and social security registrations. In addition. Some local governments jumped on the regulatory bandwagon and implemented these changes not only to comply with the national regulation but also to boost their local economies. Source: Doing Business database. entrepreneurs in Gorontalo still pay IDR 500.

Makassar. better coordination between different levels of government. an entrepreneur needs to pay 3 different visits to obtain a trading permit.0 Consolidate both local and national government approvals at a single access point and expand the use of information technology Consolidating both pre. while in Banda Aceh.6 14. However. Meanwhile. by the Ministry of Law and Human Rights for company name reservation and legalization of the act of establishment and by the Tax Authority to issue tax registration numbers. experience from other cities shows that a simple statement letter from the company founder confirming the new firm’s address can serve the same purpose. the requirement was replaced with a declaration from the entrepreneur that (s)he obtained the neighbors’ consent.4 15. currently under way. agencies involved in business registration. Manado and Jambi—still hold it as a prerequisite to obtain a business license. tax.7 8. big cuts in the time and procedures to start a business since 2010 DB2012 DB2010 Procedures (number) Indonesia APEC Malaysia Korea 3 4 8 6 8 10 9 9 ensures that the business really exists and operates in a specific city. Although a certificate of company domicile is no longer required to start a business. according to the national regulation. Moreover.16 DOING BUSINESS IN INDONESIA 2012 FIGURE 2. others still need to follow suit. But note that other countries in the region made similar—or even more dramatic—efforts to reform business start up (figure 2. business registration certificate and nuisance permit. Banda Aceh and Surabaya did away with domicile certificates.7 22. At the local level. To become more competitive and keep up with its neighbors.4). The ability to connect the existing separate databases Note: The data sample for Indonesia includes the 14 cities measured both in Doing Business in Indonesia 2010 and Doing Business in Indonesia 2012. cities in Indonesia could learn from each other and adopt good practices that are already working elsewhere in the country. eliminate unnecessary clearances and allow joint applications for local licenses. Time (days) Indonesia APEC Malaysia Korea 6 7 14 18 23 29 31 44 Cost (% of income per capita) Indonesia APEC Malaysia Korea 7. For example. an entrepreneur needs to obtain an official non-objection statement from neighbors.and postincorporation procedures at a one-stop shop would make it easier for entrepreneurs to meet the requirements of all local and national government agencies involved in business registration. Alternatively. at the national level. These national and local efforts have paid off (figure 2. The same 3 licenses can be obtained in just 1 visit to the one-stop shop in Yogyakarta. in Manado. a national government initiative.4 Regionally. In Batam. information technology is also used for business licensing in a number of cities. in Medan. It has been argued that the domicile certificate WHAT TO REFORM Doing Business in Indonesia 2010 recommended the simplification of local licensing requirements. Information technology is already being used. Medan. aims to implement an integrated information system—Sistem Pelayanan Informasi dan Perizinan Investasi Secara Elektronik (SPIPISE)—for transferring data from the local one-stop shops involved in business licensing directly to the National Investment Coordination Board in Jakarta and onwards to the relevant ministries.3). These reform recommendations remain valid for some or all cities. labor and social security authorities. Indonesia needs to continue its reform initiatives at both the national and local levels. Batam. the consolidation of registration procedures and public access to the company incorporation process. More specifically. 6 of the 20 cities surveyed—Bandung. An entrepreneur could fill in a single application form with all the information required by local licensing. Source: Doing Business database. depending on which city they operate in. there are still marked differences among cities. Overhaul local licenses The business licensing regime has improved over the past 2 years. a pilot system complying with this joint decree is under way. In the past 2 years. Most Indonesian cities now have a one-stop shop that centralizes procedures administered at the local level and provides advice to entrepreneurs. new companies require 3 to 5 local licenses carried out in 1 to 3 procedures.0 30. However.9 16. as well as the company registrar. Officials at the one-stop shop would be granted the power to act on behalf of their respective agencies. To start.6 14. thus eliminating 1 procedure and 2 days for their entrepreneurs. the one-stop shop can be connected electronically with all agencies involved. Nevertheless. .

8%). Karim O. July 2011. Wille. currently the lengthiest step across all cities outside Jakarta (2 weeks). “Leveraging Technology to Support Business Registration Reform: Insights from recent country experience.12 Figure 2. social security. customs agencies) Other registries (collateral. which requires the fewest number of steps to start a business in Indonesia. regardless of their environmental impact.14 In practice. tax authorities. Belayachi. it also increases predictability in the application of regulations and fee schedules. This can create administrative confusion.6 The cost to start a business is lower where information on the fees is easily accessible 66 Average cost to start a business (% of income per capita) 18 Economies where Economies where fee schedules fee schedules are are easily accessible not easily accessible Source: The Investment Climate in Practice Note Series. intellectual property) COMPANY REGISTRY APPLICATION Shared services infrastructure (e-payment. Complex regulations require frequent contact between entrepreneurs and public officials—and offer more chance for bribery. Leveraging existing networks and infrastructure would also eliminate the waiting time for incorporation papers to travel to Jakarta for legalization. varying interpretations of national regulations and procedures exist among local governments. . Wille. Surakarta also gets the top (best) ranking in Transparency International’s “corruption perception index” among 50 cities in Indonesia.5 illustrates this growing “ecosystem” of information suppliers and users surrounding the company registry. a nuisance permit is required for all business types. land. Karim O. the world’s top performer in starting a business.15 The 2 problems may be intertwined. in Medan and Jambi. Numa de Magalhaes. Jakarta. statistics) Consumers of company information Name search Company registration Annual accounts filing Amendments to registration Private sector (credit bureaus. Bandung. publishes a 10-page FIGURE 2. of all government agencies involved in business registration and to allow data exchange among them would make starting a business much easier for entrepreneurs in Indonesia. Gorontalo. In 2010.16 Better information available to the public can greatly reduce the burden on entrepreneurs and even the agencies that deal with them.13 Electronic services are also more accessible to entrepreneurs. Surakarta’s score (6%) is more than double the country’s average (2. July 2011. the World Economic Forum’s “Executive Opinion Survey” cited inefficient government bureaucracy and corruption as the top 2 challenges for doing business in Indonesia. However. New Zealand. the need for this nuisance permit was eliminated by a national regulation. Numa de Magalhaes. An electronic interface between the IT system of the Ministry of Law and Human Rights and the local one-stop shops would enable companies to be issued an incorporation certificate through the one-stop shop. Within the government. Similarly. information was typically shared with the tax authority (59% of systems) and. entrepreneurs still pay these fees in Banda Aceh. secure authentication) Source: The Investment Climate in Practice Note Series. For example. with the social security agency (18%).” John R. Manado and Medan.financial institutions. According to a 2010/2011 survey of 34 company registries that implemented technology solutions. Frederic Meunier.STARTING A BUSINESS 17 FIGURE 2. more than two-thirds allowed electronic data-sharing with other government agencies as well as the dissemination of company information to the private sector. Experience shows that establishing a virtual one-stop shop that collects all required information through a single online interface and shares it within the government can reduce registration time and eliminate redundant requirements for information. Better coordination between all levels of government coupled with clear and complete guidelines for business registration could eliminate such inconsistencies and reduce inefficiencies. World Bank Group. as well as opportunities for corruption. Batam. World Bank Group. Improve coordination between national and local governments to reduce legal uncertainty and promote transparency The decentralization process that has taken place over the past 10 years in Indonesia has granted wide-ranging authority to local governments and created new challenges. Take the example of Surakarta. to a lesser extent. The national government has issued regulations and standard operating procedures regarding public services. Easy access not only saves businesses time. saving them the time and cost of traveling to government agencies and waiting in line. trading counterparties) Public sector regulators (licensing agencies. fees for local licenses were eliminated for small and medium-size enterprises by decree at the national level. Belayachi. Singapore’s online registration system saves businesses an estimated $42 million annually. But in the absence of clear implementing guidelines.” John R. Frederic Meunier. “Leveraging Technology to Support Business Registration Reform: Insights from recent country experience.5 The company registry is the information exchange hub for business and government Businesses and intermediaries REGISTRATION FUNCTIONS e-Government partners Other business start-up registrations (tax identification.

This would eliminate the (Suruhanjaya Syarikat Malaysia). Likewise. 66% in economies where they are not. Eduardo Piedra and Enrique Seira. Data is as of August 2009. Other Asian countries. The aim was to foster the economic activity of small entrepreneurs. 7. 4. a minimum capital requirement is hardly a protection for investors during insolvency. making notaries optional could greatly reduce the start up cost across the country.1 7. the Unternehmergesellschaft (UG).6 requirement to use a notary to form a company. only the following APEC members require paid-in minimum capital when starting a business: The Russian Federation (1. David. In Vietnam. Mexico (8. When creditors make an investment decision.000 ($4.6% of income per capita). Most other APEC economies have abolished this requirement (figure 2. China—provide these e-services to everybody. Bruhn. OSS–Pelayanan Terpadu Satu Pintu (PTSP). March 31. including small businesses.4%) and China (100. where notary fees amount to more than half of the total cost to start a business.19 In 2010 to 2011. the Philippines (5. 3. October 2007.2%). 2007.000 new UGs were created. Taiwan. they rarely look at the minimum capital but use a wide range of protection instruments through the company law.23 Among APEC members.4%) and China (100. the Philippines (5.6). Some economies have found other ways to protect investors and creditors. The International Finance Corporation (IFC)- Indonesia. 9. However. Moreover. Hong Kong SAR.2%). to date. Only the following APEC member countries require a paid-in minimum capital when starting a business: Russian Federation (1. lowering the average paid-in minimum capital requirement from 184% of income per capita to 49% globally. In 2008.18 Since 2005. World Bank.20 Indonesia’s law on limited liability companies21 sets the minimum capital requirement at IDR 50. Miriam. easier access to fee schedules and lower fees tend to go hand in hand. Press release.7 1. In Indonesia.000. standard incorporation forms have been introduced based on a joint agreement between the Indonesian Notary Association and the Ministry of Law and Human Rights.7 How much are entrepreneurs required to deposit as minimum capital? 149.” Policy Research Working Paper 4322.6% of income per capita). DC.4%).800)—25% of which needs to be deposited in the founder’s bank account (the equivalent of 46.22 Germany is among them. Companies Commission of Malaysia Provide public access to the business-registration process and make the use of professional intermediaries optional The company name reservation is already computerized and done through an online system managed by the Ministry of Law and Human Rights. particularly in the case of limited liability companies. entrepreneurs can currently download standard incorporation forms and submit the application online. From November 2008 to January 2010. allowing entrepreneurs to file the documents themselves. however. 2010.7). such as Hong Kong SAR. In addition to Indonesia. Germany introduced a new type of limited liability company.4%). guidebook covering all issues regarding business registration and the steps needed to complete the process. recovery rates in bankruptcy are no higher in economies with minimum capital requirements than in those without. “Entry Regulation and Business Start-Ups: Evidence from Mexico. now requires an audit report showing that the amount a company has invested is enough to cover its establishment cost. 2. For example. 8. “License to Sell: The Eff ect of Business Registration Reform on Entrepreneurial Activity in Mexico. In practice.6 14. insolvency laws or specific negotiated contracts to mitigate risks. the recovery rate was the same (34%) in economies without any paid-in capital requirement as in the others.4 46. The government could help lower the cost of incorporation by opening access to the name-reservation system and by making standard articles publicly available. A small company in the services industry (low initial capital) does not represent the same risk as a big manufacturing company (high initial capital) in a volatile market.17 Moreover. China. fixed amounts of capital do not take into account differences in commercial risks. 16 out of 21 have made the necessary legislative changes and eliminated their minimum capital requirements. 12.18 DOING BUSINESS IN INDONESIA 2012 FIGURE 2. “Subnational Business Climate Reform” report prepared by the Asia Foundation for the International Finance Corporation (IFC) and the Decentralization Support Facility (DSF) for the National One-Stop Shop . 2011. 6.6 Russian Federation APEC OECD Indonesia China India Eliminate the minimum capital requirement A minimum capital requirement can act as a barrier to entry—especially for small companies that may need to constitute their capital during operations. 57 economies around the world have reduced or eliminated this requirement. China. incorporation fees tend to be lower in economies where information on fee schedules is easily accessible (figure 2. Small Enterprise Development Policies in Indonesia: An Overview. Minimum capital requirement (% of income per capita) 100. Finally. NOTES 1. The Central Bureau of Statistics. The form. Source: Doing Business database. only public notaries can access the system. Regardless of income levels. with a minimum capital requirement of EUR 1. has not been made available publicly.” Review of Economics and Statistics 93 (1): 382–86. Only notaries can file the incorporation documents. Doing Business in Indonesia 2010 measured 14 cities. now outlines provisions on solvency safeguards in its company act.6% of income per capita). 5. 2009. The cost to start a business averages 18% of income per capita in economies where fee schedules are easily accessible. Kaplan. Mexico (8. Washington. Indonesia.

2009. Doing Business 2012: Doing Business in a More Transparent World. 11. Ministry of Economic Development.HH-08. Ministry of Home Affairs.10/2009 dated December 17. World Bank Group. Companies: A guide for New Zealand busi- nesses. M. 60/M-DAG/ PER/12/2009 and Nr. Ministry for Employment Manpower and Transmigration. June 2010. Caralee McLeish and Andrei Shleifer.STARTING A BUSINESS 19 Project. 10.de/. “Leveraging Technology to Support Business Registration Reform. World Bank. Washington. Joint decree of the Ministry of Trade. “Debt Enforcement around the World. AH. 2011. Wille. DC. 40 of 2007. Common Register Portal of the German Federal States.01. John. March 2010. 22. World Bank conference. 23. Transparency International. 17. Washington. 69/2009 and Nr. Simeon. 2011. June 2011 16. 2011. Law No.handelsregister.” Singapore. 14. https:/ /www. World Bank. 28 of 2009. World Economic Forum. Indonesia’s Corruption Perception Index Survey 2010. World Bank. Law No. Ministry of Justice and Human Rights. 15.30/MEN/XII/2009 and Nr. 19. “The Singapore Experience: Ingredients for Successful Nation-Wide eTransformation. DC: The World Bank Group. DC: The World Bank Group. Washington. Washington. 12. Doing Business 2012: Doing Business in a More Transparent World.36 and 37 of 2007. 2011.” Journal of Political Economy 116 (6):1105-49. As per Ministry of Trade Regulation No. Numa De Magalhaes and Frederic Meunier. The Indonesia Competitiveness Report 2011-Sustaining The Growth Momentum. Investment Climate Advisory Services. 2008. September 30.2009 and Nr. 13. 2009. Karim Ouled Belayachi. . 20.” Investment Climate In Practice Note 17. Doing Business 2012: Doing Business in a More Transparent World. and the Investment Coordinating Board: Joint Regulation Nr. DC: The World Bank Group.01. The Companies Office. Djankov. 21. 18. Oliver Hart.

while making the construction process more affordable both for those who use it and for those who administer it.3). at a cost of 62. The number of steps required to deal with construction permits varies from 7 in both Medan and Yogyakarta to 14 in Manado. Updated master plans and efficient construction permit systems help local governments cope with the pressures of increasing urbanization while improving the safety of their citizens. entrepreneurs who wish to build a simple 2-story commercial warehouse must go through 7 different steps before being able to start construction—including obtaining location clearances. . and cost to deal with construction permits. undermining their intent. ahead of Australia (42nd) but behind Thailand (14th). In Palembang.1 Indonesian cities are already struggling with sprawling illegal settlements. FIGURE 3. 150 days and 87 % of income per capita (figure 3. traffic congestion and environmental degradation. Rules that are unclear. See Data notes for details. Source: Doing Business database.2 A construction company wishing to build a warehouse in Balikpapan spends 52 days to get through 8 procedures in order to obtain building approvals and utility connections. location clearances and building permits can be obtained from Palembang’s recently established onestop shop in a simple 2-step process. In all cities. and costs 69.20 Dealing with construction permits By 2040. In Surakarta and Jakarta.8% of income per capita. Rankings are based on the average city percentile rankings on the procedures. The case study includes all inspections and certificates needed before. cost and number of procedures to comply with formalities to build a warehouse? Cost (% of income per capita) Completed warehouse Number of procedures A business in the construction industry Before construction During construction Afterconstruction and utilities Time (days) Differing local regulations. Dealing with construction permits is easiest in Balikpapan and most difficult in Jakarta. time. no building permit for commercial warehouses has been issued since 2008 (table 3. and fees applied at the municipal level result in large variations among cities. It is not easy to find the right balance between safety and efficiency.1). In Gorontalo. Construction regulations need to be clear and adaptable to economic and technological change.1 Where is it easy to deal with construction permits—and where not? RANK City RANK City 1 2 3 4 5 6 7 8 8 10 Balikpapan Jambi Palembang Banda Aceh Yogyakarta Medan Pontianak Bandung Semarang Batam 11 12 12 14 15 16 17 18 19 No Practice Makassar Mataram Surakarta Palangka Raya Pekanbaru Surabaya Denpasar Manado Jakarta Gorontalo Note: The methodology for dealing with construction permits changed in 2011. The average city in Indonesia would rank 20th. Doing Business records the procedures. Good regulations ensure public safety and revenue for the government. on-site inspections. either by notarizing the land ownership certificate or by getting a clearance from the head of the village and the head of the subdistrict. overly rigid and/or poorly implemented may push construction into the informal sector. 10 procedures. after the construction is complete TABLE 3. To measure the ease of dealing with construction permits. Across Indonesia. time and cost required for a small to medium-size business to obtain all the necessary approvals to build a simple commercial warehouse and connect it to water. during and after construction of a warehouse (figure 3.1 What are the time.1). Most local variations occur before construction (figure 3. Inspections during the construction of the warehouse are required only in Denpasar. sewerage and a fixed telephone line.2). practices. environmental clearances and land ownership verifications. this city would rank 11th out of 183 economies as measured by Doing Business. 74 days.7 % of income per capita – faster and more affordable than the APEC average of 18 procedures. half of the population of Indonesia will be living in a city. dealing with construction permits takes. on average. Compared globally.

Pekanbaru. In Jakarta.4). Utility connection requirements are very similar throughout the country. an official document declaring the completion of construction and its compliance with the building permit (Banda Aceh.8 UNITED STATES 9. the building construction permit—Izin Mendirikan Bangunan (IMB)—is obtained in 21 days. the entrepreneur must register it both with the local Tax Office and the local Industry and Trade Agency (or one-stop shop).280 ($475) in Jambi and more than 6 times more in Makassar—IDR 31. Cities set the fees for the building permit taking into account multiple factors—such as the use of the building. In Makassar.5% of income per capita. Once these requirements have been satisfied. Once these verifications have been carried out. the one-stop issues the building construction permit in 24 days. Palembang.0 26 UNITED STATES permit—Izin Penggunaan Bangunan (IPB).9 AUSTRALIA 9. the time required to connect to telephone network varies from a few days to 3 weeks. YOGYAKARTA 18 APEC 15 AUSTRALIA.7 85 PHILIPPINES 67 HONG KONG SAR. Across Indonesia there are staggering differences in the cost of obtaining the building construction permit (IMB). The cost of dealing with construction permits varies considerably from city to city (figure 3. entrepreneurs need only 2 days to verify the ownership of the land with the head of the village and the head of the subdistrict. CHINA 12. In Banda Aceh. Time (days) 17. entrepreneurs must wait 49 days to obtain the building usage FIGURE 3. 1 day notarizing a copy of the land ownership certificate and 18 days dealing with the preparation and the approval of the environmental management plan—Upaya Pengelolaan Lingkungan Hidup (UKL)—and the environmental monitoring plan—Upaya Pemantauan Lingkungan Hidup (UPL).1 CHINA Range in Indonesia 14 MANADO Indonesia 10 average 7 MEDAN. CHINA JAMBI 32. Jakarta. entrepreneurs spend 22 days dealing with the pre-approval letter from the Zoning Department.1 MALAYSIA (% of income per capita) but before the building can be occupied.8 HONG KONG SAR. time and cost to deal with construction permits 33 CHINA 30 PHILIPPINES 260 MALAYSIA 22 MALAYSIA MAKASSAR 131.3 Palembang has fewer preconstruction procedures than other cities in Indonesia Before construction After construction Utilities 7 7 8 8 9 9 10 10 10 10 10 10 10 11 11 11 11 Medan Yogyakarta Balikpapan Makassar Batam Palembang Banda Aceh Bandung Jambi Mataram Pekanbaru Semarang Indonesia average Palangka Raya Pontianak Surabaya Surakarta Denpasar Jakarta Manado Source: Doing Business database. * 12 * During construction 13 14 . Similar variations occur in relation to connections to water and sewerage with PDAM (Perusahaan Daerah Air Minum).DEALING WITH CONSTRUCTION PERMITS 21 FIGURE 3.5). the administrative costs of building a warehouse and hooking it up to utilities amounts to just 32% of income per capita. Different preconstruction requirements explain many of the differences in time. Additional postconstruction requirements include a nuisance permit (Jambi and Palangka Raya).5 THAILAND Cost 7. its size and the number of stories.209 ($3.942. CHINA JAKARTA 158 150 APEC 157 THAILAND 147 AUSTRALIA 69. Obtaining all the necessary approvals to build a warehouse and connect it to utilities takes 42 days in Banda Aceh but three times longer in Jakarta—158 days (figure 3. the same process is more than 4 times as expensive—131.5 PHILIPPINES 87 APEC 311 CHINA 444.053). UNITED STATES 8 THAILAND 6 HONG KONG SAR.5 110. and Surabaya) or both (Manado). In Jakarta. Depending on the efficiency of the local office of Telkom Indonesia. Additional postconstruction requirements also matter. The building permit costs IDR 4.761. the 74 BANDA 42 ACEH Procedures (number) Source: Doing Business database.2 Procedures. Jakarta also requires a building usage permit while Denpansar requires an endorsement from the local Environmental Agency. In Jambi. The obtainment of the official report on completion of construction and compliance with the building permit can take more than a month (as seen in Pekanbaru and Manado) while the nuisance permit can take almost two weeks (as seen in Palangka Raya). Other pre-construction procedures—such as the obtainment of zoning clearances.

the local Industry and Trade Agency requires companies to obtain a warehouse license.5 85.6).6 41. notarization of land ownership certificate.7 70. Palembang.4 preconstruction clearances were merged with the building construction permit (IMB) application.874) and wait for 103 days before they could start construction.5 66.063 ($1. respectively. pointed out bottlenecks and provided recommendations.3 71.000 ($1. Pontianak. and a one-stop shop.523). Since passing a new local Staggering differences in the cost of the building construction permit (IMB) across Indonesia Before After Cost (% of income per capita) Jambi 32.645 ($2.3 Banda Aceh transformed its construction permit system radically (figure 3.850). This new procedure.5 58.507.2). and the preparation of environmental plans by an external consultant (as seen in Jakarta)—can add up to IDR 16.4 62. Once construction is over.3 37.290 ($1. 127.5 verifications are now carried out internally through the coordination of the Civil Works Agency. Moreover. Semarang.5 . Pekanbaru.501. Location and zoning clearances. which calculates the fees and issues the permits. Surabaya also rationalized its construction permit system.093. architectural assessments.247.5 38.5 100.123) to IDR 19. relevant agencies now hold regular meetings to update each other on their work.4 Dealing with construction permits is fastest in Banda Aceh Days 42 44 45 51 51 52 57 59 68 71 71 72 82 83 83 94 107 116 158 74 Indonesia average Banda Aceh Bandung Batam Makassar Yogyakarta Balikpapan Palembang Pontianak Jambi Medan Surakarta Semarang Palangka Raya Mataram Pekanbaru Denpasar Manado Surabaya Jakarta Source: Doing Business database. Back in 2010.041. has been paired with increased coordination between agencies involved in the process—specifically.586). the processing time for postconstruction procedures has been shortened by 22 days. companies had to go through 9 different steps.0 32. The average cost decreased from IDR 22. Manado and Palangka Raya). planned infrastructure and border FIGURE 3.1 105. Jakarta and Surabaya) and/or a nuisance permit (as seen in Jambi. obtain a report of compliance with the building permit (as seen in Manado. Now construction starts after only 5 procedures carried out over 26 days at a cost of IDR 15.22 DOING BUSINESS IN INDONESIA 2012 FIGURE 3.3 Pre-requisites for Building Building Construction Construction Permit (IMB) Permit (IMB) construction construction Utilities Pontianak Palangka Raya Semarang Surakarta Palembang Mataram Balikpapan Pekanbaru Banda Aceh Indonesia average Medan Surabaya Denpasar Bandung Yogyakarta Manado Jakarta Batam Makassar Source: Doing Business database. Progress over the past 2 years is impressive: 10 of the 14 cities measured a second time introduced improvements that made it easier to deal with construction permits (table 3. Surakarta and Yogyakarta.275 ($196) to register the warehouse with the local Industry and Trade Agency (or local one-stop shop).3 131.9 50. Postconstruction requirements are free of charge in Balikpapan.500 ($6) to IDR 2. Banda Aceh. As a result. As a result. the successful reconstruction of the city’s waterdelivery system and telephone network cut the time to connect to these utilities by 13 days and 55 days.2 71.8 64. the average time to deal with construction permits dropped from 106 to 77 days.5 69.063 ($1. Other cities charge fees that range from IDR 62.851. Doing Business in Indonesia 2010 identified good practices. in charge of the technical aspects. aimed at monitoring the urban development of the city. After the implementation of 2 new local regulations in January 2010.4 76. pay a total of IDR 19.

Source: Doing Business database. the ID of the applicant and a receipt attesting that the company is current with the property tax payments. 6 In Surakarta the administrative procedures for the building construction permit (IMB) were simplified and a building usage permit (IPB) is no longer necessary. its local authorities have combined zoning requirements and plot-ownership verifications with procedures to obtain a principal permit (Izin Prinsip)9—thus eliminating 2 procedures and reducing the time to deal with construction permits by 11 days. saving another 49 days. FIGURE 3. preconstruction procedures take 64 days—just half the time required 2 years ago.2 Business reforms improving the ease of dealing with construction permits over the last two years Improved administrative efficiency (through better coordination. Building projects that meet zoning requirements now just need to obtain a zoning usage permit and a print-out of the city master plan from Surakarta’s one-stop shop.7 Such documents are considerably less expensive than the “Advis Planning.5 the city planning statement is the only location clearance needed to apply for the building permit. Since May 2010. .6 Days 180 Overall. and staff training) Introduced or improved onestop shop  Simplification of administrative requirements for simple commercial buildings Improved utility infrastructure  Streamlined procedures  Reduced fees    Banda Aceh Bandung Makassar Manado Palangka Raya Palembang Pekanbaru Semarang Surabaya Surakarta Yogyakarta                Doing Business reforms making it easier to deal with construction permits  Doing Business reforms making it more difficult to deal with construction permits Note: This table records all Doing Business reforms that occurred between August 2009 and July 2011. regulation in 2009. use of technology.”8 a location permit that was mandatory for all buildings 2 years ago and is now required only for projects that are not in line with the city masterplan. At the end of 2009. The same regulation eliminated the need to apply for a separate building usage permit (IPB). As a result.DEALING WITH CONSTRUCTION PERMITS 23 TABLE 3. Surabaya’s one-stop shop issues the city planning statement in exchange for an application including a notarized copy of the land ownership certificate. In 2010 the registration of new buildings was transferred from the Ministry of the Industry and Trade to the one-stop shop—thus reducing the processing time for this procedure by 7 days and eliminating its cost altogether. building permits and warehouse registrations to its one-stop shop—thus reducing the overall time to Banda Aceh transformed its construction permit system radically 2010 Before reforms 150 120 90 Obtain the Building Construction Permit 60 Water and sewerage connection Telephone connection 2012 After reforms 30 0 1 2 3 4 5 6 7 Procedures 8 9 10 11 12 13 Source: Doing Business database. Semarang transferred preconstruction clearances. Palangka Raya also reformed. processing times improved in most of the cities that introduced a one-stop shop or increased coordination in the existing one.

In 17 out of the 20 Indonesian cities measured.290 ($1. entrepreneurs interact with an entity referred to as a one-stop shop. The agency issuing them is often that same agency that later issues the permit—the city’s one-stop shop. land ownership verifications and environmental clearances are carried out through different offices— such as the local Environmental Agency.517 ($1. Denpansar and Makassar. Additional curbs on costs have been introduced by the enactment.000. In Yogyakarta. additional recommendations also apply: Simplify construction permit fees In many cities. only 2 cities— Surakarta and Pekanbaru—eliminated fees associated with the construction permit system. the central government introduced a risk-based approach to environmental clearances. Currently. .590 ($684). The onestop shop checks whether the location of the plot can accommodate the warehouse at the same time as processing the application for the building permit. size.802. in Canada. the one-stop shop can only be used for some of the procedures related to the construction process.209 ($3. These cost savings. as of July 2011.053). simple commercial buildings in Palembang do not require any environmental clearance altogether. thus saving companies a considerable amount of time and separate visits to the one-stop shop. (b) the creation of single access points or one-stop shops for pre-approval clearances. where building permit fees are straightforward and based solely on the size of the warehouse. Pekanbaru and Jakarta already apply similar criteria. entrepreneurs find it difficult to anticipate construction permit costs. These reform recommendations remain valid for most of the cities. Yogyakarta and Pontianak use the local one-stop shop as a single-access point for all construction-related procedures. for example. however. No intermediate confirmation is needed.210. the same policy reduced the time for environmental clearances and warehouse registration by 4 and 3 days. Medan.000 ($1. Surakarta cancelled charges to register a warehouse. more resources can be devoted to safety checks rather than to multiple interactions between the entrepreneur and the various agencies. Yogyakarta’s one-stop shop provides userfriendly templates of the environmental management plan (UKL) and the environmental monitoring plan (UPL). Additional fees are sometimes levied for the review and the issuance of the permit. structure. respectively.442). Often several agencies are involved. Manado and Palangka Raya. Simplifying permit fees increases transparency.10 However. costs can be estimated easily by the applicant. these coefficients take into account design. except 1—the registration of the building at the local Tax Office. Over the past 2 years. location clearances are now part of the procedures to obtain the construction permit. central and local governments also made efforts to simplify environmental compliance rules for low-risk buildings. by increasing their coordinating power in the building permitting process. Very often.761. location. Acting upon these guidelines. Similar approaches have been implemented in Surabaya. were offset by the doubling of the cost for the building construction permit (IMB). at the local level. now IDR 15. Provided that there is an updated and comprehensive landuse plan and the public is informed about Increase involvement of local one-stop shops in the construction permit system Before a building plan is approved. the National Land Board or the head of the village. Bandung. The base rate is multiplied by a series of coefficients. where the cost of the building construction permit (IMB) increased from IDR 15.462) to IDR 31. WHAT TO REFORM Doing Business in Indonesia 2010 recommended: (a) streamlining of pre-approval clearances. the increased efficiency of the one-stop shop—achieved through training personnel to better use the computerized system to process applications for building permit and warehouse registration—resulted in a reduction of time for these procedures by 32 days altogether. Since January 2011. construction permit (IMB) fees are calculated through complex formulas. sometimes by as much as IDR 15. Surakarta has adopted an even simpler solution: building companies prepare a statement letter—Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup (SPPL)—that is cleared by the local Environmental Agency and then attached to the application for the building permit. One-stop shops improve the organization of the review process and help coordinate the interactions of different agencies. To prevent overlap and ensure efficiency. of the Law on Regional Tax and User-Charges. varies from city to city. building companies need to obtain location clearances before applying for the construction permit (IMB). it is a good practice to put the agencies under the same roof. most local governments reviewed their regulations and standard operating procedures. In 2010. The role that this entity plays in the permit processing system. Cities in Indonesia should expand the involvement of their one-stop shops in the construction permit system.112. Bandung.519). (c) the introduction of online permit applications and electronic processing and (d) risk-based approvals. Even when local regulations contain information about base rates and coefficients.24 DOING BUSINESS IN INDONESIA 2012 carry out these procedures by 26 days. Depending on the city. An even greater price increase has been registered in Makassar. The templates can be populated in-house by the construction company before being submitted to the local Environmental Agency through the one-stop shop at no charge. Further consolidate location clearances In many cities. Banda Aceh. However. in Banda Aceh. Authorities in Pekanbaru also eliminated the cost for the “Advis Planning” and the report of completion and compliance of the warehouse—a reduction of IDR 7. number of stories and whether the proposed building is going to be permanent or not. The other cities in Indonesia should follow suit. For example. providing basic guidance for local governments. however. Such modifications often resulted in a reduction of costs. appropriate clearances are needed to ensure quality and safety. In Bandung. In other cities. Building companies in Balikpapan. In this way. Each project is assigned a base rate covering the processing costs.

the urban population of Indonesia will be 170 million people. Local Regulation No. Information available online at http://www. 9. lower transaction costs and increase transparency. 3. The principal permit (Izin Prinsip) is a general clearance which confirms that the project abides by the zoning requirements for that particular area of the city. 28 of 2009. In Singapore—globally the best performing city on the ease of dealing with construction permits—the Building and Construction Authority provides easy access to relevant information and allows online submission of all paperwork. Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat. other cities in Indonesia should follow suit. since 2008. Medan. Bandung. policy makers are adopting technology to make it easier to do business. In Gorontalo. Local Regulation No. 64 of 2009 and Mayor Decree No. natlpartnerstreamline. 1 of 2010 and Mayor Regulation No. 317 of 2009. Banda Aceh. Palembang. However.11 methodology change. Other cities have extended the tracking function to be accessible to customers. World Population Prospects: The 2008 Revision and World Urbanization Prospects: The 2009 Revision. Pekanbaru and Yogyakarta have websites providing updated regulations and a comprehensive description of the building requirements. Local Regulation No. no building permit for separate commercial warehouses has been issued . to date. eliminated the risk of lost plans and reduced by 80% the number of in-person visits made to building authorities by out-of-state owners and architects. Storage facilities are allowed only as an extension of existing buildings and cannot exceed 30% of their size. In 2040.DEALING WITH CONSTRUCTION PERMITS 25 its requirements. no Indonesian city allows permit applications to be submitted online. 5. such as Pontianak and Surabaya. Pekanbaru and Yogyakarta followed the example set by Bandung a few years ago when it introduced a tracking system to allow companies to monitor the progress of their applications. 35 of 2010. Jakarta has a computerized tracking system for the internal monitoring of permit applications. such as the allowed building height or size. Mayor Regulation No. 8 of 2009. 8. Since 2008. The “Advis Planning” is a certificate that confirms the planning parameters for the specific plot of land. Denpansar. Denpasar. 7 of 2009. Balikpapan. 10. more than 20 cities use “e-Plan Review. Makassar. a certificate with similar features is called city planning statement—Surat Keterangan Rencana Kota (SKRK). NOTES 1. either online or through text messages. At the moment. Law No. only Balikpapan. 2. regardless of location and income level. In many economies across the world. In other cities. Palembang. 6. In the United States. 11. 7.” This system of online submission for building plans has shortened the review period by 40%. 4. The data is back calculated because of the Increase computerization of the building permitting process The computerization of the building permitting process in Indonesia is lagging behind other countries.org/.

33 days and a cost of 11% of the property value across the 20 Indonesian cities measured. For businesses a big market means big opportunities as the economy grows. .1 What are the time. Registering property in Indonesia is lengthier and considerably more expensive with an average of 6 procedures. balancing the need to generate tax revenues from properties with the private sector’s demand for a simple and inexpensive property-registration process is a challenge. In Bandung. The transaction is considered complete when it is opposable to third parties and when the buyer can use the property as collateral for a bank loan or resell it (figure 4.1% of property value—Indonesian cities have. According to the World Bank’s Enterprise Surveys. The benefits of having an efficient property registration system are numerous.1% of the property value to transfer the property from one domestic private company to another. cost and number of procedures required to transfer property between 2 local companies? Cost (% of property value) Buyer can use the property. Countries with efficient property registration systems tend to also have better property-rights protections. See Data notes for details. It is easiest to register property in Saudi Arabia.1 Entrepreneurs across Java looking to buy or sell property face similar regulatory requirements. Source: Doing Business database. The ease of registering property varies greatly among economies around the world. However. it also takes only 2 procedures and 2 days. For local governments. 81 days and a cost of 4. it takes 19 days to complete the legal transfer of property.3 Doing Business records the procedures necessary for a business to purchase a property from another business and to transfer the property title to the new buyer’s name. Although Java represents only about 7% of Indonesia’s total land area. But it also presents challenges in terms of access to land and property. The range is even wider when considering Indonesian cities measured outside Java: 12 days in Manado versus 54 days in both Surakarta and Batam. more procedures and TABLE 4. The process starts with obtaining the necessary documents—such as a copy of the seller’s title—and conducting due diligence. the process takes 36 days in Yogyakarta and 43 days in Semarang. Indonesian firms identified “access to land” as 1 of the top 10 constraints to firm investment. Formal land titles allow entrepreneurs to use land as collateral. it is home to over 60% of the country’s population of nearly 240 million—making it one of the most densely populated areas in the world. When compared to the East Asia and the Pacific regional average—5 procedures. property values increased by 75% to 197% after being registered. resell it or use it as collateral Procedures Land & 2-story warehouse Seller with property registered and no title disputes Preregistration Registration Postregistration Time (days) may benefit governments through higher numbers of formally registered properties—and greater tax revenues as a result. time and cost to register property. in practice. on average. the time to complete the transaction varies considerably from one city to another. Meanwhile. thus increasing credit supply2— which fosters more investment and economic growth. it costs just 0. Following a land-titling project in Thailand. if required. property registration FIGURE 4.1 RANK City Where is it easy to register property—and where not? RANK City 1 1 3 4 5 6 7 7 9 9 Bandung Jakarta Palembang Mataram Gorontalo Yogyakarta Jambi Medan Makassar Pontianak 11 12 12 12 15 16 17 18 19 20 Surabaya Balikpapan Banda Aceh Denpasar Manado Palangka Raya Surakarta Pekanbaru Semarang Batam Note: Rankings are based on the average city percentile rankings on the procedures. where the entire process can be completed with just 2 procedures. in theory. in 2 days.26 Registering property Anyone living on the island of Java knows the value of space. which is of particular significance for small firms that may not be able to invest in security systems or other costly measures to defend their property. In Thailand. In addition.1). at no cost. in New Zealand. Some economies in the East Asia and the Pacific region are not far behind.

implementation and enforcement remain major challenges. in Batam. the buyer visits the Directorate of Land Management at BIDA to request approval for the property license transfer. where legally all land belongs to BIDA and therefore any transfer of property must be approved. the lack of institutional capacity and inadequate technological support explain some of these ongoing bottlenecks.767) tax-free in 2011. (3) paying the tax on the acquisition of land and building. and (6) registering the deed at the Tax on Land and Building Office under the name of the new owner. Among the 20 cities measured. Bandung and Jakarta remain the cities where it is easiest to transfer property (table 4.442) respectively were increased to IDR 60 million ($5. Indonesia is the most expensive place to register property among the 21 economies covered (the APEC average is just 3. However. In order to obtain the license. obtaining the property transfer license from the Batam Industrial Development Authority adds an extra 30 days to the process. despite renewed national legislation to reduce delays and homogenize performance across BPN locations. the buyer is informed that he/she can proceed to make the payment at BIDA and obtain the license. The parties to the transaction . Although there is no legal basis for this procedure.4 require a 7th procedure. it is required in practice. Mataram and Gorontalo rank within the top 5 on the ease of property transfer. While in most cities the parties can proceed to execute the sale with a land deed official once tax payments are made and required documents submitted. In Semarang. in Palembang and Yogyakarta the 2009 taxfree allowance of IDR 20 million ($1. In 2008. 18 require 6 procedures to complete the legal transfer of a property between 2 companies. The BPN office of Batam is the second fastest. which is the main cause of 20 5 10 Seller pays Transfer Tax of 2. but it dropped on the overall ease-of-property-transfer ranking because other cities reduced the tax on land and building. BIDA officials make an on-site inspection of the property in the following days to assess the location.2). the land deed official must previously visit the local revenue office—Dinas Pengelolaan Keuangan dan Aset Daerah (DPKAD)—and obtain a note certifying that the price is in line with market value. Manado remains the fastest city with just 12 days. completing the registration of the land deed at BPN takes 45 days—the longest among all cities surveyed. Once completed and cleared. Manado is still the fastest city. in Surakarta. Even though national regulations aim to expedite the land registration process at local land agency offices (BPN) across Indonesia. (2) paying the transfer tax. Comparing the results of Doing Business in Indonesia 2010 to the current report. According to the Head of the Business Licensing Office. Meanwhile. but are faster. registering land deeds in just 7 days. Meanwhile. This additional procedure has its historical roots in Batam’s status as a special territory. A high volume of registrations in fast-growing cities. However. Batam and Semarang. use and value. while in Batam and Surakarta the process takes 54 days (figure 4. The standard procedures shared by all cities are: (1) passing the land-certificate examination at the local land agency office—Badan Pertanahan Nasional (BPN). A regulation passed in 20105 reinforced a similar regulation in 20086 that set a maximum time for local land agency offices (BPN) to deliver registered land deeds in the new owner’s name. For example.1). 2 cities.2 Time (days) 60 Obtaining the property transfer license in Batam Cost (% of property value) 15 Time 54 days 50 Obtaining the property transfer license from BIDA: 30 days Cost Cost 13.3% 40 Time 30 10 need not be present. On the other hand.REGISTERING PROPERTY 27 FIGURE 4. while Manado did not. Despite a mostly standardized property registration process defined by national regulations. the differences in efficiency across local offices continues to be the main reason for variations in time—from 5 days in Manado to 45 days in Surakarta. 0 2 0 5 6 7 3 4 Procedures a higher cost. The license enables the buyer to lease the land from the city of Batam. these time limits helped Jakarta speed up property transfer from 39 days to 22 days. that is not the case in Semarang. the staff at Surakarta’s local BPN (numbering around 90) handles a very large workload. In relation to the Asia-Pacific Economic Cooperation (APEC) economies.7 However. (5) registering the land deed with the local land agency office (BPN).7% of property value).922) and IDR 15 million ($1. (4) having a land deed official execute the sale and purchase of the land deed. lowering the cost to register properties in these 2 cities.3).5% 1 Source: Doing Business database. the buyer must obtain a property transfer license from the Batam Industrial Development Authority (BIDA) after the land certificate has been examined at the local land agency office (figure 4. local factors—such as the volume of new registrations and transfers and the level of administrative efficiency—lead to considerable time variations among cities. among the 6 cities covered for the first time.

to provide incentives to entrepreneurs to pay their taxes and register their land.5% to the total cost.02 12 11. Specifically.8 In an effort to extend coverage in a country with a geography as complex as Indonesia’s.03 15 10. compared to the East Asia and the Pacific region and the global average 11. at the regulated maximum rate of 1% of the property value.810 land disputes. used to determine the total tax on the acquisition of land and building. 2010.3 2. Registering property continues to be expensive—with an average cost amounting to 11% of the property value (figure 4. providing services using laptops with wireless connections to the main database. But Indonesia need not look so far for reform inspiration. Malaysia and Singapore—property transfers cost between 0. In addition. the region with the highest average cost—although it’s now below 10% of property value.8 2. In the case of Palangka Raya. delays.8%. paid to local governments. According to the new law.767).13 Twenty-three of these reformers were in SubSaharan Africa.81 10.88 10.3% of the property value due to the property-transfer license. Global average (183 economies) Indonesia average Singapore Vietnam Brazil Malaysia .88 10.88 10. national regulation capped the amount of the sale price that could be declared as tax-exempt at IDR 60 million ($5. reducing the average cost to register property by 4% of the property value. But rising market values for properties across Indonesia convinced the government to raise the tax-free limit.88 10.3 5. Among the 14 cities previously measured.922) in Palangka Raya to IDR 80 million ($7. BPN continues to implement mobile landregistration services—called “Larasita”—in villages and rural areas. Batam is the most expensive city—costing 13.4). Other minor cost variations stem from differing tax exemptions on property.1 3. local governments had to % of property value 6. BPN also launched its “Online Map”9—sharing spatial and non-spatial data online.1 4. the old tax-free amount is still being applied.689) in Jakarta.88 10. but in practice.10 as of January 1. In addition. Thailand. BPN reaches remote areas by car and motorcycle.88 19 21 22 25 29 31 36 37 37 38 38 39 39 39 39 43 54 54 Cost (% of property value) Time (days) pass new regulations in order to specify the tax-free limit.3% of the property value. in late 2008. the local regulation was passed. Doing Business reported that 56 economies around the world lowered transfer taxes and other government fees. Jakarta is the least expensive city at 10.88 10. entrepreneurs must pay the land deed official at the time of the execution of the sale-purchase deed. the tax exemption ranges from IDR 20 million ($1.88 13. including links to search land transactions across Indonesia with the goal to help solve more than 2. set this amount as a minimum and allowed local governments to freely raise the taxfree limit. which is paid to the national government.88 10. enacted in 2009.88 10. China Japan Thailand Source: Doing Business database. Meanwhile. Over the past 7 years.6% and 6.35 10.28 DOING BUSINESS IN INDONESIA 2012 FIGURE 4.6 East Asia & Pacific Hong Kong SAR.4 Registering property in Indonesia is expensive. all but 4 cities11 have passed and implemented the local regulations to be in line with the national law.3 Manado Palangka Raya Bandung Palembang Jakarta Mataram Pekanbaru Gorontalo Yogyakarta Jambi Medan Makassar Pontianak Balikpapan Banda Aceh Denpasar Surabaya Semarang Batam Surakarta Registering property is fastest in Manado and least expensive in Jakarta 11. The 2 main components of the cost are the transfer tax (5% of property value).88 10. Citizens’ frustration with the delays resulted in protests in front of Surakarta’s local BPN offices in 2010.83 10.7 5.0 Source: Doing Business database.88 10. Numerous economies within the East Asia and the Pacific region—like FIGURE 4. lower than Indonesia’s. 11 cities12 raised the tax-free value. although in most cases only up to the minimum.88 10. which adds an additional 2.88 10. Back in 2008. Among the 20 cities covered in this report.88 10.3 0. In neighboring economies—such as Vietnam. A new national regulation. and the tax on the acquisition of land and building (5% of property value minus the tax-free value).7 4.

