BKPM Chairman Regulation Number 13 2017

Authorized Translation
INVESTMENT COORDINATING BOARD OF
REPUBLIC OF INDONESIA
COPY OF
REGULATION OF INVESTMENT COORDINATING BOARD OF
REPUBLIC OF INDONESIA
NUMBER 13 OF 2017
CONCERNING
GUIDELINES AND PROCEDURES OF INVESTMENT LICENSING
AND FACILITY
BY THE GRACE OF GOD ALMIGHTY
HEAD OF INVESTMENT COORDINATING BOARD OF
REPUBLIC OF INDONESIA,
Considering : a. that in order to implement the Presidential
Regulation Number 91 of 2017 concerning
Accelerated Implementation of Business Licensing,
it has been conducted evaluation of various legal
basis of the implementation of the Business
Licensing process;
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b. that regulation of Investment Coordinating Board
in relation with investment licensing and non-
licensing services needs to be adjusted to the
dynamics of developments of legislations;
c. that based on consideration as referred to in point
a and point b, it is necessary to establish a
Regulation of Investment Coordinating Board on
Guidelines and Procedures of Investment
Licensing and Facility;
In view of : 1. Law Number 25 of 2007 concerning Investments
(State Gazette of the Republic of Indonesia of
2007 Number 67, Supplementary State Gazette of
the Republic of Indonesia Number 4724);
2. Presidential Regulation Number 90 of 2007
concerning Investment Coordinating Board
as amended by Presidential Regulation Number 86
of 2012 concerning Amendment to the
Presidential Regulation Number 90 of 2007
concerning Investment Coordinating Board (State
Gazette of the Republic of Indonesia of 2012
Number 210);
concerning Implementation of One Stop
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Integrated Service (State Gazette of the Republic
of Indonesia of 2014 Number 221);
concerning Accelerated Implementation of
Business Licensing (State Gazette of the Republic
of Indonesia of 2017 Number 210);
HAS DECIDED:
To stipulate : REGULATION OF INVESTMENT COORDINATING BOARD
CONCERNING GUIDELINES AND PROCEDURES OF
INVESTMENT LICENSING AND FACILITY.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Board Regulation meant by:
1. Investment is any form of investing activities,
either by Domestic Investor or Foreign Investor, to
conduct business in the territory of the Republic of
Indonesia.
2. Investor is an individual or corporation conducting
Investment, which can be either Domestic
Investor or Foreign Investor.
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3. Domestic Investors are Indonesian citizens,
Indonesian corporations, the state of the Republic
of Indonesia, or any region conducting Investment
in the territory of the Republic of Indonesia.
4. Foreign Investor is an individual foreign citizen,
foreign corporation, and/or foreign government
conducting Investment in the territory of the
Republic of Indonesia.
5. Domestic Investment, hereinafter referred to as
PMDN, is the activity of investing to do business in
the territory of Republic of Indonesia by Domestic
Investor using domestic capital.
6. Foreign Investment hereinafter referred to as PMA,
is the activity of investing to conduct business in
the territory of the Republic of Indonesia by
Foreign Investors, either using fully foreign capital
or joining with Domestic Investor.
7. Investment Coordinating Board, hereinafter
referred to as BKPM, is a non-ministerial
Government Institution responsible for
investment, led by a Head who is under and
directly responsible to the President.
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8. Mandate is the delegation of authority from higher
body and/or government official to a lower body
and/or governmental official with responsibility
and accountability remain with the provider of the
mandate.
9. One Stop Integrated Services in the Field of
Investment, hereinafter referred to as PTSP, is a
Licensing and Non-licensing activity based on the
Mandate of Institution or Agency with by Licensing
and Non-Licensing authority the management
process of which starts from the application phase
until the issuance of documents conducted in one
place.
10. Central PTSP in BKPM is Investment-related
Services being the authority of the Government
held in an integrated manner in single process
starts from the application phase until the
completion of the service product in one place in
BKPM.
11. Business Licensing is the approval required for
Businessman to start and run the business and is
granted in the form of consent set forth in the
form of letter/decree or checklist.
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12. Licensing is any form of approval to undertake an
Investment issued by the Central Government,
Regional Government, Free Trade Zone Operator
and Free Port, or Administrator of Special
Economic Zone, which has authority in accordance
with the provisions of the legislations.
13. Investment Facility is any form of fiscal and non-
fiscal incentives as well as ease of Investment
services, in accordance with the provisions of
legislations.
14. Starting Production/Operation is time when
Investment companies both PMA and PMDN are
ready to carry out manufacture of goods and/or
provide services before the sale transaction.
