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ESTABLISHMENT & REGISTRATION OF BUSINESS

Registration Of Investment
Any Foreign Investor (PMA-Penanam Modal Asing) is obligated to register its investment through the One-door
Integrated Services (PTSP-Pelayanan Terpadu Satu Pintu) of Investment in BKPM. Registration functions as
the facility for checking whether the business area to be engaged in by the investor is listed in the investment
negative register of not. There is no obligation for Domestic Investors (PMDN-Penanam Modal Dalam Negeri)
to register unless it is necessary to do so.
The Investment registration by Foreign Investor can be performed before or after having a Notarial Deed and
before or after the Company's Legal Entity is legalized by the Department of Law and Human Rights. Within a
period after the Investment Registration, it has to be followed by drawing up the Company's Deed and
obtaining the Company's Legal Entity Legalization.

Taxpayer Number
Having Taxpayer Number (NPWP-Nomor Pokok Wajib Pajak) is an obligation for any individual and legal entity
categorized as Investor (Foreign/Domestic) serving as the identity of taxpayer for the business activities
conducted. Taxpayer Number is also a requirement for drawing up the Company's deed and for obtaining other
licenses. Taxpayer Number is submitted to and processed at the Tax Service Office available in every region.

Establishment Deed of Legal Entity


Investors in Indonesia, both Foreign and Domestic ones, should be legal entities-Limited Liability Companies
(PT-Perseroan Terbatas). The Legal Entity Deed may be processed and issued by a Notary Public, but such
deed should be legalized by the Ministry of Law and Human Rights.

Legalization of Legal Entity


The legalization of business legal entity is undertaken to make the PT legal entity status that has been
obtained from a Notary Public legally enforceable as a business legal entity for investment in the territory of the
Republic of Indonesia. The legalization of business legal entity is conducted by using the online system for
Legal Entity Administration at the Ministry of Law and Human Rights..

FACILITY OBTAINED
Investment Principle License
Registered Foreign Investor or Domestic investor willing to obtain facility in the framework of investment is
obligated to have a Principle License. The available investment facilities are exemption from machinery import
duty, goods and material/substance import duty, VAT, and reduction of Income Tax. The Principle License can
be obtained through the One-Door Integrated Services of Investment at BKPM. For Domestic Investors, by
obtaining the principle license, the facilities that can be obtained are exemption from machinery import duty,
goods and materials import duty, VAT, and reduction of Income Tax.

Importer-Producer Identity Number/General Identity Number


API is the identity of the investors for performing import and obtaining the import facility on the course of
investment. The Importer-Producer Identity Number (API-P or Angka Pengenal Importir-Produsen) is allotted
for the import of capital goods and goods and materials that are not for re-selling (not for trading). The General

Importer Identity Number (API-U or Angka Pengenal Importir-Umum) is allotted for the import of capital goods
and goods and materials that are for re-selling (trading area).

EMPLOYMENT OF FOREIGN WORKERS


Plan of Foreign Workers Employment
RPTKA is a document concerning the foreign worker employment planning that Foreign and Domestic
Investors should have for carrying out any investment activity requiring foreign workers. The Ministry of
Manpower and Transmigration issues the RPTKA.

Recommendation of Visa for Working (TA-01)


TA-01 Recommendation is a document required for obtaining visa special facility for foreign worker employed
for investment activity (Foreign and Domestic Investment) conducted. TA-01 Recommendation is submitted to
and processed at the Ministry of Manpower and Transmigration.

Permit of Foreign Worker Employment


Foreign and Domestic Investors employing foreign workers for their investment activity in the territory of
Indonesia should have IMTA (Izin Menggunakan Tenaga Kerja Asing) or Foreign Worker Employment Permit.
IMTA is submitted to and processed at the Ministry of Manpower and Transmigration.

CONSTRUCTION AND ENVIRONMENT


City Spatial Planning
Some regions oblige the investors to have the document or permit relevant to appropriateness of conducting
investment activity in a location in accordance with the city spatial planning and or urban planning in the
region. The regional governments issue the document through the authorized agency. The name of permit
relevant to the City Spatial Planning is various among the regions. However, some regions do not oblige the
possession of this document since it is considered as having been included in the land possession/utilization
document.