Or. Sharing the same legal framework for property registration procedures at a national level makes it easier for Indonesian cities to emulate good practices from peer-to-peer learning. For example. cities could consider having separate windows for the registration of new properties and for the transfers of existing properties. This step could be eliminated through better inter-agency information sharing. Palangka Raya and Bandung.REGISTERING PROPERTY 29 Singapore or Malaysia—have significantly lowered costs for transferring property. All 31 OECD high-income economies have electronic registries. since it allows local governments more room to reduce costs for businesses.17 Worldwide. Reduce transfer taxes and the tax on the acquisition of land and buildings or replace them with fixed fees Indonesia is among the most expensive economies in the world for transferring property. (b) improving coordination between government agencies. At the local level. sliding scale according to the property size. The land office regulations from 2008 and 2010 need to be better implemented and enforced in all cities. New Zealand imposes a fee of just 0. with separate staffs. Spain has an innovative way to ensure compliance: the registry’s fees are cut by 30% if registration takes more than 15 days.1% of the property value. but also avoid losing title transfers.14 Globally. 60% of economies have electronic files for their property registries. According to Doing Business 2012. on average. Economies that transferred paper records to electronic forms benefit from shorter processing times. The region’s average cost is now just 4. In cities such as Manado. Streamlining the process administratively and informing the public that a procedure is no longer required will not only ease the process for buyers.1% of property value to transfer property title. But this applies only to local taxes. (c) monitoring implementation of national regulations across Indonesia and speeding up procedures at the land office. when time limits are not respected. And digital records can be backed up and maintained more easily than paper ones. Reducing fees does not necessarily mean reducing revenues. 17 economies have low fixed taxes and fees for property transfer—ranging from around $20 to $300. But broader and deeper reforms may also be necessary to streamline procedures and improve the efficiency of the property registration process throughout Indonesia. This works best when people using the registration services (i. regardless of the property value. while in others it can take up to a week. the average cost in the top ten economies in the ease-of-property-transfer ranking is just 0. In fact.15 The new national legislation establishing a minimum tax-free value for the tax on the acquisition of land and building is a step in the right direction.18 Going electronic also makes it easier to identify errors and overlapping titles. All these recommendations remain valid. but in practice the local land offices are not complying. making it difficult to identify properties’ rightful owners. The online registration of properties and payment of taxes saves time—an entrepreneur can avoid unnecessary visits to government offices or commercial banks and can visit a virtual registry to register a deed from his or her own desk. Maharashtra’s stamp duty revenues jumped by 20% after the state reduced the stamp duty from 10% to 5% of property value.. many land books were lost or destroyed during the Tsunami. land deed officials and the public at large) have Internet access. 5 days is set as the time limit for BPN to complete the registration of the land deed with the name of the buyer. For example. WHAT TO REFORM Doing Business in Indonesia 2010 recommended (a) reducing transfer taxes and the tax on the acquisition of land and buildings or replacing them with fixed fees. This reform would cut at least 2 procedures across Indonesia. Improve coordination between government agencies After registering a property transfer at the local land office. the Indian state of Maharashtra experienced an increase in government revenues after reducing fees— due to an increased number of registrations. reducing the time it takes to check for encumbrances from up to 10 days in 2006 to just 1 day in 2010. the national tax rate for the transfer tax remains at 5% of the property value. if buyers fail to notify all the agencies involved. and (d) making the registry electronic. the land certificate examination procedure at the local land office can be completed within 1 day. Sanctions should be levied if deadlines are not respected.6% of the property value. cities yet to enact the necessary local regulations to set tax-free limits should do so quickly in order to avoid uncertainty for businesses. For example. a buyer must notify the tax office. the Netherlands and New Zealand—offer electronic registration. Improving the efficiency of the offices would reduce registration time across cities. In both regulations. in 2006 Tunisia computerized its land registry. good practices can be found not only abroad but also at home. The government should consider reducing the percentage of the property value charged or replacing the current transfer tax and the tax on the acquisition of land and building with a fixed fee based on a Monitor and enforce implementation of national regulations across cities to speed up procedures at the land office The time needed to register property at the land office is the main bottleneck in Indonesia. registration and payment are done manually at land offices across Indonesia. and 11—including France. fees could be reduced . Make the registry electronic Title searches. Keeping statistical information and conducting a workload analysis helps assess how the process could be faster.e. In Banda Aceh. The government could also consider placing 1 or 2 land office employees in a local one-stop shop dealing with business startup and/or construction permits. in 9 out of 20 Indonesian cities. For example. the entire process can be completed in less than 20 days—setting an example for other Indonesian cities. For example. When it comes to finding inspiration to reduce delays in the property transfer process.16 Other economies that have computerized their property registries have seen the time to register property drop by 45%. improving title security.

Washington. Doing Business in 2012: Doing business in a more transparent world. DC: World Bank Group. DC: World Bank Group. Washington. but the tax-free value remained the same as in 2009. 2010. 2008. 28 of 2009. Doing Business 2009: Comparing regulations in 181 economies.bpn. no cost). Doing Business in 2010: Reforming through difficult times. For Doing Business in Indonesia 2012 the procedure “Verification of the property market value at the Local Revenue Office (DPKAD)” was added (duration: 5 days. Palangka Raya. Indonesia Country Profile. 4. World Bank. World Bank. 5. Bandung implemented this law. enterprisesurveys. 2011. Law No. DC: World Bank Group. Peta Online at http://map. “Land Registration to Improve Security. Anthony. Makassar.id/ 10. Surabaya. Surakarta and Yogyakarta. 7. 1 of 2010 on the Standard for Land Administration Service and Land Regulation. Denpasar. 2010. Solo Pos newspaper. Washington. World Bank. at IDR 60 million. December 2010. 6. Doing Business in 2011: Making a difference for entrepreneurs.” World Bank Asia Regional Workshop on Land Policy and Administration working paper. World Bank. World Bank. Washington. Doing Business in the Arab World 2011. Regulation No.org. World Bank. 18. 16. 2005. DC: World Bank Group. 2. These 11 cities are: Balikpapan. Banda Aceh. Gorontalo and Medan. Doing Business in 2006: Creating jobs. Pekanbaru. Washington. 9. In Doing Business in Indonesia 2010. Transparency. World Bank. Regulation of the Head of National Land Agency No. Doing Business in 2012: Doing business in a more transparent world. 2009. These 4 cities are: Manado. Doing Business in 2010: Reforming through difficult times. Enterprise Surveys. 2011. 13. 2002. Washington. DC: World Bank Group. 12. 11. DC: World Bank Group. 15. World Bank. 2009. Available at www. Semarang. Washington. DC: World Bank Group.30 DOING BUSINESS IN INDONESIA 2012 NOTES 1. World Bank. Governance & Sustainable Resource Management. DC: World Bank Group. DC. Burns. 3. Washington.go. Washington. 17. Palembang. . World Bank. 8. Jakarta. 14.” In “Comparative Study of Land Administration Systems. 2009. this additional procedure for Semarang was not counted. 6 of 2008 on the Simplification and Acceleration of the Standard Operating Procedures on Land Regulation and Services for Certain Types of Land Services.

sole proprietorships. which lead to revisions or expansions of the information collected. its size. with academic advisers. the preliminary findings are presented to the local governments through right of reply consultations with administrators and other local government officials. The methodology is inexpensive and easily replicable. Because standard assumptions are used in the data collection. construction firms. the data not only highlight the extent of specific regulatory obstacles to doing business but also identify their source and point to what might be reformed. with the Doing Business in Indonesia 2012 team. the measures of time involve an element of judgment by the . Doing Business indicators have been created for 20 cities in Indonesia. were benchmarked in Doing Business in Indonesia 2010. First. for example. Exchange rate The exchange rate used in this report is: 1 US$ = 10. The data from questionnaires are subjected to numerous tests for robustness. It is transparent. Second. The data presented in this report for Jakarta and other economies are based on the global report Doing Business 2012—Doing business in a more transparent world. Indonesia’s GNI per capita in 2010 = US$ 2. through face-to-face interviews. using factual information about what laws and regulations say and allowing multiple interactions with local respondents to clarify potential misinterpretations of questions.31 Data notes The indicators presented and analyzed in Doing Business in Indonesia 2012 measure business regulation and the protection of property rights—and their effect on businesses.580. especially small and medium-size domestic firms. Finally. To start. its location and the nature of its operations. comparisons and benchmarks are valid across economies. so data can be collected in a large sample of economies. transactions described in a standardized case study refer to a specific set of issues and may not represent the full set of issues a business encounters. For example. Region and income group Doing Business uses the World Bank regional and income group classifications available at http:/ /www. org/data/countryclass. Questionnaires are administered through more than 210 local experts. the data often focus on a specific business form—a limited liability company of a specified size—and may not be representative of the regulation on other businesses. conference calls and written correspondence. designs a questionnaire. The indicators document the degree of regulation. engineers. The data for all sets of indicators in Doing Business in Indonesia 2012 are current as of July 2011. METHODOLOGY The Doing Business in Indonesia 2012 data are collected in a standardized way. the Doing Business team. In this report. including lawyers. business consultants. ECONOMY CHARACTERISTICS Gross national income (GNI) per capita Doing Business in Indonesia 2012 reports 2010 income per capita as published in the International Monetary Fund’s World Economic Outlook database (April 2011). such as the time and cost to enforce a contract. Then the questionnaire is customized to the particular case of Indonesia.worldbank. 14 of which. such as the number of procedures to start a business or to register and transfer commercial property. They also gauge the time and cost of achieving a regulatory goal or complying with regulation. Having representative samples of respondents is not an issue: Doing Business is not a statistical survey. and the texts of relevant laws and regulations are collected and answers checked for accuracy. These experts have several rounds of interaction LIMITS TO WHAT IS MEASURED The Doing Business methodology has 4 limitations that should be considered when interpreting the data.405 IDR. The questionnaire uses a simple business case to ensure comparability across countries and over time—with assumptions about the legal form of the business. Third. The data for all sets of indicators taken from Doing Business 2012 are current as of June 2011. The Doing Business methodology offers several advantages. local and national-level government officials and other professionals routinely administering or advising on legal and regulatory requirements.

32 DOING BUSINESS IN INDONESIA 2012 expert respondents. Procedures that must be completed in the same building but in different offices are counted as separate procedures. lawyers. Performs general commercial activities. Operates in the commercial district of the selected city. if a company must open a bank account before registering for sales tax or value added tax. These include obtaining all necessary licenses and permits and completing any required notifications. For this reason. accountants or lawyers. Doing Business in Indonesia 2012 has also removed procedures. such as tax declarations. It is not using heavily polluting production processes. Leases the commercial plant and offices and is not a proprietor of real estate. If 2 procedures can be completed through the same website but require separate filings. Each electronic procedure is counted separately. unless the use of such a third party is mandated by law. a detailed list of procedures is developed. several assumptions about the business and the procedures are used. For example. paid in cash. for example. notaries and government officials complete and verify the data. as % of income per capita Procedure is completed when final document is received . registration and postregistration (in calendar days) As % of income per capita. Has start-up capital of 10 times income per capita at the end of 2010. no bribes included CHANGES IN WHAT IS MEASURED The methodology for the dealing with construction permits indicator was updated this year. Information is also collected on the sequence in which procedures are to be completed and whether procedures may be carried out simultaneously. The ranking on the ease of starting a business is the simple average of the percentile rankings on its component indicators (figure 5. procedures conducted by such professionals on behalf of the company are counted separately. In line with Doing Business methodology and to allow for international and subnational comparability. obtaining the seal or stamp is counted. government agencies. For both reasons the time delays reported in Doing Business in Indonesia 2012 would differ from the perceptions of entrepreneurs reported in the World Bank Enterprise Surveys or other perception surveys. Procedures A procedure is defined as any interaction of the company founder with external parties (for example. the limited liability form most popular among domestic firms is chosen. Finally. time. the procedures. and cost related to getting an electricity connection from the dealing with construction permits indicator. STARTING A BUSINESS Doing Business in Indonesia 2012 records all procedures that are officially required for an entrepreneur to start up and formally operate a commercial business. such as the production or sale of products or services to the public. liquor or tobacco. inquiries continue until the data are reconciled. along with the time and cost of complying with each 25% Time 25% Procedures 25% Cost 25% Paid-in minimum capital Funds deposited in a bank or with a notary before registration (or within 3 months). completing a procedure may take longer if the business lacks information or is unable to follow up promptly. If the services of professionals are required. Alternatively. none of whom is a legal entity. they are counted as 2 procedures. Procedures required for official correspondence or transactions with public agencies are also included.1). Assumptions about the business The business: Is a limited liability company. Has a turnover of at least 100 times income per capita.1 STARTING A BUSINESS: GETTING A LOCAL LIMITED LIABILITY COMPANY UP AND RUNNING Rankings are based on 4 indicators Preregistration. time and cost related to obtaining an electricity connection were removed from the dealing with construction permits indicator.and post incorporation procedures that are officially required for an entrepreneur to formally operate a business are recorded (table 5.1). auditors or notaries). the business may choose to disregard some burdensome procedures. Both pre. Information on the most popular form is obtained from incorporation lawyers or the statistical office. the time indicators reported in Doing Business represent the median values of several responses given under the assumptions of the standardized case. Similarly. The founders are assumed to complete all procedures themselves. all of them nationals. Subsequently. It is assumed that any required information is readily available and that all agencies involved in the start-up process function without corruption. the methodology assumes that a business has full information on what is required and does not waste time when completing procedures. procedure under normal circumstances and the paid-in minimum capital requirements if applicable. local incorporation lawyers. Has at least 10 and up to 50 employees 1 month after the commencement of operations. if a company seal or stamp is required on official documents. regulations and publicly available information on business entry. In practice. After a study of laws. If there is more than one type of limited liability company in the country. To make the data comparable across countries. The global Doing Business report now includes getting electricity indicators in its overall analysis of the ease of doing business. Interactions between company founders or company officers and employees are not counted as procedures. verifications or inscriptions for the company and employees with relevant authorities. When sources indicate different estimates. each is counted separately. If founders have to visit the same office several times for different sequential procedures. Has a company deed 10 pages long. If answers by local experts differ. Is 100% domestically owned and has 5 owners. The business does not perform foreign trade activities and does not handle products subject to a special tax regime. this transaction is included FIGURE 5. Does not qualify for investment incentives or any special benefits. without middlemen. facilitators.

with the rest to be paid after the first year of operation. name verification or reservation. These procedures include submitting all relevant project-specific documents (for example.DATA NOTES 33 TABLE 5. the warehouse project and the utility connections are used. Operates in the selected city. licenses.org by selecting the economy in the drop-down list. Preregistration (for example. In the absence of a government officer’s estimate. and avoiding them causes substantial delays. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments. Simeon. Many countries have a minimum capital requirement but allow businesses to pay only a part of it before registration. If several incorporation lawyers provide different estimates. 2002. In all cases the cost excludes bribes. Does not include time spent gathering information Each procedure starts on a separate day Procedure completed once final document is received No prior contact with officials Cost required to complete each procedure (% of income per capita) Official costs only. It is assumed that the entrepreneur does not .1 WHAT DO THE STARTING A BUSINESS INDICATORS MEASURE? Procedures to legally start and operate a company (number) waste time and commits to completing each remaining procedure without delay. For example. and is adopted here with minor changes. To make the data comparable across economies. building plans and site maps) to the authorities. water. Is 100% domestically and privately owned. and a fixed telephone landline. simultaneous procedures start on consecutive days). the fastest procedure is chosen. Paid-in minimum capital The paid-in minimum capital requirement reflects the amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita. It is assumed that the entrepreneur is aware of all entry regulations and their sequence from the beginning but has had no prior contact with any of the officials. ¨The Regulation of Entry. including approvals and inspections. Shortcuts are counted only if they fulfill 4 criteria: they are legal. all of them nationals with the technical expertise and professional experience necessary to obtain construction permits and approvals. Although procedures may take place simultaneously. Is fully licensed and insured to carry out construction projects. Industry-specific procedures are excluded. The survey divides the process of building a warehouse into distinct procedures and calculates the time and cost of completing each procedure. completing all required notifications. none of whom is a legal entity. The data details on starting a business can be found for each economy at http://www . Procedures necessary to register the property so that it can be used as collateral or transferred to another entity are also counted. Only procedures required of all businesses are covered. permits and certificates. gas and waste disposal services are not included. construction firms. notarization) Registration in the economy’s largest business city Postregistration (for example. Doing Business in Indonesia 2012 also records procedures for obtaining connections for water. company seal) Time required to complete each procedure (calendar days) Cost Cost is recorded as a percentage of the economy’s income per capita. the commercial code and specific regulations and fee schedules are used as sources for calculating costs. several assumptions about the business. sewerage. A procedure is considered completed once the company has received the final document. Assumptions about the construction company The business (BuildCo): Is a limited liability company. estimates of incorporation lawyers are used. It includes all official fees and fees for legal or professional services if such services are required by law. Has at least 1 employee who is a licensed architect and registered with the local association of architects. obtaining all necessary clearances. and receiving all necessary inspections. The time that the entrepreneur spends on gathering information is ignored. In the absence of fee schedules. including architects. This methodology was developed in Djankov. procedures to comply with environmental regulations are included only when they apply to all businesses conducting general commercial or industrial activities.¨ Quarterly Journal of Economics 117(1):1-37. It is assumed that the minimum time required for each procedure is 1 day. The amount is typically specified in the commercial code or the company law. they are available to the general public. such as the company registration certificate or tax number. DEALING WITH CONSTRUCTION PERMITS Doing Business in Indonesia 2012 records all procedures required for a business in the construction industry to build a standardized warehouse. construction lawyers. the median reported value is applied. If a procedure can be accelerated for an additional cost. they cannot start on the same day (that is. The company law. Has 5 owners.doingbusiness. Fees for purchasing and legalizing company books are included if these transactions are required by law. Information is collected from experts in construction licensing. such as building warehouses. Has 60 builders and other employees. Florencio López-de-Silanes and Andrei Schleifer. utility service providers and public officials who deal with building regulations. Time Time is recorded in calendar days.2). they are used by the majority of companies. no bribes No professional fees unless services required by law Paid-in minimum capital (% of income per capita) Funds deposited in a bank or with a notary before registration (or within 3 months) as a procedure. The ranking on the ease of dealing with construction permits is the simple average of the percentile rankings on its component indicators (figure 5. social security registration. Rafael la Porta. Procedures that the company undergoes to connect to electricity. a government officer’s estimate is taken as an official source.

34 DOING BUSINESS IN INDONESIA 2012 FIGURE 5. Only official costs are recorded. a fire extinguishing system (dry system) will be used instead. such as development of the warehouse plans and inspections conducted by employees. Is located on a land plot of 10. TABLE 5.300. All the fees associated with completing the procedures to legally build a warehouse are recorded.2 WHAT DO THE DEALING WITH CONSTRUCTION PERMITS INDICATORS MEASURE? Procedures to legally build a warehouse (number) Submitting all relevant documents and obtaining all necessary clearances.136 liters (300 gallons) a day. information from local experts and specific regulations and fee schedules are used as sources for costs. including those associated with obtaining land use approvals and preconstruction design clearances. Has complete architectural and technical plans prepared by a licensed architect. the fastest procedure is chosen.3% Time 33. Is a fixed telephone landline. It is assumed that BuildCo is aware of all building requirements and their sequence from the beginning. 10 inches (10 meters) from the main telephone network. 33. If a wet fire protection system is required by law. Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). Owns the land on which the warehouse is built. permits and certificates Completing all required notifications and receiving all necessary inspections Obtaining utility connections for water. both above ground. Cost Cost is recorded as a percentage of the economy’s income per capita.000 square feet (1. with a total surface of approximately 14. it is assumed that the water demand specified below also covers the water needed for fire protection. The data details on dealing with construction permits can be found for each economy at http://www .org by selecting the economy in the drop-down list. licenses. Procedures that the company undergoes to connect to water. on the fringes of the city but still within its official limits). during and after construction. It is assumed that BuildCo does not Does not include time spent gathering information Each procedure starts on a separate day Procedure completed once final document is received No prior contact with officials Cost required to complete each procedure (% of income per capita) Official costs only. inspections and utility connections included Has paid all taxes and taken out all necessary insurance applicable to its general business activity (for example. Is not located in a special economic or industrial zone. Nonrecurring taxes required for the completion of the warehouse project are also recorded. chemicals or pharmaceuticals. Each floor is 9 feet. Has 2 stories. getting utility connections. sewerage and telephone services are included. If several local partners provide different estimates. simultaneous procedures start on consecutive days).3% Cost As % of income per capita. public and private inspectors and technical experts apart from in-house architects and engineers. Assumptions about the warehouse The warehouse: Will be used for general storage activities. no bribes .2 DEALING WITH CONSTRUCTION PERMITS: BUILDING A WAREHOUSE Rankings are based on 3 indicators Days to build a warehouse in main city 33.000 square feet (929 square meters) that is 100% owned by BuildCo and is registered in the cadastre and land registry. Although procedures may take place simultaneously. they cannot start on the same day (that is.2). waste time and commits to completing each remaining procedure without delay.3% Procedures Procedure is completed when final document is received. Has a peak water use of 1. Does not require water for fire protection reasons. including government agencies. Procedures A procedure is any interaction of the company’s employees or managers with external parties. sewerage and a fixed telephone landline Registering the warehouse after its completion (if required for use as collateral or for transfer of the warehouse) Time required to complete each procedure (calendar days) Time Time is recorded in calendar days. utility companies. Has road access and is located in the periurban area of the selected city (that is. The warehouse will not be used for any goods requiring special conditions. no bribes included Assumptions about the utility connections The water and sewerage connection: Is 32 feet 10 inches (10 meters) from the existing water source and sewer tap. Has an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. and registering the warehouse property. are not counted as procedures. The time that BuildCo spends on gathering information is ignored. Will include all technical equipment required to make the warehouse fully operational. receiving inspection before. It is assumed that the minimum time required for each procedure is 1 day. The zoning requirements for warehouses are met by building in an area where similar warehouses can be found. such as food. such as storage of books or stationery.325 liters (350 gallons) a day and a peak wastewater flow of 1. 10 inches (3 meters) high. construction permits. If a procedure can be accelerated legally for an additional cost. The building code. The measure captures the median duration that local experts indicate is necessary to complete the procedure in practice. Interactions between company employees. the land registry. Will have a constant level of water demand and wastewater flow throughout the year. even if they may be avoided in exceptional cases (table 5. accidental insurance for construction workers and third-person liability insurance). the median reported value is used. All procedures that are legally or in practice required for building a warehouse are counted. notaries.6 square meters). The telephone connection: Is 32 feet. the cadastre. Is a new construction (there was no previous construction on the land).doingbusiness.

it is assumed that they are. notarizing sales agreement. Is located in a periurban commercial zone. It is assumed that the buyer does not waste time and commits to completing each remaining procedure without delay. The measure captures the median duration that property lawyers. or both. it is assumed that it does not employ an outside facilitator in the registration process unless legally or in practice required to do so (table 5. To make the data comparable across economies. A 2-story warehouse of 10.3 REGISTERING PROPERTY: TRANSFER OF PROPERTY BETWEEN 2 LOCAL COMPANIES Rankings are based on 3 indicators TABLE 5.3% Cost As % of property value. Has no trees. simultaneous procedures start on consecutive days). sold or used as collateral Procedure completed once final document is received No prior contact with officials Cost required to complete each procedure (% of property value) Is registered in the land registry or cadastre. All procedures that are legally or in practice required for registering property are recorded.4 square meters). It is assumed that the minimum time required for each procedure is 1 day. if necessary. If procedures can be undertaken simultaneously. natural reserves or historical monuments of any kind.3% Procedures Does not include time spent gathering information Each procedure starts on a separate day Steps to check encumbrances. Official costs only. no bribes included Preregistration procedures (for example. Consists of land and a building. the fastest legal procedure available and used by the majority of property owners is chosen. and is free of title disputes. and no other party holds a legal interest in it. prepare deed and transfer title so that the property can be occupied.3). even if Assumptions about the property The property: Has a value of 50 times income per capita. Procedures A procedure is defined as any interaction of the buyer or the seller. use it as collateral for a bank loan or resell it. Time Time is recorded in calendar days. their agents (if an agent is legally or in practice required) or the property with external parties. all of whom are nationals. is in good condition and complies with all safety standards. Are located in the periurban area of the selected city. The warehouse is 10 years old. and conducting due diligence if required. the property and the procedures are used. as collateral in taking new loans or. they cannot start on the same day (that is. The transaction is considered complete when it is opposable to third parties and when the buyer can use the property. sell to another business. It is assumed that the parties involved are aware of all regulations and their sequence from the beginning. The ranking on the ease of registering property is the simple average of the percentile rankings on its component indicators (figure 5. Have 50 employees each. inspectors. The land area is 6.3 WHAT DO THE REGISTERING PROPERTY INDICATORS MEASURE? Procedures to legally transfer title on immovable property (number) Days to transfer property in main city 33.3% Time 33. Although procedures may take place simultaneously. no bribes No value added or capital gains taxes included they may be avoided in exceptional cases.000 square feet (557. The sale price equals the value.000 square feet (929 square meters) is located on the land. such as a copy of the seller’s title if necessary. Has no mortgages attached and has been under the same ownership for the past 10 years. Is fully owned by the seller. checking for liens. FIGURE 5. .3). Time spent on gathering information is not considered. notaries and property registries provide information on procedures as well as the time and cost to complete each of them. Assumptions about the parties The parties (buyer and seller): Are limited liability companies. Every procedure required by law or necessary in practice is included. notaries and lawyers.DATA NOTES 35 REGISTERING PROPERTY Doing Business in Indonesia 2012 records the full sequence of procedures necessary for a business (buyer) to purchase a property from another business (seller) and to transfer the property title to the buyer’s name so that the buyer can use the property for expanding its business. obtain clearance certificates. Will not be subject to renovations or additional building following the purchase. notaries or registry officials indicate is necessary to complete a procedure. are required. industrial plants. The property of land and building will be transferred in its entirety. Will not be used for special purposes. such as for residential use. Interactions between company officers and employees are not considered. several assumptions about the parties to the transaction. Perform general commercial activities. whether it is the responsibility of the seller or the buyer or must be completed by a third party on their behalf. Local property lawyers. Has no occupants (legal or illegal). The process starts with obtaining the necessary documents. Are 100% domestically and privately owned. Although the buyer may use lawyers or other professionals where necessary in the registration process. paying property transfer taxes) Registration procedures in the economy’s largest business city Postregistration procedures (for example. natural water sources. It is assumed that the buyer follows the fastest legal option available and used by the majority of property owners. and no rezoning is required. building codes and other legal requirements. and no special permits. including government agencies. If a procedure can be accelerated for an additional cost. waste storage or certain types of agricultural activities. filing title with municipality) Time required to complete each procedure (calendar days) 33.

are excluded from the cost measure. First. each of the 32 component indicators y is rescaled to (y − min)/(max − min). macroeconomic conditions or the strength of underlying institutions. transfer taxes. In starting a business. introduces a new measure to illustrate how the regulatory environment for local businesses in each economy has changed over time. To do so. where 0 represents the frontier and 100 the lowest performance. The frontier is a score derived from the most efficient practice or highest score achieved on each of the component indicators in 9 Doing Business indicator sets (excluding the employing workers and getting electricity indicators) by any economy since 2005. The distance to frontier measure illustrates the distance of an economy to the “frontier” and shows the extent to which the economy has closed this gap over time. New Zealand has achieved the highest performance on the time (1 day). and the associated time and cost (% of income per capita) required to start a business. what package of reforms is most effective and how these issues are shaped by the context of an economy. notaries. If cost estimates differ among sources. doingbusiness. The ease of registering property is a simple average of the city rankings on the number of procedures. The data details on registering property can be found for each economy at http://www. public agencies or lawyers.org by selecting the economy in the drop-down list. the median reported value is used. DISTANCE TO FRONTIER MEASURE This year’s report. There remains a large unfinished agenda for research into what regulation constitutes binding constraints. The difference between an economy’s distance to frontier score in 2005 and its score in 2011 illustrates the extent to which the economy has closed the gap to the frontier over time. for example. for each economy the scores obtained for individual indicators are aggregated through simple averaging into one distance to frontier score. such as capital gains tax or value added tax. To mitigate the effects of extreme outliers in the distributions of the rescaled data (very few economies need 694 days to complete the procedures to start a business.36 DOING BUSINESS IN INDONESIA 2012 Cost Cost is recorded as a percentage of the property value. The ease of dealing with construction permits is a simple average of the city rankings on the number of procedures. . An economy’s distance to the frontier is indicated on a scale from 0 to 100. the quality of its infrastructure services (other than services related to construction permits). stamp duties and any other payment to the property registry. with the minimum value (min) representing the frontier—the highest performance on that indicator across all economies since 2005. The maximum (max) and minimum (min) observed values are computed for the 174 economies included in the Doing Business sample since 2005 and for all years (from 2005 to 2011). The rankings are limited in scope. RANKINGS The ranking on each topic is the simple average of the percentile rankings on its component indicators. including fees. Both costs borne by the buyer and those borne by the seller are included. the security of property from theft and looting. but many need 9 days). The ease of starting a business is a simple average of the city rankings on the number of procedures. Other taxes. The year 2005 was chosen as the baseline for the economy sample because it was the first year in which data were available for the majority of economies (a total of 174) and for all 9 indicator sets included in the measure. Second. Only official costs required by law are recorded. Denmark and Slovenia on the cost (0% of income per capita) and Australia on the paid-in minimum capital requirement (0% of income per capita). associated time and cost (% of the property value) required to register property. Calculating the distance to frontier for each economy involves 2 main steps. the maximum (max) is defined as the 95th percentile of the pooled data for all economies and all years for each indicator. Canada and New Zealand on the number of procedures required (1). and the associated time and cost (% of income per capita) required to build a warehouse. They do not account for an economy’s proximity to large markets. assumed to be equivalent to 50 times income per capita. The Doing Business indicators provide a new empirical data set that may improve understanding of these issues. individual indicator scores are normalized to a common unit. Doing Business 2012—Doing business in a more transparent world.

4 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 12 6 39 10. Aceh Province Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 5 9 29 19.88 .2 46.3 46. East Kalimantan Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 7 8 28 26.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 4 10 42 66.3 46.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 12 6 39 10.3 46.3 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 20 7 54 13.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 10 9 45 127.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 1 6 19 10. West Java Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 12 9 30 24.88 Bandung.88 Banda Aceh.88 Batam.7 46. Gorontalo Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 6 9 27 22.35 Denpasar.37 City tables Balikpapan.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 17 12 94 71. Bali Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 9 8 31 22.88 Gorontalo. Riau Islands Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 15 9 39 22.8 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 12 6 39 10.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) np np np np Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 5 6 31 10.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 1 8 52 62.9 46.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 8 10 44 76.

5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 9 6 38 10.88 Palangka Raya. South Sulawesi Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 17 10 35 22 46.4 46.3 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 1 6 22 10.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 16 6 15 11.02 Mataram. Central Kalimantan Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 2 8 27 22 46.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 14 11 82 37. Jambi Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 18 10 44 20.88 Medan.2 46. DKI Jakarta Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 8 8 45 17.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 19 13 158 105.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 11 8 51 131.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 18 14 107 100.38 DOING BUSINESS IN INDONESIA 2012 Jakarta.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 6 7 71 70. West Nusa Tenggara Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 10 9 31 22.2 46.88 Manado.88 Makassar.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 2 10 68 32 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 7 6 37 10. North Sumatra Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 19 11 39 21.81 Jambi.3 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 7 6 37 10.03 . North Sulawesi Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 20 11 34 30.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 12 10 83 58.9 46.1 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 15 6 12 11.4 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 4 6 25 10.8 46.

7 46.3 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 9 6 38 10.5 46.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 8 10 72 38.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 3 9 57 50.83 Surakarta.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 6 6 36 10.CITY TABLES 39 Palembang.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 15 10 83 64.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 5 7 51 85.89 Pontianak. Central Java Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 4 9 28 19.5 46. DI Yogyakarta Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 1 8 29 18.8 46.5 46. East Java Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 14 9 32 23.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 18 6 29 10.88 Pekanbaru.88 Yogyakarta.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 7 11 59 32.88 Semarang.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 16 11 116 71.6 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 19 7 43 10. West Kalimantan Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 13 10 42 17.6 Dealing with construction permits (rank) Procedures (number) Time (days) Cost (% of income per capita) 12 11 71 41.88 .6 46. Central Java Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 3 8 29 20.2 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 11 6 39 10. Riau Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 16 10 29 26. South Sumatra Starting a business (rank) Procedures (number) Time (days) Cost (% of income per capita) Minimum capital (% of income per capita) 11 10 34 19 46.9 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 17 6 54 10.5 Registering property (rank) Procedures (number) Time (days) Cost (% of the property value) 3 6 21 10.88 Surabaya.

6 46.7 22.6 46.6 46.6 46.3 24.40 Indicator tables Starting a business Paid-in minimum Ease of Cost capital starting a Time (% of income (% of income business (days) per capita) per capita) (rank) Dealing with construction permits Ease of Procedures (number) Procedures (number) Time (days) dealing with Cost construction (% of permits income per (rank) capita) 62.3 19.6 46.3 38.4 21.6 46.9 20.5 32.3 22.2 22 19 26.3 37.9 85.6 46.6 46.6 46.6 17.6 46.6 46.5 46.6 7 5 12 15 9 6 8 18 17 20 10 19 2 11 16 13 4 14 3 1 8 10 10 9 12 No practice 13 10 8 14 10 7 11 9 10 11 10 11 11 7 52 42 44 45 94 No practice 158 68 51 107 83 71 82 57 83 59 72 116 71 51 .5 127.6 71.9 22.6 46.6 46.5 50.2 41.2 22 30.2 17.4 No practice 105.3 71.8 22.5 76.6 46.4 70.5 18.3 32 131.5 20.6 46.7 23.5 64.6 46.5 1 4 8 10 17 No practice 19 2 11 18 12 6 14 3 15 7 8 16 12 5 Balikpapan East Kalimantan Banda Aceh Aceh Province Bandung West Java Batam Riau Islands Denpasar Bali Gorontalo Gorontalo Jakarta DKI Jakarta Jambi Jambi Makassar South Sulawesi Manado North Sulawesi Mataram West Nusa Tenggara Medan North Sumatra Palangka Raya Central Kalimantan Palembang South Sumatra Pekanbaru Riau Pontianak West Kalimantan Semarang Central Java Surabaya East Java Surakarta Central Java Yogyakarta DI Yogyakarta 8 9 9 9 8 9 8 10 10 11 9 11 8 10 10 10 9 9 8 8 28 29 30 39 31 27 45 44 35 34 31 39 27 34 29 42 28 32 29 29 26.8 19.1 58.8 66.6 46.5 100.6 46.6 46.

88 12 12 1 20 12 5 1 7 9 15 4 7 16 3 18 9 19 11 17 6 .02 10.35 10.88 10.88 13.88 10.83 10.88 10.03 10.88 10.INDICATOR TABLES 41 Registering property Cost Procedures Time (number) (days) (% of property value) Ease of registering property (rank) Balikpapan East Kalimantan Banda Aceh Aceh Province Bandung West Java Batam Riau Islands Denpasar Bali Gorontalo Gorontalo Jakarta DKI Jakarta Jambi Jambi Makassar South Sulawesi Manado North Sulawesi Mataram West Nusa Tenggara Medan North Sumatra Palangka Raya Central Kalimantan Palembang South Sumatra Pekanbaru Riau Pontianak West Kalimantan Semarang Central Java Surabaya East Java Surakarta Central Java Yogyakarta DI Yogyakarta 6 6 6 7 6 6 6 6 6 6 6 6 6 6 6 6 7 6 6 6 39 39 19 54 39 31 22 37 38 12 25 37 15 21 29 38 43 39 54 36 10.88 10.88 10.88 11.88 10.88 11.88 10.88 10.81 10.89 10.88 10.

g. Register with the Ministry of Manpower at the local Manpower Office Time: 1 day Cost: No cost Comments: According to Law 13/2003.000 (IDR  1. Based on the local regulation No. d.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. following the new SOP of BPMP2T. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. enacted January 2011. the following formula to calculate HO permit: Business area x location index x total of the nuisance index x Tariff 100 m2 x 3 x (1+1) x IDR  1. c. payment for registering or establishing a company is normally done through a notary. Procedure 7*.000 for publication in the Supplement to the State Gazette.580. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. deed drafting and approval. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No.520. Most applicants visit the Tax Office in person. Copy of the deed establishment. 10. i. According to the new law No 28 of 2009 and based on Mayor instruction No. Copy of NPWP & NPWPD (Local fiscal charges). The Manpower office conducts a . The Tax Officer will inform the applicant Procedure 3. The company data (name.000. Letter of no objection from the neighborhood (for HO). articles of association. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. After approval. The company domicile certificate. NPPKP needs further verification beyond application but NPWP can be obtained in 1 day. the original application and supporting documents should be submitted. Procedure 5. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). location. b. d. 1 of 2011. TDP) at the Investment and Licensing Agency (BPMP2T) Time: 5 days Cost: IDR  750.000 (for HO) Comments: Since April 2010. 19 of 2007.000 for validation of company as legal entity + IDR  30. when the NPWP and NPPKP cards are ready for pick up. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services.250= IDR  750. the company must register with the Tax Office. Because the process must be done through a computerized processing system. Application letter.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. which will verify the documents and issue the registration number for the applicant. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval.000 for publication in the State Gazette. Notarize company documents before a notary public Time: 1 day Cost: IDR  4. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. the permanent business trading license (Surat Izin Usaha Perdagangan. 29 and 30 of the Indonesian Company Law No. object and purpose. Procedure 2. e. The applicant gets a receipt of document submission. the fee depends on the agreement between notary and client. TBNRI) Comments: Based on Articles 9. the founders can sign the deed of establishment. Copy of ID card. Articles of association. Proof of the lease of premises. capital) will be inserted in the Company Registry. e. local notary associations set the scale of notary fees. Procedure 4. j. BNRI + IDR  550. Commonly. East Kalimantan Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. SIUP & TDP is free of charge and according to the mayor instruction. f. h. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. The applicant submits the required documents to the Tax Office and gets the receipt of application. name checking. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Based on the inspection minutes (BAPL). The following copies of documents should be attached to obtain the licenses: a. obtain the standard form of the company deed. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Copy of technical permit related to the business type. The notary fees associated with this procedure cover the following services: name check. The costs for accessing the Electronic Administration System of Legal Status (SABH). the fee for this procedure is IDR  200. Procedure 6. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. it can be done faster within 5 days.000. The application should be filled no later than 60 days from the date of the deed. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company.500. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. SIUP) and the registration certificate (Tanda Daftar Perusahaan. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost Comments: Maximum one month from the start of business operations. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Apply for the nuissance permit (HO). Seven days after the fulfillment of above requirements. 2009 and entered into force on June 3.000 = USD 1. Upon payment and verification. Copy of IMB or leases the premises. and payment of non tax state revenue (PNBP) fees. Arrange for a notary. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. l. Passport photo size 3x4. the licenses are approved or not. The process will take place as follows: a. By virtue of Government Regulation 38/ 2009 (enacted on May 28. the licenses are printed and signed by the Head of the Licensing Agency. Map of the business location. The technical team will conduct an inspection of the business location at which the entrepreneur does not have to be present. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. Standard articles of association are available at the notary office.201 Data as of: July 2011 The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 2009 and entered into force on June 3. 10 of 2008 regarding HO levy. k. b. The applicant will be informed by phone to pick up the licenses. the licenses can be obtained as a package.000). 40/ 2007. Procedure 1. but in practice. There is improvement in quality of courier service.000. the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. c. and identity cards of the directors must be submitted to obtain the tax numbers. The applicant submits only 1 complete document to the licensing agency. Balance sheet of company (stamp IDR  6. and PNBP are counted separately.42 DOING BUSINESS IN INDONESIA 2012 LIST OF PROCEDURES STARTING A BUSINESS Balikpapan. NPWP and NPPKP can be arranged simultaneously in one package. the statutory time to complete this procedure is 14 days. In practice.

Upon payment and verification. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. The applicant receives the company membership certificate. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. capital) will be inserted in the Company Registry. Most applicants visit the Tax Office in person. Procedure 5. b.id or obtained from Jamsostek Branch Offices. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. By virtue of Government Regulation 38/ 2009 (enacted on May 28. Procedure 3. NPPKP needs further verification beyond application but NPWP can be obtained in 1 day only. 28 /2002). obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. The company domicile certificate. Both NPWP and NPPKP can be obtained in 2-3 days. payment for registering or establishing a company is normally done through a notary. Letter of application signed on stamp by the applicant. 14/1993.020. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. the company should pay the first insurance premium.000. the fee for this procedure is IDR  200.000 (IDR  1. Apply for the Workers Social Security Program (Jamsostek Program) Time: 2 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. old age. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. and pays the registration fee at the Bank located within KPPTSP. The notary fees associated with this procedure cover the following services: name check. 2009 and entered into force on June 3.000 for publication in the State Gazette. b. The applicant submits the complete documentation to KPPTSP. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. The process will take place as follows: a. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. Procedure 1.000. Obtaining NPPKP could take 7–14 days if the company is selected randomly for physical inspection. For a company with less than 50 employees. * This procedure can be completed simultaneously with previous procedures. obtain the standard form of the company deed. Procedure 2. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. the company must register with the Tax Office. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). and payment of non tax state revenue (PNBP) fees.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. d. SIUP). Aceh Province Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12.000 for validation of company as legal entity + IDR  30. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. Procedure 8*. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. 2009 and entered into force on June 3. if the company doesn’t pick up the certificate. This social security program covers occupational accidents.000 for publication in the Supplement to the State Gazette. which can be downloaded from the website jamsostek. 19 of 2007. Obtain a location permit (SITU) from the One Stop Service (KPPTSP) Time: 1 day Cost: IDR  50. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. It is arranged after the company starts to recruit workers. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. deed drafting and approval. the verification process can be done on the spot. 40/ 2007. name checking. the applicant receives an online notification (via email) with the cleared company name. Arranging for Jamsostek is the same for all Indonesian locations: a. c. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). 10. local notary associations set the scale of notary fees. Fill out the form. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. In practice.go. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost Comments: Maximum one month from the start of business operations. articles of association. SITU is a requirement to obtain the permanent business trading license (Surat Izin Usaha Perdagangan.500. The process usually takes 7 days for processing and approximately 7 days for courier service. The reserved name will be blocked for 60 days. death. as amended by Government Regulation No.000 = USD 1. In 30 days.000 Comments: City regulation (Qanun Kota Banda Aceh 4/2003) governs the SITU process in Banda Aceh. The applicant submits the required documents to the Tax Office and gets the receipt of application. TBNRI) Comments: Based on Articles 9.580. The company data (name. the Jamsostek Office will issue membership certificates for each employee. STARTING A BUSINESS and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary).LIST OF PROCEDURES 43 verification process and issues an official copy of the registration to the applicant. the original application and supporting documents should be submitted. The application should be filled no later than 60 days from the date of the deed. location. 3/1992). Arrange for a notary.201 Data as of: July 2011 Procedure 4. Having received the first payment. and identity cards of the directors must be submitted to obtain the tax numbers. In practice. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The following documents should be attached: a. NPWP and NPPKP can be arranged simultaneously in one package. and PNBP are counted separately. the founders can sign the deed of establishment. Because the process must be done through a computerized processing system. . c. Jamsostek official conducts data input to Jamsostek data base. The license is issued same day if the documents are complete. BNRI + IDR  550. The applicant returns to the office to pick up the official copy of the registration. 29 and 30 of the Indonesian Company Law No. The costs for accessing the Electronic Administration System of Legal Status (SABH). Notarize company documents before a notary public Time: 1 day Cost: IDR  3. the reservation Procedure 6. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Banda Aceh. Standard articles of association are available at the notary office. Seven days after the fulfillment of above requirements. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. Visit the Jamsostek Office to submit the filled–in form. obtains a registration number. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. the fee depends on the agreement between notary and client. and health security. d. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. e. Commonly. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. There is improvement in quality of courier service. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. object and purpose.