15. Starting Construction Activities is the start of
physical work planning in the form of technical
planning related to business activities.
16. Investment Registration is a form of Government
approval which constitutes principle permit as the
basis of issuance of Licensing and granting of
Investment Facilities.
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17. Business License is a mandatory license for a
company to start production/operation, unless
otherwise provided by legislations.
18. Expansion License is a Business License that must
be obtained by a company to start production for
the implementation of business expansion,
especially for industrial sector.
19. Representative Office of Foreign Company,
hereinafter referred to as KPPA, is an office led by
an individual Indonesian citizen or a foreign
national appointed by a foreign company or a
foreign joint-venture overseas as its
representative in Indonesia.
20. Representative Office of Foreign Trading Company,
hereinafter referred to as KP3A, is an office led by
an individual Indonesian citizen or a foreign
national appointed by a foreign trading company
or a foreign joint-venture overseas as its
representative in Indonesia.
21. Representative Office of Foreign Construction
Business Services is a corporation established by
law and domiciled in a foreign country, having a
representative office in Indonesia, and is equalized
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to a Limited Liability Company engaged in
construction services business.
22. Representative Office of Foreign Oil and Gas
Company hereinafter referred to as KPPA Migas is
an office led by an individual Indonesian citizen or
a foreign national appointed by a foreign company
or a foreign joint-venture overseas as its
representatives in Indonesia engaged in oil and
gas subsector.
23. Decree of Head of Investment Coordinating Board
on behalf of the Minister of Finance concerning the
granting of facilities on the import of
machinery/capital goods and goods and materials
is the granting of import duty facility on the import
of machinery/goods/capital goods as well as goods
and materials for Investment.
24. Decree of Head of Investment Coordinating Board
on behalf of the Minister of Finance concerning the
granting of exemption or relief of import duty
and/or exemption of value added tax on the
import of goods for Coal Mining Work Contract and
Work Agreement is the granting of facilities of
exemption or relief of import duty and/or
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exemption of value added tax on import of goods
for Coal Mining Work Contract and Work
Agreement.
25. Company Management is the board of directors
listed in the Articles of Association/Deed of
Establishment or the amendments that has
secured approval/notification from the Minister of
Justice and Human Rights for a Limited Liability
Company or in accordance with the provisions of
the legislations for other than Limited Liability
Company.
26. Construction is the establishment of a new
company or factory to produce goods and/or
services.
27. Expansion is the development of an existing
company or plant including the addition,
modernization, rehabilitation, and/or restructuring
of the means of production including machinery for
the purpose of increasing the quantity, type,
and/or quality of the products.
28. Machineries are any engine, machinery, plant
installation equipment, devices or tools, either
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installed or dismantled, used for industrial
construction or expansion.
29. Goods and Materials are all goods or materials,
regardless of the type and composition, used as
materials or components to produce finished
goods.
30. Electric Power Generation Industry is the activity
of producing and providing electrical power for
public interest by any corporation doing business
in the field of electricity supply, excluding
transmission, distribution, and electric power
supporting business.
31. Corporation in the Field of Electricity is any legal
entity that could be in the form of a State-Owned
Enterprise, Regional-Owned Enterprise, private
enterprise incorporated in Indonesia, and
cooperatives, engaged in the electricity sector,
established in accordance with the legislations.
32. Coal Mining Concession Work Contract or
Cooperation Agreement Contractor, hereinafter
referred to as Contractor, is a corporation
conducting mineral or coal mining business, for
PMA or PMDN.
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33. Capital Goods for Electricity Sector, hereinafter
referred to as Capital Goods, are machineries,
equipment and plant equipment, either installed or
dismantled, excluding spare parts used for
maintenance in business activities by a
Corporation.
34. Import is the activity of bringing in goods into
Indonesian customs area.
35. Transfer is the transfer of rights, transfer of
assets, changes in the use of capital goods or
machinery for other activities outside the business,
exported, or removal from the assets of any
company.
36. Transfer in Mining Sector is the transfer of rights,
transfer of assets, sale, exchange, grant, or
removal from the assets of any company.
37. Re-Export is the disposal of imported goods ex-
exempted from import duty and/or exempted from
Value Added Tax for Coal Mining Concession Work
Contract or Work Agreement from Customs Area
according to customs regulation in export sector.
38. Destruction is the activity of eliminating the form
and origin of a goods into an element or a
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compound that cannot be formed into a product of
origin.
39. Force Majeure is a situation such as fire, natural
disaster, riots, warfare or others that occur
beyond human capabilities.
40. Taxpayer is any investing corporation either
incorporated or not.