Land Utilization Allotment Permit


Any investment activity (foreign as well as Domestic) requiring land, it is usually obligated to obtain a permit
relevant to the land possession and utilization for such investment activity in the form of an IPPT (Izin
Perutukan Penggunaan Tanah) or Land Utilization Allotment Permit. The Regional Governments issue such
permit and the permit's name is various among the regions but having the same function-to indicate that the
land becoming the investment location has already been possessed by the Investor.

Building Construction Permit


Any Investor (Foreign and Domestic) constructing building for its investment activity should have a building
construction permit. The regional governments issue the building construction permit through the authorized
agency or one-door integrated services in their respective regions.

ENVIRONMENT

Hinder Regulation
In order to assure that the investment activity does not disturb the surrounding communities, the Regional
Government obliges the investors to have Hinder Regulation (HO-Hinder Ordinasi) for their investment activity
(Foreign or Domestic) outside the special area. The regional governments issue the Hinder Regulation through
the authorized agency or one-door integrated services in their respective regions.

Recommendation of Environment Impact Assessment (EIA)


For conducting investment activities (Foreign and Domestic) potentially giving negative impact to the
environment, the investors are obligated to have a Recommendation for Environment Impact Assessment
(EIA) or AMDAL (Analisis Dampak Lingkungan). The regional governments issue the EIA Recommendation
through the authorized regional agency or one-door integrated services in their respective regions.
For smaller-scale investment activity, the environment permit is in the form of Recommendation of UKL/UPL
(Upaya Kelola/Pemantauan Lingkungan) or Environment Management/Monitoring Effort).

Underground Water Suction/Utilization Permit


IPABT (Izin Pengambilan/Pemanfaatan Air Bawah Tanah) or the Underground Water Suction/Utilization Permit
is required for all foreign as well as domestic investments that the operational activities use underground water
sucked by using artesian well or drilled well. The submission of underground suction permit is addressed to
SKPD authorized by the Head of Region.

BUSINESS AREA ESTABLISHMENT


Business License
To be able to conduct business production/operational activity, Foreign Investors are obligated to have a
Business License. The request for obtaining a Business License can be submitted to and processed by using
the One-Door Integrated Services in BKPM.

Business Domicile License.


The Business Domicile License should be possessed for performing the foreign or domestic investment activity
and business activity since it serves as the business legality evidence. SITU is also one of the requirements for
obtaining permits/licenses for conducting business operational activities.

Company's Registration Evidence


Any investor who has had the principle approval and will commence the investment activity in a region is
obligated to have a TDP (Tanda Daftar Perusahaan) or Company's Registration Evidence. TDP can be
processed and issued by the Regional Governments by using the One-Door Integrated Services in the region
or through the Head of Region.

SPECIFIC LICENSING
Business establishment licensing is various among sectors. Investment Step by Step is for knowing the step
of licensing, time, and cost in establishing a business area.

BUSINESS EXTENSION
Principle License Of Investment Extension

The Principle License for Investment Extension should be possessed for performing investment activity and
business activity by foreign as well as domestic investors intending to extend the investment activity that has
been carried out and the investors have previously had the Investment Principle License. Principle License of
Investment Extension is issued in BKPM. Principle License of Investment Extension is submitted to and
processed by using the One-Door Integrated Services in BKPM.

Registration of Investment Extension


The Registration of Investment Extension should be possessed for performing investment activity and
business activity by foreign as well as domestic investors intending to extend the investment activity that has
been carried out and the investors have previously not had the Investment Principle License. Registration of
Investment Extension is issued in BKPM. Registration of Investment Extension is submitted to and processed
by using the One-Door Integrated Services in BKPM.

OWNERSHIP CHANGE
Registration of Investment Change
The Registration of Investment change should be possessed for performing investment activity and business
activity by foreign as well as domestic investors changing the ownership of the investment that has been
carried out and the investor previously does not have/has not had Investment Principle License or Business
License. Registration of Investment Change is issued in BKPM. Registration of Investment Extension can be
submitted to and processed by using the One-Door Integrated Services in BKPM.

Principle License of Investment Change


The Principle License of Investment Change should be possessed for performing investment activity and
business activity by foreign as well as domestic investors changing the ownership of the investment that has
been carried out and the investor previously have had the Investment Principle License. The Principle License
of Investment Change is issued in BKPM. Principle License of Investment Change can be submitted to and
processed by using the One-Door Integrated Services in BKPM.