Visit the Jamsostek Office to submit the filled–in form. Arranging for Jamsostek is the same for all Indonesian locations: a. and pays the official user charges. Arrange for a notary. Based on Mayor Decree No. Copy of the approval from Ministry of Law and Human Rights if the company is Limited Liability Company (Perseroan Terbatas. 56 of 2010 concerning the delegation of authority for signing of employment. Copy of the Deed of Establishment and proof of the court registration if the company is Limited Liability Company (Perseroan Terbatas.000 for publication in the Supplement to the State Gazette. Copy of SITU. with the same Officer at the One Stop Service (KPPTSP Banda Aceh City). The notary fees associated with this procedure cover the following services: name check. Commonly. c. The applicant only visits the office to fill out the form. BNRI + IDR  550. f.44 DOING BUSINESS IN INDONESIA 2012 b. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application.580. Payment is made at the local government’s bank which is located in the One Stop Service. old age. 25–50 employees: IDR  50. along with the required documents.000 (IDR  75. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. the type of business. gets a confirmation receipt. c. TDP) at the One Stop Service (KPPTSP Banda Aceh City) Time: 3 days Cost: IDR  275. Procedure 3.go. deed drafting and approval.000. * This procedure can be completed simultaneously with previous procedures. and a declaration mentioning the company has informed its neighbors. Copy of nuisance permit (HO) only for specific industries. at the same time. Procedure 8*. The application form for domicile certificate should be completed with the number and date of the deed of establishment and the name of the notary. the verification process can be done on the spot. the fee depends on the agreement between notary and client. KPPTSP. Standard articles of association are available at the notary office. The applicant receives the company membership certificate. name checking. 2009 and entered into force on June 3.000 for TDP) Comments: SIUP and TDP can be arranged as a package. The following documents should be attached to the application: a. b. Procedure 7. Procedure 2. obtain the standard form of the company deed. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. KPPTSP. i. Having received the first payment. The applicant submits the completed application forms. Copy of NPWP. Report company employment to the Ministry of Manpower through the One Stop Service (KPPTSP) Time: 1 day Cost: IDR  50. the fee for this procedure is IDR  200. Procedure 9*.500.000 and fee for SIUP is IDR  75.201 Data as of: July 2011 Procedure 4.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. 14/1993. 6/ 2004 and Local Regulation No. 1–25 employees: IDR  25. h. In practice. The fee depends on the number of the employees: a. Jamsostek official conducts data input to Jamsostek data base. which can be downloaded from the website jamsostek. The time to obtain both SIUP and TDP is sometimes faster which is 2–3 days. local notary associations set the scale of notary fees. Upon payment and verification.000 for SIUP + IDR  200. the Jamsostek Office will issue membership certificates for each employee. Copy of ID card from applicant. This social security program covers occupational accidents. b. if the company doesn’t pick up the certificate. 13/2003. This procedure can be completed by filing the compulsory report with the Office of Social and Manpower Affairs for the city of Banda Aceh. It is arranged after the company starts to recruit workers. The costs for accessing the Electronic Administration System of Legal Status (SABH). d. death. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days.000 for a medium company (PT). Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Procedure 1. The reserved name will be blocked for 60 days. the founders can sign the deed of establishment. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. a “voluntary social contribution” for the development of the community can be made. After verification. Instead. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees.000. payment for registering or establishing a company is normally done through a notary. West Java Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. Copy of the receipts of payment.000 . Based on Local Regulation No.000 = USD 1. There is no official fee to obtain this certificate in Bandung. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200.000. The office conducts a verification process and issues the official copy of the registration to the applicant. e. c. if office space is leased.000 for publication in the State Gazette. d. Passport photo size 3 x 4 (4 pieces). In 30 days. Bandung. d. the fee for obtaining TDP is IDR  200.000 (IDR  1. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. and PNBP are counted separately. Passport photo color size 3 x 4 cm (2 pieces). b. Letters of application. 50–99 employees: IDR  75.000. Both SIUP and TDP are valid for 5 years. For a company with less than 50 employees. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). and payment of non tax state revenue (PNBP) fees. PT). 28 /2002). Procedure 5. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. g. c. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public.000 Comments: According to Law No.020. Notarize company documents before a notary public Time: 1 day Cost: IDR  4. The deed company establishment for the legal entity. In practice.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Fill out the form. TBNRI) . the company should pay the first insurance premium. PT). A copy of the signed deed of establishment should also be attached. 19 of 2007. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek).id or obtained from Jamsostek Branch Offices. e. Because the process must be done through a computerized processing system. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. as amended by Government Regulation No. SIUP) and the registration certificate (Tanda Daftar Perusahaan. 3/1992). STARTING A BUSINESS Based on the Government Regulation Number 38 of 2009 (enacted on May 28. and health security.000 for validation of company as legal entity + IDR  30. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. the licenses will be issued. this procedure is now conducted at the One Stop Shop. 7/2004. The status of the office space. Obtain a certificate of company domicile from the Village Office Time: 2 days Cost: No cost Comments: This certificate is issued by the Head of the village (the Lurah) where the company is located or by the building management. Copy of ID card. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. the applicant receives an online notification (via email) with the cleared company name.

SIUP & TDP will start to be processed. 40/ 2007. 12/2002. e. The company data (name. Most applicants visit the Tax Office in person. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights.go. Apply for the nuisance permit (Hinder Ordinantie– HO/SITU). Copy of NPWP. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. 27 of 2002 concerning nuisance permit (HO). articles of association. The process is usually completed within 5 days. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. Procedure 6. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost Comments: Maximum one month from the start of business operations. j. Domicile letter (prerequisite for HO). the company must register with the Tax Office. NPWP and NPPKP can be arranged simultaneously in one package. The detailed process will take place as follows: a. with the same Officer at Bandung One Stop Shop (BPPT). A technical team will conduct the field survey to check the business location and the type of business (the applicant doesn’t need to be present). as amended by Government Regulation No. Based on local regulation No.LIST OF PROCEDURES 45 Comments: Based on Articles 9. b.boss. 28 /2002). h. the application can be approved or not. fee for TDP is IDR  420. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. There is improvement in quality of courier service. b. at the same window. SIUP is free of charge. object and purpose. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. Passport photo 4x6 (2 pcs). Register with the Ministry of Manpower at the local Manpower Office Time: 1 day Cost: No cost Comments: According to Law No. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No.id or obtained from Jamsostek Branch Offices. 2009 and entered into force on June 3. i. The applicant gets a receipt of document submission. d. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. the original application and supporting documents should be submitted.000 Although the application process can be done electronically (www. According to Regulation of Ministry of Trade No. and identity cards of the directors must be submitted to obtain the tax numbers. the company should pay the first insurance premium. c. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. * This procedure can be completed simultaneously with previous procedures. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter.id). obtain the standard form of the company deed. c. 13/2003.000 for SITU/HO + IDR  420. the verification process can be done on the spot. e. Apply for the Workers Social Security Program (Jamsostek Program) Time: 1 day Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. BPPT will verify the documents.500.000. The applicant receives the company membership certificate. b. The applicant submits the completed documents to BPPT and gets the registration number. For a company with less than 50 employees. d. death. c. Application form. which usually starts at IDR  150. old age. Jamsostek official conducts data input to Jamsostek data base. and Mayor regulation of Bandung. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. The following documents should be attached to apply for HO.or.000 = USD 1. The application should be filled no later than 60 days from the date of the deed. The company domicile certificate. d. Fill out the form.000 for TDP) Comments: The applications for HO/SITU. e. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. This social security program covers occupational accidents. Letter of no objection from the Head of neighborhood. Procedure 9*. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. location. Based on the technical team report. Arrange for a notary. an unofficial administrative fee may be charged. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. Arranging for Jamsostek is the same for all Indonesian locations: a. 14/1993. 46/2009. Seven days after the fulfillment of above requirements.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Because the process must be done through a computerized processing system. the permanent business trading license (Surat Izin Usaha Perdagangan– SIUP). This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. SIUP & TDP: a. the Jamsostek Office will issue membership certificates for each employee. Although there is no official fee. Riau Islands Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. b. 29 and 30 of the Indonesian Company Law No.201 Data as of: July 2011 Procedure 8*. By the time HO has been approved. Cost: IDR  726. 10. Based on local regulation No. The applicant submits the required documents to the Tax Office and gets the receipt of application. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. The process usually takes 7 days for processing and approximately 7 days for courier service. The process will take place as follows: a. Letter of ability to meet the environmental preservation (prerequisite for HO). the applicant still has to visit the office to submit the original documents. By virtue of Government Regulation 38/ 2009 (enacted on May 28. d. BPPT will issue the license. If the application has been approved. and the registration certificate (Tanda Daftar Perusahaan– TDP) at the Bandung One Stop Shop (BPPT) Time: 5 days . Procedure 1. g. Agreement/approval letter with the land/building owner and/or leasing agreement between land/ building owner and the applicant.000 (IDR  306. Copy of ID card. In practice. and health security. SIUP and TDP can be submitted at the same time. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). An attestation of location and address of the company’s offices. which can be downloaded from the website jamsostek.000. if the company doesn’t pick up the certificate. STARTING A BUSINESS Batam. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). f. Visit the Jamsostek Office to submit the filled–in form. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. It is arranged after the company starts to recruit workers. Having received the first payment. In 30 days. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue Procedure 7. HO will be processed first because HO is prerequisite for SIUP. capital) will be inserted in the Company Registry. 3/1992). Copy of the deed establishment legalized by the Ministry of Law and Human Rights (Kemenhukham). the formula cost to calculate fee for HO is: = Business area x location index x nuisance index x tariff = 100 m2 x 3 x 2 x 510 = IDR  306. c.

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payments may be accessed only by a public notary). Upon payment and verification, the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. Based on the Government Regulation Number 38 of 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, the fee for this procedure is IDR  200,000.

Procedure 5. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Time: 14 days Cost: IDR  1,580,000 (IDR  1,000,000 for validation of company as legal entity + IDR  30,000 for publication in the State Gazette, BNRI + IDR  550,000 for publication in the Supplement to the State Gazette, TBNRI) Comments: Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law No. 40/ 2007, the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The process will take place as follows: a. The application should be filled no later than 60 days from the date of the deed; b. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights, the original application and supporting documents should be submitted; c. Seven days after the fulfillment of above requirements, the Ministry of Law and Human Rights will issue the legalization of the establishment of the company; d. The company data (name, location, object and purpose, capital) will be inserted in the Company Registry; e. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. By virtue of Government Regulation 38/ 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. There is improvement in quality of courier service, by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.

Procedure 7. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) and registration certificate (Tanda Daftar Perusahaan–TDP) at the one–stop shop
Time: 3 days Cost: IDR  500,000 (for TDP) Comments: Based on Mayor Decree No. 8 of 2001 and the standard procedure (SOP) in the integrated licensing services (http://www.bpbatam.go.id/ini/ aboutBida/pemko2.jsp), the requirements to obtain SIUP are: a. Application form, including the phone number and the stamp of the company; b. Copy of deed establishment; c. Original and copy of the company approval from the Ministry of Law and Human Rights (3 copies); d. Copy of ID card; e. Copy of NPWP PT; f. Copy of the domicile letter from the Head of of Village with the original letter attached for processing; g. Proof of land ownership or lease of premises; h. Map of business location; i. The original balance sheet of the company; j. Passport photo size 3x4 (4 pcs). The official time to complete this procedure is 3 days and it is implemented in practice.

Procedure 2. Notarize company documents before a notary public
Time: 1 day Cost: IDR  3,800,000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights, the founders can sign the deed of establishment. Standard articles of association are available at the notary office. The notary fees associated with this procedure cover the following services: name check, deed drafting and approval, and payment of non tax state revenue (PNBP) fees. Commonly, local notary associations set the scale of notary fees. In practice, the fee depends on the agreement between notary and client. The costs for accessing the Electronic Administration System of Legal Status (SABH), name checking, and PNBP are counted separately.

Procedure 3. Obtain a certificate of company domicile from the Village Office
Time: 7 days Cost: No cost Comments: The domicile letter is required as pre requisite for other procedures. There is no official fee for this procedure but in practice, the applicant usually pays IDR  300,000–IDR  600,000. The following copies of documents should be attached: a. Copy of the deed establishment; b. Copy of the ID card of the director; c. Passport photo size 3x4 (2pc)s; d. A recommendation letter from the Head of neighborhood; e. Map of business location; f. The proof of the leasing the business premises. As of January 2011, based on Mayor instructions, the Head of the Sub district is prohibited to issue the Domicile Letter but in practice this procedure is still required by the notaries.

Procedure 8*. Register with the Ministry of Manpower at the local Manpower Office
Time: 3 days Cost: No cost Comments: According to Law No. 13/2003, companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. The applicant gets a receipt of document submission. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. The applicant returns to the office to pick up the official copy of the registration. Although there is no official fee, an unofficial administrative fee may be charged, which usually starts at IDR  150,000.

Procedure 6. Obtain a taxpayer registration number (NPWP) from the local Tax Office
Time: 3 days Cost: No cost Comments: This procedure is required as a pre–requisite for SIUP. NPWP can be applied for online at: www. pajak.go.id. But, in practice, most applicants do not use the online system. Even if the service is available online, the applicant still has to visit the Tax Office in person to submit the original documents. The following copies of documents should be attached: a. Copy of deed of establishment; b. Copy of ID card; c. Copy of domicile letter from the Head of Village; d. Receipt of payment of Land and Building Tax (PBB); e. Proof of land ownership or the leases premises. Time to complete this procedure is 2–7 days and there is no official cost. In practice, the applicant usually pays IDR  50,000–200,000. In Batam, based on the circular letter of the General Director of Tax No. 37 of 2009, NPPKP is no longer needed.

Procedure 4. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank
Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally done through a notary. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 19 of 2007.

Procedure 9*. Apply for the Workers Social Security Program (Jamsostek Program)
Time: 7 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. 3/1992), it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). This social security program covers occupational accidents, death, old age, and health security. It is arranged after the company starts to recruit workers. Arranging for Jamsostek is the same for all Indonesian locations: a. Fill out the form, which can be downloaded from the website jamsostek.go.id or obtained from Jamsostek Branch Offices; b. Visit the Jamsostek Office to submit the filled–in form; c. Jamsostek official conducts data input to Jamsostek data base;

LIST OF PROCEDURES

47

d. The applicant receives the company membership certificate. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. In practice, if the company doesn’t pick up the certificate, the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. In 30 days, the company should pay the first insurance premium. Having received the first payment, the Jamsostek Office will issue membership certificates for each employee. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees, with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 14/1993, as amended by Government Regulation No. 28 /2002). * This procedure can be completed simultaneously with previous procedures.
STARTING A BUSINESS

The costs for accessing the Electronic Administration System of Legal Status (SABH), name checking, and PNBP are counted separately.

Procedure 3. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a bank
Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally done through a notary. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 19 of 2007.

Procedure 5. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office
Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations, the company must register with the Tax Office. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The company domicile certificate, articles of association, and identity cards of the directors must be submitted to obtain the tax numbers. NPWP and NPPKP can be arranged simultaneously in one package. The applicant submits the required documents to the Tax Office and gets the receipt of application. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. Most applicants visit the Tax Office in person.

Denpasar, Bali
Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12,500,000 = USD 1,201 Data as of: July 2011

Procedure 4. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Time: 14 days Cost: IDR  1,580,000 (IDR  1,000,000 for validation of company as legal entity + IDR  30,000 for publication in the State Gazette, BNRI + IDR  550,000 for publication in the Supplement to the State Gazette, TBNRI) Comments: Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law No. 40/ 2007, the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The process will take place as follows: a. The application should be filled no later than 60 days from the date of the deed; b. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights, the original application and supporting documents should be submitted; c. Seven days after the fulfillment of above requirements, the Ministry of Law and Human Rights will issue the legalization of the establishment of the company; d. The company data (name, location, object and purpose, capital) will be inserted in the Company Registry; e. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. By virtue of Government Regulation 38/ 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. There is improvement in quality of courier service, by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.

Procedure 1. Arrange for a notary; obtain the standard form of the company deed; obtain clearance for the company name electronically from the Ministry of Law and Human Rights
Time: 4 days Cost: IDR  200,000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company, to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. Because the process must be done through a computerized processing system, the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Upon payment and verification, the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. Based on the Government Regulation Number 38 of 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, the fee for this procedure is IDR  200,000.

Procedure 6. Obtain a package licensing system: Location Permit (SITU), business trading license (Surat Izin Usaha Perdagangan, SIUP) and registration certificate (Tanda Daftar Perusahaan, TDP) at Denpasar City Licensing Agency
Time: 3 days Cost: IDR  850,000 (IDR  500,000 for SITU + IDR  250,000 for SIUP + IDR  100,000 for TDP) Comments: Based on the Mayor Regulation no.6 of 2010 (enacted on January 28 2010) concerning a single package licensing system, this procedure can be done as one package. The official fee schedule for SITU, based on Local regulation No. 7 from 2005, is: a. Big Company (start–up capital above IDR  500,000,000): IDR  700,000; b. Middle company (start–up capital above IDR  200,000,000): IDR  500,000; c. Small Company (start–up capital below IDR  200,000,000): IDR  300,000. The official fee schedule for SIUP, as per local regulation No 13. from 2002, is: 1. Big Company (start–up capital above IDR  500,000,000): IDR  500,000; 2. Middle company (start–up capital above IDR  200,000,000): IDR  250,000; 3. Small Company (start–up capital below IDR  200,000,000): IDR  100,000. The list of fees for TDP is: a. TDP (Limited Liability Company (PT)): IDR  100,000; b. TDP (Foreign Direct Investment): IDR  250,000; c. TDP (civil partnership/CV or cooperation/Firma) IDR  25,000; d. TDP (sole proprietorship /PO) IDR  10,000; e. TDP (other form of business entities/BUL) IDR  100,000; f. TDP (Cooperative/Koperasi) IDR  5,000; g. TDP (local state owned firm/BUMD) IDR  50, 000. The following documents should be attached: a. Application Form with stamp duty of IDR  6,000; b. Copy of NPWP;

Procedure 2. Notarize company documents before a notary public
Time: 1 day Cost: IDR  3,520,000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights, the founders can sign the deed of establishment. Standard articles of association are available at the notary office. The notary fees associated with this procedure cover the following services: name check, deed drafting and approval, and payment of non tax state revenue (PNBP) fees. Commonly, local notary associations set the scale of notary fees. In practice, the fee depends on the agreement between notary and client.

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c. Location map; d. Balance sheet of company; e. Environmental recommendation from technical team; f. Copy of the deed of establishment approved by Ministry of Human Rights; g. Copy of ID card; h. Certificate of business license (only for renewal license); i. Copy of certificate of land acquisition and ownership of land; j. Photographs.

STARTING A BUSINESS

Gorontalo, Gorontalo
Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12,500,000 = USD 1,201 Data as of: July 2011

Procedure 4. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Time: 14 days Cost: IDR  1,580,000 (IDR  1,000,000 for validation of company as legal entity + IDR  30,000 for publication in the State Gazette, BNRI + IDR  550,000 for publication in the Supplement to the State Gazette, TBNRI) Comments: Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law No. 40/ 2007, the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The process will take place as follows: a. The application should be filled no later than 60 days from the date of the deed; b. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights, the original application and supporting documents should be submitted; c. Seven days after the fulfillment of above requirements, the Ministry of Law and Human Rights will issue the legalization of the establishment of the company; d. The company data (name, location, object and purpose, capital) will be inserted in the Company Registry; e. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. By virtue of Government Regulation 38/ 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. There is improvement in quality of courier service, by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.

Procedure 1. Arrange for a notary; obtain the standard form of the company deed; obtain clearance for the company name electronically from the Ministry of Law and Human Rights
Time: 4 days Cost: IDR  200,000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company, to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. Because the process must be done through a computerized processing system, the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Upon payment and verification, the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. Based on the Government Regulation Number 38 of 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, the fee for this procedure is IDR  200,000.

Procedure 7*. Apply for the Workers Social Security Program (Jamsostek Program)
Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. 3/1992), it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). This social security program covers occupational accidents, death, old age, and health security. It is arranged after the company starts to recruit workers. Arranging for Jamsostek is the same for all Indonesian locations: a. Fill out the form, which can be downloaded from the website jamsostek.go.id or obtained from Jamsostek Branch Offices; b. Visit the Jamsostek Office to submit the filled–in form; c. Jamsostek official conducts data input to Jamsostek data base; d. The applicant receives the company membership certificate. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. In practice, if the company doesn’t pick up the certificate, the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. In 30 days, the company should pay the first insurance premium. Having received the first payment, the Jamsostek Office will issue membership certificates for each employee. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees, with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 14/1993, as amended by Government Regulation No. 28 /2002).

Procedure 2. Notarize company documents before a notary public
Time: 1 day Cost: IDR  3,300,000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights, the founders can sign the deed of establishment. Standard articles of association are available at the notary office. The notary fees associated with this procedure cover the following services: name check, deed drafting and approval, and payment of non tax state revenue (PNBP) fees. Commonly, local notary associations set the scale of notary fees. In practice, the fee depends on the agreement between notary and client. The costs for accessing the Electronic Administration System of Legal Status (SABH), name checking, and PNBP are counted separately.

Procedure 5. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office
Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations, the company must register with the Tax Office. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The company domicile certificate, articles of association, and identity cards of the directors must be submitted to obtain the tax numbers. NPWP and NPPKP can be arranged simultaneously in one package. The applicant submits the required documents to the Tax Office and gets the receipt of application. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. Most applicants visit the Tax Office in person.

Procedure 8*. Register with the Ministry of Manpower at the local Manpower Office
Time: 7 days Cost: No cost Comments: According to Law No. 13/2003, companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. The applicant gets a receipt of document submission. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. The applicant returns to the office to pick up the official copy of the registration. * This procedure can be completed simultaneously with previous procedures.

Procedure 3. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank
Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally done through a notary. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 19 of 2007.

the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application.id). c. and TDP: a.000 for validation of company as legal entity + IDR  30. old age. Procedure 4. 40 year 2007.000 and to be paid through the Notary. Jamsostek official conducts data input to Jamsostek data base.e name. f. death. Obtain the standard form of the company deed. SIUP. Based on local regulation No. STARTING A BUSINESS revenue payments may be accessed only by a notary public). arrange for a notary electronically. The application should be filled at the latest 60 days from the date of establishment deed.000 IDR 150. Procedure 7. This social security program covers occupational accidents. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). if the application is not fulfilled. The applicant submits the complete documents to KPPT and pays the fee. 7 days after fulfillment of above requirements.000. if the company doesn’t pick up the certificate.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. It is arranged after the company starts to recruit workers.000.000. The Manpower office conducts a verification process and issues an official Procedure 1. The applicant receives the company membership certificate. A new local Regulation No.000 (IDR  500. * This procedure can be completed simultaneously with previous procedures. Copy of ID card.500. and capital) will be inserted into Company Registry.000. the Ministry of Law directly electronically stated no objection on said application. The official fee schedule for SIUP based on the local regulation No. The applicant gets a receipt of document submission.000 IDR 500.000–IDR 500. to avoid a rejection by the Ministry of Justice and Human Rights of the company’s deed of establishment and articles of association. Duty stamp IDR  6. which can be downloaded from the website jamsostek. Procedure 9*. BNRI + IDR  550. this procedure is not necessary. The following copies of documents should be attached to obtain SITU. 10.000. 12 of 2003 concerning SITU. Time: 4 days Cost: IDR  200. Since the application has already been fulfilled. the Jamsostek Office will issue membership certificates for each employee. Balance sheet of the company (If there is no information regarding this in the deed of establishment). 21 of 2001 is: Company capital IDR 50.000 for SITU+ IDR  10.000. Visit the Jamsostek Office to submit the filled–in form. the reservation and clearance must be done by a notary public (because the new computerized system for nontax state . the Ministry of Law will directly electronically stated his objection on said application. b. where it is informed that there is a PBNP fee to be paid for the purpose of company establishment in the amount of IDR  200. Apply for the location permit (SITU). Proof of payment of local fiscal charges.000. and Certificate of Company Domicile. object and purpose. c.580.000 IDR 750.id or obtained from Jamsostek Branch Offices. The reserved name will be blocked for 60 days. In practice. the application for approval of Ministry of Law and Human Rights (the “Ministry of Law”) on establishment of company should be able to file electronically by attaching with the certificate of bank account. The Ministry of Law will announce the establishment of company in Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. If the founding shareholders are confident that the same name has not been used by another Indonesian company. Within 30 days from the date of no objection by Ministry of Law. c. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 7 days Cost: IDR  1.000. Copy of deed of company establishment. SIUP.500 (for billboard size of 1x1 square meters) Comments: This is a pre–requisite for applying for operating licenses. domicile. Pay the local fiscal charges at the Local Revenue and Asset Management Office (Dinas Pendapatan Pengelolaan Keuangan & Aset Daerah–DPPKAD) Time: 1 day Cost: IDR  37. f. d. b. b. b.816 (notary fee) Procedure 3.go. obtain clearance for the Indonesian company’s name at the Ministry of Law and Human Rights. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No.000. e. d. 29 and 30 Indonesian Company Law No.000. copy of the relevant bank transmittal advice. Ministry of Law will issue the approval on the establishment of the company. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a PT is obtained from the information stated in the website of the Legal Entity Administration System (known as SABH (Sistem Administrasi Badan Hukum) (www. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. Copy of ID card. NPWP (Tax Registration Number).000–IDR 200. The process will be taken as follows: a.000 (IDR  1.000 4 pcs. Company capital IDR 200. Register with the Ministry of Manpower at the local Manpower Office Time: 2 days Cost: No cost Comments: According to Law No. Arranging for Jamsostek is the same for all Indonesian locations: a. Copy of SITU (only for extension of SIUP & TDP). The applicant returns to the office to pick up the official copy of the registration. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. Data of company whose establishment has been approved by Ministry of Law (i.000 for SIUP + IDR  250.526. 10 of 2011 regarding SITU will be implemented by July 2011. copy of the registration to the applicant. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: Because the new computerized system for nontax state revenue payments (PNBP)—which has been implemented by the Ministry of Justice and Human Rights—may be accessed only by a notary public. 3/1992). the permanent business trading license (SIUP) and the certificate of company registration (TDP) at the Licensing office (Kantor Pelayanan Perijinan Terpadu–KPPT) Time: 2 days Cost: IDR  835.go. period. Fill out the form. KPPT will verify the documents and will inform the applicant by phone that the applicant can pick up the licenses (SITU.000 local fiscal charges) Comments: This can be done as a package at the Licensing office (Kantor Pelayanan Perijinan Terpadu– KPPT). Procedure 2.000. and TDP). d. Company capital above IDR 500.000 for publication in the Supplement to the State Gazette.000.LIST OF PROCEDURES 49 Procedure 6.000 IDR 350.000. Because the process must be done through a computerized processing system. In 30 days.000 Company capital IDR 150. the applicant should submit the original application and supporting documents. the fee for SITU is IDR  75. Procedure 8*.000 for publication in the State Gazette. Having received the first payment.000 for TDP + IDR  75. Receipt of payment of land and building tax. e.000– IDR 100. DKI Jakarta Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12.000 = USD 1. and health security. The following documents should be submitted: a. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. Proof of advertisement payment. 13/2003. 14/1993. Notarize company documents before a notary public Time: 4 days Cost: IDR  2.201 Data as of: July 2011 The fee for TDP (PT) is IDR  250. 28 /2002). payment for registering or establishing a company is normally easier through the notary. c. Apply for the Workers Social Security Program (Jamsostek Program) Time: 2 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. Jakarta.sisminbakum. the company should pay the first insurance premium. as amended by Government Regulation No. However. TBNRI) Comments: Based on Article 9.

b. Procedure 7*. After reviewing the application. Procedure 3. Procedure 2.000.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. STARTING A BUSINESS Procedure 4. d. Upon payment and verification. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association.000 for publication in the State Gazette. Normally. Jambi Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. may require a letter of good conduct from the Indonesian police in support of the person in charge of the company. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1.000 (IDR  1. capital) will be inserted in the Company Registry. Procedure 5. 10. there may be an unofficial administrative fee that depends on negotiation and usually starts at IDR  100. c. 14/1993.000 for publication in the Supplement to the State Gazette. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. which issues the SIUP for a non facility company.000 = USD 1. Based on Regulation of Ministry of Trading No. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. IDR  600. Procedure 8*. Commonly. In practice. object and purpose. 29 and 30 of the Indonesian Company Law No. BNRI + IDR  550. 2009 and entered into force on June 3. Based on the Government Regulation Number 38 of 2009 (enacted on May 28.50 DOING BUSINESS IN INDONESIA 2012 The cost of this procedure is based on the Schedule of the Government Regulation Number 38 of 2009 concerning Types and Tariffs on Non–Tax State Revenues Applied for in the Department of Law and Human Rights which came into effect on 28 May 2009. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. The costs for accessing the Electronic Administration System of Legal Status (SABH). Comments: According to legal provisions on workers’ social security (Law No. operated by the executing agency. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. location. obtain the standard form of the company deed.000. The applicant only needs to bring a copy of the ID card. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million a month to apply for the Workers Social Security Program (Jamsostek).526. Apply for the Workers Social Security Program (Jamsostek Program) Time: 7 days Cost: No cost .000.000 to IDR  700. Standard articles of association are available at the notary office.000 Comments: The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. It takes 2 days to get the signature of the head of that office as the authority is not delegated. 28 /2002). SIUP) and the company registration certificate (Tanda Daftar Perusahaan/TDP) Time: 15 days Cost: IDR  500. Once the application is back. deed drafting and approval. The SIUP contains details about the company activities and the person in charge of the company (normally the President Director). and IDR  750. Arrange for a notary. SIUP and TDP can be obtained at the One Stop Shop Service. Procedure 5. the original application and supporting documents should be submitted. 36/M–Dag/PER/9/2007 on Issuing Business Trading License (SIUP). The letter must be approved by the Head of Village and Sub District office at the advice of the Head of Village. 40/ 2007. the founders can sign the deed of establishment. Notary deeds.000 to 500. the following copy of documents should be attached for the application for a SIUP: a. Obtain Domicile Letter for business location from the Head of Village Time: 3 days Cost: No cost Comments: The Domicile letter is designated as controlling instrument for companies operating in Jambi.201 Data as of: July 2011 Procedure 1. the Municipality passes it to the technical agency at the regional office for cooperatives for further review. there is usually an unofficial administrative fee. Notarize company documents before a notary public Time: 1 day Cost: IDR  3. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. 3/1992). Jambi. through the Standard Operating Procedure. Although there is no official charge. c. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. the SIUP will be issued within 3 days of receiving the completed documents but in practice it takes 3–7 days. as amended by Government Regulation No. death security. 19 of 2007.500. The Ministry of Industry and Trade. the applicant receives an online notification (via email) with the cleared company name.580. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower.000 for validation of company as legal entity + IDR  30. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. The process will take place as follows: a. Fees depend on negotiation and usually start from IDR  400. b. and payment of non tax state revenue (PNBP) fees. The reserved name will be blocked for 60 days. Identity card of the company President Director. 13/2003. The articles of association (copy). d. The notary fees associated with this procedure cover the following services: name check. e.000 to IDR  1. the fee depends on the agreement between notary and client. A company or an individual is not obligated to enroll its employees in the social security program if it offers an independent employee social security program with benefits comparable or better than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. The application should be filled no later than 60 days from the date of the deed. and PNBP are counted separately. and health maintenance. The company data (name. local notary associations set the scale of notary fees. This social security program covers occupational accident security. old age security. Procedure 6. Apply at the One Stop Service for the permanent business trading license (Surat Izin Usaha Perdagangan. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Although there is no official fee. payment for registering or establishing a company is normally done through a notary. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. the SUIP is provided.000. Because the process must be done through a computerized processing system. Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP) Time: 1 day (1–2 days) Cost: No cost * This procedure can be completed simultaneously with previous procedures. name checking.000 for a medium–size company. the fee for this procedure is IDR  200.000 for a small company. Seven days after the fulfillment of above requirements. TBNRI) Comments: Based on Articles 9.000 for a large company. Register with the Ministry of Manpower Time: 14 days Cost: No cost Comments: According to Law No. An attestation of location and address of the company’s offices. This procedure can be completed concurrently with other post–registration procedures by filing the manpower compulsory report and company regulations with the Ministry of Manpower. The cost is included in procedure 2.

death. KPTSP ) Time: 7 days Cost: IDR  120. * This procedure can be completed simultaneously with previous procedures. the applicant receives an online notification (via email) with the cleared company name. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. b. The fee only applies for the renewal of these licenses. Medium: 3. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations. Copy of ID card. Because the process must be done through a computerized processing system. Makassar. Copy of domicile letter. This social security program covers occupational accidents. 9 of 2005 regarding Nuisance Permit (HO) for trading business and industry. Copy of deed establishment. f. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. 2009 and entered into force on June 3.000 = USD 1. Provincial road: 4. c. 13/2003. The inspection takes place during the application for location permit (SITU). if the company doesn’t pick up the certificate. The following documents should be attached to obtain HO. Based on local regulation No. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. as amended by Government Regulation No. There is no official cost regarding this procedure but in practice.id or obtained from Jamsostek Branch Offices. City road: 3. The classification of road index is: a. Arrange for a notary.LIST OF PROCEDURES 51 By virtue of Government Regulation 38/ 2009 (enacted on May 28. Comments: According to legal provisions on workers’ social security (Law No. the company must register with the Tax Office.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Time: 4 days Cost: IDR  200. Receipt of payment of the land and building tax. e. NPWP and NPPKP can be arranged simultaneously in one package. obtain clearance for the company name electronically from the Ministry of Law and Human Rights. HO & TDP can be arranged as a package at KPTSP. c. Most applicants visit the Tax Office in person. i. It is arranged after the company starts to recruit workers. Apply for the Workers Social Security Program (Jamsostek Program) Time: 7 days Cost: No cost . the Jamsostek Office will issue membership certificates for each employee.go. but in practice the applicant usually pay the unofficial fee IDR  50. There is no official cost regarding this procedure. and identity cards of the directors must be submitted to obtain the tax numbers. Passport photo size 3x4 (3 pcs). Visit the Jamsostek Office to submit the filled–in form. j. Apply for the nuisance permit (Hinder Ordinantie– HO). there is no cost to obtain SIUP & TDP.000 (for HO) Comments: SIUP. k. which can be downloaded from the website jamsostek. SIUP & TDP: a. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. c. Application form.201 Data as of: July 2011 Procedure 7. Medium nuisance: IDR  400/square meter. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. 28 /2002). There is improvement in quality of courier service.000 Based on the new regulation of the Ministry of Trade. The classification of environmental tariff index is: a. In practice. 14/1993. The applicant submits the required documents to the Tax Office and gets the receipt of application. The reserved name will be blocked for 60 days. the applicant pays IDR  100. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. Arranging for Jamsostek is the same for all Indonesian locations: a. The applicant returns to the office to pick up the official copy of the registration. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). c. the company should pay the first insurance premium. b. old age. Copy of Nuisance Permit (for SIUP & TDP). Procedure 10*.000– IDR  800. b. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. Upon payment and verification.000. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 3/1992). companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower.500. articles of association. Fill out the form. Procedure 8. Big nuisance: IDR  500/square meter. Procedure 1. c. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. the formula cost to calculate the retribution is: Environmental tariff X Business space area X Location index X Nuisance index. and health security. The company domicile certificate. The applicant gets a receipt of document submission. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). Copy of NPWP. b. b. Jamsostek official conducts data input to Jamsostek data base. South Sulawesi Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12.000. Having received the first payment. In 30 days. obtain the standard form of the company deed. Apply for location permit (SITU) at the City Planning Office Time: 7 days Cost: No cost Comments: This procedure is required as a prerequisite for SIUP & TDP. d. the cost to obtain HO is: = Environmental tariff X Business space area X Location index X Nuisance index = 300 X 100 X 2 X 2 X = IDR  120. Big: 4. There is no inspection required for the issuance of these 3 licenses. Local road: 2. Letter of no objection from the neighborhood h. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. Procedure 6. Copy of SITU. If we assume a business space of 100 square meters. But in practice the applicant still pays a fee of around IDR  500. Copy of land ownership (leases the premises). Small: 2. The process usually takes 7 days for processing and approximately 7 days for courier service. Register with the Ministry of Manpower at the local Manpower Office Time: 11 days Cost: No cost Comments: According to Law No. the permanent business trading (SIUP) and the registration certificate (TDP) at the One Stop Shop (Kantor Perizinan Terpadu Satu Pintu. STARTING A BUSINESS Procedure 9*. d. Small nuisance: IDR  300/square meter. g.000. The classification of nuisance index is: a. The applicant receives the company membership certificate.

020. Copy of Construction permit and Map of the Building. Comments: Based on Articles 9. capital) will be inserted in the Company Registry. and identity cards of the directors must be submitted to obtain the tax numbers. BAPL). The process takes place as follows: a. Procedure 3. Standard articles of association are available at the notary office. The application should be filled no later than 60 days from the date of the deed. A letter of information from the Head of Village (Domicile Letter from the Head of Village). Although there is no official fee for this certificate. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. object and purpose. The cost of the permit depends on the size of the business space and the location. the fee for this procedure is IDR  200. Copy of the deed of establishment. Obtain the permanent business trading license (Surat Izin Usaha Perdagangan–SIUP) and the registration certificate (Tanda Daftar Perusahaan. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. Procedure 4. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. The technical team from the Local Industry and Trade agency (Disperindag) will do the field survey. 10. The applicant will bring the documents to the Licensing office (Kantor Pelayanan Administrasi Perizinan– KPAP) and KPAP will verify the documents. Obtain the nuisance permit (Hinder Ordinantie– HO) at the Licensing Office (Kantor Pelayanan Administrasi Perijinan–KPAP) Time: 6 days Cost: IDR  100. Notarize company documents before a notary public Time: 1 day Cost: IDR  4. e. A statement letter from the applicant stating that the business does not produce a negative impact to the surrounding area. 19 of 2007. f. Within 30 days from the notice of “no objection” from the Ministry of Law and Human Rights. After the payment process. if office space is leased. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Copy of ID card. e. Most applicants visit the Tax Office in person.000 to IDR  500. By virtue of Government Regulation 38/ 2009 (enacted on May 28. b. articles of association. b. Procedure 5. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Copy of certificate of business location. d.000 for publication in the State Gazette. Seven days after the fulfillment of above requirements. Passport photos size 3 x 4 cm (4 pcs). 29 and 30 of the Indonesian Company Law No. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. The process usually takes 7 days for processing and approximately 7 days for courier service.580. e. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. d. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. location. and the result will be written in the minutes of field observation (Berita Acara Peninjauan Lapangan. payment for registering or establishing a company is normally done through a notary.000 for validation of company as legal entity + IDR  30. depending on the Village Office. Disperindag will bring the recommendation letter to KPAP as a recommendation to issue the license. TBNRI) Procedure 7. The applicant submits the application form to the Licensing agency (Kantor Pelayanan Administrasi Perizinan–KPAP).000 (100 square meters x 2 (road index) x 1 (nuisance index) x IDR  500/square meter) Procedure 8. h. The notary fees associated with this procedure cover the following services: name check. The fee varies from IDR  100. c. deed drafting and approval. The documents will be processed further in the Local Industry and Trade agency. The applicant submits the required documents to the Tax Office and gets the receipt of application. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. g. Recommendation letter from related technical agency. b. The company domicile certificate. 2009 and entered into force on June 3. the applications for the 2 licenses (SIUP and TDP) can be submitted at the same time. the original application and supporting documents should be submitted. Commonly. Procedure 2. KPAP will verify the documents within 1 day. The applicant can pick up the license at KPAP on the same day with the payment process. name checking.000. Procedure 6.000 for publication in the Supplement to the State Gazette. The application form for domicile certificate should be completed with the number and date of the deed of establishment and the name of the notary. This process takes usually 4–5 days. g. An inspector will visit the company location the same day or one day after the application is made. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost Comments: Maximum one month from the start of business operations. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. d. If the documents are complete. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). h. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. and PNBP are counted separately. KPAP will inform the applicant by mail or telephone to pay the levy at the Bank which is located in the same area with KPAP. A copy of the signed deed of establishment should also be attached. Obtain a certificate of company domicile from the Village Office Time: 1 day Cost: No cost Comments: This certificate is issued by the Head of the village (the Lurah) where the company is located or by the building management. The process will take place as follows: a. c. The costs for accessing the Electronic Administration System of Legal Status (SABH). The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The cost formula is: size of location/office space x road index x nuisance index x IDR  500/square meter. Comments: The applicant is required to get a statement of non objection from the neighbors.000 (IDR  1. and payment of non tax state revenue (PNBP) fees. i. the fee depends on the agreement between notary and client. The company data (name. There is improvement in quality of courier service. Copy of Land and Building Tax.000. Disperindag will issue a recommendation letter containing the amount of fees to be paid. local notary associations set the scale of notary fees. f.000.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. NPWP and NPPKP can be arranged simultaneously in one package.52 DOING BUSINESS IN INDONESIA 2012 Based on the Government Regulation Number 38 of 2009 (enacted on May 28. the founders can sign the deed of establishment. The field minutes (BAPL) will determine whether the application will be approved or not. KPAP will bring the complete documents on the same day to the local Ministry of Industry and Trade office for further processing. If the application is approved. c. The entrepreneur doesn’t have to be present to receive the inspection. and then . The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. BNRI + IDR  550. It’s stipulated in Local Regulation 6/2004 regarding HO levy. The following copies of documents should be attached for the application for HO/SITU: a. The applicant submits the documents to the licensing office (Kantor Pelayanan Administrasi Perizinan–KPAP). an unofficial administrative fee may be charged. 40/ 2007. In practice. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. 2009 and entered into force on June 3. TDP) at the Licensing office (Kantor Pelayanan Administrasi Perijinan–KPAP) Time: 5 days Cost: No cost Comments: As per Mayor Regulation 14/2005. the company must register with the Tax Office.

Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. The applicant receives the company membership certificate.000 for publication in the State Gazette. An unofficial administrative fee may apply. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200.000 = USD 1. Fill out the form. if the company doesn’t pick up the certificate.781 + cleaning levy for 12 month IDR  360. This social security program covers occupational accidents. Procedure 2. Obtain a certificate of company domicile from the Village Office Time: 1 day Cost: No cost Comments: The certificate of domicile in Manado is known as recommendation letter. In practice. Jamsostek official conducts data input to Jamsostek data base. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. 2009 and entered into force on June 3. f. old age. North Sulawesi Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. 13/2003. Procedure 1. * This procedure can be completed simultaneously with previous procedures.000 + administration fee IDR  27. the fee for this procedure is IDR  200. Arrange for a notary.000 (4 pcs). STARTING A BUSINESS Procedure 3. The applicant returns to the office to pick up the official copy of the registration.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. the fee depends on the agreement between notary and client. which is usually between IDR  100. Passport photos size 3x4 (3 pcs). c.000 for publication in the Supplement to the State Gazette. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. obtain the standard form of the company deed. Procedure 7.281 (billboard minimum one meter IDR  125. Procedure 10*. 3/1992). the Jamsostek Office will issue membership certificates for each employee. death. In practice. Arranging for Jamsostek is the same for all Indonesian locations: a. and payment of non tax state revenue (PNBP) fees. It is arranged after the company starts to recruit workers. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. SIUP & TDP are free of charge. In 30 days. Manado. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. This procedure is a prerequisite to obtain the local tax identification number (NPWPD). Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. The applicant gets a receipt of document submission. For a company with less than 50 employees. Because the process must be done through a computerized processing system. KPAP will bring the documents to the Local Industry and Trade Agency to be processed (3–4 days). This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower.000 (user charges IDR  300.000.000.520. Copy of the deed of establishment. and health security.LIST OF PROCEDURES 53 KPAP will do the verification of the documents. c. Pay local / fiscal charges at the Local Revenue Office Time: 2 days Cost: IDR  513. The costs for accessing the Electronic Administration System of Legal Status (SABH). the founders can sign the deed of establishment. b. The notary fees associated with this procedure cover the following services: name check. Register with the Ministry of Manpower at the local Manpower Office Time: 1 day Cost: No cost Comments: According to Law No. as amended by Government Regulation No.500 for each permit) Comments: The entrepreneur applies for both HO and SITU at the village or sub–district office. the tax identification number (NPWP). TBNRI) .000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights.go. an unofficial administrative fee may be charged. Duty stamp IDR  6. the applicant can return to KPAP and obtain the licenses. the verification process can be done on the spot. Procedure 6. depending on the municipality (Head of village policy). companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower.000 to IDR  500. There is only one application needed to obtain both permits. the company should pay the first insurance premium. The fee varies from IDR  200. HO) and the location permit (SITU) at the One Stop Shop (Badan Pelayanan Perijinan Terpadu–BP2T) Time: 4 days Cost: IDR  355. and the business trading license (SIUP). Procedure 5. The application form for domicile certificate should be completed with the number and date of the deed of establishment and the name of the notary. Commonly. the applicant receives an online notification (via email) with the cleared company name. It is a pre–requisite for obtaining a nuisance permit (HO) and a location permit (SITU). deed drafting and approval. name checking.580. Copy of the taxpayer registration number (NPWP). b. Apply for the nuisance permit (Hinder Ordinantie. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. Copy of balance sheet of the company. According to the National Law No. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. d. 14/1993. Visit the Jamsostek Office to submit the filled–in form. After the verification is done by KPAP (1 day). g. 19 of 2007. The following copies of documents should be attached to the application for SIUP/TDP: a.000. e. which can be downloaded from the website jamsostek. Notarize company documents before a notary public Time: 1 day Cost: IDR  4. Copy of ID card. After processing and internal communication between KPAP and the Local Industry and Trade Agency.000 for validation of company as legal entity + IDR  30. implemented in January 2011 in Makassar. 28 /2002). Although there is no official fee.id or obtained from Jamsostek Branch Offices.000 for both permits + administrative costs of IDR  27. local notary associations set the scale of notary fees. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Procedure 9*. The reserved name will be blocked for 60 days.500. Upon payment and verification.000 and IDR  200. Having received the first payment.000. Standard articles of association are available at the notary office. d.28 of 2009. The SIUP contains details about the company activities and the person in charge of the company.201 Data as of: July 2011 Procedure 4.000 (IDR  1. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. BNRI + IDR  550. and PNBP are counted separately. A copy of the sign deed should also be attached. Copy of SITU/HO.500) Comments: The charges are related to services such as trash collection and advertisement. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. payment for registering or establishing a company is normally done through a notary. It is obtained from the Head of the village (the Lurah) where the company is located. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No.

d. name checking. and identity cards of the directors must be submitted to obtain the tax numbers. Commonly.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights.500. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. the applicant receives an online notification (via email) with the cleared company name. Procedure 9. Procedure 2. Proof of payment of Local fiscal. An attestation of location and address of the company’s offices. Comments: SIUP and TDP can be arranged as a package. c. TDP) at the One Stop Shop (BP2T) Time: 3 days Cost: IDR  1.201 Data as of: July 2011 Procedure 10*. the fee depends on the agreement between notary and client. an unofficial administrative fee (around IDR  200. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). In practice. Fill out the form. and payment of non tax state revenue (PNBP) fees. the founders can sign the deed of establishment. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card.000 = USD 1. f. Register with the Ministry of Manpower at the local Manpower Office Time: 1 day Cost: No cost Comments: According to Law No. the licenses can be obtained in 3 days. location. as amended by Government Regulation No. The costs for accessing the Electronic Administration System of Legal Status (SABH). Notarize company documents before a notary public Time: 1 day Cost: IDR  4. at the One Stop Shop (BP2T) in Manado. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights.500 for administrative fees + IDR  750. The identity card of the company president or director. along with the required documents. Upon payment and verification. In 30 days. the licenses are issued simultaneously. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. the original application and supporting documents should be submitted. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. The applicant returns to the office to pick up the official copy of the registration. with the same Officer. Seven days after the fulfillment of above requirements. The process usually takes 7 days for processing and approximately 7 days for courier service. The following copies of documents should be attached to the application for SIUP: a. The applicant gets a confirmation receipt and pays the official user charges. local notary associations set the scale of notary fees.54 DOING BUSINESS IN INDONESIA 2012 Comments: Based on Articles 9. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. The articles of association. the maximum time to complete this procedure is 5 days. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. The process will take place as follows: a. and PNBP are counted separately. By virtue of Government Regulation 38/ 2009 (enacted on May 28. c. Most applicants visit the Tax Office in person. e. Jamsostek official conducts data input to Jamsostek data base. This social security program covers occupational accidents. and health security. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). which can be downloaded from the website jamsostek. Arranging for Jamsostek is the same for all Indonesian locations: a. d.000 for TDP + IDR  27. obtain the standard form of the company deed. e. deed drafting and approval. Arrange for a notary. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. d.000 for SIUP + IDR  27. The SIUP contains details about the company activities and the person in charge of the company. * This procedure can be completed simultaneously with previous procedures. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. As per Local Regulation 6/2001 regarding licenses on industry and trade. It is arranged after the company starts to recruit workers. if the company doesn’t pick up the certificate. the company must register with the Tax Office. The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. 13/2003. the Jamsostek Office will issue membership certificates for each employee. After verification. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. Standard articles of association are available at the notary office. The tax registration number. The reserved name will be blocked for 60 days. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. SIUP) and the registration certificate (Tanda Daftar Perusahaan. The applicant gets a receipt of document submission. 28 /2002). Because the process must be done through a computerized processing system. 3/1992). Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. NPWP and NPPKP can be arranged simultaneously in one package. Procedure 8. The applicant receives the company membership certificate. 2009 and entered into force on June 3. SITU/HO. Procedure 1. In practice. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. In practice. object and purpose. b. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. death. STARTING A BUSINESS Mataram. the fee for this procedure is IDR  200. 14/1993. b. For a company with less than 50 employees. 2009 and entered into force on June 3. Although there is no official fee. The applicant submits two different application forms. at the same time.000 (IDR  300. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. The company data (name.id or obtained from Jamsostek Branch Offices. Having received the first payment.go.000) may be charged.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. 29 and 30 of the Indonesian Company Law No. The notary fees associated with this procedure cover the following services: name check. b. the company should pay the first insurance premium. The application should be filled no later than 60 days from the date of the deed. the verification process can be done on the spot. Visit the Jamsostek Office to submit the filled–in form. articles of association. The company domicile certificate. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. The applicant submits the required documents to the Tax Office and gets the receipt of application. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. 40/ 2007.500 administrative fees) . c. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. There is improvement in quality of courier service. 10. old age. Procedure 11*.000. West Nusa Tenggara Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. capital) will be inserted in the Company Registry.220.105. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary.

Arranging for Jamsostek is the same for all Indonesian locations: a. e. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. SIUP) and the registration certificate (Tanda Daftar Perusahaan. 4 of 2006 concerning the certificate company registry (TDP). b. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. at the One Stop Shop Agency (KPPT). Fill out the form. which can be downloaded from the website jamsostek. This social security program covers occupational accidents. and identity cards of the directors must be submitted to obtain the tax numbers. Cost: No cost Comments: Local regulation No. c.id or obtained from Jamsostek Branch Offices. Copy of articles association and company approval from Ministry of Law and Human Rights. Apply for location permit (Surat Izin Tempat Usaha–SITU) at One Stop Shop (Kantor Pelayanan Perijinan Terpadu–KPPT) Time: 4 days .go. b. Seven days after the fulfillment of above requirements. 10. The application should be filled no later than 60 days from the date of the deed.580. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Application form. e. Copy of SITU. old age. object and purpose. Passport photo size 4x6.000. d. Having received the first payment.000 for publication in the Supplement to the State Gazette. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. SIUP). Copy of deed of establishment. There is improvement in quality of courier service. the company must register with the Tax Office.000 for publication in the State Gazette. the application for SIUP and TDP can be arranged at the same time. Jamsostek official conducts data input to Jamsostek data base. f. Procedure 6. TBNRI) Comments: Based on Articles 9. d. After verification. Proof of payment of tax on land and building (if the company leases the premises. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). It is arranged after the company starts to recruit workers. Copy of ID card of the director. In 30 days. 40/ 2007. Copy of the deed of establishment. d. 6 of 2003 governs the SITU process in Mataram. and health security. f. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant.000). 14/1993. For a new company. articles of association. if the company doesn’t pick up the certificate. b. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. The applicant submits the required documents to the Tax Office and gets the receipt of application. As per new Local Regulation. Map of the business location. c. 13/2003. h. 29 and 30 of the Indonesian Company Law No. NPWP and NPPKP can be arranged simultaneously in one package. 3/1992). c. the Jamsostek Office will issue membership certificates for each employee. Application letter with stamp duty (IDR  6. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. capital) will be inserted in the Company Registry.LIST OF PROCEDURES 55 Procedure 3. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations. The company data (name. Within 30 days since the notice of “no objection” from the Ministry of Law and Human Rights. Register with the Ministry of Manpower at the local Manpower Office Time: 4 days Cost: No cost Comments: According to Law No. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. Procedure 8*. d. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. the original application and supporting documents should be submitted. The company domicile certificate. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. In practice. NPWP of the applicant. SITU is a requirement to obtain the permanent business trading license (Surat Izin Usaha Perdagangan. Most applicants visit the Tax Office in person. Passport Photo size 3x4 color 2pcs. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). payment for registering or establishing a company is normally done through a notary. Procedure 5. 2009 and entered into force on June 3. e. proof of payment by the owner would be required). death. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Procedure 7. This procedure is govern by local regulation No. the company should pay the first insurance premium. This procedure can be done in 4 days (statutory time limit based on local regulation is 15 days) if the documents are complete. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. The applicant returns to the office to pick up the official copy of the registration. The SIUP contains details about the company activities and the person in charge of the company.000 (IDR  1. The following documents should be attached: a. i. The applicant submits the same application form along with the required documents. g. 3 of 2001 concerning the business trading license and is based on local regulation No. as amended by Government Regulation No.000 for validation of company as legal entity + IDR  30. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. * This procedure can be completed simultaneously with previous procedures. c. 28 /2002). Apply for the Workers Social Security Program (Jamsostek Program) Time: 1 day Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. BNRI + IDR  550. with the same officer. Visit the Jamsostek Office to submit the filled–in form. The applicant receives the company membership certificate. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Procedure 9*. The process usually takes 7 days for processing and approximately 7 days for courier service. 19 of 2007. By virtue of Government Regulation 38/ 2009 (enacted on May 28. b. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The Letter of Business location permit (SITU) can be obtained from the One Stop Service. The process will take place as follows: a. the licenses will be issued. location. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. The following copies of documents should be attached to the application for SIUP and TDP: a. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. Map of business location. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. TDP) at the One Stop Shop (KPPT) Time: 5 days Cost: No cost Comments: The Business Trading License (SIUP) constitutes the business license for a non–facility company engaging in trading business. Procedure 4. The applicant gets a receipt of document submission. Copy SIUP (for TDP). the official time to obtain the registration in Mataram is 4 days. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. Copy of ID card.

NPWP and NPPKP can be arranged simultaneously in one package. Procedure 3. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. 40/ 2007. The cost for HO is based on the formula below: Environmental tariff x location index x nuisance index x business area x business area index x type of business index x type of building index = IDR  425 (mix) x 1 (Environmental city road) x 1 (minor) x 100m2 x 2. and payment of non tax state revenue (PNBP) fees. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. Procedure 8. and identity cards of the directors must be submitted to obtain the tax numbers. Comments: Maximum one month from the start of business operations. Most applicants visit the Tax Office in person. and PNBP are counted separately.580. c. 29 and 30 of the Indonesian Company Law No. 2009 and entered into force on June 3. The reserved name will be blocked for 60 days.201 Data as of: July 2011 The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. location. c. 2009 and entered into force on June 3. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. the fee for this procedure is IDR  200. deed drafting and approval. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. Procedure 5. b. d. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost . e. SIUP) at the Integrated Licensing Agency (Badan Perijinan Pelayanan Terpadu. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The notary fees associated with this procedure cover the following services: name check. Copy of proof of payment of land and building tax (PBB) and yearly taxes (SPPT). Copy of domicile letter from the Head of Village and letter of no objection from the neighborhood (especially for non industry company).000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. Copy of nuisance permit legalized. this procedure is required as a prerequisite to apply nuisance permit (HO). The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. 22 of 2002 concerning the nuisance permit (article 1 point 1&2). the applicant receives an online notification (via email) with the cleared company name. b. the founders can sign the deed of establishment. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). payment for registering or establishing a company is normally done through a notary. Notarize company documents before a notary public Time: 1 day Cost: IDR  3. The company data (name. In practice. Arrange for a notary.250 Comments: Based on the local regulation No. According to the local Regulation No.000. The costs for accessing the Electronic Administration System of Legal Status (SABH). TBNRI) Comments: Based on Articles 9. the following documents should be attached to apply for SIUP: a. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. name checking. the fee depends on the agreement between notary and client. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. Passport photo in color size 3x4 (3 pcs). Copy of NPWP.000 Comments: Based on Mayor Regulation No. Apply for the nuisance permit (HO) at the Integrated Licensing Agency (Badan Perijinan Pelayanan Terpadu. g. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). The process usually takes 7 days for processing and approximately 7 days for courier service. Filled out application form. Filled out application form. 22 of 2002 regarding nuisance permit. capital) will be inserted in the Company Registry. e. North Sumatra Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. Seven days after the fulfillment of above requirements. Copy of the deed of establishment legalized by Kemenhukham. Procedure 1. Procedure 4. object and purpose. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. The company domicile certificate. 10. f.500.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Upon payment and verification. SIUP can be arranged in BPPT. By virtue of Government Regulation 38/2009 (enacted on May 28. 19 of 2007. Procedure 6.000 for publication in the Supplement to the State Gazette. 6 of 2010 concerning the function of the Integrated Licensing Agency (BPPT).250. Commonly. the following copies of documents should be attached to apply for HO: a. The company balance sheet. local notary associations set the scale of notary fees. Procedure 2. BPPT) Time: 5 days Cost: IDR  191. BNRI + IDR  550. Copy of ID card. The process will take place as follows: a. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. e. the original application and supporting documents should be submitted. Copy of ID card.000 = USD 1.000 (IDR  1. Passport photos in color size 3x4 (3 pcs). Copy of NPWP. Copy of status of the building (lease or owned). Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. BPPT) Time: 3 days Cost: IDR  300. obtain the standard form of the company deed. f. the company must register with the Tax Office.000 for publication in the State Gazette. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. articles of association.125. The applicant submits the required documents to the Tax Office and gets the receipt of application. d. Obtain Domicile Letter from the Head of Village Time: 2 days Cost: No cost Comments: Based on local Regulation No. Procedure 7.25 (up to 100) x 1 (trade) x 2 (permanent) = IDR  191. b. Because the process must be done through a computerized processing system. Standard articles of association are available at the notary office. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. 10 of 2002 article 7 point 2. h. The application should be filled no later than 60 days from the date of the deed. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.000. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights.000 for validation of company as legal entity + IDR  30.56 DOING BUSINESS IN INDONESIA 2012 STARTING A BUSINESS Medan. There is improvement in quality of courier service. d. c.

TDP) at the Integrated Licensing Agency (Badan Perijinan Pelayanan Terpadu. d. b. Copy of NPWP. d. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. f.000 for validation of company as legal entity + IDR  30. Register with the Ministry of Manpower at the local Manpower Office Time: 7 days Cost: No cost Comments: According to Law No. the Jamsostek Office will issue membership certificates for each employee.000= IDR  150. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). Notarize company documents before a notary public Time: 1 day Cost: IDR  4. The applicant gets a receipt of document submission.LIST OF PROCEDURES 57 g.000 Comments: Based on local regulation No. 40/ 2007. c. . * This procedure can be completed simultaneously with previous procedures. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. 5. which can be downloaded from the website jamsostek. old age. Copy of ID card. Procedure 4. Palangka Raya. the company should pay the first insurance premium. Standard articles of association are available at the notary office. local notary associations set the scale of notary fees. 2009 and entered into force on June 3. 28 /2002). The applicant returns to the office to pick up the official copy of the registration. The applicant receives the company membership certificate. 10 of 2002 article 22 (points 4.201 Data as of: July 2011 Procedure 1. In 30 days. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). death. The membership certificate is malied to the applicant. Copy of SIUP.000.000= IDR  75. capital) will be inserted in the Company Registry. In practice. Procedure 11*. b. deed drafting and approval. Large SIUP: IDR  450. The reserved name will be blocked for 60 days. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Copy of the deed establishment legalized by Kemenhukham. Central Kalimantan Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. object and purpose.000. c. STARTING A BUSINESS The costs for accessing the Electronic Administration System of Legal Status (SABH).000 = USD 1. the fee for this procedure is IDR  200. and PNBP are counted separately. Because the process must be done through a computerized processing system.go.000. There is improvement in quality of courier service.000. payment for registering or establishing a company is normally done through a notary. The application should be filled no later than 60 days from the date of the deed. Apply for the Workers Social Security Program (Jamsostek Program) Time: 6 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. the founders can sign the deed of establishment. g. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. Jamsostek official conducts data input to Jamsostek data base. and health security. The process usually takes 7 days for processing and approximately 7 days for courier service. Copy of the deed of establishment legalized by Kemenhukham. Procedure 9*. Register with the Company Register and obtain a registration certificate (Tanda Daftar Perusahaan. 13/2003. the original application and supporting documents should be submitted. 29 and 30 of the Indonesian Company Law No. location. The list of fees for SIUP is based on the capital of the company: 1. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. IDR  50.000. as amended by Government Regulation No. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. Seven days after the fulfillment of above requirements.id or obtained from Jamsostek Branch Offices. The company data (name. Filled out application form.580. Arrange for a notary. and 6).000 b. BNRI + IDR  550. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees.000 3. name checking. Procedure 3. TBNRI) Comments: Based on Articles 9. c. the applicant receives an online notification (via email) with the cleared company name.000.000. This social security program covers occupational accidents.000 for publication in the Supplement to the State Gazette. e. Fill out the form.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. 14/1993. Visit the Jamsostek Office to submit the filled–in form. e.000 2. 3/1992).000. Arranging for Jamsostek is the same for all Indonesian locations: a.000 might apply. the fee depends on the agreement between notary and client. The notary fees associated with this procedure cover the following services: name check. the cost for TDP (for PT) is IDR  300. b. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. obtain the standard form of the company deed. 19 of 2007. Having received the first payment. Procedure 2. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. d. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. IDR  5. The process will take place as follows: a. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. BPPT) Time: 2 days Cost: IDR  300. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Based on the Government Regulation Number 38 of 2009 (enacted on May 28.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. Procedure 10*. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. Upon payment and verification. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company.000 – IDR  50.500.000 for publication in the State Gazette.000 (IDR  1. Copy of nuisance permit (HO) legalized by the related agency. Commonly. Middle SIUP: IDR  300. Letter of power of attorney if the applicant uses a service company. By virtue of Government Regulation 38/ 2009 (enacted on May 28. 2009 and entered into force on June 3.000 – IDR  200. It is arranged after the company starts to recruit workers. 10. Small SIUP a. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200.020. and payment of non tax state revenue (PNBP) fees. An additional unofficial fee of 500. The following copies of documents are needed to apply for TDP: a.

The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The entrepreneur doesn’t need to be present at the time of inspection. old age. 28 /2002). In 30 days. SIUP). The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. d. and identity cards of the directors must be submitted to obtain the tax numbers. 28 of 2009. the applicant receives an online notification (via email) with the cleared company name. The application form for domicile certificate (SITU) should be accompanied by: a. the City of Palangkaraya issued a new policy eliminating the fees for SIUP. obtain the standard form of the company deed. This policy was issued during a coordinating meeting between the related agencies. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. the company should pay the first insurance premium. a field inspection takes place to ensure the location of the company. the fee for this procedure is IDR  200. c.500. an unofficial administrative fee of IDR  200.020. local notary associations set the scale of notary fees. the company must register with the Tax Office. It is arranged after the company starts to recruit workers. there is no longer a fee for this procedure. * This procedure can be completed simultaneously with previous procedures. TDP) at the One Stop Shop (KPPT) Time: 5 days Cost: No cost Comments: The applications for SITU. 14/1993. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. Most applicants visit the Tax Office in person. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. and the registration certificate (TDP). articles of association. Upon payment and verification. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. and payment of non tax state revenue (PNBP) fees. Procedure 6. The applicant returns to the office to pick up the official copy of the registration. those 3 permits are issued simultaneously. b. the permanent business trading license (SIUP). with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. and the registration certificate (Tanda Daftar Perusahaan. and PNBP are counted separately. Because the process must be done through a computerized processing system. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Having received the first payment. 1 of 2011 (enacted in January 2011). which are arranged at the Licensing Office (Kantor Pelayanan Perijinan Terpadu–KPPT). d. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days.000 may apply. STARTING A BUSINESS Palembang. SITU & TDP. Standard articles of association are available at the notary office. Procedure 3. The applicant receives the company membership certificate. Commonly. The following copies of documents should be attached to the application for SIUP: a. and with the same Officer at One Stop Shop (KPPT). c. The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business.id or obtained from Jamsostek Branch Offices. Procedure 1. The reserved name will be blocked for 60 days. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations.000 (as per Local Regulation) Comments: According to Law No. There is no local Regulation governing this new policy. the permanent business trading license (Surat Izin Usaha Perdagangan. 2009 and entered into force on June 3.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. An attestation of location and address of the company’s offices. Following the inspection.000 = USD 1. the founders can sign the deed of establishment. The applicant submits the required documents to the Tax Office and gets the receipt of application. The costs for accessing the Electronic Administration System of Legal Status (SABH). Obtain a certificate of company domicile from the local municipality Time: 2 days Cost: No cost Comments: This procedure is a pre–requisite for the location permit (SITU). This social security program covers occupational accidents. A copy of the rental agreement. b. deed drafting and approval. 1. The SIUP contains details about the company activities and the person in charge of the company. c. The company domicile certificate. NPWP and NPPKP can be arranged simultaneously in one package. death.58 DOING BUSINESS IN INDONESIA 2012 Procedure 5. The articles of association. In practice. d. name checking. Proof of payment of Land and Building Tax (PBB) by the owner of the place where the company operates. . to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. Fill out the form. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. In practice. if the company doesn’t pick up the certificate. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. which can be downloaded from the website jamsostek. at the same window. the fee depends on the agreement between notary and client. the Jamsostek Office will issue membership certificates for each employee. and health security. According to the National Law No. Proof of building permit of the place where the company operates. A copy of the signed deed of establishment.201 Data as of: July 2011 Procedure 7*. Arrange for a notary. The identity card of the company president or director. Apply for the location permit (SITU). Although there is no official fee.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. The applicant gets a receipt of document submission. According to Law No. South Sumatra Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. 2. The inspection usually happens on the same day of the application or one day after. Visit the Jamsostek Office to submit the filled–in form. SIUP and TDP can be submitted at the same time. as amended by Government Regulation No.000. e. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. Arranging for Jamsostek is the same for all Indonesian locations: a. Procedure 8*. The notary fees associated with this procedure cover the following services: name check. 3/1992). Notarize company documents before a notary public Time: 1 day Cost: IDR  3. Procedure 2. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). Following the application. The tax registration number (NPWP). 13/2003. Jamsostek official conducts data input to Jamsostek data base. 28 of 2009 and Mayor letter No.go. in January 2010. The tax registration number. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. Register with the Ministry of Manpower at the local Manpower Office Time: 4 days Cost: IDR  100. b.

10. the original application and supporting documents should be submitted. and health security. Original and copy of approval of the deed of establishment. Arranging for Jamsostek is the same for all Indonesian locations: a. d. Original and copy of the deed of establishment. The applicant submits the required documents to the Tax Office and gets the receipt of application. Recommendation letter from the Head of Sub district. 29 and 30 of the Indonesian Company Law No.000 Comments: SITU is a pre–requisite for obtaining the permanent business trading license (Surat Izin Usaha Perdagangan.000. b. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights.000.000 for validation of company as legal entity + IDR  30. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. 19 of 2007.000 for publication in the Supplement to the State Gazette. but usually SIUP and TDP can be obtained in less than 7 days. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. g. Copy of the payment of the land and building tax. c.000. Type VII >400 square meters: IDR  2. Jamsostek official conducts data input to Jamsostek data base. b. Business location map. The process usually takes 7 days for processing and approximately 7 days for courier service. f. old age. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. b. e. d. e. Copy of the approval from the Ministry of Law and Human Rights. Cost: No cost Comments: Maximum one month from the start of business operations. The applicant gets a receipt of document submission.go. It is arranged after the company starts to recruit workers.000. By virtue of Government Regulation 38/ 2009 (enacted on May 28. as amended by Government Regulation No. Type IV 200 square meters: IDR  400. object and purpose. d. an unofficial administrative fee may be charged. c. location.580.000. e. TDP) at the Licensing office (Kantor Pelayanan Perijinan Terpadu. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. which is usually between 100. b. 13/2003. f. NPWP and NPPKP can be arranged simultaneously in one package. The following copies of documents should be attached to the application for SIUP and TDP: a.000 (IDR  1. c. KPPT) Time: 3 days Cost: IDR  300. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Copy of ID card. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. Procedure 8. and identity cards of the directors must be submitted to obtain the tax numbers. The application should be filled no later than 60 days from the date of the deed. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek).000 and 250. The list of fees for SITU for minor nuisance is: a. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. Most applicants visit the Tax Office in person. Type III 100 square meters: IDR  300. f. Type I 25 square meters: IDR  125. The process will take place as follows: a. Procedure 6. The applicant receives the company membership certificate. there is no fee to apply for SIUP or TDP.id or obtained from Jamsostek Branch Offices.000. SIUP) and the registration certificate (Tanda Daftar Perusahaan. c. According to the new Law No. death. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower.000. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company.000. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. Register with the Ministry of Manpower at the local Manpower Office Time: 2 days Cost: No cost Comments: According to Law No. capital) will be inserted in the Company Registry. which can be downloaded from the website jamsostek. Application form. Original and copy of annulment of the deed of establishment (if any). Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. 28 of 2009 and Mayor letter No. The company domicile certificate. Type n V 300 square meters: IDR  450. payment for registering or establishing a company is normally done through a notary. 3/1992).000. Obtain a location permit (SITU) from the Licensing office (Kantor Pelayanan Perijinan Terpadu.342/002031. enacted in October 2010. g. Copy of ID card. e. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. Visit the Jamsostek Office to submit the filled–in form. 14/1993. 188. Procedure 10*. * This procedure can be completed simultaneously with previous procedures.LIST OF PROCEDURES 59 Procedure 4. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. The company data (name. This social security program covers occupational accidents. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. 40/ 2007. d. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. TDP). A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. d.000 for publication in the State Gazette. Fill out the form. Copy of the deed of establishment. The applicant returns to the office to pick up the official copy of the registration. 28 /2002). Copy of a taxpayer registration number (NPWP) and SITU.500. the company must register with the Tax Office. b. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Procedure 5. TBNRI) Comments: Based on Articles 9. The balance sheet of the company. Procedure 9*. SIUP) and the registration certificate (Tanda Daftar Perusahaan. There is improvement in quality of courier service. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. h. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days . articles of association. Passport photo size 3x4 2 pcs. The following copies of documents should be attached to the application for SITU: a. BNRI + IDR  550. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). 2009 and entered into force on June 3. Seven days after the fulfillment of above requirements. Apply for the Workers Social Security Program (Jamsostek Program) Time: 4 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. Although there is no official fee. c. KPPT) Time: 5 days Cost: No cost Comments: The statutory time limit is 7 days. Type II 50 square meters: IDR  200. Procedure 7. Type VI 400 square meters: IDR  500.

60

DOING BUSINESS IN INDONESIA 2012

STARTING A BUSINESS

Pekanbaru, Riau
Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12,500,000 = USD 1,201 Data as of: July 2011

The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 19 of 2007.

Procedure 1. Arrange for a notary; obtain the standard form of the company deed; obtain clearance for the company name electronically from the Ministry of Law and Human Rights
Time: 4 days Cost: IDR  200,000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company, to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. Because the process must be done through a computerized processing system, the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Upon payment and verification, the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. Based on the Government Regulation Number 38 of 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, the fee for this procedure is IDR  200,000.

Procedure 4. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Time: 14 days Cost: IDR  1,580,000 (IDR  1,000,000 for validation of company as legal entity + IDR  30,000 for publication in the State Gazette, BNRI + IDR  550,000 for publication in the Supplement to the State Gazette, TBNRI) Comments: Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law No. 40/ 2007, the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The process will take place as follows: a. The application should be filled no later than 60 days from the date of the deed; b. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights, the original application and supporting documents should be submitted; c. Seven days after the fulfillment of above requirements, the Ministry of Law and Human Rights will issue the legalization of the establishment of the company; d. The company data (name, location, object and purpose, capital) will be inserted in the Company Registry; e. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. By virtue of Government Regulation 38/ 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. There is improvement in quality of courier service, by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.

receipt of application. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. Most applicants visit the Tax Office in person. Although there is no official fee, an unofficial administrative fee of IDR  50,000 might apply.

Procedure 6. Obtain a local taxpayer registration number (NPWPD) and pay local/fiscal charges at the Local Revenue Office
Time: 1 day Cost: IDR  77,000 Comments: The applicant brings a proof of payment of the land and building taxes (PBB) for the last 2 years and pays the billboard tax. This procedure is governed by a local regulation which mandates that every company must have a billboard complete with the company address. The documents needed to apply are: a. Copy of ID card; b. The deed of company establishment; c. Proof of payment of land and building tax; d. Copy of lease of the building.

Procedure 7. Obtain a location permit (SITU) from the Integrated Service Agency (BPT)
Time: 2 days Cost: IDR  750,000 (see comments) Comments: As per Local Regulation 7/2000 concerning location permit (Surat Izin Tempat Usaha–SITU), and according to Instruction of Mayor No. 503 of 2002, the applicant should submit, along with the official application form, the following documents: a. Location map; b. Land Certificate; c. Agreement/approval letter of the land/building owner and/or leasing agreement between land/ building owner and the applicant (if the land/building doesn’t belong to the applicant); d. Proof of payment of tax on land and building (if the company leases the premises, proof of payment by the owner would be required); e. Letter issued by the local Fire Department office; f. Commercial tax on billboards (local fiscal charges), which is mandatory for all companies; g. Copy of deed of company establishment; h. Copy of ID card; i. Passport photos size 3x4 (2 pcs). As per new regulation from May 2009, the statutory time limit to obtain SITU is 5 days, but practically it can be done within 2–3 days. An inspection of the premises, following the application, is mandatory for all new buildings. The entrepreneur does not have to be present during the inspection since this is only for address verification. The inspection done as randomly, especially for the company which is not includes the complete address. The payment for SITU is done at a bank counter located at the Integrated Service Agency. The formula to calculate the cost is specified in article 11 (2), point b, as follows: (business area) x (tariff) x (location index). 1. Business area: a. For a business area of 1 to 100 square meters, the official fee is IDR  7,500;

Procedure 2. Notarize company documents before a notary public
Time: 1 day Cost: IDR  4,520,000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights, the founders can sign the deed of establishment. Standard articles of association are available at the notary office. The notary fees associated with this procedure cover the following services: name check, deed drafting and approval, and payment of non tax state revenue (PNBP) fees. Commonly, local notary associations set the scale of notary fees. In practice, the fee depends on the agreement between notary and client. The costs for accessing the Electronic Administration System of Legal Status (SABH), name checking, and PNBP are counted separately.

Procedure 3. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank
Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally done through a notary.

Procedure 5. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office
Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations, the company must register with the Tax Office. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The company domicile certificate, articles of association, and identity cards of the directors must be submitted to obtain the tax numbers. NPWP and NPPKP can be arranged simultaneously in one package. The applicant submits the required documents to the Tax Office and gets the

LIST OF PROCEDURES

61

b. For a business area of 101to 200 square meters, the official fee is IDR  10,000; c. For a business area above 200 square meters, the official fee is IDR  20,000; d. Any additional square meter costs IDR  200. 2. Location index: a. For a road width of 6 meters, the location index is 1; b. For a road width of 6 to 12 meters, the location index is 1.5; c. For a road width above 12 meters, the location index is 2. For a company with a business space of 100 square meters, the cost for SITU is 100 x IDR  7,500 x 1 = IDR  750,000.

Although there is no official fee, an unofficial administrative fee may be charged, which is usually between IDR  50,000 and IDR  500,000. The fee can depend on the number of pages in the Working Contract (KK) and in the Standard of Procedures (SOP) of the company.

Procedure 10*. Apply for the Workers Social Security Program (Jamsostek Program)
Time: 1 day Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. 3/1992), it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). This social security program covers occupational accidents, death, old age, and health security. It is arranged after the company starts to recruit workers. Arranging for Jamsostek is the same for all Indonesian locations: a. Fill out the form, which can be downloaded from the website jamsostek.go.id or obtained from Jamsostek Branch Offices; b. Visit the Jamsostek Office to submit the filled–in form; c. Jamsostek official conducts data input to Jamsostek data base; d. The applicant receives the company membership certificate. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. In practice, if the company doesn’t pick up the certificate, the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. In 30 days, the company should pay the first insurance premium. Having received the first payment, the Jamsostek Office will issue membership certificates for each employee. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees, with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 14/1993, as amended by Government Regulation No. 76 /2007). * This procedure can be completed simultaneously with previous procedures.
STARTING A BUSINESS

sociation. Because the process must be done through a computerized processing system, the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). Upon payment and verification, the applicant receives an online notification (via email) with the cleared company name. The reserved name will be blocked for 60 days. Based on the Government Regulation Number 38 of 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, the fee for this procedure is IDR  200,000.

Procedure 8. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) and the registration certificate (Tanda Daftar Perusahaan, TDP) at the Integrated Service Agency (BPT)
Time: 4 days Cost: No cost Comments: SIUP and TDP can be arranged as a package, at the same time, with the same Officer at the Integrated Service Agency (BPT). The applicant submits two different application forms, along with the required documentation, gets a confirmation receipt, and pays the official user charges. After verification, the licenses are issued. Payment for SIUP and TDP is done at the bank counter located inside the BPT office. 1. The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. The SIUP contains details about the company activities and the person in charge of the company. The following copies of documents should be attached to the application for SIUP: a. The articles of association; b. An attestation of location and address of the company’s offices (location permit– SITU); c. The tax registration number; d. The identity card of the company president or director; e. The ministerial decree on the legalization of the business entity. According to the Law No. 28 of 2009, since January 2011, in Pekanbaru, SIUP & TDP are issued free of charge. This new policy was determined during a coordinating meeting of all related agencies in Pekanbaru. There is no local regulation governing this new policy, the annulment of the previous regulation is still under way.

Procedure 2. Notarize company documents before a notary public
Time: 1 day Cost: IDR  3,000,000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights, the founders can sign the deed of establishment. Standard articles of association are available at the notary office. The notary fees associated with this procedure cover the following services: name check, deed drafting and approval, and payment of non tax state revenue (PNBP) fees. Commonly, local notary associations set the scale of notary fees. In practice, the fee depends on the agreement between notary and client. The costs for accessing the Electronic Administration System of Legal Status (SABH), name checking, and PNBP are counted separately.

Procedure 3. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank
Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public, payment for registering or establishing a company is normally done through a notary. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 19 of 2007.

Procedure 9*. Register with the Ministry of Manpower at the local Manpower Office
Time: 1 day Cost: No cost Comments: According to Law No. 13/2003, companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. The applicant gets a receipt of document submission. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. The applicant returns to the office to pick up the official copy of the registration. For a company with less than 50 employees, the verification process can be done on the spot.

Pontianak, West Kalimantan
Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12,500,000 = USD 1,201 Data as of: July 2011

Procedure 4. Obtain the location permit (SITU) at the One Stop Shop (Badan Pelayanan Perijinan Terpadu–BP2T)
Time: 10 days Cost: No cost Comments: The location permit (Surat Izin Tempat Usaha–SITU) is required for a company which has no direct impact to the surrounding environment. The following copies of documents should be attached to the application for SITU: a. Copy of ID card; b. Passport photos in color size 3x4 (3 pieces); c. Original and copies of proof of payment of land and building tax; d. Copy of land ownership/lease of the premises; e. Copy of IMB (if the company owned the business space);

Procedure 1. Arrange for a notary; obtain the standard form of the company deed; obtain clearance for the company name electronically from the Ministry of Law and Human Rights
Time: 4 days Cost: IDR  200,000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company, to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of as-

62

DOING BUSINESS IN INDONESIA 2012

f. Copy of deed of establishment; g. Map of location. Based on Mayor Regulation No. 469 of 2011, concerning this procedure and the mechanism for the business licensing process in Pontianak, and based on local Regulation No. 10 of 1989 concerning SITU, the detail process is as follows: a. The applicant fills in the application form and submits the complete documentation to the BP2T counter; b. The documents will be verified by BP2T together with the technical team; c. If the documents are complete and the permit is approved, BP2T will print the license and the applicant can obtain the license at the counter of BP2T. Based on the Mayor regulation, the time to complete this procedure is 10 days.

Comments: Maximum one month from the start of business operations, the company must register with the Tax Office. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The company domicile certificate, articles of association, and identity cards of the directors must be submitted to obtain the tax numbers. NPWP and NPPKP can be arranged simultaneously in one package. The applicant submits the required documents to the Tax Office and gets the receipt of application. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. Most applicants visit the Tax Office in person.

d. Copy of the deed of establishment; e. Copy of SITU/HO; f. The amendment of the company (if there is a change); g. Copy of the Company approval from the Ministry of Law and Human Rights. The application process is similar to obtain the SIUP (see above).

Procedure 9*. Register with the Ministry of Manpower at the local Manpower Office
Time: 3 days Cost: No cost Comments: According to Law No. 13/2003, companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. The applicant gets a receipt of document submission. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. The applicant returns to the office to pick up the official copy of the registration. The statutory time limit for this procedure is 30 days. Although there is no official fee for this procedure, the applicant usually pays around IDR  200,000.

Procedure 5. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Time: 14 days Cost: IDR  1,580,000 (IDR  1,000,000 for validation of company as legal entity + IDR  30,000 for publication in the State Gazette, BNRI + IDR  550,000 for publication in the Supplement to the State Gazette, TBNRI) Comments: Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law No. 40/ 2007, the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The process will take place as follows: a. The application should be filled no later than 60 days from the date of the deed; b. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights, the original application and supporting documents should be submitted; c. Seven days after the fulfillment of above requirements, the Ministry of Law and Human Rights will issue the legalization of the establishment of the company; d. The company data (name, location, object and purpose, capital) will be inserted in the Company Registry; e. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. By virtue of Government Regulation 38/ 2009 (enacted on May 28, 2009 and entered into force on June 3, 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights, a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. The process usually takes 7 days for processing and approximately 7 days for courier service. There is improvement in quality of courier service, by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.

Procedure 7. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) at the One Stop Shop (Badan Pelayanan Perijinan Terpadu–BP2T)
Time: 7 days Cost: No cost Comments: The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. The SIUP contains details about the company activities and the person in charge of the company. Based on the Local Regulation No. 21 of 2002 concerning SIUP and Mayor Regulation No. 62 of 2005 concerning the licensing process in Pontianak, the following copies of documents should be attached to the application for SIUP: a. Copy of ID card; b. Passport photos in color size 3x4, (4 pcs); c. Copy of NPWP; d. Copy of the deed of establishment; e. Copy of SITU/HO; f. Copy of the Company approval from the Ministry of Law and Human Rights; g. Copy of the receipt payment of PNBP. The process will take place as follows: a. The applicant fills in the application form and submits the complete documents to the BP2T; b. BP2T will verify the documents; c. The complete documents will be further processed by the licensing service sector and the technical team. The team will conduct the field survey and the result will be discussed to determine whether the license can be issued or not; d. BP2T will print the license and will be signed by the Head of BP2T; e. The applicant obtains the document at the counter of BP2T. According to the national law and Mayor Regulation No. 469 of 2011, enacted in June 2011, there is no fee to apply for SIUP.

Procedure 10*. Apply for the Workers Social Security Program (Jamsostek Program)
Time: 7 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. 3/1992), it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). This social security program covers occupational accidents, death, old age, and health security. It is arranged after the company starts to recruit workers. Arranging for Jamsostek is the same for all Indonesian locations: a. Fill out the form, which can be downloaded from the website jamsostek.go.id or obtained from Jamsostek Branch Offices; b. Visit the Jamsostek Office to submit the filled–in form; c. Jamsostek official conducts data input to Jamsostek data base; d. The applicant receives the company membership certificate. The membership certificate will be mailed to the applicant no later than 7 days from the date of the application. In 30 days, the company should pay the first insurance premium. Having received the first payment, the Jamsostek Office will issue membership certificates for each employee. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees, with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. 14/1993, as amended by Government Regulation No. 76 /2007). * This procedure can be completed simultaneously with previous procedures.