41. Certain Business Fields with respect to the
Provision of Tax Allowance, hereinafter referred to
as Certain Business Fields, are business fields in
the sector of economic activity with high priority
on a national scale.
42. Certain Regions are regions that are economically
potentially viable.
43. Tax Allowance is an income tax facility for
Investment in Certain Business Fields and/or in
Certain Regions.
44. Technical Ministries are sector foundering
ministries.
45. Pioneer Industry is an industry that has broad
linkages, provides high added value and high
externalities, introduces new technology, and has
strategic value for the national economy.
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46. Tax Holiday is a Corporate Income Tax Reduction
Facility for the main activities of the pioneer
industry.
47. Importer Identity Number hereinafter referred to
as API is an identifier as importer.
48. Foreign Worker Employment Plan, hereinafter
referred to as RPTKA, is a plan for the hiring of
foreign workers in certain positions made by
foreign employers for a certain period of time
authorized by the Minister in charge of
employment or appointed Officer.
49. Permission to Employ Foreign Workers, hereinafter
referred to as IMTA, is a written permission
granted by the Minister in charge of employment
or appointed Officer to foreign worker’s employer.
50. Electronic Information Service and Investment
Licensing System, hereinafter referred to as
SPIPISE, is electronic system of Licensing and
Non-licensing service Integrated between BKPM
with Ministries/LPNK with Licensing and Non-
licensing authority, Free Trade Area and Free
Ports, Special Economic Zone Administrators,
Provincial DPMPTSP, Regency/Municipal DPMPTSP,
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and PTSP Organizer Agency in the Field of
Investment.
51. Access Right is right granted by SPIPISE Manager
to SPIPISE users who already had user identity
and access code to use SPIPISE.
52. Company Folder is a means of storing corporate
documents in digital form provided within the
BKPM licensing system (SPIPISE).
53. Online Single Submission is an electronic system
servicing the entire business licensing under the
authority of ministers/heads of agencies,
governors and regents/mayors that must be
conducted and made as single reference in the
implementation of the Business Licensing.
54. Business Expansion for Investment in Industrial
Business Sector is the increase of production
capacity for the same 5 (five) digit Classification of
Indonesian Business Class (KBLI) as stated in
Industrial Business License.
55. Expansion of Industrial Estate, hereinafter referred
to as Area Expansion is the increase of the
industrial estate area from the extent of land as
stated in the Industrial Zone Business License.
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56. Company Merger is the incorporation of two or
more companies into one company that will
forward all activities of the merged company.
57. Central Government is the President of the
Republic of Indonesia who holds the governance
power of the state of the Republic of Indonesia
assisted by the Vice President and Ministers as
referred to in the 1945 Republic of Indonesia
Constitution.
58. Regional Government is the regional head as an
element of the regional administration which leads
the execution of government affairs being the
authority of the autonomous regions.
59. Investment and One Stop Integrated Service of
Province, Regency/Municipality, organizing
Investment affairs and one-stop integrated
services, hereinafter referred to as Provincial
DPMPTSP, Regency/Municipal DPMPTSP, is the
element of assistant of regional head for the
implementation of provincial, regency/city
government in the field of investment in the
provincial government, regency/municipal
governments.
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60. Free Trade Zone and Free Port, hereinafter
referred to as KPBPB, is an area within the
territory of the Unitary State of Republic of
Indonesia separated from the customs area so
that it is free from the imposition of customs
duties, value added tax, sales tax on luxury goods,
and excise duty.
61. Special Economic Zone, hereinafter referred to as
KEK, is a region with certain boundaries within the
territory of the Republic of Indonesia which is
determined to operate economic functions and
obtain certain facilities.
62. Industrial Estate is an area where the
concentration of processing industry activities is
equipped with infrastructure, facilities and other
supporting facilities provided and managed by
industrial companies.
63. National Tourism Strategic Area, hereinafter
referred to as KSPN, is an area that has the main
function of tourism or has potential for national
tourism development which has important
influences in one or more aspects, such as
economic, social and cultural growth, natural
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resources empowerment, environmental carrying
capacity, and defense and security;
64. Investment Activity Report, hereinafter referred to
as LKPM, is a report on the development of
Investment realization and constraints faced by
investors that must be submitted periodically.
65. Classification of Indonesian Business Field
Standard, hereinafter referred to as KBLI, is the
grouping of any economic activity into the
classification of business field.
66. Overseas Indonesian Community Card, hereinafter
referred to as KMILN, is an ID card issued by the
Government of the Republic of Indonesia to
Indonesians overseas who meet certain
requirements and criteria.