Change Business License


The Change Business License should be possessed for performing investment activity and business activity
by foreign as well as domestic investors changing the ownership of the investment that has been carried out
and the investor previously have had a Business License. The Change Business License is issued in BKPM.
The Change Business License can be submitted to and processed by using the One-Door Integrated Services
in BKPM.

INDUSTRIAL AREA
Industrial Area is a place for the centralization of processing industry's activities completed with infrastructure,
facility, and other supporting facilities provided and managed by the Industrial Area Company.

INVESTMENT ACTIVITY LICENSE IN THE FIELD OF INDUSTRIAL AREA


Permanent License
It is a License that should be possessed by any company in an Industrial Area that has completed the readyto-use preparation of an Industrial Area. The License is submitted to and processed at the Ministry of Industry.

A Permanent License provided for Domestic Investors is effective as long as such Companies of Industrial
Area still run their operational activity. A permanent License provided for Foreign Investors is effective for 30
years. The requirements that should be fulfilled in order to obtain a permanent license are:
1.

Filling in Model PMK II form as contained in the Decree of the Minister of Industry No.
291/M/SK/10/1989;

2.

Partial Site Plan that has been legalized by the Regional Government;

3.

Confirmation from the Land Regulatory Office in the Region that the land requested is already freed and
free of claim filed by any other party;

4.

Recommendation of AMDAL or EIA and declares that the investor concerned will perform all of its
obligations of managing the environment such those that will be recommended in the RKL/RPL that has
been legalized by the Central Commission of AMDAL of the Department of Industry;

5.

Evidence that the land requested is already prepared to be used physically by the industrial Company
for commencing the preparations of its industrial development.

Principle Approval
The approval that should be had for conducting preparations such as providing land, planning, site planning in
the Industrial Area, and the efforts of development/construction, procurement, and installation or necessary
equipment. The Principle Approval is submitted to and processed at the Ministry of Industry.

Partial Permanent License provided for Companies of Industrial Area


A permanent License that should be possessed step-by-step starting from a part of land that at least 20% of
the total land area in the Location Permit of Industrial Area with minimum 50 Ha-land area. The submission
and process of partial permanent license is conducted at the same time the submission of permanent license
process.

Location Permit
A permit that should be possessed by a company for using a land plot as wide as that is really required for the
interest of the Industrial Area development in accordance with the Region's Planning. Location Permit is
submitted to and processed in SPKD authorized by the Regional Government in the location of the Industrial
Area.

INVESTMENT ACTIVITY LICENSE IN AN INDUSTRIAL AREA


Business License for Business Activity in an Industrial Area
It is a permit issued by the management of the Industrial Area for investors conducting business activity in an
Industrial Area. The License for performing business activity in an Industrial Area is submitted to and
processed at the Management Office of the Industrial Area.

Company's Registration Evidence


Any investor who has had the principle approval and will commence the investment activity in a region is
obligated to have a TDP (Tanda Daftar Perusahaan) or Company's Registration Evidence. TDP can be
processed and issued by the Regional Governments by using the One-Door Integrated Services in the region
or through the Head of Region.

BONDED ZONE
Bonded Zone is a building, place or area with certain borders in which the industrial business activities of
goods and substances/materials processing, architecture/building construction designing, engineering, sorting,
initial inspection, final inspection, and packing of imported goods and materials or goods and materials coming
from the Indonesia's other Customs Areas (DPIL), especially those for export, are undertaken.

PERMIT AS BONDED ZONE MANAGEMENT INCLUDING AS BUSINESS

PRACTITIONER IN BONDED ZONE


It is a permit that should be possessed by the Domestic as well as Foreign investors in
processing/manufacturing industry, not only in assembling industry, who want that its industry's location and or
warehouses/storages get the facility as a bonded zone and obtain the status of Bonded Zone Management
(PKB-Penyelenggara Kawasan Berikat) and as (PDKB-Pengusaha Dalam Kawasan Berikat) Business
Practitioner of Bonded Zone at the same time by fulfilling the requirements determined. The request for
obtaining permit as PKB and as PDKB at the same time may be submitted to the Minister of Finance.
Requirements for obtaining permit as PKB and as PDKB at the same time consist of :
1.

Photocopy of business license issued by relevant technical agency;

2.

Analisa Mengenai Dampak Lingkungan (AMDAL)/Environment Impact Assessment (EIA) or UPL & UKL;

3.