Procedure 6. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office
Time: 2 days Cost: No cost

Procedure 8*. Apply for the registration certificate (Tanda Daftar Perusahaan, TDP) at the One Stop Shop (Badan Pelayanan Perijinan Terpadu–BP2T)
Time: 7 days Cost: No cost Comments: To obtain a TDP certificate, the following copies of documents should be attached: a. Copy of ID card; b. Passport photos in color size 3x4 (4 pcs); c. Copy of NPWP;

the following copies of documents should be attached to the application for SIUP: a. Photo of the Director size 3x4 .000 = USD 1. The SIUP contains details about the company activities and the person in charge of the company. 10. d. and PNBP are counted separately. d. the founders can sign the deed of establishment. 29 and 30 of the Indonesian Company Law No. the applicant receives an online notification (via email) with the cleared company name. articles of association. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. object and purpose. SIUP & TDP can be submitted at the same time. SIUP) at the One Stop Shop (Badan Pelayanan Perijinan Terpadu. The office conducts a verification process and issues an official copy of the registration to the applicant. and payment of non tax state revenue (PNBP) fees. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost . Arrange for a notary. obtain the standard form of the company deed. c. 19 of 2007. Procedure 4. Business permanent license (SIUP). Procedure 3. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. Procedure 8*. Notarize company documents before a notary public Time: 1 day Cost: IDR  3. and identity cards of the directors must be submitted to obtain the tax numbers. the original application and supporting documents should be submitted. In practice. NPWP and NPPKP can be arranged simultaneously in one package. Deed of establishment. Proof of company legal status. Standard articles of association are available at the notary office. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. local notary associations set the scale of notary fees. There is no official fee but in practice. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. e. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. TDP) at the One Stop Shop (BPPT) Time: 3 days Cost: No cost Comments: To obtain a TDP certificate. The applicant submits the required documents to the Tax Office and gets the Procedure 9*. Proof of payment of PNBP. Most applicants visit the Tax Office in person. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. The identity card of the company president or director. The reserved name will be blocked for 60 days.000. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. Seven days after the fulfillment of above requirements. The notary fees associated with this procedure cover the following services: name check. c. Register with the Company Register (Department of Trade) and obtain a registration certificate (Tanda Daftar Perusahaan. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations. receipt of application. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. BNRI + IDR  550. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. The company domicile certificate. 13/2003.580. Procedure 5. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. Central Java Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. unofficial fees may apply (around IDR  50. b. because SIUP is pre requisite to obtain TDP. The applicant returns to the office to pick up the official copy of the registration. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Procedure 2. The application should be filled no later than 60 days from the date of the deed. b. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. the company must register with the Tax Office. the fee for this procedure is IDR  200. Procedure 7*. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights.500. TBNRI) Comments: Based on Articles 9. BPPT) Time: 3 days Cost: No cost Comments: The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. 2009 and entered into force on June 3. There is improvement in quality of courier service.520. the application has to be accompanied by: a. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). The process usually takes 7 days for processing and approximately 7 days for courier service.000. location. capital) will be inserted in the Company Registry. payment for registering or establishing a company is normally done through a notary.000 (IDR  1. in accordance to Mayor’s Regulation– SPM. c. 6 of 2009 regarding SIUP. 40/ 2007. but SIUP will be processed first. Procedure 6. b. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. and will be followed by TDP. The company data (name.000 for publication in the State Gazette. The costs for accessing the Electronic Administration System of Legal Status (SABH). deed drafting and approval.000 for publication in the Supplement to the State Gazette. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report at the local Manpower and Transmigration (Disnakertrans) office. Based on Local Regulation No. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). the Ministry of Law and Human Rights will issue the legalization of the establishment of the company.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Upon payment and verification. Register with the Ministry of Manpower at the local Manpower Office Time: 3 days Cost: No cost Comments: According to Law No. The applicant gets a receipt of document submission. By virtue of Government Regulation 38/ 2009 (enacted on May 28. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days.201 Data as of: July 2011 The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. The process will take place as follows: a. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No.000 for validation of company as legal entity + IDR  30. An attestation of location and address of the company’s offices made by the entrepreneurs. name checking. 2009 and entered into force on June 3. the fee depends on the agreement between notary and client. Because the process must be done through a computerized processing system.000). Commonly.LIST OF PROCEDURES 63 STARTING A BUSINESS Semarang. Procedure 1.

the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. 78 /2007).000.520. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. b. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. An attestation from the applicant (stamp duty IDR  6. name checking.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. This social security program covers occupational accidents. the original application and supporting documents should be submitted. Procedure 3. Because the process must be done through a computerized processing system. Most applicants visit the Tax Office in person. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. Notarize company documents before a notary public Time: 1 day Cost: IDR  4. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. and payment of non tax state revenue (PNBP) fees.000. The applicant receives the company membership certificate. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Copy of the deed of company establishment. the founders can sign the deed of establishment. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. Standard articles of association are available at the notary office. old age. The process usually takes 7 days for processing and approximately 7 days for courier service. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. By virtue of Government Regulation 38/ 2009 (enacted on May 28. The reserved name will be blocked for 60 days.000 to IDR  300. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. and identity cards of the directors must be submitted to obtain the tax numbers. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). NPWP and NPPKP can be arranged simultaneously in one package. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). d. Commonly. 29 and 30 of the Indonesian Company Law No. Seven days after the fulfillment of above requirements. Arrange for a notary. In 30 days. b. Copy of NPWP. The company data (name. deed drafting and approval. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost Comments: Maximum one month from the start of business operations. the fee for this procedure is IDR  200. There is improvement in quality of courier service. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Passport photo size 3 x 4 cm (2 pieces). unofficial fees may apply and range from IDR  50. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. 40/ 2007. 14/1993. e. capital) will be inserted in the Company Registry. c. the company must register with the Tax Office. 2009 and entered into force on June 3. object and purpose. Fill out the form. From submitting the application form until obtaining the membership certificate it usually takes 1 day. It is arranged after the company starts to recruit workers.000) regarding the business area. and health security. local notary associations set the scale of notary fees. The company domicile certificate. In practice.go. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. c. Arranging for Jamsostek is the same for all Indonesian locations: a. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. STARTING A BUSINESS Based on the Government Regulation Number 38 of 2009 (enacted on May 28.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company.000 for publication in the Supplement to the State Gazette. if the company doesn’t pick up the certificate. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. The costs for accessing the Electronic Administration System of Legal Status (SABH). by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. obtain the standard form of the company deed. The application should be filled no later than 60 days from the date of the deed. In practice. death. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. East Java Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. and PNBP are counted separately. as amended by Government Regulation No. Jamsostek official conducts data input to Jamsostek data base. TBNRI) Comments: Based on Articles 9. b. enacted in April 2010): a. articles of association. Having received the first payment. payment for registering or establishing a company is normally done through a notary. the company should pay the first insurance premium. 1 of 2010.000 for validation of company as legal entity + IDR  30. In practice. The applicant submits the required documents to the Tax Office and gets the receipt of application. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT).000 (IDR  1. 3/1992). 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. Copy of ID card.580.id or obtained from Jamsostek Branch Offices.000 = USD 1. The process will take place as follows: a. Procedure 4. which can be downloaded from the website jamsostek. c.500. location.000 for publication in the State Gazette. the fee depends on the agreement between notary and client. The notary fees associated with this procedure cover the following services: name check. d. Procedure 5. 2009 and entered into force on June 3. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up. 10. d. Procedure 6. SIUP) at the City Agency of Trade and Industry Affairs Time: 3 days Cost: No cost Comments: The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. Surabaya.201 Data as of: July 2011 Procedure 1. Upon payment and verification. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. the Jamsostek Office will issue membership certificates for each employee. e. 19 of 2007.000 specifically for the technical surveyor. BNRI + IDR  550. The SIUP contains details about the company activities and the person in charge of the company. The following documents should be attached (based on local regulation No. Procedure 2. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights. the applicant receives an online notification (via email) with the cleared company name. Visit the Jamsostek Office to submit the filled–in form. * This procedure can be completed simultaneously with previous procedures. .64 DOING BUSINESS IN INDONESIA 2012 Comments: According to legal provisions on workers’ social security (Law No.

Obtain Registration Certificate (Tanda Daftar Perusahaan/ TDP) at the City Agency of the Trade and Industry Affairs Time: 3 days Cost: No cost Comments: TDP cannot be applied for at the same time as SIUP because SIUP is a pre–requisite for TDP. Procedure 7*. The applicant gets a receipt of document submission. Arranging for Jamsostek is the same for all Indonesian locations: a. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. b. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. c. This social security program covers occupational accidents. Procedure 1. the fee depends on the agreement between notary and client.520. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. which can be downloaded from the website jamsostek.000 for validation of company as legal entity + IDR  30. the founders can sign the deed of establishment. The notary fees associated with this procedure cover the following services: name check. Within 30 days since the notice of “no objection” from the Ministry of Law and Human Rights.LIST OF PROCEDURES 65 Based on Mayor Regulation No. 28 /2002). d. 2009 and entered into force on June 3. Having received the first payment. Procedure 8*. Central Java Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12. the Jamsostek Office will issue membership certificates for each employee. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. The following documents should be attached: a. Fill out the form. as amended by Government Regulation No. The company data (name. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). b. 35 of 2010 concerning the business services industry and the trade sector. d. the applicant receives an online notification (via email) with the cleared company name.000 (name clearance and reservation) Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Visit the Jamsostek Office to submit the filled–in form.000 (IDR  1. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. Jamsostek official conducts data input to Jamsostek data base. if the company doesn’t pick up the certificate. old age.000 for publication in the Supplement to the State Gazette. TBNRI) Comments: Based on Articles 9. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. UPTSA). Standard articles of association are available at the notary office. Notarize company documents before a notary public Time: 1 day Cost: IDR  3. e. BNRI + IDR  550. 29 and 30 of the Indonesian Company Law No. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. SIUP for middle size company is obtained at the Industry and Trade Office. capital) will be inserted in the Company Registry. By virtue of Government Regulation 38/ 2009 (enacted on May 28. Copy of NPWP. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. Arrange for a notary. There is improvement in quality of courier service. In practice. object and purpose. local notary associations set the scale of notary fees.201 Data as of: July 2011 Procedure 4. Procedure 9*. and payment of non tax state revenue (PNBP) fees.000. The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. Because the process must be done through a computerized processing system.1 of 2010. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. The applicant returns to the office to pick up the official copy of the registration. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). The applicant receives the company membership certificate. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. Only small companies (below IDR  50. deed drafting and approval. Copy of technical permit related the business. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). and PNBP are counted separately. the fee for this procedure is IDR  200. 14/1993. The process usually takes 7 days for processing and approximately 7 days for courier service. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. c. death. Procedure 2. Because the new computerized system for non–tax state revenue payments (PNBP)— which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. STARTING A BUSINESS Procedure 3. Register with the Ministry of Manpower at the local Manpower Office Time: 7 days Cost: No cost Comments: According to Law No. e. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Based on Mayor Regulation No. 3/1992). The application should be filled no later than 60 days from the date of the deed.go.580. c. it is mandatory to register the company no later than 3 month after the business operations started.000) can apply at the One Stop Shop (Unit Pelayanan Terpadu Satu Pintu. The process will take place as follows: a. Commonly. payment for registering or establishing a company is normally done through a notary.000. name checking. d. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. In practice. Seven days after the fulfillment of above requirements. According to the Decree. TDP for a middle size company is obtained from the Trade and Industry office and not the One Stop Shop (UPTSA). Copy of ID card. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. * This procedure can be completed simultaneously with previous procedures. b.id or obtained from Jamsostek Branch Offices. location. Copy of SIUP. obtain the standard form of the company deed.000 = USD 1. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. 40/ 2007.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. The costs for accessing the Electronic Administration System of Legal Status (SABH). 19 of 2007. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 3 days Cost: No cost . the company should pay the first insurance premium. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No. 2009 and entered into force on June 3. In 30 days. 35 of 2010 and Local regulation No. the original application and supporting documents should be submitted. The reserved name will be blocked for 60 days. 13/2003. and health security.000. Upon payment and verification. Copy of deed of establishment. It is arranged after the company starts to recruit workers. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter.000 for publication in the State Gazette. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. 10.500. Procedure 5. Surakarta.

The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. The SIUP contains details about the company activities and the person in charge of the company.020.000 (IDR  1. d. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. The costs for accessing the Electronic Administration System of Legal Status (SABH). Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Time: 14 days Cost: IDR  1. Procedure 6. the Jamsostek Office will issue membership certificates for each employee. which is usually between IDR  50. 14/1993. Having received the first payment. name checking.000 for publication in the State Gazette. Arrange for a notary.580.000 (name clearance and reservation) . SIUP and TDP can be arranged as a package. Fill out the form. HO: the applicant is required to get a statement of non objection from the neighbors. This social security program covers occupational accidents. the company must register with the Tax Office. and health security. at the same time. The inspection team will recommend to OSS management whether to approve or reject the application. b. and pays the official user charges. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card. The entrepreneur presence during the inspection is not needed. Because the process must be done through a computerized processing system. and identity cards of the directors must be submitted to obtain the tax numbers. Procedure 3. The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business.000. with the same Officer. Visit the Jamsostek Office to submit the filled–in form. company scale. The following copies of documents should be attached to the application for SIUP: a.201 Data as of: July 2011 Procedure 4. TBNRI) Procedure 7*. Yogyakarta. the founders can sign the deed of establishment. articles of association. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. 2009 and entered into force on June 3.000 for publication in the Supplement to the State Gazette.000 for validation of company as legal entity + IDR  30.66 DOING BUSINESS IN INDONESIA 2012 Comments: Maximum one month from the start of business operations. The tax registration number.000 = USD 1. The applicant returns to the office to pick up the official copy of the registration. Upon payment and verification. payment for registering or establishing a company is normally done through a notary. 28 /2002). 974/364. The reserved name will be blocked for 60 days. The applicant submits the required documents to the Tax Office and gets the receipt of application. The official cost is calculated based on several factors such as: office space. 19 of 2007. and business location. An attestation of location and address of the company’s offices.go. Pay the State Treasury for the non–tax state revenue (PNBP) fees for legal services at a Bank Time: 1 day Cost: No cost Comments: This payment is for name clearances and company approval. Although there is no official fee.id or obtained from Jamsostek Branch Offices. The articles of association. The notary fees associated with this procedure cover the following services: name check. c. 2. deed drafting and approval. c. In 30 days. In practice. there is no fee for obtaining SIUP and TDP. the fee depends on the agreement between notary and client. The identity card of the company president or director. gets a confirmation receipt. Apply for the nuisance permit (Hinder Ordinantie– HO). if the company doesn’t pick up the certificate. Procedure 2. and PNBP are counted separately.500. filing the compulsory report with the local office of the Ministry of Manpower. This procedure can be completed concurrently with other post–registration procedures by Procedure 1. obtain clearance for the company name electronically from the Ministry of Law and Human Rights Time: 4 days Cost: IDR  200. NPWP and NPPKP can be arranged simultaneously in one package. In practice. obtain the standard form of the company deed. Because the new computerized system for non–tax state revenue payments (PNBP)—which has been implemented by the Ministry of Law and Human Rights—may be accessed only by a notary public. Based on the Government Regulation Number 38 of 2009 (enacted on May 28. to avoid a rejection by the Ministry of Law and Human Rights of the company’s deed of establishment and articles of association. the reservation and clearance must be done by a public notary (the new computerized system for nontax state revenue payments may be accessed only by a public notary). The requirement to pay the non–tax state revenue (PNBP) fee for legal services in relation to the establishment of a small company (Perseroan Terbatas– PT) is based on Government Regulation No. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up.000 (for HO) Comments: HO. and the registration certificate (Tanda Daftar Perusahaan– TDP) at the One Stop Shop (KPPT) Time: 6 days Cost: IDR  200. After the submission of all required documents. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek). the applicant receives an online notification (via email) with the cleared company name.000 and IDR  100. Commonly. at the One Stop Shop (KPPT). d. It is arranged after the company starts to recruit workers. along with the required documents. 38 of 2009 concerning types and tariffs on non–tax state revenues replacing the previous regulation which is regulation No.000. the permanent business trading license (Surat Izin Usaha Perdagangan– SIUP). and payment of non tax state revenue (PNBP) fees. 3/1992). Register with the Ministry of Manpower at the local Manpower Office Time: 3 days Cost: No cost Comments: According to Law No. Arranging for Jamsostek is the same for all Indonesian locations: a. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. which can be downloaded from the website jamsostek. The applicant receives the company membership certificate. DI Yogyakarta Standard company legal form: Limited Liability Company (LLC)– Perseroan Terbatas (PT) Paid–in minimum capital requirement: IDR  12.000 (notary fee) Comments: Once the notary gets the company name approval from the Ministry of Law and Human Rights. STARTING A BUSINESS Comments: The uniqueness of the company name must be checked to ensure that it has not been used by another Indonesian company. Procedure 8*. the licenses are issued. b. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. local notary associations set the scale of notary fees. Notarize company documents before a notary public Time: 1 day Cost: IDR  3. an unofficial administrative fee may be charged. The applicant submits different application forms. as amended by Government Regulation No. The inspection usually happens 2 days after the receipt of the application. The applicant gets a receipt of document submission. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. A provincial regulation establishes a 7 days’ time limit for issuance of licenses. BNRI + IDR  550. Standard articles of association are available at the notary office. the fee for this procedure is IDR  200. Based on the Letter of Secretary of Surakarta City No. 13/2003. Jamsostek official conducts data input to Jamsostek data base. the company should pay the first insurance premium. Most applicants visit the Tax Office in person. OSS coordinates internally with the technical agency (Planning Agency) to conduct a field inspection to verify the company address. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application.000. 1. * This procedure can be completed simultaneously with previous procedures. old age. death. The company domicile certificate. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. After verification. the One Stop Shop (OSS) Officer verifies the documents.

000 Procedure 7*. and identity cards of the directors must be submitted to obtain the tax numbers. above 100 square meters and up to 500 square meters = IDR  1.8 (arterial road) x 0. c. 13/2003. Large: 1. Seven days after the fulfillment of above requirements. A company is not obliged to enroll its employees in the Jamsostek social security program if it offers an independent social security program to its employees. 1. the company should pay the first insurance premium. g. Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector number (NPPKP) from the local Tax Office Time: 2 days Cost: No cost Comments: Maximum one month from the start of business operations. Apply for the Workers Social Security Program (Jamsostek Program) Time: 3 days Cost: No cost Comments: According to legal provisions on workers’ social security (Law No. Copy of ID card.3 + Location Index X weighted location index 0.000/ square meter. Collector Road: 0. Trade/Tourism area: 0. object and purpose. The process will take place as follows: a. b. Copy of the deed of establishment. d.8.2. The Manpower office conducts a verification process and issues an official copy of the registration to the applicant. Local Road: 1. Environmental Index (weight 30%): a. Field survey (exception for the small nuisance). The process usually takes 7 days for processing and approximately 7 days for courier service. Environmental index. The schedule of fees for the three indexes is: A.8. 2 of 2005.000 square meters = IDR  1. the Ministry of Law and Human Rights will issue the legalization of the establishment of the company. b. death. b.go. Procedure 8*. with the same Officer at the Licensing Agency (One Stop Shop).1.500/ square meter. Copy of technical license (for TDP). articles of association. The schedule of fess for the business space tariff is: 1. c. as follows: a. To calculate the cost for HO: Business space X Tariff X ((Environmental Index X weighted environmental index 0.LIST OF PROCEDURES 67 Comments: Based on Articles 9. 2. The company data (name. Within 30 days of the notice of “no objection” from the Ministry of Law and Human Rights.5) = 100 X 2000 X (0. There is improvement in quality of courier service. 28 /2002). The applicant receives the company membership certificate. it is mandatory for every company or individual employing 10 workers or more or generating a monthly payroll of at least IDR  1 million to apply for the Workers Social Security Program (Jamsostek).2 + Interference Index X weighted interference index 0. d. * This procedure can be completed simultaneously with previous procedures. Office area: 0. b. b. The balance sheet of the company. the company must register with the Tax Office. NPWP and NPPKP can be arranged simultaneously in one package. The following copies of documents should be attached to the application for HO: a. and the registration certificate (Tanda Daftar Perusahaan. the public notary preparing the company deed of establishment must electronically file the required documents with the Ministry of Law and Human Rights. Having received the first payment. 2. The Tax Officer will inform the applicant when the NPWP and NPPKP cards are ready for pick up.3 + 0.2. the original application and supporting documents should be submitted. Based on Local Regulation 7/1999.0. The application should be filled no later than 60 days from the date of the deed. the official time to obtain the registration in Yogyakarta is 6 days. 37 of 2011. The company domicile certificate. Medium: 1.id or obtained from Jamsostek Branch Offices. As per local Regulation No. enacted on 12th of May 2011. and health security. It is arranged after the company starts to recruit workers. 28 of 2009 and as per Local Regulation 5/2009 regarding “User Charges for SIUP/ TDP”.000 (for HO– see comments) Comments: The applications for HO. b. By virtue of Government Regulation 38/ 2009 (enacted on May 28. SIUP and TDP can be submitted at the same time. Businesses space more than 100 square meters = imposed tariffs as stated above. Arranging for Jamsostek is the same for all Indonesian locations: a. In practice. b. the Jamsostek Office will issue membership certificates for each employee. The businesses space area. Special area: 1. Most applicants visit the Tax Office in person. The applicant gets a receipt of document submission. Power of attorney must be enclosed if the applicant cannot apply on his own. capital) will be inserted in the Company Registry. the nuisance permit (HO) can be arranged as a package with SIUP and TDP. d.9 (office space) x 0. Copy of the deed of establishment. The SIUP contains details about the company activities and the person in charge of the company. Interference Index (weight 50%): a. 3/1992). e. which can be downloaded from the website jamsostek. The applicant returns to the office to pick up the official copy of the registration.000/ square meter. From submitting the application form until obtaining the membership certificate it usually takes between 1 and 3 days. above 500 square meters and up to 1. .9. above 1000 square meters = IDR  500/ square meter. d. f. concerning levy of HO. 2009 and entered into force on June 3. at the same window. Copy of the nuisance permit (HO). Jamsostek official conducts data input to Jamsostek data base. the permanent business trading license (Surat Izin Usaha Perdagangan. Fill out the form. Copy of Taxpayer number (NPWP). According to the National Law No. 14/1993. TDP) at the Licensing Agency (One Stop Shop) Time: 5 days Cost: IDR  166. if the company doesn’t pick up the certificate. 2009) regarding the Non Tax State Revenue for the Ministry of Law and Human Rights. c. Based on Decree of Mayor No. Index on the size of disturbance. e.2. 40/ 2007. by using Pos or TIKI express services now the process to deliver the documents is faster within 4–7 days. c. Procedure 6.8. Visit the Jamsostek Office to submit the filled–in form. This social security program covers occupational accidents. Apply for the nuisance permit (Hinder Ordinantie. The applicant submits the required documents to the Tax Office and gets the receipt of application. the local Jamsostek Office will mail it to the applicant no later than 7 days from the date of the application. e. Map of the business space and business location. c. The company must also obtain a VAT collector number (NPPKP) if it anticipates annual revenue of more than IDR  600 million from the sales of goods and services. An official charge is implemented only for extension of SIUP and TDP. SIUP). c. In 30 days. Settlement area: 1. plus multiplication of the tariff over the rest of the business surface.8 (Minor) x 0. The following copies of documents should be attached to the application for SIUP: a. companies with more than 10 workers or a monthly payroll of IDR  1 million must register with the Ministry of Manpower. As per new Local Regulation. location. Businesses space up to 100 square meters = IDR  2. Arterial Road: 0. d. Procedure 5. d. The NPWP application can also be arranged on–line but the applicant still needs to provide hard copies of documents and visit the Tax Office to pick up the NPWP Card.0.0.2 + 0. the component costs for HO are: a. The Surat Izin Usaha Perdagangan (SIUP) constitutes the business license for a non–facility company engaging in trading business. e.5)= IDR  166. Location Index (weight 20%): a. as amended by Government Regulation No. old age. d.9. Location index. Delays depend on the workload of the Ministry and on the approved courier service used by the Ministry to deliver its approval to the notary. c. This procedure can be completed concurrently with other post–registration procedures by filing the compulsory report with the local office of the Ministry of Manpower. a new schedule of official fees was enforced for the establishment of a domestic limited liability company (PT). Register with the Ministry of Manpower at the local Manpower Office Time: 6 days Cost: No cost Comments: According to Law No. c. HO is required for any type of business except for companies located in special designated areas such as traditional markets. HO). b. c. b. C. Education area: 1. A letter of no objection from the owner of the building or the leasing agreement if the company leases the building. Minor: 0. B. The Ministry of Law and Human Rights will announce the establishment of the company in the Supplement State Gazette (TBNRI) within 14 days of the Ministry’s Approval Letter. with comparable or better benefits than those offered by the Package of Basic Health Maintenance Security (according to Government Regulation No. Street Environment: 1. Copy of ID card. 29 and 30 of the Indonesian Company Law No. there is no official fee to obtain SIUP and TDP. 10.

in order to be able to obtain the construction permit (IMB). Photocopy of the applicant’s identity card. Procedure 2. The following documents should be included: a. Copy of identity card of directors and company establishment deeds. Aceh Province Warehouse value: IDR  4. draws the voids. Request Principal Permit (Izin Prinsip) from Balikpapan one-stop shop (Badan Penanaman Modal dan Pelayanan Perizinan Terpadu / BPMP2T) Time: 1 day Cost: No cost Comments: In order to obtain the Principal Permit. Because of this. c. b. no later than 30 days after receipt of the SPOP. Register with Local Tax Office (Kantor Pajak Pratama. Procedure 7*. the Head of the Sub–district signs the application for the building permit and returns it to BuildCo. Design drawings in 1:50. City Planning Agency.363. carries out an additional inspection. Procedure 3. BuildCo has to submit the following documents to the Head of the Village: a.498 Data as of: July 2011 Procedure 1. obtained from the Banda Aceh one–stop shop (KPPTSP). Fire Agency.68 DOING BUSINESS IN INDONESIA 2012 LIST OF PROCEDURES DEALING WITH CONSTRUCTION PERMITS Balikpapan. roof drawings. b.498 Data as of: July 2011 Procedure 1.100. 1:100. c. BuildCo must submit the following documents to Banda Aceh one–stop shop: a. BuildCo has to submit the following documents to the Head of the Sub–district: a. After the reports are ready. the City Planning Agency calculates the fees that have to be paid in order to obtain the permit. Company Registration (TDP). if necessary. b. KPP) Time: 11 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. More specifically: the City Planning Agency registers the application and evaluates the documents. local Transportation Office (Dinas perhubungan). The latest Payable Tax Notification Letter. After verifying that the land belongs to BuildCo. d. prepared by BuildCo’s architect. Photocopy of identification card of the applicant. Under the coordination of the one–stop shop. Procedure 2. Because of this. the Head of the Village signs the application for the building permit and returns it to BuildCo. Warehouse Inventory Report. Copy of Taxpayer registration number (NPWP).000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. the inspecting team prepares a report with recommendations for approval and submits it to the one–stop shop. foundation details. Principal permit. and landscape drawings). plots the map and prepares its recommendation. Structural calculations. Project proposal. cut projection. obtained from the Banda Aceh one–stop shop (KPPTSP). Photocopy of Land Ownership Certificate. Building Permit application form. c. b.057 (Floor size coefficient x building storey coefficient x building usage coefficient x building construction coefficient x base valuation) Comments: In order to apply for the Building Construction Permit.000. Photocopy of the Land Ownership Certificate. BuildCo must submit the following documents to the Balikpapan one–stop shop: a. * This procedure can be completed simultaneously with previous procedures . local Environmental Agency. Verify land ownership with the Head of the Village (Geuchik) Time: 1 day Cost: No cost Comments: The tsunami of 2004 has modified the landscape making it impossible to determine the borders of each property. signed by Head of the Village (Geuchik) and the Head of the Sub–district (Camat). The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. BuildCo pays the fees and collects the permit directly at the Balikpapan one–stop shop. In order to verify the ownership of the plot. Obtain Principal Permit from Balikpapan one–stop shop (Badan Penanaman Modal dan Perizinan Terpadu) Time: 15 days Cost: No cost Comments: After the inspection. Copy of the land certificate. c. Completed application form (obtained from KPPTSP). d. local City Planning (BAPPEDA). Receive inspection from Balikpapan one–stop shop (Badan Penanaman Modal dan Perijinan Terpadu) Time: 1 day Cost: No cost Comments: This inspection is conducted jointly by several agencies. Public Health Agency and Sub–district staff and Head of Village staff. Request and connect to water and sewage with PDAM Time: 7 days Cost: IDR  7. local Land Office (BPN). After verifying that the land belongs to BuildCo.552. The one–stop shop receives the report and prepares the permit. recommends the building ratio to land (in size and number of storeys).100. b. prepared by BuildCo. Procedure 3. side projection. In order to verify the ownership of the plot. Such agencies include: One–stop shop (BPMP2T). Application form. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 4 days Cost: IDR  500. Obtain Building Construction Permit (IMB) from Balikpapan one–stop shop (Badan Penanaman Modal dan Perizinan Terpadu) Time: 15 days Cost: IDR  9. BuildCo needs to verify the ownership of the plot of land with the Head of the Village (Geuchik). the Sub–Agency of Zoning reviews the location clearance. Verify land ownership with the Head of the Sub–district (Camat) Time: 1 day Cost: No cost Comments: The tsunami of 2004 has modified the landscape making it impossible to determine the borders of each property.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Procedure 5.000 = USD 437. Request Building Construction Permit (IMB) from Banda Aceh one–stop shop (KPPTSP) Time: 1 day Cost: No cost Comments: In order to obtain the Building Construction Permit. obtained from Balikpapan one– stop shop. BuildCo must submit an application to the one–stop shop along with the following documents: a. c. e. Photocopy of the applicant’s identity card. in order to be able to obtain the Construction Permit (IMB). Photocopy of the Land Ownership Certificate. Once the process is completed the agencies send their feedback to Balikpapan one–stop shop (BPMPPT) that signs the permit. DEALING WITH CONSTRUCTION PERMITS Banda Aceh. Building Permit application form. the Sub–Agency of Construction Control assesses the structure. c. Statement indicating that the warehouse owner might give up the ownership of part of the land if it overlaps with road expansion plans (specifically for commercial buildings). Procedure 6. b.552. Permanent Business Trading License (SUIP). BuildCo needs to verify the ownership of the plot of land with the Head of the Sub–district (Camat). East Kalimantan Warehouse value: IDR  4. Site plan of the building and technical specifications. Procedure 4. b. foundation drawings. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Register the warehouse with Balikpapan one–stop shop (Badan Penanaman Modal dan Perizinan Terpadu) Time: 9 days Cost: No cost Comments: In order to register the warehouse. and 1:200 scale (which include: site plan.000 = USD 437. d. BuildCo must submit the following documents to the Balikpapan one–stop shop: a. e. c. Photocopy of the applicant’s identity Card. local Civil Works Agency. Copy of land certificate. makes the landscaping. The one–stop shop reviews the documents submitted and distributes them to the other agencies involved. and. Procedure 8*. BuildCo receives a notification letter/call with an invitation to visit the one–stop shop to collect the permit.

Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 5 days Cost: IDR  500. the officer in charge checks completeness of the documents and registers the application.063 [(tariff for first floor: IDR  9. b. Request and connect to water and sewage with PDAM Time: 7 days Cost: IDR  1. After the fees have been paid by BuildCo. c. West Java Warehouse value: IDR  4. Together with the Building Construction Permit. c. Local Environment Control Agency. Procedure 9*. Procedure 4. multiplied by area of second floor) Comments: After the inspection has taken place. BPPT) Time: 16 days Cost: IDR  15. no later than 30 days after receipt of the SPOP. b. Obtain official report on completion of construction and compliance with building permit from City Works Agency (Dinas Tata Kota. Bandung.498 Data as of: July 2011 Procedure 1. Procedure 10*. The following documents should be included: a. k. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. measuring the future building site and confirming its conditions. After paying the relevant fees. BuildCo receives a payment receipt that must be submitted at Bandung one–stop shop (BPPT) in order to obtain the Building Construction Permit. Property tax receipt of the latest year. The statutory time for the Bandung one–stop shop to issue the Building Construction Permit is 12 working days. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Procedure 3. Technical plan/drawing of electrical. b. Receive inspection by Civil Works Agency Time: 1 day Cost: No cost Comments: A technical team composed by representatives of the different agencies (Transportation Agency. b. Procedure 6. Local regulation No. no later than 30 days after receipt of the SPOP. 24/1998 on construction permit retribution. Receive inspection from Zoning (Dinas Tata Ruang) and Construction Control Agency (Cipta Karya) Time: 1 day Cost: No cost Comments: Officers from the Zoning and Construction Control Agencies (Dinas Tata Ruang dan Cipta Karya. The latest Payable Tax Notification Letter. The permit is filed by the Banda Aceh one–stop shop and collected by BuildCo. the Banda Aceh Mayor’s Office signs the building permit.100.552. Advis Planning and Border Clearance Statement. Official report on completion of construction and compliance with the building permit. some additional documents may be required: j.09 x 1%) Comments: After paying the relevant fees at the Bank Jabar Banten (BJB). The latest Payable Tax Notification Letter. i. The Civil Works Agency coordinates with the local Office of the National Land Board for the location clearances and carries out the necessary internal verifications. KPP) Time: 4 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. BPPT) Time: 1 day Cost: No cost Comments: In order to obtain the Building Construction Permit (IMB). and prepare Advis Planning and Border Clearance Statement (KSB). Procedure 4.554–Huk/2004 on building base tariff.594. Banda Aceh one–stop shop. b. h.LIST OF PROCEDURES 69 After the Banda Aceh one–stop shop receives all the documents required. The relevant laws that apply to this procedure are the following: a. Application form. Once all documents have been submitted to the Bandung one–stop shop (BPMPPT). Building Construction Permit (IMB). BuildCo must submit the following documents to the Bandung one–stop shop: a. c.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. and Construction Business License (SIUJK). 640/Kep. Procedure 2. the Banda Aceh one–stop shop calculates the fees to be paid for the building construction permit. Distarcip) inspect the site in order to gather the necessary data. License to use the land (IPPT. Company Registration (TDP). Technical drawing of the warehouse with scale 1 : 100 (4 copies). Copy of the land certificate. Representatives of BuildCo must be present during the inspection in order to show the borders of the plot and sign the inspection minutes. Obtain Building Construction Permit (IMB) from Banda Aceh one–stop shop (KPPTSP) Time: 22 days Cost: IDR  15.100. The presence of BuildCo representatives is necessary during the inspection. Photocopy of identity card of the applicant. BuildCo needs to submit the following documents to the local Industry and Trade Agency: a. Civil Service) lead by a representative of the Civil Works Agency carries out an inspection on the future building site. such as.625.000 = USD 437. duly filled. DTK) Time: 7 days Cost: No cost Procedure 7. Depending on the case. Road clearances. clean water. BuildCo submits the receipt of payment to the Bandung one–stop shop (BPPT) and obtains the Building Construction Permit (IMB). for instance the location of the border. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name.194 (building size x base tariff of 1. . Statement/agreement letter for land use (if applicant is not the owner of the land). Photocopy of land ownership certificate. Based on the Advis Planning and the Border Clearance Statement. l. f. Local regulation No. Procedure 8. Procedure 5. Supporting documents: Permanent Business Trading License (SIUP). Mayor Decree No. the application is registered and forwarded to the Civil Works Agency. c.750 multiplied by area of first floor) + (tariff for second floor: IDR  14. the Agency personnel evaluate the application.851. 14/1998 on building permits. The following documents should be included: a. Procedure 5. Request Building Construction Permit (IMB) from the Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. Obtain warehouse license with local Industry and Trade Agency (Disperindag) Time: 1 day Cost: No cost Comments: In order to obtain the warehouse license from the local Industry and Trade Agency. and sewerage system.000 x coefficient 1. If the application is approved. Register with Local Tax Office (Kantor Pajak Pratama. d. Register with Local Tax Office (Kantor Pajak Pratama. Technical drawing and steel construction calculation if the warehouse is more than 1 floor (2 copies). The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. Izin Prinsip Peruntukan Tanah: required if the project is not in line with the City masterplan). and considering the size and type of building. e. Obtain Building Construction Permit (IMB) from the Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. confirm its adherence to the zoning requirements and existing or planned roads. Authorization letter (if applicant is renting the property). KPP) Time: 11 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. the Civil Works Agency forwards the Advis Planning and Border Clearance Statement to the Banda Aceh one–stop shop. The inspection aims at evaluating the area mentioned in the application. Spatial approval. Copy of the land certificate.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Copy of company articles of association and establishment deed.500. BuildCo receives the following documents: a. g. b. Make payment for Building Construction Permit at Bank Jabar Banten (BJB) Time: 1 day Cost: No cost Comments: BuildCo carries out the payment after receiving a notification by Bandung one–stop shop (BPPT).

Starting Business Permit (SIUP). Copy of Designer License (SIBP). drainage system design) that are necessary for planning the construction of the warehouse. duly filled.025.000 (IDR  2.190. Copy of Principal Permit. g. 13/2002 regarding retribution charges on Industrial Business Permit (Ijin Usaha Industri). City Planning Chart with information about number of floors and building coefficient. f. Copy of company establishment deeds. Procedure 3. prepared by BuildCo’s architect. obtained when the land was allocated to BuildCo. regarding regulations and procedures for issuing Industrial Business Permit (Ijin Usaha Industri). Request and connect to water and sewage with PDAM Time: 11 days Cost: IDR  2. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 8 days Cost: IDR  720. BuildCo obtains the warehouse registration document from the Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. Copy of Letter of Decree (Surat Keputusan). The statutory time for this procedure to be carried out by the Bandung one–stop shop is 10 working days. 378/ Kpts/1987. Obtain Advis planning from City Planning Agency (Dinas Tata Kota) Time: 2 days Cost: No cost Comments: In order to obtain the Advis Planning. Structure calculations. Copy of annual authority preemie charge (Uang Wajib Tahunan Otorita. Copy of Letter of Agreement (Surat Perjanjian). Obtain City Planning Chart (Fatwa Planologi) from Batam Industrial Development Authority (Badan Pengusahaan Batam.498 Data as of: July 2011 Procedure 1. i. f. g. After the application has been submitted to the Batam one–stop shop. Decree of Chairman of Batam Industrial Development Authority No. 1 regarding Technical Standards of Industrial Estate. obtained when the land was allocated to BuildCo. h.000 = USD 437. The City Planning Office verifies with the local Planning Agency (Bappedo) if the project suits the masterplan of Batam and carries out an inspection of the future construction site in order to evaluate the information contained in the application. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Utility plan. f. b. Bandung Local Regulation No. g. Copy of Designer License (SIBP). Trading Business Permit (SIUP). Procedure 6. Copy of Land Allocation Permit. Orientation plan. allowed building perimeter and size. Copy of Commercial Invoice of Land Lease (Uang Wajib Tahunan Otorita). 078/Ren/Ap–Kpts/III/1992.552. Receive inspection from Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. b. SKEP).g. Decree of Ministry of Public Work No. Site location map of the warehouse. Copy of Tax Registration (NPWP). 2. Request Building Construction Permit (IMB) from Batam one–stop shop Time: 1 day Cost: No cost Comments: In order to obtain the building construction permit. Procedure 9*.000 for Stamp Duties) . The presence of Buildco representatives is required as they have to sign the minutes of the inspection. b. the technical team from the Bandung one–stop shop conducts the inspection. i. Registering Business and Registering Warehouses. b. 12/2002. Starting Business License (SIUP). b. This procedure is based on: a. BuildCo must submit the following documents to the Batam one–stop shop: 1. Riau Islands Warehouse value: IDR  4. Taxpayer registration number (NPWP). Company Registration (TDP). The City Planning Chart contains information (e. prepared by BuildCo’s architect. Copy of designer’s license. Decree of Chairman of Batam Industrial Development Authority No. obtained when the land was allocated to BuildCo. 291/M/ Sk/10/1989. obtained when the land was allocated to BuildCo. PL). h. e. Nuisance Permit (HO). BuildCo must submit the following documents to the Batam Industrial Development Authority: a. Utility drawings. BuildCo’s statement that the waste produced in the warehouse is not dangerous or toxic. Application letter and application form. UWTO). Register the warehouse with Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. Procedure 2. the procedure is carried out in a shorter amount of time. Batam Regional Regulation No. Copy of Location Allocation Drawings (Penetapan Lokasi). e.000 [First Component 1: construction size (first 100m2) x location index (3) x base tariff (IDR  750)] + [Second Component: construction (remaining 1200 m2) x location index (3) x base tariff (IDR  500)] Comments: After receiving the inspection. Usually. Starting Business Permit (SIUP). BuildCo must submit the following documents to the City Planning Agency (Dinas Tata Kota): a. BP Batam) Time: 7 days Cost: IDR  3. c. Rencana tata Ruang Wilayah (RTRW). Batam. Trading license (SIUP). Copy of applicant identity card and company establishment deed. Procedure 8. Site plan. BPPT) Time: 8 days Cost: IDR  2. Drainage plan. e. obtained when the land was allocated to BuildCo. Copy of domicile letter. Architectural drawings. e. Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. c. obtained when the land was allocated to BuildCo. b. duly filled. BuildCo must submit the following documents to the Bandung one–stop shop (BPMPPT): a. c. Copy of City Planning Chart (Fatwa Planologi). Copy of identity card of BuildCo’s directors. l. prepared by BuildCo. BPPT). attachment No. obtained when the land was allocated to BuildCo. Company registration license (TDP). Request the registration of the warehouse with Bandung one–stop shop (Badan Pelayanan Perijinan Terpadu. 078/Ren/Kpt8/W1994. Attachment 2 Regarding the Batam Land Area Management Planning. Administrative requirements (3 copies): a. c. prepared by BuildCo’s architect. BPPT) Time: 1 day Cost: No cost Comments: In order to register the warehouse.70 DOING BUSINESS IN INDONESIA 2012 c. duly filled. d. d. obtained when the land was allocated to BuildCo. in possession of BuildCo since it started its business. The procedure is regulated by the following laws: a. SPJ). BPPT) Time: 1 day Cost: No cost Comments: After BuildCo submits the application. d. d. b. Shop drawings.202. Procedure 7.000 Comments: In order to obtain the City Planning Chart (Fatwa Planologi). 2/2004. Registering Business and Registering Warehouses. Copy of Land Allocation Permit (Penetapan Alokasi Lahan. prepared by BuildCo’s architect. f.100. Application form. Copy the Letter Agreement (Surat Perjanjian. Decree of Ministry of Industry No. 22 on Housing Plan Location. Copy of Letter of and Decree (Surat Keputusan. j. the files are forwarded to the City Planning Office. d. coordinates and borders of the plot) and provides technical requirements (e. c. e. h. Technical Requirements (3 copies): a. prepared by BuildCo’s architect. k.g. c. g. Proof of identity: ID card. Photocopy of applicant identity card. Application form. Company Registration (TDP) and Tax registration number (NPWP). company establishment deeds. f.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. however. Structure drawings. Procedure 10*. 43/1977 regarding management and usage of Land in the Batam Industrial Area. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS d.000 for connection cost for category 3B + IDR  12. 3.000. Decree of Ministry of Home Affairs No. obtained when the land was allocated to BuildCo. green areas. e. Bandung Local Regulation No. Attachment No. Two recent photographs of BuildCo director(s)– 3x4cm. Tax Registration Number of Applicant/Company (NPWP).

Procedure 7. SITU. BuildCo business licenses.498 Data as of: July 2011 Procedure 4. c. This procedure is based on local regulation No. Procedure 6. 6/2010. c.310.056. Request building permit (Package Permit: IMB and PPM) from Licensing Agency (Dinas Perizinan) Time: 1 day Cost: No cost Comments: In order to obtain the Package Permit (IMB and PPM).000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.100.000 = USD 437. Photocopy of the identity card of the applicant. Site map. KPP) Time: 25 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. b. and shop drawings).000 (cost for a warehouse that has an area between 36 and 2500 square meters) Comments: In order to register the warehouse and obtain the package permit (TDG. BuildCo must submit the following documents: a. The latest Payable Tax Notification Letter. Obtain Letter of Introduction (Surat Penyanding) from Head of Sub– district Time: 3 days Cost: No cost Comments: According to Mayor Regulation No. The statutory limit is usually respected. site plan.250 for each additional square meter of building area up to 500 + IDR  1. d. The following documents should be included: a. f.000 for each additional square meter) Comments: In order to register the warehouse with the Local Industry and Trade Agency. Register warehouse with Local Tax Office (Kantor Pajak Pratama. duly filled. SITU. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 7 days Cost: IDR  500. b. Environmental Monitoring Plan and Environmental Management Plan (UKL/UPL). Obtain statement of land dispute from Local Office of National Land Board (BPN) Time: 3 days Cost: No cost Procedure 9. approved by the local Environmental Agency. Letter of Introduction (Surat Penyanding). Procedure 10. There is a 13-day statutory limit for the Licensing Agency to issue the Package Permit (IMB and PPM). Procedure 7. e. DEALING WITH CONSTRUCTION PERMITS Denpasar. no later than 30 days after receipt of the SPOP. Land Allocation Permit (PL). Photocopy of the Company Establishment Deed. Building Construction Permit (IMB). Request and connect to water and sewage with PDAM Time: 7 days Cost: IDR  150. BuildCo must submit the following documents: a. the Letter of Introduction (Surat Penyanding) is now a mandatory requirement for obtaining a building permit. Photocopy of proof of payment of land and building tax.000 (based on Local regulation No. KPP) Time: 1 day Cost: No cost Comments: The registration is conducted by completing the Tax Object Notification Letter (SPOP) available in certain government offices.552.255. b. Procedure 5. guarantees that there will be no conflicts with the neighbors once the warehouse is built.700 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. c. b. b. Comments: During the construction process. Procedure 1. 14/2001: IDR  1.801 (Size of building x Integrated Index x 1. Procedure 4. Register the warehouse with Local Industry and Trade Agency (Disperindag) Time: 7 days Cost: IDR  1. g. Procedure 9*. Register with Local Tax Office (Kantor Pajak Pratama. Receive an inspection from City Planning and Housing Agency (Dinas Tata Ruang dan Perumahan) Time: 1 day Cost: No cost Procedure 5. Principal Construction Approval (PPM). BuildCo is invited to pay the fees and collect the permit at the Batam one–stop shop. HO) with the Licensing Agency (Dinas Perizinan) Time: 12 days Cost: IDR  100. Register the warehouse (Package Permit: TDG. f. Obtain building permit (Package Permit: IMB and PPM) from Licensing Agency (Dinas Perizinan) Time: 11 days Cost: No cost Comments: The Package Permit (IMB and PPM) includes the following items: a. Receive inspection from City Planning Agency (Dinas Tata Kota) Time: 1 day Cost: No cost Comments: A technical team of the City Planning Agency carries out an inspection on the building site.LIST OF PROCEDURES 71 After the site has been approved by the City Planning Agency. Request and connect to water and sewage with PDAM Time: 1 day Cost: IDR  6. e. Obtain Environmental Management Plan and Environmental Monitoring Plan (UKL/UPL) approval from local Environmental Agency Time: 21 days Cost: No cost Procedure 6. The SPOP must be signed by the taxpayer and submitted to the Land and Building Tax Office in the area where the warehouse is to be built.475. Photocopy of identity card. no later than 30 days after receipt of the SPOP. The following documents should be included: a. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 25 days Cost: IDR  500. when the ground work is finished. * This procedure can be completed simultaneously with previous procedures Procedure 11*. b. Notify City Planning and Housing Agency (Dinas Tata Ruang dan Perumahan) about progress of the construction Time: 1 day Cost: No cost Procedure 12*. duly filled. Bali Warehouse values: IDR  4. c. Make payment for Building Construction Permit (IMB) at Bank Pembangunan Daerah (BPD) Time: 1 day Cost: IDR  12.000 . Copy of land certificate. h. BuildCo must submit the following documents to the Permit Registration Agency: a. Recent photographs of the applicant (4x6cm).00 x Base tariff of charges) Procedure 8. d. Copy of Trading Business License (SIUP) and Company Registration (TDP). Obtain Building Construction Permit (IMB) at Batam one–stop shop Time: 24 days Cost: IDR  29. Application form. Building Construction Permit (IMB) application form. Number of taxpayer registration (NPWP).670 (Cost of construction permit + Border Administrator Service Duty. Four copies of building plans (location map. the applicant must report to the City Planning and Construction Agency within 24 hours and the Agency will carry out an inspection. prepared by the Head of the Sub–district. c. Procedure 3. Copy of identity card of the land title holder or articles of association if the land is registered under a company name.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. 6/2001. Photocopy of land ownership title. HO). The latest Payable Tax Notification Letter. The Letter of Introduction. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Procedure 2. the Principal Construction Approval is free of cost) Procedure 8*. Copy of the land certificate.500 each for each square meter of building area up to 100 + IDR  1. Domicile statement with location of the warehouse.

482. Completed Application Form.000/copy x 12 copies or a total of IDR  12. The individual or group of experts must be independent of BuildCo and cannot be its employees.000. the Permit Office will conduct an inspection. Annex I point I.000 Comments: Builder needs to notarize a copy of the Land Ownership certificate before applying for the building permit. 21 Year 2009. and Installation) for the Warehouse Construction to be built . b.6 = IDR  9. A copy of the letter of appointment of the contractor and Supervising Director and the Coordinator of the Supervising Director. Regulation of the Head of the Local Building Supervision and Control (P2B) Office No.498 Data as of: July 2011 Procedure 1. Land marking for city planning implementation purposes (pematokan penerapan rencana kota) is subject to a fee of IDR  80.200 Comments: When applicant has the complete set of documents (see below) and the application is submitted. the application is forwarded to different offices within the Zoning Office for approval. 1 Year 2006 concerning Regional Retribution. Photocopy of the Land Certificate (notarized). b. Procedure 3. Photocopy of the ID card. d. The recommendation letter includes the documents listed in procedure 1. DKI Jakarta Warehouse value: IDR  4.b. the formula to calculate the fee for this permit is IDR  7. Photocopy of the license to operate as a Building Planner. Receive inspection from Zoning Department Time: 1 day Cost: No cost Comments: Zoning Office inspects the site to confirm that the application submitted by the builder meets the requirements. g.b. The location officer. Request and obtain the preparation of the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL) Time: 8 days Cost: IDR  15.000 * 1.000 Procedure 4*. Statement of uncontested ownership of the land for which IMB is applied. 1 Year 2006.000 per square meter.000.104. 76 Year 2000.104.000 m2). Jakarta. This is critical when the builder wants to sell or obtain a loan with the property. c. Gorontalo. b. When internal procedures are completed. many builders do it personally to avoid delays. Regulation of the Head of the Local Building Supervision and Control Office No. 32 of 2009 regarding the Environment. KRK for plans to use of a land for warehouse construction (Karya pergudangan/Kpg) for a land area of up to 1. Annex I point II. The following is the detailed calculation: a. Officials from the Permit Office will only verify that the plot is vacant. A copy of the TDR of the contractor and work permit of the Supervising Director. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Cost: IDR  25. The party issuing the official report on the completion of the construction and compliance with the building permit is the Supervising Director.482. Even if this update is supposed to be done automatically. i.000 m2 is subject to a fee of IDR  40. so the total fee for the RTLB: IDR  40. g.000 according to Article 123 of the Regional Regulation No. Decision of the Minister of the Environment No. b. Receipt of UKL–UPL or UKL–UPL Recommendation from the BPLHD. As Built Drawing (Architecture. c. Register with Land and Building Tax Office Time: 11 days Cost: No cost Comments: After the warehouse is built BuildCo needs to update its records at the Land and Building Tax Office. Land measurement (based on the land certificate. 86 of 2002 on Implementation of UKL and UPL.6 square meters the cost then will be 7.000.300. Article 9 paragraph (4) b.000 = USD 437.300. b. The legal basis for this procedure is: a. Article 11 paragraph. Request and obtain Building Construction Permit (IMB) Time: 21 days Cost: IDR  9. Article 2 paragraph (2)b. Decree of the Governor of the Province of DKI Jakarta No. KRK and RTLB from City Planning Office from the Local City Zoning Office (included in Pre–approval letter). d.498 Data as of: July 2011 No Practice DEALING WITH CONSTRUCTION PERMITS Procedure 5. Procedure 10. a retribution of IDR  1.000 x 2 (because the building exceeds 1. According to the Regional Regulation of the Province of DKI Jakarta No. The legal basis for this procedure is: a.200. 21 Year 2009. The supporting documents required are: a.552. Copy of the building permit (IMB).000 Comments: BuildCo hires an external consultant that will prepare the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL). Procedure 2. Since the warehouse considered in the case study has an area of 1.00 x 13 (based on a 1. When this is ready BuildCo will submit the documents to the Local Environmental Management Agency (BPLHD) for the Province of DKI Jakarta for approval. mail or electronically) and can pick up the pre–approval letter. An official report from the Supervising Director comprising (Minutes of completion of the warehouse construction and compliance).100. Procedure 6.500 Comments: The construction completion and compliance report is a prerequisite for obtaining a usage permit. RTLB for plans to build warehouse construction is subject to a fee of IDR  40. a group of experts. 76 Year 2000.000. the roads officer and the architectural officer approve the application. Request Pre–approval letter from Zoning Department Time: 1 day Cost: IDR  1. Print out of the map (scale of 1:10000). Obtain building usage permit (IPB) Time: 49 days Cost: No cost Comments: BuildCo must submit the following documents to the City Planning Office: a. e.000/ 100 m2 of floor surface.000 Comments: The total cost to obtain Pre–approval letter is IDR  1. Register the warehouse with the regional office of the Ministry of Industry and Trade Time: 9 days Cost: IDR  100. Request and obtain notarized copy of Land Ownership certificate Time: 1 day . e. no representative from BuildCo needs to be present. Procedure 7. or an entity appointed by the project owner to supervise the construction work.000 = USD 437. f.300. Procedure 8. Given that the plot where the warehouse will be built is empty. Request and obtain building completion and compliance minutes Time: 28 days Cost: IDR  62. the builder is notified (by phone. who can be an individual. Building drawings. The legal basis for the time to complete this step in 14 days working days (21 calendar days) is the Regulation of the Governor of DKI Jakarta No.6 m2 floor surface) = IDR  520. Procedure 9. namely 500–1. Law No. Gorontalo Warehouse value: IDR  4.100. Construction. f.000. Warehouse Construction Completion Report from the Supervising Directors/Consultant appointed by BuildCo.72 DOING BUSINESS IN INDONESIA 2012 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Company’s Deed of Establishment. or a total of IDR  160. Procedure 11. A report on construction stages from the Supervising Director. A statement from the Coordinator of the Supervising Director that the warehouse has been completed in accordance with the building permit (IMB).552. e. c. Request and obtain the approval for the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL) Time: 10 days Cost: No cost Comments: The legal basis for this procedure is: a. Decree of the Governor of the Province of DKI Jakarta No. Obtain Pre–approval letter from Zoning Department Time: 20 days Cost: No cost Comments: After the inspection. d.000 m2) a retribution of IDR  750. h. b. 85 of 2006. c. d.000. h.000.

e. Drawings.498 Data as of: July 2011 Procedure 5.000 Comments: The Nuisance Permit (Izin Gangguan) formally acknowledges that the warehouse does not cause any problem to the neighbors. contractor and controlling method.000 + IMB retribution charges. after submitting an application. c. d. and warehouses adjacent to the plant are exempted from the registration requirement. Copy of the trade business license. Copy of the Building Construction Permit (IMB).552.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. regarding approval power of the different authorities. e. this procedure is free of cost. Mayor Decree No. Copy of Permanent Business Trading License (SIUP). Check the conditions of the plot (and whether they comply with zoning and road planning requirements). regarding construction procedures. g. Copy of the map of the warehouse. 07/2009. Request Advis Planning from City Planning Agency (Dinas Tata Kota) Time: 1 day Cost: No cost Comments: In order to obtain the Advis Planning. The following documents should be included: a. f. b.482. b.500 + Landscape drawing of IDR  10. c. c. regarding City masterplan. Building ‘s line perimeter (Garis Sempadan Bangunan).000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. 07/2002). c. 06/2002 (Local Gazette No. 6/2002. The warehouse registration is conducted with the regional office of the Ministry of Trade. Jambi Warehouse value: IDR  4. 05/2002 (Local Gazette No. Local Regulation No. Local Regulation No. BuildCo has to submit the following documents to the City Planning Agency: a. * This procedure can be completed simultaneously with previous procedures . Copy of the owner’s or shareholders’ identity card(s). Obtain Nuisance Permit (HO) from City Planning Agency (Dinas Tata Kota) Time: 6 days Cost: IDR  120. Copy of the owner’s or shareholders’ identity cards (KTP). The Advis Planning includes the following items: a. Procedure 4. the City Planning Office conducts an inspection on the location of the future construction site. e. Obtain water and sewerage connection Time: 8 days Cost: IDR  2. d. Application forms duly filled. effective since 2002. e. Under the new government. KPP) Time: 10 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. d. c. Copy of the land certificate. Contractor permit letter (SIJK). Advis Planning. TDG) with Jambi one–stop shop (KPTSP) Time: 7 days Cost: No cost Comments: In order to register the warehouse. Allowed size of building. Copy of Land Ownership Certificate. Location map. effective since March 2002. Procedure 9*. e. b. Base Foundation Coefficient (BFC) and Building Size Coefficient (BSC). Receive inspection from City Planning Agency (Dinas Tata Kota) Time: 1 day Cost: No cost Comments: After receiving all the required documents. Company establishment deeds. c. BuildCo has to submit the following documents to the City Planning Agency: a. Copy Latest Payable Tax Receipt (Surat Tanda Terima Setoran). Legalized copy of land certificate. Carry out land marking. After approval. f. warehouses in a bonded zone. Obtain phone connection Time: 4 days Cost: IDR  500. b. Obtain Building Construction Permit (IMB) from City Planning Agency (Dinas Tata Kota) Time: 14 days Cost: IDR  4. c. Procedure 2.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Jambi. Copy of the location map of the warehouse. Copy of engineer and/or architect’s license. Procedure 12*. Procedure 7. Company Registration (TDP). g.000 Comments: After the inspection has taken place. Copy of company registration code. b. Copy of the permanent business trading license (SIUP). 28/2009 has been implemented in Jambi. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. Building specifications for designated area. Register with Local Tax Office (Kantor Pajak Pratama. the Advis Planning is processed for approval. Requirements and indications for construction supervisor. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Procedure 8. g. Procedure 3. b.LIST OF PROCEDURES 73 Comments: The company must submit the following documents: a. Copy of the taxpayer number (NPWP). and the Usage coefficient) Comments: In order to apply for the Building Construction Permit. The purpose of such an inspection is to: a. Warehouses in a privately owned port. Copy of the taxpayer number. Allowed use of building. Copy of company establishment deed. Request and connect to water and sewage with PDAM Time: 7 days Cost: IDR  1. Copy of warehouse lease agreement (if the warehouse is leased). Copy of the building permit (IMB).000 + Measurement and review charges of IDR  400/m2 + Supervision charges of IDR  25. BuildCo must submit the following documents to the Jambi one–stop shop: a. BuildCo receives a notification that the Advis Planning is ready for pick up. calculated by the City Planning Office considering the Construction Base Value. f. The relevant regulations for this procedure are the following: a. The procedure is mandatory as per Local Regulation No. Obtain Advis Planning from City Planning Agency (Dinas Tata Kota) Time: 27 days Cost: IDR  1. 06/2002). d.500. f.000. Allowed number of storeys. h. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 5 days Cost: IDR  500. The document has to be obtained from City Planning Office (Dinas Tata Kota). prepared by BuildCo’s engineer/architect. Register the warehouse (Tanda Daftar Gudang.100. Procedure 6. Procedure 1. Carry out land measurement.000 Comments: In order to be able to undertake some of the necessary administrative procedures for the construction of the warehouse. BuildCo must legalize a copy of the Land Ownership Certificate at the National Land Board (BPN).942. Since Law No. b. the Size Coefficient. Copy of the Nuisance Permit (Izin HO) for the warehouse. Copy of identity cards of the company’s managers. no later than 30 days after receipt of the SPOP.280 (Application form of IDR  1. g. f. Obtain Legalized Copy of Land Certificate from National Land Board (BPN) Time: 2 days Cost: IDR  50. Construction drawings. Procedure 13*.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. effective since March 2002. c. Minimum green area. the Ministry of Industry and Trade has been divided into the Ministry of Industry and the Ministry of Trade. The latest Payable Tax Notification Letter. b. Copy of registration certificate (TDP). d. Procedure 10*. the Number of Floors Coefficient.000 = USD 437.

00 x Base Tariff of Charges) Comments: Based on Makassar Mayor Regulation No.000 [Tot = ( 3% x coefficient of roads classification x construction estimate valuation. KPP) Time: 11 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. however. The latest Payable Tax Notification Letter.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.761. NB) + supervision cost (15% x ( 3% x coefficient of roads classification x construction estimate valuation. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 3 days Cost: IDR  380. c. Receive inspection from local Environment Agency (Bapedalda) Time: 1 day Cost: No cost Procedure 5.300 (construction area x IDR  500) Comments: The fees for warehouse registration are based on Mayor Regulation No. Procedure 3. City Planning Agency officials may visit the area of the future building site prior to issuing the permit. The following documents should be included: a. Request Environment Management Plan and Environment Monitoring Plan (UKL/UPL) approval from local Environment Agency (Bapedalda) Time: 1 day Cost: No cost Procedure 1. e. Procedure 2. Land usage permit. Statement of land dispute.377. duly filled. In order to obtain such approval. f. e.500 for local fee) . Advis Planning Permit. In reality.552. Request and connect to water and sewage with PDAM Time: 8 days Cost: IDR  2. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Manado. The approvals and the calculation of building construction permit fees are processed by the City Planning Agency.040. Request official report of completion of construction and compliance with building permit from the Manado one– stop shop (BP2T) Time: 1 day Cost: No cost Procedure 3.500 Procedure 2. however. implemented in 2001. b. Copy of the land certificate. b. The SPOP must be signed by the taxpayer and submitted to Local Tax Office in the area where the warehouse is to be built. BuildCo submits the following documents to Makassar one–stop shop: a. 14/2005.100. Obtain approval of applicant statement from Head of Village (Persetujuan surat pernyataan pemohon dari Lurah) Time: 7 days Cost: No cost Comments: Based on Mayor regulation No.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Procedure 8*.500. Obtain statement on land dispute with Head of the Village Time: 8 days Cost: IDR  27. Building usage permit. Procedure 10. North Sulawesi Warehouse value: IDR  4. Request Building Construction Permit (IMB) from Makassar one–stop shop (KPAP) Time: 1 day Cost: No cost Comments: In order to obtain the Building Construction Permit. Copy of land ownership certificate. c. Obtain Building Construction Permit (IMB) from Makassar one–stop shop (KPAP) Time: 21 days Cost: IDR  31.100. Obtain official report of completion of construction and compliance with building permit from the Manado one– stop shop (BP2T) Time: 30 days Cost: IDR  62. Register the warehouse with Makassar one–stop shop (KPAP) Time: 10 days Cost: IDR  650. implemented since 2005. Obtain Environmental Management Plan and Environmental Monitoring Plan (UKL/UPL) approval from local Environmental Agency (Bapedalda) Time: 8 days Cost: No cost Procedure 6. d. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name.498 Data as of: July 2011 Procedure 5. Construction drawings and calculations. Photo of the applicant. Application form. NB))] where NB=Nilai Bangunan = Construction Estimate Valuation Comments: In order to obtain the Building Construction Permit. g. made by licensed construction planner (BuildCo’s Engineer). The cost of this procedure is based on local regulation No. Obtain Building Construction Permit (IMB) from the Manado one–stop shop (BP2T) Time: 30 days Cost: IDR  23.74 DOING BUSINESS IN INDONESIA 2012 DEALING WITH CONSTRUCTION PERMITS Makassar. b.350. approved by local Environmental Agency.000 = USD 437. d. d. 8/2001 about building construction permit (article 19). 14 year 2005. BuildCo needs to obtain the approval from the Head of the Village (Lurah) on a statement that will later be submitted to the Makassar one–stop shop when applying for the Building Construction Permit (IMB). c.000 = USD 437.000 + 27. BuildCo must submit a copy of the land ownership certificate to the Head of the Village thus showing that the plot of land where the warehouse is to be built belongs to BuildCo. Procedure 6.500 Comments: BuildCo must obtain a statement from the local Head of the Village indicating that the ownership of the land is not disputed. Make payment for Building Construction Permit (IMB) at BPD South Sulawesi Time: 1 day Cost: No cost Procedure 8. Photocopy of identity card and/or company establishment deeds. the process usually takes a longer amount of time. Drawings.552.500 (IDR  1. b. Register with Local Tax Office (Kantor Pajak Pratama. 12/2008. the statutory time for this procedure is 12 days. Such a visit. Obtain Nuisance permit (HO) for the warehouse from the Manado one–stop Licensing Service Office (BP2T) Time: 5 days Cost: IDR  1. Obtain Advis Planning Permit from the Manado one–stop shop (BP2T) Time: 1 day Cost: No cost Comments: The Advis Planning Permit includes the following items: a. Procedure 7. Copy of identification card of the applicant. does not require the presence of BuildCo representatives as all the necessary information has been provided by BuildCo when applying for the permit. Procedure 7*. Environmental Management Plan and Environmental Monitoring Plan. once the application has been submitted. Receive inspection from the Manado one–stop shop (BP2T) Time: 1 day Cost: No cost Procedure 4. Procedure 4. The necessary zoning and environmental clearances are processed internally by the municipality. c. no later than 30 days after receipt of the SPOP. Copy of proof of Land and Building Tax Payment of the current year. Allowed building size and number of floors. City planning statement (SKRK). Approval of applicant statement from Head of Village (Lurah). Procedure 9. BuildCo must submit the following documents to the one–stop shop: a. Architectural specifications.498 Data as of: July 2011 Procedure 1. South Sulawesi Warehouse value: IDR  4.209 (Size of building x Integrated Index x 1. e.

Procedure 13*. c. The SPOP must be signed by the taxpayer and submitted to Local Tax Office (Kantor Pajak Pratama. b. Location Map. warehouses in the bonded zone. Procedure 4. b. regarding environmental and building requirements in Mataram City. Land marking. BuildCo must submit the following documents: a. makes the calculations for construction permit charges and prepares the permit.25). Usually the City Planning Agency notifies BuildCo about the inspection two days in advance because the company’s representatives must be present during the inspection.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. c. The SPOP must be signed by the taxpayer and submitted to Local Tax Office (Kantor Pajak Pratama. e. the file with the application is forwarded to different agencies within the City Office for approval. Copy of the land certificate. Copy of the applicant’s ID card and Company’s Deed of Establishment. c. the Mataram one–stop shop assembles all documents into a file and forwards it to the City Planning Agency. Procedure 2. Register with Local Tax Office (Kantor Pajak Pratama. The following documents should be included: a. f. KPP) in the area where the warehouse is to be built.000 Comments: BuildCo needs to authenticate a copy of the Land Ownership Certificate with a notary. no later than 30 days after receipt of the SPOP. b. Zoning statement. Map of the warehouse. and warehouses adjacent to the plant are exempted from registration. c. Environmental Statement. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 4 days Cost: IDR  500. c. After the inspection. The latest Payable Tax Notification Letter.11).8). Copy of the land certificate. The latest Payable Tax Notification Letter.000 Comments: In order to register the warehouse with the local Industry and Trade Agency.185)) Comments: In order to obtain the Building Construction Permit from the City Planning Agency. BuildCo must submit the following documents to the Mataram one–stop shop: a. KLH) Time: 14 days Cost: No cost Comments: In order to obtain the approval from the Local Environmental Office (Kantor Lingkungan Hidup. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. b. 4/1995. size coefficient (0.275 c. KPP) Time: 8 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. b. duly filled. the City Planning Agency processes the document. Building Construction Permit (IMB). prepared by BuildCo’s architect. Copy of identification card.75).873. e. and storey coefficient (2 storeys = 0. Local Regulation No.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Obtain Environmental Statement (SPPL) approval from local Environmental Office (Kantor Lingkungan Hidup. West Nusa Tenggara Warehouse value: IDR  4. Mataram. Warehouses in a privately–owned port. Once the permit is ready. This procedure is based on: a. Once all documents have been submitted. Otherwise. Print out of the map (scale of 1:10. Register the warehouse with Manado one–stop shop (BP2T) Time: 1 day Cost: IDR  601. When all internal procedures are complete. duly filled.LIST OF PROCEDURES 75 Comments: In order to obtain the Nuisance permit. BuildCo must submit the following documents: a. Copy of Land and Building Tax invoice and receipt. Principal permit. Copy of land certificate. implemented since 1995. d. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. BuildCo receives a notification to visit the City Planning Agency and pick up the permit.000).250. The notary provides BuildCo a statement letter together with the authenticated ownership certificate. d. Procedure 6. b. Copy of the trade business license (SIUP). BuildCo’s presence is not necessary during such inspection.498 Data as of: July 2011 Procedure 8. f. building class coefficient (0. Request Principal Permit (Izin Prinsip) at Mataram one–stop shop Time: 1 day Cost: No cost Comments: In order to obtain the Principal Permit. b. Drawings of the warehouse. After BuildCo has paid. Copy of the taxpayer number (NPWP). Register the warehouse with Local Industry and Trade Agency (Disperindag) Time: 7 days Cost: IDR  125. Procedure 11. c. After receiving the application. Local Regulation No. Obtain Principal Permit (Izin Permit) City from City Planning Agency (Dinas Tata Kota) Time: 30 days Cost: No cost Comments: After the inspection. BuildCo can be summoned by the City Planning Office if there are significant findings that need to be clarified. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Procedure 5. This is a common practice in Mataram and it is undertaken in order to avoid frauds. prepared by BuildCo’s architect. Register the warehouse with Local Tax Office (Kantor Pajak Pratama.667 (Construction value multiplied by service level coefficient. b. Application form. Copy of Land Certificate. Procedure 3.000 = USD 437. Copy of the building construction permit (IMB). Copy of the company’s registration code (TDP). regarding Building Construction Permit (IMB) charges. Copy of Identity Card. building utilization coefficient (1. KLH). Copy of Land and Building Tax receipt. BuildCo receives a notification to pay the building construction permit charges at the City Planning Agency. Procedure 7.552. Copy of BuildCo’s license to operate as a building planner. Obtain legalized copy of land ownership certificate at the Notary Office Time: 1 day Cost: IDR  25. d. the City Planning Agency inspects the future building site to confirm that application and planned construction comply with all planning requirements. 11/2000. Procedure 1. As per the assumptions of our case study. KPP) in the area where the warehouse is to be built. Land measurement. where service level coefficient is calculated considering road coefficient (0. The Principal permit comprises the following items: a. .100. Procedure 12. Obtain Building Construction Permit (IMB) from City Planning Agency (Dinas Tata Kota) Time: 21 days Cost: IDR  13. Legalized copy of the Land Certificate. BuildCo must submit the following documents: a. the warehouse built by BuildCo needs to undergo registration procedures. Application form. Copy of the owner’s or shareholders’ identity card(s). BuildCo must submit the following documents: a. the City Planning Agency reviews them and visits the future building site. Receive inspection from City Planning Agency (Dinas Tata Kota) Time: 1 day Cost: No cost Comments: After receiving the file from the Mataram one–stop shop. Procedure 14*. b. implemented since 2000. g. e. Plotting. KPP) Time: 8 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. The following documents should be included: a. no later than 30 days after receipt of the SPOP. prepared by BuildCo’s architect. d. Request and connect to water and sewage with PDAM Time: 12 days Cost: IDR  1. the permit is issued.

3/2005.0245) x base tariff (IDR  450. Copy of Permanent Business Trading License (SIUP). Obtain Location Permit from City Secretariat (APU. Obtain Building Construction Permit (IMB) from City Planning Agency (Dinas Tata Ruang dan Tata Bangunan Kota Medan) Time: 40 days Cost: IDR  16. Copy of ID card of company’s directors.552. b. c.000. 9/2002. on activities and buildings that require environmental clearances. e. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. The cost includes two registration forms (Leges) that cost IDR  25. After the necessary documents have been submitted. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 3 days Cost: IDR  350. The Local Environmental Agency visits the future construction site prior to granting its approval. 9/2002.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. together with an application form. Depending on the size of the building. b. e. Procedure 5. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Medan. Copy Company Registration (TDP). This procedure is based on: a.76 DOING BUSINESS IN INDONESIA 2012 Procedure 9*. b. d. Register the warehouse (Tanda Daftar Gudang) with Local Industry and Trade Agency (Disperindag) Time: 5 days Cost: IDR  750. The presence of BuildCo representatives is not required during such visit. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Palangka Raya.000 Comments: Once the application has been reviewed and approved in a joint meeting. duly filled. Copy of Building Construction Permit (IMB). 10/2002. In order to obtain the Principal Permit. Copy of company establishment deeds. Company Registration (TDP). Copy of the land certificate. Procedure 3. no later than 30 days after receipt of the SPOP. BuildCo must submit the following documents: a. Area > 10000m2—signed by Mayor. the Principal Permit is officially authorized and signed by different public officials. BuildCo must legalize a copy of the land ownership certificate at the National Land Board (BPN). 45/2010. c. d. Setda) Time: 14 days . 29/2010. Mayor Regulation No. the local Planning Agency issues the Principal Permit. prepared by BuildCo’s architect. Drawings (hard copy and soft copy). Area < 5000m2—signed by Head of Local Development and Planning Agency. the cost for this procedure is IDR  50. and Tax Registration (NPWP).000 = USD 437.3 m2) + Parameter Index (0.000 = USD 437. dated 24 May 2010. c. Application form. regarding environment–related issues. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Procedure 10*. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 3 days Cost: IDR  526. Two recent photographs (3x4cm) of the applicants. Receive inspection from local Planning Office (BKPRD/Bappeda) Time: 1 day Cost: No cost Comments: The Local Zoning Coordination Division (BKPRD) of the local Planning Office (Bappeda) inspects the future building site.000) x second floor area (650. Obtain legalized copy of land ownership certificate from National Land Board (BPN) Time: 1 day Cost: IDR  25. Regulation of Minister of Environmental Ministry No. Application letter.498 Data as of: July 2011 Procedure 1. Copy of Land certificate. regarding technical procedures for the implementation of Local regulation No. Namely: a.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. c.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Environmental Preserve Compliance Statement (SPPL).498 Data as of: July 2011 Procedure 1. the local Industry and Trade Agency reviews such documents and registers the warehouse in its database. Land utilization plans prepared by BuildCo’s architect. Local Regulation No. duly filled. Register the warehouse with Local Tax Office (Kantor Pajak Pratama. b. legalized by the National Land Board. Location map. c. Obtain Environmental Statement (SPPL) approval from local Environmental Agency (BLH) Time: 14 days Cost: No cost Comments: BuildCo’s architect prepares an Environmental Preserve Compliance Statement (SPPL) and submits it the Local Environmental Agency for approval. regarding Building Construction Permit. Based on Mayor regulation No. Copy of identity card(s) of BuildCo’s director(s). Mayor Decree No. the City Planning Office reviews the documents. d. BuildCo’s presence during the inspection is mandatory.582. 9/2002.000) x first floor area (650. g. Procedure 2. regarding types of activities that require Environmental Impact Analysis. This procedure is based on: a. (annex 6). Procedure 7*. Comments: In order to obtain the Building Construction Permit.000 Comments: In order to register the warehouse. 62/2002. Central Kalimantan Warehouse value: IDR  4. 32/2009. c. Law No. Copy of Property tax payment receipt and Payable Tax Notification Letter. KPP) Time: 10 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. 11/2006. BuildCo can automatically assume the approval has been granted. Procedure 3. b. The following documents should be included: a. 34/2002. b. The cost of this procedure is based on article 22 of Local Regulation No. Administrasi Pemerintahan Umum.100. Procedure 4. f. After receiving the required documents.100. approved by the local Environmental Agency. Procedure 4. BuildCo must submit the following documents: a.000 Comments: In order to be able to undertake some of the necessary administrative procedures for the construction of the warehouse. b. Area 5000–10000m2—signed by Local Administrative Secretary. implemented since January 2010. BuildCo must submit the following documents: a. Mayor Decree No. regarding operational procedures for the implementation of Local regulation No. inspects the area of the future building site and assesses whether the plans abide by the city masterplan. Request and connect to water and sewage with PDAM Time: 3 days Cost: IDR  1. Company establishment documents – Starting Business Permit (SIUP). Request and connect to water and sewage with PDAM Time: 10 days Cost: IDR  1. Obtain Principal Permit from local Planning Office (Bappeda) Time: 6 days Cost: IDR  50. North Sumatra Warehouse value: IDR  4. c. Location map. f.000. Procedure 2. If no answer is provided by the Local Environmental Agency within 14 days from the moment in which the application has been submitted. The latest Payable Tax Notification Letter.300. d.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.3 m2)] Procedure 6*.650 [Parameter Index (0.552.0245) x base tariff (IDR  450. on fee schedules for permit–related procedures. Request Principal Permit from local Planning Office (Bappeda) Time: 1 day Cost: No cost Comments: The Principal Permit verifies that the proposed building and its proposed use comply with the city masterplan. Mayor Decree No. prepared by BuildCo’s architect.000 each.

the statutory time for the Palangka Raya one–stop shop to issue the permit is 8 days. Government Regulation No. h. Procedure 8. Obtain warehouse license (Tanda Daftar Gudang) from Local Industry and Trade Agency (Disperindag) Time: 3 days Cost: IDR  100. Photocopy of city planning statement (Advis Planning) (3 copies). Ikj: Roads classification index. d.000 (RIMB= LB x Iz x I kj x Ik x THDB per square meter – LB: the area size. c. 12/2007. b.000 for application fee) Comments: In order to obtain the Advis Planning. Photocopy of proof of payment of Land and Building tax (tax receipt). Obtain building construction permit (IMB) from Palangka Raya one–stop shop (KPPT) Time: 21 days Cost: IDR  3. 30/2010 has come into effect. c. Copy of applicant’s ID.000. etc) and processes the application. Obtain Building Construction Permit (IMB) from Palembang one–stop shop (KPPT) Time: 10 days Cost: IDR  11. but the process is usually faster.000. Cost: IDR  55. The procedures relating to Location Permit are regulated by: a. Application form (duly filled and signed). The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built.000 (IDR  50. b. the Palembang one–stop shop forwards it to the City Planning Office. Copy of the land certificate. c. Proof of payment of “land and building” tax for the past three years. Copies of applicant’s ID and company establishment deed.000 for measurement cost and IDR  5. duly filled . b. Register with Local Tax Office (Kantor Pajak Pratama. regarding the procedures for obtaining permits and clearances. Photocopy of identity card. Obtain Nuisance Permit (Izin HO) from Palangka Raya one–stop shop (KPPT) Time: 13 days Cost: IDR  650.000 (IDR  25.498 Data as of: July 2011 Procedure 4. If there are no issues related to the application.000 Procedure 6. After obtaining the temporary permit. Based on Mayor Decree No. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 3 days Cost: IDR  320. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. BuildCo receives a Temporary Building Construction Permit (IPB). g. The following documents should be included: a. Application form. Procedure 11*. Copy of construction building permit (IMB). The location permit declares the certainty of land ownership in the Spatial Plan and that the use of the land complies with the company’s purpose. if necessary. Floor Plan. no later than 30 days after receipt of the SPOP. 2/1999. After the application has been submitted and accepted by the one–stop shop.139 Comments: In order to obtain the location permit. Copy of Land ownership certificate. e. Copy of receipt of tax payment. Receive inspection to verify compliance with building permit from City Planning Agency (Dinas Tata Kota) Time: 1 day Cost: No cost Procedure 7. The latest Payable Tax Notification Letter. Request and connect to water and sewage with PDAM Time: 6 days Cost: IDR  350. The Palembang one–stop shop notifies BuildCo of the charges that have to be paid in order to obtain the permit. d. civil work agency.LIST OF PROCEDURES 77 Cost: IDR  5. water control. Photocopy of land ownership certificate. this procedure is carried out at the Palembang one–stop shop (KPTSP). c. the City Planning Office calculates the charges and notifies the Palembang one–stop shop. Pictures of the plot.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. However. the City Secretariat gathers the necessary recommendations for the various agencies (road. Procedure 9. Application letter. Comments: In order to obtain the Nuisance Permit (Izin HO). The statutory time for issuing the building construction permit (IMB) is 21 days. Ik: building height index. b. 13/2010 about tariff of Non Tax Services at National Land Office. c. Location permit. KPP) Time: 8 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. Photocopy of Land Ownership Certificate. b. duly filled. c. Since Mayor Regulation No. Procedure 5.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. b. In reality. Location map with information about the size of the building. Once the application is submitted. Regulation of Ministry of Land/Head of National Land Office No. and THDB: rate of basic price) Comments: In order to obtain the Building Construction Permit. Procedure 2. g. Architectural drawings of the building (7 copies). Structural design and calculations. Location map. prepared by BuildCo’s architect. Land utilization plans (in format set by National Land office). the temporary building permit does not guarantee that the building construction permit will be issued. Recent photographs of the applicant. Application Letter. the process takes longer. duly filled. The Advis Planning is a necessary item for obtaining the Building Construction Permit (IMB). BuildCo must submit the following documents to the Palanka Raya one–stop shop: a. Procedure 10*. b. b. prepared by BuildCo’s architect. BuildCo needs to submit the following documents to the Palangka Raya one–stop shop: a. Iz: Zone index. BuildCo must submit the following documents to the Palembang one–stop shop: a.000 Comments: In order to receive the warehouse license. Such requirements do not apply to our case study.000 = USD 437. Obtain Environmental Management Plan and Environmental Monitoring Plan (UKL/UPL) approval from local Environmental Agency (BLH. Kota Palangka Raya) Time: 15 days Cost: IDR  450. g. Environment Management Plan and Environment Monitoring Plan (UKL/UPL). Once the application has been submitted to the Palembang one–stop shop. Building companies may be required to submit additional documents when they do not own the land (Statement of Land Acquisition) or if they are in the plantation business (Statement that the location is not exceeding the limit of plantation within the province).000 Procedure 1. d. BuildCo must submit the following documents: a. Application form.000 x coefficient width x coefficient Height (number of floors) x coefficient Building function x coefficient building/construction quality x coefficient building layout) Comments: In order to obtain the Building Construction Permit (IMB). d. Request official report on completion of construction and compliance with building permit from Palembang one– stop shop (KPPT) Time: 1 day Cost: No cost Palembang. BuildCo must submit the following documents to the City Secretariat: a. Shop drawing of first and second floor. duly filed. f.552. i. e. Photocopy of identity card of the applicant. Principal permit. BuildCo must submit the following documents to the local Industry and Trade Agency: a.100. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Procedure 3. f. South Sumatra Warehouse value: IDR  4.150. Company establishment deeds. BuildCo may start the construction process. No inspection takes place during this procedure. Obtain statement letter and city planning map (Advis Planning) from Palembang one–stop shop (KPPT) Time: 10 days .

KPP) Time: 8 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. called Construction Approval (IP).290 (retribution cost of IDR  12.550 12. g. Photocopy of Land Ownership Certificate. BuildCo must submit the following documents to the Industry and Trade Agency: a. Copies of Latest Payment Receipt of Land and Tax(es).050 4. Shop drawing. Obtain official report on completion of construction and compliance with building permit from Palembang one– stop shop (KPPT) Time: 10 days Cost: No cost Procedure 6. drainage.450 10. c.300 11.802. Size (IDR/m2) <100m 2 Luxurious (IDR/m2) 11. Recent photo of BuildCo’s director. c.200 Procedure 4. duly filled. Register with Local Tax Office (Kantor Pajak Pratama. Register the warehouse with the Pekanbaru one–stop shop (Badan Pelayanan Terpadu. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. d. Pekanbaru. Photocopy of the applicant’s identity card.e. If the planned construction satisfies all requirements. Procedure 2. While the building construction permit (IMB) application is being processed. Request and obtain final inspection from City Planning and Construction Agency (Dinas tata Ruang dan Bangunan) Time: 1 day Cost: No cost . BuildCo can obtain an authorization. Building drawings. Request and connect to water and sewage with PDAM Time: 8 days Cost: IDR  2.78 DOING BUSINESS IN INDONESIA 2012 Procedure 5. b. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. The latest Payable Tax Notification Letter. the DTRB Unit Head of Supervision prepares a compliance report. no later than 30 days after receipt of the SPOP. BuildCo must submit the following documents: a. 1/2010.550 3.000 = USD 437. the process to obtain the Advis Planning Permit is regulated by Local Regulation No.450 13. TARIFF TABLE : Procedure 7. BPT) Time: 5 days Cost: No cost Comments: In order to register the warehouse with the Pekanbaru one–stop shop.000.300 9. b. Copy of the applicant’s identity card. Obtain Building Construction Permit (IMB) from City Planning and Construction Agency Time: 30 days Cost: IDR  15.450 7. Application form. signed by Licensed Designer. duly filled. does not guarantee that the building construction permit will be granted.150 x area of the building) Comments: In order to apply for the building construction permit (IMB). Location map. KPP) Time: 16 days Cost: No cost Comments: The registration is conducted by completing the Tax Object Notification Letter (SPOP). After the inspection has taken place.550 15. Procedure 9*. Obtain Advis Planning Permit from City Planning and Construction Agency (Dinas tata Ruang dan Bangunan) Time: 3 days Cost: No cost Procedure 7. prepared by BuildCo’s architect. b. Copy of the land certificate.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.100. Request Advis Planning Permit from City Planning and Construction Agency (Dinas Tata Ruang dan Bangunan) Time: 1 day Cost: No cost Comments: In order to obtain the Advis Planning Permit. Copy of the land certificate. e. b. Copies of ID card. Procedure 5.150 12. Register the warehouse with the local office of the Industry and Trade Agency Time: 8 days Cost: No cost Comments: To register the warehouse. prepared by BuildCo’s architect. The following documents should be included: a. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS a.250 6. Application form.250 18. c. b.498 Data as of: July 2011 Procedure 1. lighting or buildings nearby. obstructs traffic. e. In Pekanbaru. Riau Warehouse value: IDR  4. the Pekanbaru one–stop shop forwards it to the City Planning and Construction Agency. Register the warehouse with Local Tax Office (Kantor Pajak Pratama.750 1 1 2 3 4 5 >5 14. The following documents should be included: # of Storeys Permanent Semi Permanent Non Permanent 3. however. Photocopy of TDP (registration license). After the application has been submitted.050 4.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Site Activity Plan. DTRB) calculates the Construction Permit (IMB) fees according to Local Regulation No. The City Planning and Construction Agency examines all the documents submitted by BuildCo and decides whether to grant the building construction permit or not. d. c. c. the City Planning and Construction Agency (Dinas Tata Ruang dan Bangunan.150 15. Photocopy of the identification card of BuildCo’s director.500 5. Photocopy of SIUP (trading license).800 >100m2 Procedure 8*.950 15. 14/2000.552. e. The project design obstructs existing facilities. b. BuildCo must submit the following documents to the Pekanbaru one–stop shop: a. d. The project design worsens the surroundings area – i. Obtain official report on construction completion and compliance with building construction permit from City Planning and Construction Agency (Dinas tata Ruang dan Bangunan) Time: 30 days Cost: No cost Procedure 3. to start the construction works immediately.000 12.450 17.800 (IDR/m2) (IDR/m2) 4. BuildCo must submit the following documents: a. c. Procedure 8. Comments: A surveyor from the City Planning and Construction Agency (DTRB) inspects the building and assesses its compliance with Advis Planning Permit and building construction permit (IMB). Copies of Land Certificate Ownership. prepared by BuildCo’s architect. The Construction Approval. The building construction permit can be denied for different reasons: a.900 4. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. available in certain government offices. no later than 30 days after receipt of the SPOP. The Advis Planning Permit provides project planning advice and information about on–site construction requirements. Advis Planning (AP) Letter. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 4 days Cost: IDR  500. b. duly filled. implemented since 18 December 2000. The project design does not satisfy the technical requirements (as in AP).000 15. The latest Payable Tax Notification Letter. Receive inspection from City Planning and Construction Agency (Dinas Tata Ruang dan Bangunan) Time: 1 day Cost: No cost Procedure 6. Application form.