Photocopy of Company's establishment deed legalized by the Department of Law and Human Rights of
the Republic of Indonesia (previously the Department of Justice);

4.

Photocopy of ownership/possession of location/place to be made as Bonded Zone (KB-Kawasan


Berikat) (if based on the lease agreement, it is minimally within a period of 3 (three) years);

5.

Photocopy of Taxpayer Number, determination as Taxable Company/Businesspersons (PKP-Pengusaha


Kena Pajak) and Annual Tax Invoice (SPT) of Income Tax of the latest year for any Company that is
already obligated to hand in Tax Invoice;

6.

Minutes of Location Inspection from the Head of the Customs and Excise Service Office supervising the
activity, attached with the attachments-location map/place blueprint/layout and pictures of locations to
be made as Bonded Zone that have been legalized by the supervisory PKBC;

7.

Decision Letter from the relevant agency of the Regional Government/Regional Regulation determining
the area that is a Bonded Zone candidate is an Industrial Area/Area Alloted for Industry (in the future,
such Bonded Zone permit will be given to the companies in the INDUSTRIAL AREA);

8.

Photocopy of Identity Card (KTP-Kartu Tanda Penduduk or KITAS-Kartu Izin Tinggal Sementara) under
the name of the responsible person of the Company and the photocopy of Work Permit of the foreign
worker (if the responsible person is a foreign citizen);

9.

Photocopy of SPR (Surat Pemberitahuan Registrasi) or Registration Notification Letter).

PERMIT AS COMPANY/BUSINESSPERSON IN BONDED ZONE


It is a permit that should be possessed by the Domestic as well as Foreign investors in
processing/manufacturing industry, not only in assembling industry, who carry out their industry's production
and the warehouses/storages are in the bonded zone, and it is for obtaining the facility as a
Company/Businessperson in the Bonded Zone by fulfilling the requirements determined. The request for
obtaining permit as PDKB may be submitted to the Customs and Excise Office (KBPC-Kantor Pelayanan Bea
Cukai).
Requirements for obtaining permit as PKB and as PDKB at the same time consist of:
1.

Recommendation from Bonded Zone Management (PKB);

2.

Industrial business license issued by relevant technical agency;

3.

Photocopy of Company's establishment deed legalized by the Department of Law and Human Rights of
the Republic of Indonesia (previously the Department of Justice);

4.

Photocopy of ownership/possession of location/place to be made as Bonded Zone (if based on the


lease agreement, it is minimally within a period of 3 (three) years);

5.

Photocopy of Taxpayer Number, determination as Taxable Company/Businesspersons (PKP-Pengusaha


Kena Pajak) and Annual Tax Invoice (SPT) of Income Tax of the latest year for any Company that is
already obligated to hand in Tax Invoice;

6.

Minutes of Location Inspection from the Head of the Customs and Excise Service Office supervising the
activity, attached with the attachments-location map/place blueprint/layout and pictures of locations to
be made as Bonded Zone that have been legalized by the supervisory PKBC;

7.

Initial Balance of raw material, materials in process, ready-made goods, capital goods, and factory's
equipment;

8.

Photocopy of Identity Card (KTP-Kartu Tanda Penduduk or KITAS-Kartu Izin Tinggal Sementara) under
the name of the responsible person of the Company and the photocopy of Work Permit of the foreign
worker (if the responsible person is a foreign citizen);

9.

Photocopy of SPR (Surat Pemberitahuan Registrasi) or Registration Notification Letter.

BUSINESS TERMINATION
Any investor who wants to terminate its investment is obligated to submit an investment revocation. The
investment revocation is for cancelling the investment registration, investment principle license, investment
approval, or Permit of Foreign Company Representative Office.
The submission of investment revocation request to BKPM or investment agency in the region should be
conducted by fulfilling the following requirements:
1.

Revocation request letter signed by the director or the authorized person;

2.

Recording of General Meeting of Shareholders approving the agreement to revoke the Investment
Registration, Investment Principle License, Investment Approval, or Permit of Establishment of Foreign
Company Representative Office, and Business License of Permanent Business License;

3.

Recording of Company's establishment deed including the amendment(s);

4.

LKPM (laporan Kegiatan Penanaman Modal) or Report on Investment Activity for the latest period;

The revocation of investment licensing-Investment Registration/Investment Principle Permit/Investment


Approval, or Business License in is within 10 days.