Drawings and shop drawings (4 copies). a technical team is sent by the Semarang one–stop shop to verify the location of the plot and check if the neighbors have any objection to the building project that will be carried out by BuildCo. Copy of Land Ownership certificate. Application form. BuildCo representatives sign the inspection report produced by the visiting team. Request and connect to water and sewage with PDAM Time: 7 days Cost: IDR  1. 233/2009. Copy of Payment Receipt of Land and Building Tax. Copy of applicant’s ID.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.100. BuildCo must submit the following documents: a.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Receive inspection from Zoning Agency (Dinas Tata Ruang) Time: 1 day Cost: No cost Comments: BuildCo’s representatives must be present during the inspection in order to show the borders of the future building site to the inspectors. the Pontianak one–stop shop (BP2T) reviews them and prepares the building construction permit (IMB). BuildCo must submit the following documents to the Pontianak one–stop shop: a. Request location clearances from Semarang one–stop shop (BPPT) Time: 1 day Cost: No cost Comments: In order to obtain the location clearances from the Semarang one–stop shop.000 Procedure 8. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Cost: IDR  6.885 (Admininstrative Costs + Inspection Costs + Supervision Costs + Separation Costs + Project Nameplate Costs) Comments: In order to obtain the building construction permit (IMB).000 = USD 437. BP2T) Time: 1 day Cost: No cost Comments: BuildCo notifies in writing that the warehouse has been completed and requests a final inspection from the Pontianak one–stop shop. prepared by BuildCo’s architect. 28/2009 in Pekanbaru. Cooperation and Trade Agency (Dinas Perindustrian. Procedure 4. d. BP2T) Time: 14 days . Copy of identity card. implemented since 1999. no later than 30 days after receipt of the SPOP. Register the warehouse with the local office of the Industry. Request and connect to water and sewage with PDAM Time: 8 days Cost: IDR  1. c. Copy of identity card of the applicant and company establishment deeds.500. BP2T) Time: 16 days Cost: IDR  15. Application form.000 = USD 437. The latest Payable Tax Notification Letter. Procedure 9*. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Semarang. Such a copy allows BuildCo to start construction of the warehouse. Location Map and Drawings. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Copy of the land certificate. Procedure 1. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 4 days Cost: IDR  500. Procedure 5.LIST OF PROCEDURES 79 Mayor Decree No. d. No inspection takes place before the official copy is issued since all the necessary on–site verifications have taken place during the procedures relating to the City Planning Statement. BP2T) Time: 1 day Cost: No cost Comments: In order to obtain City Planning Statement (SKRK). Obtain City Planning Statement (SKRK) from Pontianak one– stop shop (Badan Pelayanan Perizinan Terpadu.552.498 Data as of: July 2011 Procedure 1. e. Cooperation and Trade Agency (Dinas Perindustrian.000. Disperindagkop) Time: 7 days Cost: No cost Comments: In order to register the warehouse with the local office of the Industry. Perdagangan dann Koperasi. West Kalimantan Warehouse value: IDR  4. d. BuildCo must submit the following documents: a. At the end of the inspection. BP2T) Time: 1 day Cost: No cost Comments: Representatives of the Pontianak one– stop shop carry out a joint inspection with the City Planning Office to check whether the warehouse built by BuildCo is in line with the information contained in the application for the building construction permit. Disperindagkop). Procedure 10*. e. b. Once the inspection has taken place. Request final inspection from Pontianak one–stop shop (Badan Pelayanan Perizinan Terpadu. c. c. duly filled. Procedure 3. Procedure 10*. Procedure 11*. BuildCo must submit the following documents: a. b. Due to the implementation of Law No. The following documents should be included: a. Corporate Tax Registration (NPWP). Procedure 2. Procedure 9. the inspectors file a report that is forwarded to the Pontianak one–stop shop. KPP) Time: 14 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. Copy of land ownership certificate. Application form. Procedure 7. BP2T) Time: 2 days Cost: No cost Comments: After the final inspection has taken place. has transferred this procedure from the Local Office of Ministry of Industry and Trade to Pekanbaru one–stop shop. b.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. After all documents have been submitted. Receive final inspection from Pontianak one–stop shop (Badan Pelayanan Perizinan Terpadu. The original letter that grants the permit is not handed over to BuildCo. Receive inspection from Semarang one–stop shop (BPPT) Time: 1 day Cost: No cost Comments: After receiving the application for the location clearances. Perdagangan dann Koperasi. 6/1999. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 7 days Cost: IDR  250. Request Building Construction Permit (IMB) and obtain official copy of the permit from Pontianak one–stop shop (Badan Pelayanan Perizinan Terpadu.911. the Pontianak one–stop shop reviews the final inspection report and releases the original letter of building construction permit (IMB). b. c. b.552. Central Java Warehouse value: IDR  4. The SPOP must be signed by the taxpayer and submitted to the Land and Building Tax Office in the area where the warehouse is to be built. Procedure 6. this procedure currently has no cost. BuildCo receives an “official copy” of the building permit. c. Starting Business Permit (SIUP) and Company Registration (TDP). Copy of subject to tax registration. Instead. Project proposal. City Planning Statement (SKRK). Register with Local Tax Office (Kantor Pajak Pratama. Pontianak. Requirements for this procedure are based on City Regulation No. duly filled. Request City Planning Statement (SKRK) from Pontianak one– stop shop (Badan Pelayanan Perizinan Terpadu. duly filled.498 Data as of: July 2011 Procedure 2.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. duly filled. Obtain original letter of Building Construction Permit (IMB) from Pontianak one–stop shop (Badan Pelayanan Perizinan Terpadu. implemented since 31 December 2009.100. Application form.

Procedure 9*. size coefficient. Local Regulation No. According to Mayor Decree No. Legalized copy of land ownership certificate. Receive inspection from City Planning Agency (Dinas Cipta Karya dan Tata Ruang) Time: 1 day Cost: No cost Comments: A technical team of the City Planning Agency inspects the future building site and measures the location in the presence of BuildCo representatives. If all documents submitted are complete and correct. The following documents should be included: a. Peta RTRW). regarding charges on City Planning Statement. year 2009. Obtain statement letter and city planning map from Semarang one–stop shop (BPPT) Time: 15 days Cost: IDR  1.552. the statutory time for the Semarang one–stop shop to issue the statement letter and city planning map is 15 days.230. b. e. 14/1998. Once the application has been approved. but it usually takes longer. Application form. Obtain statement on land dispute with Head of the Village Time: 8 days Cost: No cost Comments: The statement of land dispute is necessary when applying for the statement letter and the building permit. BuildCo is notified to proceed with the payment and collect the building permit: both actions are carried out at the Semarang one–stop shop (BPPT). implemented since 2004. According to Mayor Decree No. Obtain location clearances from Semarang one–stop shop (BPPT) Time: 12 days Cost: No cost Procedure 4. h. Copy of Property Tax invoice and receipt. After that. DEALING WITH CONSTRUCTION PERMITS Surabaya. The authorities usually respect the statutory time limit.6% x unit cost x building size x location index x building index] Comments: In order to obtain the permit. Copy of identity card of the applicants. Procedure 8.035 [0. and position the future building’s plot in technical masterplan. Company Tax Registration Number. Statement on land dispute. Copy of the land certificate. Application form. f. multiplied by IDR  1. Application Form (available at the Surabaya one– stop shop).498 Data as of: July 2011 Procedure 1.500. BuildCo pays the fees at the Surabaya one–stop shop and the file is transferred to the City Planning Agency (Dinas Cipta Karya dan Tata Ruang). City Planning Office representatives inspect the future building site. BPPT) Time: 15 days Cost: IDR  7. Regulations establish a statutory time of 10 days for the City Planning Statement to be issued.579. c. The costs for the statement letter and city planning map are based on Local regulation No. the statutory time for the Semarang one–stop shop to carry out this procedure is 15 days. KRK and Peta Rencana Tata Ruang dan Wilayah. BuildCo must submit the following documents: a. Procedure 10*. the statement letter and city planning map are issued at the Semarang one–stop shop (BPPT). d. 13/2011. BuildCo must submit the following documents: a. Location Map. Mayor regulation No. Procedure 3. * This procedure can be completed simultaneously with previous procedures Procedure 3. Business permit. implemented since 2004. Procedure 6. This procedure is governed by the following regulations: a. regarding implementation of Local Regulation No 7/2003. 7/2003. tax registration. When all is complete.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. 13/2011. BuildCo must submit the following documents to the Semarang one–stop shop: a. Procedure 2. Notarize copy of Land Certificate at Notary Office Time: 3 days Cost: IDR  50. c. 31 / 2004. . Copy of identity card of the applicant and company’s establishment deed. e. e. They also prepare location drawings (with border. According to Mayor Decree No. d. b. BuildCo needs to submit the following documents: a. Register with Local Tax Office (Kantor Pajak Pratama. g. Statement letter (KRK). the City Planning Agency evaluates.000 Comments: In order to be able to undertake some of the necessary procedures for the construction of the warehouse. The registration. Obtain Building Construction Permit (IMB) from Semarang one–stop shop (Badan Pelayanan Perijinan Terpadu. BuildCo is interviewed about the project details. no later than 30 days after receipt of the SPOP. As it submits the documents. Drawings. The cost of this procedure is the product of the negotiation between the parties. Photocopy of personal ID of the applicant. d. Recent photograph of BuildCo’s director. however. c. Procedure 7. East Java Warehouse value: IDR  4. implemented since 2005. Request and connect to water and sewage with PDAM Time: 8 days Cost: IDR  1.000 = USD 437.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. 36/2005. business trade license (SIUP). Photocopy of proof of property tax payments. c. b. The latest Payable Tax Notification Letter. the statutory time for the Semarang one–stop shop to carry out this procedure is 5 days. base coefficient. b. duly filled.1/57.80 DOING BUSINESS IN INDONESIA 2012 BuildCo representatives’ presence is mandatory during the inspection as they need to sign the inspection minutes (Berita Acara Verifikasi Lapangan). b. Request City Planning Statement (SKRK) at Surabaya one–stop shop (Unit Pelayanan Terpadu Satu Atap) Time: 1 day Cost: No cost Comments: In order to obtain the City Planning Statement. Copy of land ownership certificate. Mayor Decree No. measure the location. obtained from local Head of the Village. Building Construction Permit (IMB). business construction services license (SIUJK).100. c. Photocopy certificate of land ownership. This change is the product of Mayor Decree No. The latest Payable Tax Notification Letter. Register the warehouse with Semarang one–stop shop (BPPT) Time: 3 days Cost: No cost Comments: In order to register the warehouse. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 3 days Cost: IDR  63. BuildCo must legalize a copy of the land ownership certificate with a notary. From the end of 2009. and approves the application. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name.300 (area of the plot.700) Comments: In order to obtain the statement letter and city planning map (Keterangan Rencana Kota. c. and technical requirements). regarding Authority Delegation for Approving Permit and Non Permit to Head of BPPT Semarang. Photocopy of the establishment deeds. prepare drawings. the Surabaya one–stop shop checks the masterplan and calculates the retribution charges. usually takes a shorter amount of time. d. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. 875. Procedure 5. No inspection is carried out during this procedure because all necessary verifications have been carried out by the Semarang one–stop shop when processing the location clearances. KPP) Time: 11 days Cost: No cost Comments: The registration is conducted by completing the Tax Object Notification Letter (SPOP) available in certain government offices. Statement on land dispute. regarding City Planning Map. 13/2011. the City Planning Office transfers the file to the Surabaya one–stop shop which then notifies BuildCo that the statement is ready for pick up. Such a statutory limit is usually respected by the authorities. b. registers. obtained from local Head of the Village.

. Prepared by BuildCo. Surakarta. regarding Surakarta masterplan 1993–2013. BuildCo must submit the following documents to the Local Environmental Agency: a. c. Local Regulation No. the City Planning Office prepares the necessary documents and calculates the fees to be paid. c. on building procedures. After the inspection has taken place. New tax object registration number (nomor penerbitan obyek pajak baru). Copy of Land Ownership Certificate. 8/1988.100. Obtain official report on completion of construction and compliance with building permit from City Planning Agency (Dinas Cipta Karya dan Tata Ruang) Time: 28 days Cost: IDR  62. d. Other regulations concerning this procedure are the following: a. this procedure is mandatory. prepared by BuildCo’s architect.800 Comments: In order to obtain the building construction permit. 2. Procedure 11*. c. Copy of ID card. regarding warehouse registration charges. Central Java Warehouse value: IDR  4. A representative of BuildCo must be present in order show the border of the future building site and sign the minutes of the inspection. Receive inspection from Surakarta one–stop shop (KPPT) Time: 1 day Cost: No cost Comments: The inspection is conducted by a technical team from Surakarta one–stop shop (KPPT). BuildCo’s director’s pictures (2 copies – size 4x6 cm). Once the verification process has taken place. f. Copy of Property Tax Receipt. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 2 days Cost: IDR  450. Request and connect to water and sewage with PDAM Time: 21 days Cost: IDR  1. and can be prepared in–house by BuildCo.552. The latest Payable Tax Notification Letter. BuildCo must submit the following documents to the Surakarta one–stop shop: a. c. b. Obtain Zoning Usage Permit (Izin Pemanfaatan Ruang. Register the warehouse with Surabaya one–stop shop (Unit Pelayanan Terpadu Satu Atap) Time: 1 day Cost: No cost Comments: In order to register the warehouse with the Surabaya one–stop shop. Relevant regulations: a. The following documents should be included: a. Both regulations have been implemented since 2010. duly filled. Administrative Requirements: a. 8/2009. The SPOP must be signed by the taxpayer and submitted to Local revenue agency (Dispenda) in the area where the warehouse is to be built. Procedure 5. Copy of ID card of BuildCo’s director. City Planning Statement and City Planning Map. c. e. City Planning Statement (SKRK).875 (fees for the Print Out of the City masterplan. sanitation (1:100). the Zoning Usage Permit is free of cost) Comments: After the inspection has taken place. b. 1/2010. – Lay out (scale 1:100). g. 17/1999. d. regarding warehouse registration procedures. Verify Land Ownership with the Head of the Village (Lurah) Time: 1 day Cost: No cost Comments: The Head of the Village has to verify that the land belongs to BuildCo. an application form and a statement letter. b. implemented since January 2011. 7/2009. 9/1999. no later than 30 days after receipt of the SPOP. 3 copies: – Landscaping (scale 1:1000/1:5000). Copy of Construction Permit (IMB). Request Zoning Usage Permit (Izin Pemanfaatan Ruang. Local regulation No.000 = USD 437. b. BuildCo receives a notification to pay the fees and collect the permit and the print–out of the city masterplan map. Comments: In order to obtain the Zoning Usage Permit (IPR) and Print–out of City masterplan Map. Local regulation No.LIST OF PROCEDURES 81 Procedure 4. 2 sets of structure drawings. roof. b.498 Data as of: July 2011 Procedure 7. Application form and statement letter of construction requirement adherence. implemented since January 2011. the Surakarta one–stop shop issues the Zoning Usage Permit and the print–out of the city masterplan map. Obtain Building Construction Permit (IMB) from Surabaya one–stop shop (Unit Pelayanan Terpadu Satu Atap) Time: 30 days Cost: IDR  14. Based on Regulation No. 7/2009. Copy of the land certificate.500 Procedure 1. Local Regulation No. The environmental document comprises two items. regarding retribution charges on city master–planning print out. The legal basis for this procedure are local regulation No.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Local Regulation No. Land and Building Tax payment proof.225.741. b.01 x Plot area x Taxation value x Location Index) + administrative costs of IDR  35. Design drawings. – Foundation base. Application form. IPR) and print– out of city masterplan map from Surakarta one–stop shop (KPPT) Time: 1 day Cost: No cost Procedure 5.000 [(0. BuildCo must submit the following documents: a. Procedure 3. Construction Accountability Statement. 31/2004 and Local regulation No. Procedure 8. Copy of Land Ownership Certificate. the Surakarta one–stop shop assigns a team of officers to carry out an inspection. Photocopy of applicant’s identification card. b. Procedure 9. b. Building Construction Permit Application Form.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. and Mayor regulation No. Picture of the site and building plans.822. Register warehouse with Local Revenue Agency (Dispenda) Time: 2 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. 8/1993. IPR) and print– out of city masterplan map from Surakarta one–stop shop (KPPT) Time: 16 days Cost: IDR  1. c. 7/2003. Obtain City Planning Statement (SKRK) from Surabaya one–stop shop (UPTSA) Time: 28 days Cost: IDR  2. BuildCo must submit the following documents: 1. Procedure 6. The procedures regarding Zoning Usage Permit (IPR) and the print–out of the city masterplan have been introduced by Local regulation No. Technical requirements prepared by BuildCo: a. Photocopy of Land ownership certificate. implemented since 2010. Copy of Business Trading License (SIUP) and Company Registration (TDP).000] Comments: Costs based on Mayor regulation No. Once the application has been submitted. Obtain Environmental Monitoring Plan and Environmental Management Plan (UKL/UPL) approval from local Environmental Control Agency (BLH) Time: 1 day Cost: No cost Comments: In order to obtain the approval of UKL and UPL. Obtain Environmental Statement (SPPL) approval from Local Environmental Agency (BLH) Time: 2 days Cost: No cost Comments: BuildCo’s architect prepares the environmental document (SPPL) and submits to the Local Environmental Agency (BLH) for approval. e. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Procedure 4. 35/2010.500. Procedure 10*. Environmental document. d. the Head of the Village signs the application for the building construction permit (IMB). prepared by BuildCo’s architect. Procedure 2. implemented since 1999.

Copy of the land certificate. as per assumptions). duly filled. g. d. Obtain Advis Planning Permit from Yogyakarta one–stop shop (Dinas Perijinan) Time: 1 day Cost: No cost Comments: The Permit Registration Office at the Yogyakarta one–stop shop has all data regarding the city masterplan (borders. Copy of Company Establishment Deed. Environmental Management Plan and Environmental Monitoring Plan.498 Data as of: July 2011 Procedure 1. Procedure 4. Procedure 9. c. of storeys). c. b. the document is cleared by the Head of the Local Environmental Agency and sent back to the Yogyakarta one–stop shop where it can be picked up by BuildCo. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. Procedure 11*.100. Register the warehouse with Local Tax Office (Kantor Pajak Pratama. BuildCo must submit the following documents : a.552. duly filled. regarding Retribution Charges for Building Construction Permit. KPP) Time: 3 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. the City Planning Agency assembles a team to conduct a site inspection. Collection of the document and payment of the fees takes place simultaneously at the Surakarta one–stop shop. BuildCo must submit the following documents to the Yogyakarta one–stop shop: a. duly filled by the applicant and signed by head of village and head of Sub–district. b. Obtain Building Construction Permit (IMB) from Yogyakarta one–stop shop (Dinas Perijinan) Time: 25 days Procedure 7*. Register the warehouse with Surakarta one–stop shop (KPPT) Time: 6 days Cost: No cost Comments: In order to register the warehouse. Procedure 7.000 = USD 437. building height. Cost: IDR  20. Because of this. Request and connect to water and sewage with PDAM Time: 16 days Cost: IDR  2. Copy of certificate of ownership. Copy of ID card of BuildCo’s representative. * This procedure can be completed simultaneously with previous procedures DEALING WITH CONSTRUCTION PERMITS Yogyakarta.1 x coefficient of the construction value of second floor)] Comments: In order to obtain the building construction permit. Copy of the identity card of the land title holder or articles of association if the land is registered under a company name. The Surakarta one–stop shop forwards the documents to the City Planning Agency that reviews them. Application form. Photocopy of Land and Building Tax payment receipt. The latest Payable Tax Notification Letter (Tax Receipt). e. provided that there is no issue to be addressed. The City Planning Office prepares the building construction permit and calculates the fees. the Head of the Sub–district signs the application for the building construction permit (IMB). Photocopy of ID card (KTP). This procedure is regulated by Mayor Decree No. the one–stop shop office informs BuildCo by letter/phone call and invites BuildCo to pay the fees and collect the permit. Verify Land Ownership with the Head of the Sub–district (Camat) Time: 1 day Cost: No cost Comments: The Head of the Sub–district has to verify that the land belongs to BuildCo. Notification letter to confirm the status of the ownership of the warehouse (if not owned or rented by the company) The requirements for this procedure are regulated by Mayor regulation No.000. Procedure 3. c. Procedure 5. b. Procedure 10*. Given the assumptions of the case study.000 [(First floor: IDR  490. Zoning Usage Permit (IPR).518 x IDR  2. Copy of Starting Business Permit. the presence of BuildCo during the inspection is very unlikely. d.1 x coefficient of the construction value for the first floor) + (Second floor: IDR  490. DI Yogyakarta Warehouse value: IDR  4. BuildCo presence is required only if notified by the City Planning Agency. Obtain Environmental Management Plan and Environmental Monitoring Plan (UKL/UPL) approval from Local Environment Agency (BLH) through Yogyakarta one–stop shop (Dinas Perijinan) Time: 12 days Cost: No cost Comments: BuildCo prepares the Environmental Management Plan and the Environmental Monitoring Plan (UKL/UPL) by filling up a template that is provided by the Yogyakarta one–stop shop.000. The following documents should be included: a. the procedure can be carried out very rapidly. f. Copy of identity card of the applicants. signed by licensed architect and engineer. 974/049/I/2000. f. Once the verification process has taken place. Copy of BuildCo’s Nuisance Permit (HO). prepared by BuildCo architect. Shop drawings. Architectural Plans. b.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. The document is submitted to the Yogyakarta one–stop shop which then forwards it the Local Environmental Agency. Such a timeline is usually respected by the Yogyakarta one–stop shop. Advis planning permit. the inspectors prepare a report for the City Planning Office. Application form. BuildCo receives a receipt. After being reviewed and examined by a technical team. c. Procedure 8. e. BuildCo must submit the following documents to Surakarta one–stop shop: a. When all is ready. Register the warehouse with Yogyakarta one–stop shop (Dinas Perijinan) Time: 5 days Cost: No cost Comments: In order to register the warehouse. Print–out of city masterplan map. c. The latest Payable Tax Notification Letter.484. implemented since 2000. voids. no later than 30 days after receipt of the SPOP.000. no later than 30 days after receipt of the SPOP. Structure and system calculations. Company Registration. Copy of Tax Registration Number. Register with Local Tax Office (Kantor Pajak Pratama. Nuisance Permit (already in possession of BuildCo. Such regulation establishes a statutory limit of 5 days for this procedure to be carried out. 37/2011. After submitting all the required documents. f. After that. Procedure 2.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. Application form. Copy of the land certificate. Copy of Permanent Business Trading Permit (SIUP). Request and connect to water and sewage with PDAM Time: 8 days Cost: IDR  2. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 8 days Cost: IDR  500. b. Obtain Building Construction Permit (IMB) from Surakarta one–stop shop (KPPT) Time: 21 days Cost: IDR  7. e. approved by the Local Environmental Agency. no.450 (construction permit charges x size of building x coefficient of building class x coefficient of building location x coefficient building usage x coefficient of stories building) Comments: In order to obtain the building construction permit. Request and connect to telephone with PT Telekomunikasi Indonesia Tbk (Telkom) Time: 8 days . d. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built. Procedure 6*. BuildCo must submit the following documents to the Yogyakarta one–stop shop: a.000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups.82 DOING BUSINESS IN INDONESIA 2012 Procedure 6. KPP) Time: 11 days Cost: No cost Comments: The registration is done by completing the Tax Object Notification Letter (SPOP) available in certain government offices. c. b. The following documents should be included: a. Location Map. The SPOP must be signed by the taxpayer and submitted to the Local Tax Office in the area where the warehouse is to be built.518 x IDR  2. After the inspection. d. Photocopy of Land Ownership Certificate.

Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). 10/1994 and Law Procedure 3*. time ________’ and is initialed by the officer at the Land Office. those payments are usually made three days before the execution of the sale–purchase deed. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.111. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Every year. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. to determine the intended use of the said plot of land. h. Procedure 2. 1996). For Balikpapan. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Advise Planning from the City Administration Institution. b. to determine the intended use of the said plot of land. Copy of the applicant’s identification or its proxy. By custom. * This procedure can be completed simultaneously with previous procedures. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.000 stamp duty per document (2 required)) . it usually takes 1 day. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN).000 Comments: The company notifies the Industrial Manager that the warehouse is ready for utility hook–ups. j. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. c. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. dated_______. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. located at the local government office.000. the local PBB Tax Office issues a tax assessment to land owners.000 Comments: A land certificate examination is carried out by a Land Deed Official. g.000. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. the buyer has to phone the Officer at the Land Office to ask about the progress. If the land book concerned is available at the Land Office.223. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). Balikpapan.000 Data as of: July 2011 Procedure 1.000 Data as of: July 2011 Procedure 4. Land certificate examination at the local Land Office (BPN) Time: 3 days Cost: IDR  50. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. * This procedure can be completed simultaneously with previous procedures LIST OF PROCEDURES REGISTERING PROPERTY Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))].342. Procedure 6.2 of Law No. Land Ownership Certificate. REGISTERING PROPERTY Procedure 1. For convenience. industry or green belt.196 (5% of property value minus IDR  60 million which is tax–free) Procedure 5. Deed of Establishment and its amendments of both the seller and purchaser. Evidence of the latest payment of Tax on Land and Building (PBB). The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. whether for residences. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.J. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. c.224 (IDR  50. d. sometimes the land book is unavailable. misplaced or being used by another division of the Land Office.913 = USD 129.1 and 5.913 = USD 129. amended by Law No.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.LIST OF PROCEDURES 83 Cost: IDR  480. amended by Law No.223.111. the change of ownership must be registered with the Land and Building Tax Office (PBB). the BPHTB belongs to the local government. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. located at the local government office. misplaced or being used by another division of the Land Office. However. b. it usually takes 1 day. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed.342.2 of Law No. 7/1983. However.422. f. Procedure 2. industry or green belt. c. The land title search would also involve a check at the local City Planning Office. The documentation shall include: a.000 + (0. Land Ownership Certificate.404.000. e.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. The land title search would also involve a check at the local City Planning Office. time ________’ and is initialed by the officer at the Land Office. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Comments: After the buyer submits the registration of the Land Deed.1 of the Director General of Taxation Circular No. whether for residences. The taxpayer reports the transfer of land title. Copy of the applicant’s identification or its proxy. Permit for Building Establishment. stamps and signs it. dated_______. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. Aceh Province Property value: IDR  1.111. 28/2009). No written statement is given. b. East Kalimantan Property value: IDR  1.000 Comments: A land certificate examination is carried out by a Land Deed Official. 18/2010) stipulates a NPOPTKP of IDR  60. Banda Aceh. sometimes the land book is unavailable. No written statement is given. 7/1983. the local regulation (Perda No. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. Original land certificate.000. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.1% of property value) + IDR  6. According to the law on Local Tax (Law No. Land certificate examination at the local Land Office (BPN) Time: 3 days Cost: IDR  50. SE–04/P.33/1996 dated August 26. In between submission of the deed and pick–up. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. If the land book concerned is available at the Land Office. i.196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64.

the buyer has to phone the Officer at the Land Office to ask about the progress. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 1 day Cost: IDR  13.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.2 of Law No. 1996). Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4).422. 1996). h.342. d. For Bandung. h.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. c. Deed of Establishment and its amendments of both the seller and purchaser. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. No written statement is given. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Evidence of the latest payment of Tax on Land and Building (PBB).33/1996 dated August 26. By custom. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.913 = USD 129. Procedure 4. Advise Planning from the City Administration Institution.33/1996 dated August 26. e. 28/2009). the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. e.1 and 5. those payments are usually made three days before the execution of the sale–purchase deed. Procedure 6. sometimes the land book is unavailable. Procedure 3*. i. 7/2010) stipulates a NPOPTKP of IDR  60.1 of the Director General of Taxation Circular No. 7/1983. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. 2/2011) stipulates a NPOPTKP of IDR  60. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50.000 Data as of: July 2011 Procedure 1. The taxpayer reports the transfer of land title.1 and 5. amended by Law No.000. c. Original land certificate. the change of ownership must be registered with the Land and Building Tax Office (PBB). f. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. If the land book concerned is available at the Land Office. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. * This procedure can be completed simultaneously with previous procedures. the BPHTB belongs to the local government. i. g. Copy of the applicant’s identification or its proxy. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). For Banda Aceh. the local regulation (Perda No. For convenience.223.000.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.J.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. f. d. b.000. REGISTERING PROPERTY Procedure 4.J.1 of the Director General of Taxation Circular No.000. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Every year. According to the law on Local Tax (Law No. c. the local PBB Tax Office issues a tax assessment to land owners. stamps and signs it. The documentation shall include: a. the BPHTB belongs to the local government. West Java Property value: IDR  1.111. SE–04/P. By custom.000. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. misplaced or being used by another division of the Land Office. Advise Planning from the City Administration Institution. Every year. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. The documentation shall include: a. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). j. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.404. b. However. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. b. Evidence of the latest payment of Tax on Land and Building (PBB). Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). 28/2009).111. those payments are usually made three days before the execution of the sale–purchase deed.000. Procedure 3*. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Permit for Building Establishment. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.000. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.224 (IDR  50000 + (0.000. Permit for Building Establishment. Bandung. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. Land Ownership Certificate. Procedure 2. According to the law on Local Tax (Law No.111. SE– 04/P. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. those to the local government are paid at the Local Government Bank and/or other private com- .1% of property value) + IDR  6. mercial bank (as per Article 4. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.84 DOING BUSINESS IN INDONESIA 2012 17/2000 concerning Income Tax and Parts 2. In between submission of the deed and pick–up.000 Comments: A land certificate examination is carried out by a Land Deed Official. For convenience. dated_______. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. g. time ________’ and is initialed by the officer at the Land Office. Deed of Establishment and its amendments of both the seller and purchaser. Procedure 5. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. j. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Original land certificate.422. it usually takes 1 day.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. the local regulation (Perda No. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. the local PBB Tax Office issues a tax assessment to land owners.

g.5% of the property value) Comments: The buyer or its representative (Land Deed Official) must obtain a property transfer license at the Batam Industrial Development Authority (BIDA) offices before the property transfer.224 (IDR  50. 7/1983. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 7 days Cost: IDR  13. the change of ownership must be registered with the Land and Building Tax Office (PBB). the buyer has to phone the Officer at the Land Office to ask about the progress. No written statement is given. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 7 days Cost: IDR  1. sometimes the land book is unavailable. the BPHTB belongs to the local government. Procedure 3. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. Riau Islands Property value: IDR  1. e. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 4). the buyer or its representative is informed and can proceed to make the payment of the relevant fees at the BIDA offices. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB Denpasar.196 (5% of property value minus IDR  70 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Copy of the applicant’s identification or its proxy. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. b.33/1996 dated August 26. c.5% of the property value. In between submission of the deed and pick–up.000 Comments: A land certificate examination is carried out by a Land Deed Official. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. it usually takes 1 day.1 of the Director General of Taxation Circular No. 2/2011) stipulates a NPOPTKP of IDR  70. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. * This procedure can be completed simultaneously with previous procedures.000 Data as of: July 2011 Procedure 2.404. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. The taxpayer reports the transfer of land title. those payments are usually made three days before the execution of the sale–purchase deed. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. amended by Law No. If the land book concerned is available at the Land Office. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 5). REGISTERING PROPERTY i.224 (IDR  50. SE–04/P. For convenience. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. use and property value (the parties do not need to be present).000 Comments: A land certificate examination is carried out by a Land Deed Official. However.1% of property value) + IDR  6. the buyer has to phone the Officer at the Land Office to ask about the progress. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.000. Land certificate examination at the local Land Office (BPN) Time: 3 days Cost: IDR  50.LIST OF PROCEDURES 85 Procedure 5. 28/2009).422.404. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.223.000 + (0. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. f. If the land book concerned is available at the Land Office. According to the 2005 Decision by the BIDA (SK Nomor 09/KPTS/ KA/L/2005) on the ‘Tariff of Land Transfer’ – Uang Wajib Tahunan Otorita.913 = USD 129.1% of property value) + IDR  6. The Regula- . For Batam. Original land certificate. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 14 days Cost: IDR  1.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. j. stamps and signs it. h. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  63. d. Once the inspection has been completed. However.000 Data as of: July 2011 Procedure 1. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.223.000.611.J.000. Land certificate examination at the local Land Office (BPN) Time: 7 days Cost: IDR  50.598 (2. 1996). REGISTERING PROPERTY Procedure 5. misplaced or being used by another division of the Land Office.1 and 5. An inspection of the site is conducted by the Authority to assess Procedure 1. The license is valid for 25 years or until new transfer of the property (whichever comes first). time ________’ and is initialed by the officer at the Land Office.000 + (0. b. By custom. Procedure 4*. According to the law on Local Tax (Law No. stamps and signs it. Permit for Building Establishment. while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. the location. it usually takes 1 day.111. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). c.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. The taxpayer reports the transfer of land title. Procedure 7. Batam. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. the change of ownership must be registered with the Land and Building Tax Office (PBB).342. Obtain a property transfer license from the Batam Industrial Development Authority (BIDA) Time: 30 days Cost: IDR  33. Deed of Establishment and its amendments of both the seller and purchaser. after which the fee would have to be paid again.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.913 = USD 129. Procedure 6. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Bali Property value: IDR  1. Evidence of the latest payment of Tax on Land and Building (PBB). Land Ownership Certificate. In between submission of the deed and pick–up. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 3). the local PBB Tax Office issues a tax assessment to land owners.342. sometimes the land book is unavailable. or UWTO – the cost of the license is equivalent to 2. misplaced or being used by another division of the Land Office. * This procedure can be completed simultaneously with previous procedures. Every year. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.000.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. the local regulation (Perda No. dated_______.555. The documentation shall include: a. Procedure 6. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.2 of Law No. Advise Planning from the City Administration Institution.

Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3).000.000. located at the local government office.000 Data as of: July 2011 Procedure 1. stamps and signs it. b.422.000.000. Procedure 5. Land Ownership Certificate. If the land book concerned is available at the Land Office.1 of the Director General of Taxation Circular No.223.404. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. Every year. those payments are usually made three days before the execution of the sale–purchase deed. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). Buyer pays Tax on Acquisition on Land and Building at a bank Time: 2 days Cost: IDR  64. Copy of the applicant’s identification or its proxy. to determine the intended use of the said plot of land. Buyer pays Tax on Acquisition on Land and Building at local government Revenue Office (Dispenda) Time: 1 day Cost: IDR  64.111.000 Comments: A land certificate examination is carried out by a Land Deed Official. Land Ownership Certificate. d. whether for residences.2 of Law No.111.422.1 and 5.000. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.111.J. the BPHTB belongs to the local government. Procedure 6.000. f. SE–04/P.33/1996 dated August 26. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Copy of the applicant’s identification or its proxy. Procedure 2. the buyer has to phone the Officer at the Land Office to ask about the progress. * This procedure can be completed simultaneously with previous procedures. SE–04/P.239 (1% of the property value) .33/1996 dated August 26. Deed of Establishment and its amendments of both the seller and purchaser. amending Law 21/1997) in which the maximum value for NPOPTKP is 60. Procedure 2. The documentation shall include: a. According to the law on Local Tax (Law No.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Cost: IDR  50. b.913 = USD 129. Seller pays Transfer Tax at a bank Time: 2 days Cost: IDR  67. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. c. it is still under the old system (based on Article 7 of Law 20/2000. 7/1983. Gorontalo Property value: IDR  1. 1996). Original land certificate. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. No written statement is given. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. g. In Gorontalo. While waiting for Gorontalo to enact local regulations to implement the law on Local Tax.000. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. The land title search would also involve a check at the local City Planning Office. j. For Denpasar.2 of Law No. In between submission of the deed and pick–up. the NPOPTKP is IDR 60. the local PBB Tax Office issues a tax assessment to land owners. Procedure 3*. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Permit for Building Establishment. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). The land title search would also involve a check at the local City Planning Office. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser.342. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.86 DOING BUSINESS IN INDONESIA 2012 tion of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. The taxpayer reports the transfer of land title. it usually takes 1 day. the local regulation (Perda No.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.1 and 5. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.1 of the Director General of Taxation Circular No. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. based on Local Regulation No. sometimes the land book is unavailable.000 + (0. misplaced or being used by another division of the Land Office. to determine the intended use of the said plot of land. However.J. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. e.111.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. time ________’ and is initialed by the officer at the Land Office. amended by Law No. Procedure 3*. By custom. i. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.000. the BPHTB belongs to the local government. dated_______. 1996).1% of property value) + IDR  6.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value.000. b. 7/2010) stipulates a NPOPTKP of IDR  60. 7/1983. According to the law on Local Tax (Law No. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. Land certificate examination at the local Land Office (BPN) Time: 3 days Procedure 4. Advise Planning from the City Administration Institution. whether for residences. industry or green belt. For convenience. 28/2009). she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. c. industry or green belt. h.000.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value.224 (IDR  50. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). 10/2011. time ________’ and is initialed by the officer at the Land Office. 28/2009). Procedure 4. dated_______. REGISTERING PROPERTY Gorontalo. the change of ownership must be registered with the Land and Building Tax Office (PBB). Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Evidence of the latest payment of Tax on Land and Building (PBB). amended by Law No. c. located at the local government office. No written statement is given.

239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. stamps and signs it. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Procedure 4. At the latest of 7 (seven) days as of the signing date of the sale and purchase of Land Deed. the BPHTB belongs to the local government. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. the registration process should be completed within the 5 days statutory time limit. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Every year. By custom. Execution of sale and purchase of Land Deed by a PPAT official Time: 3 days . REGISTERING PROPERTY Jakarta. Original land certificate. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. In between submission of the deed and pick–up. No written statement is given. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. DKI Jakarta Property value: IDR  1. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). those payments are usually made three days before the execution of the sale–purchase deed.2 of Law No. f. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.342. Evidence of the latest payment of Tax on Land and Building (PBB). (Article 40 sub 1 of Government Regulation No. the change of ownership must be registered with the Land and Building Tax Office (PBB). Procedure 2. i.J. For convenience.000.33/1996 dated August 26. Advise Planning from the City Administration Institution. Procedure 5. the buyer has to phone the Officer at the Land Office to ask about the progress. stamps and signs it. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser.1% of property value) + IDR  6. amended by Law No.913 = USD 129. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. the local PBB Tax Office issues a tax assessment to land owners. j. i. In theory.224 (IDR  50. those payments are usually made three days before the execution of the sale–purchase deed. sometimes the land book is unavailable. However. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Every year.000 + (0. e. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.000 stamp duty per document (2 required)) Comments: Registration of the Land Deed at the local Land Office (BPN) to have the purchaser’s name registered and recorded in the land certificate. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. h. SE– 04/P. Procedure 6. industry or green belt. The land title search would also involve a check at the local City Planning Office. j. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 21 days Cost: IDR  1. 1996).1 of the Director General of Taxation Circular No.111. Permit for Building Establishment. Evidence of the latest payment of Tax on Land and Building (PBB).000 + (0. b. The documentation shall include: a. b. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. Cost: IDR  13.000. the notary submits such deed including its supporting documents to the Land Office. c. the local PBB Tax Office issues a tax assessment to land owners. dated_______. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid.000 Comments: A land certificate examination is carried out by a Land Deed Official. Procedure 3*. According to the law on Local Tax (Law No. 28/2009). 24/1997 concerning the Land Registration). b. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 15 days Cost: IDR  1. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). d. misplaced or being used by another division of the Land Office. For convenience. located at the local government office. Procedure 5. the local regulation (Perda No. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. 7/1983. g. to determine the intended use of the said plot of land. Original land certificate. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  63. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. d. c.LIST OF PROCEDURES 87 Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. Deed of Establishment and its amendments of both the seller and purchaser.1 and 5. 18/2010) stipulates a NPOPTKP of IDR  80. e.223. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.111. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50. Copy of the applicant’s identification or its proxy. Deed of Establishment and its amendments of both the seller and purchaser. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN).000.404. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). By custom.000 Data as of: July 2011 Procedure 1. Advise Planning from the City Administration Institution. Land Ownership Certificate. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2).000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. time ________’ and is initialed by the officer at the Land Office. it usually takes 1 day.422. For Jakarta. Procedure 6. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. Permit for Building Establishment. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.196 (5% of property value minus IDR  80 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. g.224 (IDR  50. f. but in practice the wait is much longer because of the backlog. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. * This procedure can be completed simultaneously with previous procedures. c.1% of property value) + IDR  6. The taxpayer reports the transfer of land title.404. The documentation shall include: a. whether for residences.000. If the land book concerned is available at the Land Office. h.

b.1 of the Director General of Taxation Circular No. it usually takes 1 day. Procedure 6. amended by Law No. time ________’ and is initialed by the officer at the Land Office. Procedure 2. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50.000. the buyer has to phone the Officer at the Land Office to ask about the progress. 1996). g. No written statement is given.1% of property value) + IDR  6. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Every year.000 + (0.33/1996 dated August 26.404. f.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.2 of Law No. The documentation shall include: a. industry or green belt.2 of Law No. to determine the intended use of the said plot of land. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Procedure 3*. c. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). whether for residences. Land certificate examination at the local Land Office (BPN) Time: 2 days Cost: IDR  50. However. misplaced or being used by another division of the Land Office. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Procedure 5.913 = USD 129. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). 7/1983. h.000. misplaced or being used by another division of the Land Office.J. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4).1 and 5. Original land certificate. For Jambi. dated_______.111. the local regulation (Perda No. 1996). Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). stamps and signs it. According to the law on Local Tax (Law No. However. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. The taxpayer reports the transfer of land title.111. * This procedure can be completed simultaneously with previous procedures. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. b. Copy of the applicant’s identification or its proxy.111.913 = USD 129. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. The land title search would also involve a check at the local City Planning Office. Copy of the applicant’s identification or its proxy. sometimes the land book is unavailable. By custom. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. Permit for Building Establishment. Procedure 3*. it usually takes 1 day.422. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. Makassar. Deed of Establishment and its amendments of both the seller and purchaser. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value.342.000. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. In between submission of the deed and pick–up.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.196 (5% of property value minus IDR  60 million which is tax–free) . Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. located at the local government office. Procedure 2. b. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. the change of ownership must be registered with the Land and Building Tax Office (PBB). e.1 of the Director General of Taxation Circular No.223.224 (IDR  50.88 DOING BUSINESS IN INDONESIA 2012 Comments: In connection to the registration of the Land Deed. REGISTERING PROPERTY 28/2009). Evidence of the latest payment of Tax on Land and Building (PBB). the BPHTB belongs to the local government. South Sulawesi Property value: IDR  1. No written statement is given. * This procedure can be completed simultaneously with previous procedures. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.000 Data as of: July 2011 Procedure 1. whether for residences. Procedure 1. 10/2010) stipulates a NPOPTKP of IDR  60. SE– 04/P. industry or green belt. i.000 Comments: A land certificate examination is carried out by a Land Deed Official. Jambi Property value: IDR  1. If the land book concerned is available at the Land Office. The land title search would also involve a check at the local City Planning Office.342. c. REGISTERING PROPERTY Jambi. those payments are usually made three days before the execution of the sale–purchase deed. Land Ownership Certificate.223. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.33/1996 dated August 26. to determine the intended use of the said plot of land. Land Ownership Certificate. located at the local government office.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. the change of ownership must be registered with the Land and Building Tax Office (PBB). Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. c.111. If the land book concerned is available at the Land Office.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. dated_______. SE–04/P. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.000 Data as of: July 2011 Procedure 4.1 and 5. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. the local PBB Tax Office issues a tax assessment to land owners. d. For convenience. time ________’ and is initialed by the officer at the Land Office. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. The taxpayer reports the transfer of land title.J. sometimes the land book is unavailable. 7/1983. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.000.000 Comments: A land certificate examination is carried out by a Land Deed Official. amended by Law No.

196 (5% of property value minus IDR  25 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))].33/1996 dated August 26.000 stamp duty per document (2 required)) .1 of the Director General of Taxation Circular No. c. 10/1994 and Law Procedure 5. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). f. it is still under the old system (based on Article 7 of Law 20/2000. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.422. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. No written statement is given. whether for residences. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. dated_______. h. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. 28/2009). amended by Law No. Land Ownership Certificate. sometimes the land book is unavailable. While waiting for Manado to enact local regulations to implement the law on Local Tax.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. SE– 04/P. Every year. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2).000. the buyer has to phone the Officer at the Land Office to ask about the progress.J.342. Comments: After the buyer submits the registration of the Land Deed.000.404. to determine the intended use of the said plot of land. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. The documentation shall include: a. the BPHTB belongs to the local government. 3/2010) stipulates a NPOPTKP of IDR  60.000. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. g. it usually takes 1 day. e. REGISTERING PROPERTY Manado.000. For convenience. b. stamps and signs it.913 = USD 129. Deed of Establishment and its amendments of both the seller and purchaser. Evidence of the latest payment of Tax on Land and Building (PBB). Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  65.000. the NPOPTKP is IDR  25. time ________’ and is initialed by the officer at the Land Office. According to the law on Local Tax (Law No. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. c. If the land book concerned is available at the Land Office. g. Procedure 6. those payments are usually made three days before the execution of the sale–purchase deed. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.861. For Makassar. By custom. j. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. located at the local government office.000. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Every year. * This procedure can be completed simultaneously with previous procedures.000. industry or green belt. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.LIST OF PROCEDURES 89 Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. e.000.1 and 5. the BPHTB belongs to the local government. amending Law 21/1997) in which the maximum value for NPOPTKP is 60. i. Permit for Building Establishment. the local regulation (Perda No. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. h.224 (IDR  50. Original land certificate. d. Advise Planning from the City Administration Institution.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.111. The documentation shall include: a.000 + (0. Procedure 2.223. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.000 Data as of: July 2011 Procedure 1. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50.2 of Law No. North Sulawesi Property value: IDR  1. the local PBB Tax Office issues a tax assessment to land owners. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. Evidence of the latest payment of Tax on Land and Building (PBB). the local PBB Tax Office issues a tax assessment to land owners. Procedure 3*. The taxpayer reports the transfer of land title. 28/2009). 7/1983. the change of ownership must be registered with the Land and Building Tax Office (PBB). the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. f. According to the law on Local Tax (Law No. In between submission of the deed and pick–up. misplaced or being used by another division of the Land Office. c.000. The land title search would also involve a check at the local City Planning Office.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. Procedure 4.000 Comments: A land certificate examination is carried out by a Land Deed Official. b. However.000. By custom. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. In Manado. Original land certificate. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. those payments are usually made three days before the execution of the sale–purchase deed. 17/2000 concerning Income Tax and Parts 2. Deed of Establishment and its amendments of both the seller and purchaser. d. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. Procedure 4.422. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. Copy of the applicant’s identification or its proxy. b. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3).1% of property value) + IDR  6. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. For convenience. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. 1996). Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.

it usually takes 1 day. Advise Planning from the City Administration Institution. d.2 of Law No.404. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. If the land book concerned is available at the Land Office. The land title search would also involve a check at the local City Planning Office. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). According to the law on Local Tax (Law No.223.000 + (0.000. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed.J. For Mataram.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a.111. misplaced or being used by another division of the Land Office. No written statement is given. Seller pays Transfer Tax at a bank Time: 1 day . Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50.000. sometimes the land book is unavailable.1% of property value) + IDR  6.1% of property value) + IDR  6.90 DOING BUSINESS IN INDONESIA 2012 i. the local regulation (Perda No.1 and 5.000 Comments: A land certificate examination is carried out by a Land Deed Official. it usually takes 1 day.000 + (0. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. stamps and signs it. Original land certificate. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). f.1 of the Director General of Taxation Circular No. * This procedure can be completed simultaneously with previous procedures. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 15 days Cost: IDR  1. Procedure 1. Land Ownership Certificate. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. h. located at the local government office. SE–04/P. * This procedure can be completed simultaneously with previous procedures. However. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. to determine the intended use of the said plot of land. the buyer has to phone the Officer at the Land Office to ask about the progress. dated_______. misplaced or being used by another division of the Land Office. 7/1983. c.000 Data as of: July 2011 Procedure 1. The taxpayer reports the transfer of land title. Procedure 3*. However. the BPHTB belongs to the local government. Every year.342. Deed of Establishment and its amendments of both the seller and purchaser. The documentation shall include: a. c. the change of ownership must be registered with the Land and Building Tax Office (PBB).224 (IDR  50. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.223. North Sumatra Property value: IDR  1. Procedure 6. amended by Law No. Copy of the applicant’s identification or its proxy. Permit for Building Establishment. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. If the land book concerned is available at the Land Office. the change of ownership must be registered with the Land and Building Tax Office (PBB). industry or green belt. REGISTERING PROPERTY Mataram. West Nusa Tenggara Property value: IDR  1. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. g. the local PBB Tax Office issues a tax assessment to land owners. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. REGISTERING PROPERTY Procedure 6. to determine the intended use of the said plot of land. Permit for Building Establishment. 30/2010) stipulates a NPOPTKP of IDR  60.111. Medan.33/1996 dated August 26. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. those payments are usually made three days before the execution of the sale–purchase deed. The Land Office crosses out the name of the previous owner and inserts the name of the buyer.342. the buyer has to phone the Officer at the Land Office to ask about the progress.913 = USD 129. Land Ownership Certificate. For convenience.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. b. whether for residences. Evidence of the latest payment of Tax on Land and Building (PBB). Procedure 5. Buyer pays Tax on Acquisition on Land and Building at local government Revenue Office (Dispenda) Time: 1 day Cost: IDR  64.000 Comments: A land certificate examination is carried out by a Land Deed Official. 28/2009). the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. j. The land title search would also involve a check at the local City Planning Office. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. sometimes the land book is unavailable.000. In between submission of the deed and pick–up. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 5 days Cost: IDR  1. Land certificate examination at the local Land Office (BPN) Time: 4 days Cost: IDR  50.422.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. e. In between submission of the deed and pick–up. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Cost: IDR  67. b.913 = USD 129. c. Copy of the applicant’s identification or its proxy.224 (IDR  50.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). whether for residences. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. By custom.000 Data as of: July 2011 Procedure 4. time ________’ and is initialed by the officer at the Land Office. i. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. industry or green belt. The taxpayer reports the transfer of land title. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. Procedure 5. located at the local government office. No written statement is given. but a note is made on the certificate saying ‘Has been examined and Procedure 2.000. 1996). Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). j.404.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. stamps and signs it. b. Advise Planning from the City Administration Institution.

The documentation shall include: a. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.1 and 5. For convenience. By custom. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed.1 of the Director General of Taxation Circular No.111. Procedure 3*. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. Procedure 3*. industry or green belt. 7/1983. the BPHTB belongs to the local government. 1996). g. Procedure 5. amending Law 21/1997) in which the maximum value for NPOPTKP is 60. Palangka Raya. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Copy of the applicant’s identification or its proxy.000 + (0. Procedure 4.196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). Permit for Building Establishment. The taxpayer reports the transfer of land title.000.000. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64.1 and 5. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility .342. b. dated_______. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. Central Kalimantan Property value: IDR  1. d. f.1 of the Director General of Taxation Circular No. amended by Law No. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.000. SE–04/P.000. j. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  66. While waiting for Medan to enact local regulations to implement the law on Local Tax. those payments are usually made three days before the execution of the sale–purchase deed. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value.404. While waiting for Palangka Raya to apply local regulations to implement the law on Local Tax. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. In Palangka Raya. Evidence of the latest payment of Tax on Land and Building (PBB). Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser.000. Procedure 2.J. the NPOPTKP is IDR  60. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. time ________’ and is initialed by the officer at the Land Office. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). the NPOPTKP is IDR  20. e.LIST OF PROCEDURES 91 according to the Land Registry/ Land Book at the Land Office. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.1% of property value) + IDR  6. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50. amended by Law No. The land title search would also involve a check at the local City Planning Office.000. dated_______. By custom. h. SE–04/P. Land Ownership Certificate. to determine the intended use of the said plot of land.000 Comments: A land certificate examination is carried out by a Land Deed Official. According to the law on Local Tax (Law No.000 Data as of: July 2011 Procedure 1. In between submission of the deed and pick–up. sometimes the land book is unavailable. Original land certificate. No written statement is given. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.111.2 of Law No. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. For convenience. those payments are usually made three days before the execution of the sale–purchase deed. it is still under the old system (based on Article 7 of Law 20/2000.000. Procedure 6.000.111. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.422. According to the law on Local Tax (Law No. the local PBB Tax Office issues a tax assessment to land owners. 28/2009). the local PBB Tax Office issues a tax assessment to land owners. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). 1996).000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.2 of Law No.000. Deed of Establishment and its amendments of both the seller and purchaser. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. 7/1983.33/1996 dated August 26.196 (5% of (property value minus IDR  60 million which is tax–free)) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. c. However. REGISTERING PROPERTY Procedure 4. the buyer has to phone the Officer at the Land Office to ask about the progress. 28/2009).223. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. misplaced or being used by another division of the Land Office. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN).000. In Medan. time ________’ and is initialed by the officer at the Land Office.224 (IDR  50. Procedure 2. * This procedure can be completed simultaneously with previous procedures. the change of ownership must be registered with the Land and Building Tax Office (PBB). The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. c. i.111. Advise Planning from the City Administration Institution. the BPHTB belongs to the local government. The documentation shall include: a. whether for residences. located at the local government office. Every year. Evidence of the latest payment of Tax on Land and Building (PBB).913 = USD 129.33/1996 dated August 26. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. b. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1.422. Seller pays Transfer Tax at a bank Time: 2 days Cost: IDR  67. it is still under the old system (based on Article 7 of Law 20/2000. it usually takes 1 day. amending Law 21/1997) in which the maximum value for NPOPTKP is 60.196 (5% of property value minus IDR  20 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Every year. stamps and signs it.000.000. Original land certificate.J. If the land book concerned is available at the Land Office. b.

Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 8 days Cost: IDR  1. Advise Planning from the City Administration Institution. time ________’ and is initialed by the officer at the Land Office. e. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. industry or green belt.000.224 (IDR  50000 + (0. Deed of Establishment and its amendments of both the seller and purchaser. f. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Original land certificate. * This procedure can be completed simultaneously with previous procedures. e. Land Ownership Certificate. No written statement is given. South Sumatra Property value: IDR  1. the local PBB Tax Office issues a tax assessment to land owners. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 3 years. dated_______. the change of ownership must be registered with the Land and Building Tax Office (PBB). the local regulation (Perda No. c. 1/2011) stipulates a NPOPTKP of IDR  60.000. f. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. stamps and signs it. Every year. For Palembang. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4).2 of Law No.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. 7/1983. In between submission of the deed and pick–up. Copy of the applicant’s identification or its proxy. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. Procedure 3*. sometimes the land book is unavailable. b.33/1996 dated August 26. By custom. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.000 Data as of: July 2011 Procedure 1. g.913 = USD 129. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. j. the change of ownership must be registered with the Land and Building Tax Office (PBB). stamps and signs it. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. to determine the intended use of the said plot of land.000 Procedure 4. Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. whether for residences. the buyer has to phone the Officer at the Land Office to ask about the progress.000 + (0. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.1% of property value) + IDR  6. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. The Land Office crosses out the name of the previous owner and inserts the name of the buyer.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. SE–04/P.223. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Deed of Establishment and its amendments of both the seller and purchaser. If the land book concerned is available at the Land Office. Procedure 5. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.404. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). it usually takes 1 day. i. b. the buyer has to phone the Officer at the Land Office to ask about the progress. h. amended by Law No. Permit for Building Establishment. Procedure 6. According to the law on Local Tax (Law No. * This procedure can be completed simultaneously with previous procedures. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). h.000. Comments: A land certificate examination is carried out by a Land Deed Official.92 DOING BUSINESS IN INDONESIA 2012 c. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. In between submission of the deed and pick–up. The taxpayer reports the transfer of land title.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. bills for the last three months––though in practice the office will check the last 10 years. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. the BPHTB belongs to the local government. those payments are usually made three days before the execution of the sale–purchase deed. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50. Procedure 5. Procedure 2. i. 28/2009). c. Advise Planning from the City Administration Institution. d. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. The land title search would also involve a check at the local City Planning Office. j.1 of the Director General of Taxation Circular No. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 14 days Cost: IDR  1.J. located at the local government office. The taxpayer reports the transfer of land title. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. The documentation shall include: a. d. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2).1% of property value) + IDR  6. misplaced or being used by another division of the Land Office. 1996).342. Permit for Building Establishment. For convenience.422. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed.000.224 (IDR  50. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.1 and 5. REGISTERING PROPERTY Palembang. g.111. . However.404. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.239 (1% of the property value) Procedure 6.111. Evidence of the latest payment of Tax on Land and Building (PBB).

c. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  55. f. misplaced or being used by another division of the Land Office. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. industry or green belt. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Original land certificate.224 (IDR  50. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. those payments are usually made three days before the execution of the sale–purchase deed. In between submission of the deed and pick–up. REGISTERING PROPERTY Pontianak.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.1 and 5. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day . No written statement is given. the BPHTB belongs to the local government. located at the local government office.2 of Law No. The land title search would also involve a check at the local City Planning Office. The documentation shall include: a. Deed of Establishment and its amendments of both the seller and purchaser. Cost: No cost Comments: In connection to the registration of the Land Deed. However.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. If the land book concerned is available at the Land Office. SE– 04/P. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. d.223. 4/2010) stipulates a NPOPTKP of IDR  60. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). Copy of the applicant’s identification or its proxy. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. b. However. According to the law on Local Tax (Law No. 1996). Procedure 6.422. whether for residences. SE– 04/P. to determine the intended use of the said plot of land. Procedure 5.33/1996 dated August 26. Land certificate examination at the local Land Office (BPN) Time: 2 days Cost: IDR  50.1 of the Director General of Taxation Circular No.913 = USD 129. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. Procedure 2. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. to determine the intended use of the said plot of land. The taxpayer reports the transfer of land title. Every year. i. * This procedure can be completed simultaneously with previous procedures. The Land Office crosses out the name of the previous owner and inserts the name of the buyer.J.000. According to the law on Local Tax (Law No. dated_______.342.1% of property value) + IDR  6. amended by Law No.404. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. For Pekanbaru.000 Comments: A land certificate examination is carried out by a Land Deed Official. dated_______. time ________’ and is initialed by the officer at the Land Office. 1996). Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4).196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. By custom. b. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.1 and 5. stamps and signs it. it usually takes 1 day. 28/2009).196 (5% of (property value minus IDR  60 million which is tax–free)) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Permit for Building Establishment.913 = USD 129. amended by Law No. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office.223. time ________’ and is initialed by the officer at the Land Office. h. the local regulation (Perda No.000 Data as of: July 2011 Procedure 1. the local PBB Tax Office issues a tax assessment to land owners. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN).000.33/1996 dated August 26.000 Comments: A land certificate examination is carried out by a Land Deed Official. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 5 days Cost: IDR  13.000.000.196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. If the land book concerned is available at the Land Office.000 + (0. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. West Kalimantan Property value: IDR  1. For convenience. b. located at the local government office. whether for residences.111. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. Land Ownership Certificate. Procedure 3*. g.J.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Copy of the applicant’s identification or its proxy. sometimes the land book is unavailable. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. Land Ownership Certificate. Riau Property value: IDR  1. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser.000 Data as of: July 2011 Procedure 1. No written statement is given.111. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. j.LIST OF PROCEDURES 93 REGISTERING PROPERTY Pekanbaru. 7/1983. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). Procedure 3*. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 20 days Cost: IDR  1. the buyer has to phone the Officer at the Land Office to ask about the progress. misplaced or being used by another division of the Land Office. industry or green belt.2 of Law No. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2.1 of the Director General of Taxation Circular No. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. Procedure 4.111. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. Procedure 2. sometimes the land book is unavailable. e. The land title search would also involve a check at the local City Planning Office. 7/1983. Evidence of the latest payment of Tax on Land and Building (PBB). c. it usually takes 1 day. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.111. c. Advise Planning from the City Administration Institution. the change of ownership must be registered with the Land and Building Tax Office (PBB).342.

Every year. f. the local PBB Tax Office issues a tax assessment to land owners. Permit for Building Establishment. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. For Semarang. Copy of the applicant’s identification or its proxy. 2/2011) stipulates a NPOPTKP of IDR  60. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 2 and 3 have been paid. d. By custom.223. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). c. The documentation shall include: a. i. sometimes the land book is unavailable. Evidence of the latest payment of Tax on Land and Building (PBB). For convenience. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.000. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. Advise Planning from the City Administration Institution. Procedure 5. Deed of Establishment and its amendments of both the seller and purchaser. e. For Pontianak. Procedure 5. the change of ownership must be registered with the Land and Building Tax Office (PBB). Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). but a note made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. h. The documentation shall include: a. According to the law on Local Tax (Law No. c. the local PBB Tax Office issues a tax assessment to land owners. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). b. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. For convenience. . j. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. SE–04/P. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. Original land certificate.1 of the Director General of Taxation Circular No. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Central Java Property value: IDR  1. By custom. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64.342. c. Procedure 6. Procedure 4.000 + (0. e. f. Deed of Establishment and its amendments of both the seller and purchaser. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). j.000.404. Semarang. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. 1996). the buyer has to phone the Officer at the Land Office to ask about the progress.000. the BPHTB belongs to the local government. 6/2010) stipulates a NPOPTKP of IDR  60. No written statement is given. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. However.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.94 DOING BUSINESS IN INDONESIA 2012 28/2009). Procedure 2. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2.33/1996 dated August 26. Permit for Building Establishment. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1.000. dated_______. amended by Law No. but it required in practice for property transfers in Semarang. 7/1983. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.224 (IDR  50.000 Comments: A land certificate examination is carried out by a Land Deed Official. Advise Planning from the City Administration Institution.000.1 and 5. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. i. Land certificate examination at the local Land Office (BPN) Time: 2 days Cost: IDR  50.2 of Law No.J. There is no legal basis for this procedure. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. b.000 Data as of: July 2011 Procedure 1. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.111. The taxpayer reports the transfer of land title. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Evidence of the latest payment of Tax on Land and Building (PBB).196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13.000. REGISTERING PROPERTY 28/2009). g. it usually takes 1 day. Original land certificate. b. Procedure 3*. stamps and signs it. In between submission of the deed and pick–up.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.000. Land Ownership Certificate. Procedure 4. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 5). Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). a note is issued and provided to the PPAT. h. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. the local regulation (Perda No. * This procedure can be completed simultaneously with previous procedures.913 = USD 129.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))].1% of property value) + IDR  6. Verification of the property market value at the Local Revenue Office (DPKAD) Time: 5 days Cost: No cost Comments: The Land Deed Official (PPAT) must verify at the local revenue office (DPKAD) that the value of the property transfer is in line with market prices.111. time ________’ and initialed by the officer at the Land Office.000. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. If the land book concerned is available at the Land Office. misplaced or being used by another division of the Land Office. g. the local regulation (Perda No. Every year. those payments are usually made three days before the execution of the sale–purchase deed.422. After the assessment. d. the BPHTB belongs to the local government.422. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. those payments are usually made three days before the execution of the sale–purchase deed.

The taxpayer reports the transfer of land title. c.342. However. time ________’ and is initialed by the officer at the Land Office. No written statement is given. Copy of the applicant’s identification or its proxy.224 (IDR  50000 + (0. the change of ownership must be registered with the Land and Building Tax Office (PBB).361. Evidence of the latest payment of Tax on Land and Building (PBB). In between submission of the deed and pick–up. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). * This procedure can be completed simultaneously with previous procedures. d. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2).000 Data as of: July 2011 Procedure 1. j. sometimes the land book is unavailable. Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. Land certificate examination at the local Land Office (BPN) Time: 3 days Cost: IDR  50. misplaced or being used by another division of the Land Office. REGISTERING PROPERTY Procedure 6. located at the local government office.1 and 5.111. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  63. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. In between submission of the deed and pick–up. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. the buyer has to phone the Officer at the Land Office to ask about the progress. 28/2009). Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. For convenience. Procedure 3*. time ________’ and is initialed by the officer at the Land Office. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.000 Data as of: July 2011 Procedure 4. According to the law on Local Tax (Law No. sometimes the land book is unavailable. By custom. Land Ownership Certificate. If the land book concerned is available at the Land Office. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. b. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. c. Procedure 5.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights.342. whether for residences.422.223. Copy of the applicant’s identification or its proxy. c. 7/1983. Surakarta. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.913 = USD 129.223.000. 11/2010) stipulates a NPOPTKP of IDR  75. Procedure 2. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. For Surabaya.404.000 Comments: A land certificate examination is carried out by a Land Deed Official. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. whether for residences. located at the local government office.000 Comments: A land certificate examination is carried out by a Land Deed Official. b. g.LIST OF PROCEDURES 95 Procedure 6. b. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1.224 (IDR  50. the BPHTB belongs to the local government. i. Land certificate examination at the local Land Office (BPN) Time: 3 days Cost: IDR  50.1 of the Director General of Taxation Circular No. The taxpayer reports the transfer of land title.913 = USD 129. e.33/1996 dated August 26. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a.000. The Land Office crosses out the name of the previous owner and inserts the name of the buyer.000. Advise Planning from the City Administration Institution.J. No written statement is given. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Procedure 7. Deed of Establishment and its amendments of both the seller and purchaser. dated_______. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.1% of property value) + IDR  6. Permit for Building Establishment.000. f. it usually takes 1 day. industry or green belt. amended by Law No. stamps and signs it. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. Land Ownership Certificate. If the land book concerned is available at the Land Office. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.196 (5% of (property value minus IDR  75 million which is tax–free)) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))].1% of property value) + IDR  6.2 of Law No. to determine the intended use of the said plot of land. stamps and signs it. Procedure 1. Original land certificate. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. The land title search would also involve a check at the local City Planning Office.404. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). misplaced or being used by another division of the Land Office. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. REGISTERING PROPERTY Surabaya. industry or green belt.000 + (0.196 (5% of the property value ) . The documentation shall include: a. to determine the intended use of the said plot of land. Central Java Property value: IDR  1. dated_______. SE– 04/P. East Java Property value: IDR  1. However. 1996). The Land Office crosses out the name of the previous owner and inserts the name of the buyer. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). The land title search would also involve a check at the local City Planning Office. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. the local regulation (Perda No. it usually takes 1 day. the buyer has to phone the Officer at the Land Office to ask about the progress. the local PBB Tax Office issues a tax assessment to land owners. those payments are usually made three days before the execution of the sale–purchase deed. * This procedure can be completed simultaneously with previous procedures. Every year. the change of ownership must be registered with the Land and Building Tax Office (PBB). h.

8/2010) stipulates a NPOPTKP of IDR  60. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67. SE–04/P. Original land certificate.239 (1% of the property value) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials. those payments are usually made three days before the execution of the sale–purchase deed. it usually takes 1 day. f. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 3 days Cost: IDR  13. The Regulation of the National Land Agency Number 1 of 2010 stipulates that the requirements to examine the land certificate include the following: a. but a note is made on the certificate saying ‘Has been examined and according to the Land Registry/ Land Book at the Land Office. Procedure 1.1 and 5. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. The documentation shall include: a. Execution of sale and purchase of Land Deed by a Land Deed Official (PPAT) appointed by the Head of the National Land Office or a local Head of a Sub–District Time: 2 days Cost: IDR  13. those payments are usually made three days before the execution of the sale–purchase deed.111. According to the law on Local Tax (Law No. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). dated_______.J.2 of Law No. 1996). 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. Land certificate examination at the local Land Office (BPN) Time: 1 day Cost: IDR  50. REGISTERING PROPERTY Procedure 4. Procedure 3*. For convenience. If the land book concerned is available at the Land Office.1 of the Director General of Taxation Circular No. The taxpayer reports the transfer of land title. For Yogyakarta. d. 13/2010) stipulates a NPOPTKP of IDR  60. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2).000 + (0.000. i.1% of property value) + IDR  6.000.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Original land certificate. the change of ownership must be registered with the Land and Building Tax Office (PBB). sometimes the land book is unavailable.196 (5% of the property value ) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. the local PBB Tax Office issues a tax assessment to land owners. The Land Office crosses out the name of the previous owner and inserts the name of the buyer. Procedure 6. However.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed.913 = USD 129. . Permit for Building Establishment. Deed of Establishment and its amendments of both the seller and purchaser. The documentation shall include: a. Every year. e. so then the examination process will be pending and it usually takes a few days to obtain the information from the Land Office.2 of Law No. 28/2009). the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years.000.000 Data as of: July 2011 Procedure 4.J. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4.196 (5% of property value minus IDR  60 million which is tax–free) Comments: The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x [(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non–taxable sale value or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60. 1996).196 (5% of the property value) Comments: The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 5% which is calculated on the transfer value. the local regulation (Perda No. the BPHTB belongs to the local government. the buyer has to phone the Officer at the Land Office to ask about the progress. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN).000.96 DOING BUSINESS IN INDONESIA 2012 Procedure 2.33/1996 dated August 26. the local PBB Tax Office issues a tax assessment to land owners. b. By custom. Seller pays Transfer Tax at a bank Time: 1 day Cost: IDR  67.33/1996 dated August 26. Buyer pays Tax on Acquisition on Land and Building at a bank Time: 1 day Cost: IDR  64.111. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in Procedure 2). the BPHTB belongs to the local government.239 (1% of the property value ) Comments: The execution of the sale and purchase of the Land Deed is made before Land Officials.223. the buyer usually wants to obtain the original of the payment of PBB for the past three years and utility bills for the last three months––though in practice the office will check the last 10 years. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Procedure 5. Advise Planning from the City Administration Institution. b. Copy of the applicant’s identification or its proxy. 28/2009). For Surakarta.422. b.422.342. c.000 Comments: A land certificate examination is carried out by a Land Deed Official. j. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 45 days Cost: IDR  1. 7/1983. Procedure 2. * This procedure can be completed simultaneously with previous procedures. Land Ownership Certificate. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner.404. According to the law on Local Tax (Law No. those to the local government are paid at the Local Government Bank and/or other private commercial bank (as per Article 4. 7/1983. namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. Every year.111. No written statement is given.1 and 5. c. h. SE–04/P. Evidence of the latest payment of Tax on Land and Building (PBB). c. By custom. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by virtue of the Deed of the Land Deed Officer. The Land Deed Officer drawing up the sale and purchase deed will only need to see the most recent PBB while the Land Office will need a copy of the most recent PBB for registering the land into the name of the new owner. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name.000. amended by Law No. the local regulation (Perda No.000.000. Evidence of the latest payment of Tax on Land and Building (PBB). namely a Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in procedures 3 and 4 have been paid. In between submission of the deed and pick–up. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2. Procedure 3*.1 of the Director General of Taxation Circular No. For convenience. Taxes to the central government are paid at a bank appointed by the State Treasury by the state–owned bank (Bank BUMN). amended by Law No. Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). misplaced or being used by another division of the Land Office. Yogyakarta. g. Article 87 point 4 of the Law sets a minimum value for the NPOPTKP at IDR  60.000.224 (IDR  50. time ________’ and is initialed by the officer at the Land Office.111. DI Yogyakarta Property value: IDR  1. stamps and signs it.

1% of property value) + IDR  6. Registration of the Land Deed at the Tax on Land and Building Office (PBB) under the name of the buyer Time: 1 day Cost: No cost Comments: In connection to the registration of the Land Deed. j. Deed of Establishment and its amendments of both the seller and purchaser.LIST OF PROCEDURES 97 d. i. Evidence of deed of Company Establishment which was already authorized by the Ministry of Law and Human Rights. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land as required in the Articles of Association of both the seller and purchaser. Procedure 6. * This procedure can be completed simultaneously with previous procedures.404. f. The Land Office crosses out the name of the previous owner and inserts the name of the buyer.000 stamp duty per document (2 required)) Comments: After the buyer submits the registration of the Land Deed. the change of ownership must be registered with the Land and Building Tax Office. Advise Planning from the City Administration Institution. h. . Permit for Building Establishment. Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer Time: 30 days Cost: IDR  1. In between submission of the deed and pick–up.000 + (0. The taxpayer reports the transfer of land title. she/he leaves it there and has to return some days later to pick up the Land Deed that has been registered under the buyer’s name. Company Tax–Registration Numbers (NPWP) of the seller and the purchaser (obtained in Procedure 4). Evidence of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in Procedure 3). stamps and signs it.224 (IDR  50. e. the buyer has to phone the Officer at the Land Office to ask about the progress. g. Procedure 5.

lawyers. The team is grateful for valuable comments provided by colleagues across the World Bank Group. Widodo Sigit Pudjianto. architects. Rista Amalia.Agung Pambudhi. The KPPOD team was led by Robert Endi Jaweng under the general direction of P. and the IFC Funding Mechanism for Technical Assistance and Advisory Services. Annie Amalia Loppies. Switzerland. Natalia Ratna Kentjana. and Maria Regina Retno Budiastuti. Claudia Contreras. Karim Belayachi. Farah Hussein. Stefan Koeberle. Pilar Sanchez-Bella. utility providers. Koeshardo. Dobromir Christow. The team comprised Alessio Zanelli. Azhar Lubis. engineers. Quinn Information Design. The team was led by Sandra Pranoto and Aikaterini Leris under the general direction of Mierta Capaul and Farida Lasida Adji. The team comprised Sigit Murwito. Indra Darmawan. P. Maria Camila Roberts. business consultants. Srinivas. Special thanks go to Minister Azwar Abubakar. property experts. Madalina Papahagi. New Zealand. and Dody Riyadmadji from the Ministry of Home Affairs . Doing Business in Indonesia 2012 would not be possible without the expertise and generous input of more than 210 local contributors and government officials. Minister Gamawan Fauzi. the Kingdom of the Netherlands. and Prasetijono Widjojo.S. Nuril Aulia Munawaroh. Sarvesh Suri. Ngalimun. Trimor Mici. and other professionals routinely administering or advising on the relevant legal and regulatory requirements in Indonesia. Sri Mulyati. including accountants. Yopie Rompas. Frederic Bustelo. Doing Business in Indonesia 2012 benefitted from the support of Chairman Gita Wirjawan. Eko Widjanarko and Dewi Muslikhah from the State Ministry for Administrative Reforms for their support and leadership. Fararatri Widyadari and Gerlin May Catangui. The project was funded by the governments of Australia. Frederic Meunier. The report was edited by Cintra Scott and designed by G. Amalia Adininggar Widyasanti. Novita Patricia Wund. and Greg Elms from World Bank Indonesia delivered guidance during the project implementation. Hendrumal Panjaitan. This project was made possible thanks to the support of the State Ministry for Administrative Reforms (Kementerian Pendayagunaan Aparatur Negara dan Reformasi Birokrasi-Menpan) and the Ministry of Home Affairs (Kementerian Dalam Negeri-MoHA). Pusparani. Peer review comments were received from Adam Sack. Wiharto. Cynthia A. Slamet Purwo Santoso and Johny Ferauchi Djafar from the Investment Coordinating Board. The names of those wishing to be acknowledged individually are listed on the following pages. Finland. Mahendra. Endi Fatoni. and field coordinators and surveyors provided valuable assistance at various stages of the project. . Alejandro Espinosa-Wang.98 Acknowledgments Doing Business in Indonesia 2012 was produced by the IFC Indonesia Advisory Services and the Global Indicators and Analysis Department of the World Bank Group in collaboration with the Regional Autonomy Watch (Komite Pemantauan Pelaksanaan Otonomi Daerah-KPPOD). Boedi Rheza. and Robert Murillo. Ariavita Purnamasari. and Ratna Mustikaningsih from National Development Planning Agency for their assistance throughout the course of the project and to the more than 50 local city government officials and representatives from national government agencies who participated in the project.

DARMA WANGSA ABADI Zulfikar PT.E. Akib BP2T PONTIANAK CITY PRIVATE PROFESSIONALS BALIKPAPAN Andi Sultanry PT DUTA KALTIM KONSELINDO Ari Noer Wirawan PT TRI HITA KIRANA Bambang Karyono Riyadi NOTARY OFFICE Luciana Apriani PT KENCANA BORNEO Mayasusi Likovitasari NOTARY OFFICE Melania Miensye Hambali NOTARY OFFICE Pupu Mahpudin PT. SH NOTARY OFFICE BANDUNG Aos Sudjana JAYA PERKASA PRATAMA . SH NATIONAL LAND BOARD M. SUMBERKITA Pitrajaya Umar UD FIRDA JAYA PRIMA Sahabuddin Nur NOTARY OFFICE Mulia Pamadi PT. PT HAFAIR MAS MAKASSAR Arif Lino Padang CV. SH INDUSTRY.T CV JAYA RAYA GROUP Yel Zulmardi. SH NOTARY OFFICE MATARAM Amirudin PT. Soetomo CV. SY.ACKNOWLEDGEMENTS 99 PUBLIC OFFICIALS BALIKPAPAN Asranuddinsyah LICENSING AND THE REGIONAL INVESTMENT AGENCY Ninik Puji Astuti LAND OFFICE GORONTALO Miranti Yunus ONE STOP SHOP GORONTALO CITY (KPPT) JAMBI Kartono NATIONAL LAND BOARD M. Pangemanan NOTARY OFFICE Patricia Limpele CV. Sijabat PPAT OFFICE Josef Sunar Wibisono PPAT OFFICE JAMBI H. BANGUN CIPTA SARANA Hikmah Devi Hayatdian NOTARY OFFICE Jerry N Ponto CV. KARTIKA JAYA Sri Eko Pratiwi NOTARY OFFICE Sri Hendrayanti NOTARY OFFICE Asep Rahman MUTIARA BANDUNG TIMUR Irma Rachmawati NOTARY OFFICE Kim Mustakim TALYS ENGINEERING Oky Kusprianto ASOSIASI PROFESI TENAGA TERAMPIL DAN AHLI (APTA) / SKILLED MANPOWER AND EXPERT ASSOCIATIONS Riza Zulfikar NOTARY OFFICE Teti Surtiati Hidayat NOTARY OFFICE Tri Nurseptari NOTARY OFFICE Wiratni Ahmadi NOTARY OFFICE Supriyanto ALMATRA GROUP Usman Koloay USMAN KOLOAY NOTARY OFFICE Yondri Darto YONDRI DARTO NOTARY OFFICE Sri Murti Yunus NOTARY/PPAT OFFICE Tommy Oroh NOTARY/PPAT OFFICE Wirdawati Yasin PT. Syafrudin ONE STOP SHOP OF MEDAN CITY Sugeng Karyono NATIONAL LAND BOARD Saiful. SH CITY PLANNING AGENCY SEMARANG Masdiana Safitri ONE STOP SERVICE OFFICE OF SEMARANG CITY Suyono NATIONAL LAND BOARD JAKARTA Achmad Sanusi SECRETARIAT OF THE VICE PRESIDENT’S OFFICE PALANGKA RAYA Muhammad Yusuf PALANGKARAYA ONE STOP SERVICE (KPPT) Syamsurizal LAND OFFICE Teddy Bahan CITY PLANNING AND BUILDING MANAGEMENT LOCAL AGENCY MAKASSAR Darwin Surachman. ANGIE M. S SPATIAL PLANNING AND BUILDING MANAGEMENT LOCAL AGENCY BANDA ACEH Agustyarsyah NATIONAL LAND BOARD OFFICE Ahmad Putra HEAD OF SECTION OF INFORMATION AND COMPLAINING SERVICES Eka Hamda SECRETARIAT OF THE VICE PRESIDENT’S OFFICE SURABAYA Didik Sahadi DOMESTIC TRADE SECTION Eko Prianggodo NATIONAL LAND BOARD Ike Diyah P CITY PLANNING AND SETTLEMENT OFFICE Emila Sovayana ONE STOP SERVICE OFFICE OF BANDA ACEH CITY Ir.NENGGA PRATAMA INTERNUSANTARA MANADO Benny Sutanto NOTARY OFFICE Ferdi B. SH NOTARY OFFICE Yunis Sasmito PT. SINARINDO MULTI LESTARI Gunawan Budiarto NOTARY/PPAT OFFICE Hasna Mokoginta NOTARY/PPAT OFFICE I Gede Oka Subari PT.Fauzi Darwas ONE STOP SHOP OF JAMBI (KPTSP) M. MANADO DENPASAR Harry Diarkoro PPAT OFFICE I Gusti Ngurah Putra Wijaya PPAT OFFICE I Made MertaJaya PPAT OFFICE I Putu Chandra NOTARY SERVICE Ida Monica E. MULIA BATINDO GROUP Ronald Lumban Gaol NATIONAL LAND BOARD Soehendro Gautama SOEHENDRO GAUTAMA. Luthfi INVESTMENT COORDINATING BOARD Muhammad Imanuddin STATE MINISTRY FOR ADMINISTRATIVE REFORMS (MENPAN) Muhammad Rusdi STATE MINISTRY FOR ADMINISTRATIVE REFORMS (MENPAN) Raksaka Mahi COORDINATING MINISTRY OF ECONOMIC AFFAIRS Tamba Hutapea INVESTMENT COORDINATING BOARD Ucu SECRETARIAT OF THE VICE PRESIDENT’S OFFICE MANADO Arming Johanis Sorisi NATIONAL LAND BOARD Herel Menajang ONE STOP SHOP (BPPT) Noldy Lomban INTEGRATED LICENSING AGENCY (BADAN PELAYANAN PERIZINAN TERPADU.PSP BATAM Andy Kurniawan PT SKETSA MEGAH Dhilla PT NUANSA WARNA KONSULTAN Maria Anastasia MARIA ANASTASIA HALIM. MARVEL TAMA JAYA Sembung Threesje NOTARY OFFICE Syalomei T PT. Cerdas Kaban STATE MINISTRY FOR ADMINISTRATIVE REFORMS (MENPAN) M. ANTAREJA Edi Hermansyah NOTARY/PPAT OFFICE Ermi Purnamasari ERMI PURNAMASARI NOTARY OFFICE I Dewa Ayu Gracia Guana Murthi I DEWA AYU GRACIA GUANA MURTHI NOTARY OFFICE I Nengah Sukma Mulyawan NOTARY OFFICE Indah Purwani NOTARY/PPAT OFFICE Lalu Hamidi Agus PT VARINDO LOMBOK BANDA ACEH Lila Triana NOTARY OFFICE Nurdhani NURDHANI NOTARY OFFICE Sabaruddin Salam NOTARY/PPAT OFFICE Syukri Rahmat NOTARY OFFICE Teuku Abdurrahman NOTARY OFFICE GORONTALO Fitri Adam MITRA GROUP Gede Maha Gunada PT. CITY PLANNING OFFICE Toto Asmanto Padmo Soejoto SURAKARTA OSS BATAM Noviandra ONE STOP SHOP AGENCY BATAM CITY MATARAM Halid Aslamudin NATIONAL LAND BOARD Lalu Agus Supriyadi CITY PLANNING OFFICE Lusia Irawati ONE STOP SHOP AGENCY MATARAM CITY (KPPT) PEKANBARU Andreas NATIONAL LAND BOARD Edi Satria INTEGRATED LICENSING AGENCY (BADAN PERIZINAN TERPADU.S. M KN NOTARY OFFICE Lukas Palengka CV. BP2T) PALEMBANG Mahirudin CITY PLANNING OFFICE Rosidi Ali TRADE AND LOCAL INDUSTRY AGENCY Zainal Zahri NATIONAL LAND BOARD BANDUNG Samad Soemarga NATIONAL LAND BOARD OFFICE Soni Bakhtiyar OSS OF BANDUNG CITY (BPPT) SURAKARTA Heru Muljanto NATIONAL LAND BOARD Jaka Santosa A. Fasha. Hasjrif. DAYA KARYA PERSADA Soeharto Puluhulawa BUSINESS ASSOCIATION (APINDO). BPT) Jeki Nurman CITY PLANNING OFFICE DENPASAR Anak Agung Gede Rai Soryawan DENPASAR LICENSING OFFICE I Gusti Putu Anindya Putra CITY PLANNING AND BUILDING LOCAL AGENCIES Tri Nugraha NATIONAL LAND BOARD YOGYAKARTA Heri Karyawan LICENSING AGENCY Triyono NATIONAL LAND BOARD Zaenal Arifin MINISTRY OF HOME AFFAIRS MEDAN Benny Iskandar CITY PLANNING OFFICE PONTIANAK Erpan Efendi. S. NATSIR THAIF SH. TRADE AND INVESTMENT LOCAL AGENCY H. ME BUSINESS ASSOCIATION (GAPEKNAS) John Astra NOTARY OFFICE Muhamad Kendro. JASA MANDIRI Darniati M. MINAHASA MANDIRI SEJAHTERA CAB.

SH PEKANBARU Ahmad Najmi PT SOLID BANDAWA Fery Bakti LAND DEED (PPAT) OFFICE Hotden Nainggolan BUSINESS ASSOCIATION (KADIN) Muhammad Thomas Bietun CV AREBA Qadafi PT. JASA PUTRA KHATULISTIWA Sudharnoto SARJONO BUDI SUDHARNOTO PUBLIC ACCOUNTANT Syarbini Ikhsan KAP. Mahyana Raditya CV.M. WARINGIN MEGAH Fahrudin Zein NOTARY OFFICE Flora Agustine Aritonang NOTARY/PPAT OFFICE Henny Rugian NOTARY/PPAT OFFICE Herawati Eliasari NOTARY/PPAT OFFICE Kusrini Purwijanti NOTARY/PPAT OFFICE Rahardjo NOTARY OFFICE Wiwik Yuliati NOTARY OFFICE PALANGKA RAYA A'an Agus P CV. Setiyo Hidayati NOTARY OFFICE Trisia Nova NOTARY OFFICE Wanly Segar CV. MUARA PANCA UTAMA Esti Handayani NOTARY OFFICE Irawati Dyah Asrining Pratiwi NOTARY OFFICE Madiyana Herawati NOTARY OFFICE Udin Darsono PERUM BUMI SARASWATI SURAKARTA YOGYAKARTA FX Adi Siswanto SERVICE AGENCY Hermastuti Dwi Cahyani HERMASTUTI DWI CAHYANI NOTARY OFFICE M. Ariyo Triwanto Hening Santosa R. SH Yusfrizal NOTARY OFFICE Zainal Abidin LAW OFFICE ZAINAL ABIDIN.Y. Catur Fitri Susilowati NOTARY/PPAT OFFICE Maria Yasinta Catur Fitri Susilowati THOMAS SANTOSA WIJAYA GUNAWAN NOTARY OFFICE MF Jenny Setiawati Yosgiarso. DUTA ADHIKARA Satya Darma Umar Thamrin NOTARY OFFICE Yandes Effriady NOTARY OFFICE Zulkifli Sitompul NOTARY OFFICE SEMARANG Diah Purwaning Nugrahini NOTARY OFFICE Dyah NurWidayati PT. RANCANG BANGUN Arif Nurharyanto BAHANA CIPTA KARSA. WIRA CIPTA DESIGN Agustri Paruna LAND DEED (PPAT) OFFICE Irwan Junaidi LAND DEED (PPAT) OFFICE Nurul Yayuk Indrayani NOTARY SERVICE AGENCY R. PRIME ART DESIGN PONTIANAK Basuki Raharjo NOTARY OFFICE Hernawan PUBLIC ACCOUNTANT Mada Reni Damanik NOTARY/PPAT OFFICE Mahendra Jaya PT.A. LAWANG AGUNG R. SH KANTOR NOTARIS/PPAT MF JENNY SETIAWAT Muhsin Aris Widiatmoko CV.A. KHARISMA Sunarto NOTARY OFFICE Toto Susmono Hadi NOTARY OFFICE PALEMBANG Ahsan Sohar CV. CAHAYA KARYA NUSANTARA John Ismail CV. TRIREKA BANGUN Aprizal Andri Yanto NOTARY OFFICE Ediyanto Rasyid BUSINESS ASSOCIATION Elmadiantini NOTARY OFFICE . PT Bambang Widiyanto DUTA WIRYA Sri Murtini NOTARY OFFICE Sukandar PT. Syafei Lubis NOTARY OFFICE Sri Damayani Barus NOTARY OFFICE Tagor Mulya Parinduri LAW OFFICE TAGOR MULYA PARINDURI. DABAKIR PUTRA MANDIRI Wahyu Tanoyo PT. TRI MATRA R. BANGKIT PUTRA ANDALUS Bambang Soegeng PT.SYARBINI IKHSAN SURAKARTA Adib Sujarwadi CV.100 DOING BUSINESS IN INDONESIA 2012 PRIVATE PROFESSIONALS Muhammad Aroman MUHAMMAD AROMAN NOTARY OFFICE Susi Agustina PT. INDONESIA RIAU SRI AVANTIKA Ritawati NOTARY OFFICE Rony Ardiansyah NATIONAL BOARD LEADER OF INKINDO Samharnen NOTARY AND PPAT (LAND DEED) OFFICE Sri Hartika NOTARY AND PPAT (LAND DEED) OFFICE SURABAYA Bambang Setyobudi CV. ANITA DEWI MEIYATRI NOTARY OFFICE Sajiyo Perwita Karya PT PERWITA KARYA Sasongko Noryadi Siswosudarmo SASONGKO NOTARY/PPAT OFFICE MEDAN Fery Susanto Limbong NOTARY OFFICE Ikhsan Lubis NOTARY OFFICE M.

ME LAYA NI MASYARAK AT THE STATE MINISTRY FOR ADMINISTRATIVE REFORMS WWW.ORG/INDONESIA .DOINGBUSINESS.

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