CHAPTER II
PURPOSE AND OBJECTIVES
Article 2
Guidelines and Procedures for Licensing and
Investment Facilities provided herein are intended as
guidance for the central PTSP officials in BKPM,
Provincial DPMPTSP, Regency/Municipal DPMPTSP, KEK
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Administrator, KPBPB Management Board, and other
business actors as well as the general public.
Article 3
(1) The objectives of Guidelines and Procedures for
Investment Licensing and Facility are as follows:
a. to realize standardization of submission
procedures, application requirements and
process of licensing and facilities at the
central PTSP of BKPM, Provincial DPMPTSP,
Regency/Municipal DPMPTSP, PTSP KEK,
PTSP KPBPB throughout Indonesia.
b. to provide information on the terms and
completion timing of the approval of the
Investment Licensing and Facility; and
c. to achieve fast, simple, transparent and
integrated services.
(2) Guidelines and Procedures for Investment
Licensing and Facility shall be implemented as
Norms, Standards, Procedures and Criteria for
licensing and facility services by Central PTSP of
BKPM, Provincial DPMPTSP, Regency/Municipal
DPMPTSP, PTSP KEK, PTSP KPBPB throughout
Indonesia.
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(3) In the event that the Investment Licensing and
Facility service is not addressed herein, the
implementation of Investment Licensing and
Facility services shall follow the Norms, Standards,
Procedures and Criteria set forth in the regulation
of ministers/heads of institutions.
CHAPTER III
SCOPE
Article 4
(1) The scope of regulation of service herein includes
Licensing service and Investment Facility service.
(2) The Licensing Services as referred to in paragraph
(1) includes:
a. Investment Registration;
b. Business License;
c. Representative Office Permit.
(3) Investment Facility Services as referred to in
paragraph (1) shall consist of investment fiscal
facilities and non-fiscal facilities.
(4) Fiscal service facility as referred to in paragraph
(3) includes:
a. import duty exemption facility;
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b. Income Tax facility for investment in Certain
Business Fields and/or in Certain Regions;
and
c. Tax Allowance facility.
(5) Non-fiscal facility services as referred to in
paragraph (3) include:
a. immigration service facility;
b. Importer identification number; and
c. Opening of Branch Offices.
CHAPTER IV
AUTHORITY OF LICENSING AND INVESTMENT
FACILITIES
Section One
The Provision of Investment Licensing and Facility
Article 5
(1) Investment Licensing and Facility shall be provided
by Central Government, provincial government,
and regency/municipal government, KPBPB
Concession Agency, and KEK Administrator Agency
in accordance with their authority.
(2) The authority to grant Licensing and Investment
Facilities as referred to in paragraph (1) by:
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a. Central Government, shall be conducted by
Central PTSP of BKPM;
b. Provincial government, shall be conducted by
Provincial DPMPTSP;
c. Regency/Municipal government, shall be
conducted by the Regency/Municipal
DPMPTSP;
d. KPBPB Concession Agency, shall be conducted
by PTSP KPBPB Concession Agency; and
e. KEK Administrator by PTSP KEK.
Section Two
Authority to Grant Licensing and Investment Facilities
by the Central Government
Article 6
(1) The authority to grant Licensing and Investment
Facilities by the Central Government as referred to
in Article 5 paragraph (2) point a consists of:
a. Implementation of Investment with cross-
provinces scope;
b. Investment which covers:
1. Investment related to non-renewable
natural resources with high risk of
environmental damage;
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2. Investment in the field of industry which
is a high priority on a national scale;
3. Investment related to a unifying and
connecting function between regions or
the scope is cross-provinces;
4. Investment related to the
implementation of national defense and
security strategy;
5. Foreign Investment and investors using
foreign capital, from other country’s
Governments, based on agreement
entered into by the Government and the
governments of such other countries;
and
6. Other areas of Investment being the
business of the Government by law.
(2) Foreign Investment and Investors using foreign
capital, as referred to in paragraph (1) point b
number 5 include:
a. Foreign Investment made by government of
other country;
b. Foreign Investment by foreign citizens or
foreign businesses;
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c. Investors using foreign capital from other
governments, which is based on agreements
entered into by the Indonesian Government
and governments of other countries.
(3) Foreign Investment as referred to in paragraph (2)
point b also includes Limited Liability Company
(LLC) which is a Foreign Investment company.
(4) Cross province as referred to in paragraph (1)
point a shall be the location of business activities
whether located in more than one provinces in one
stretch or not in one stretch in accordance with
the provisions of legislations.
(5) Investment business fields as referred to in
paragraph (1) point b number 1, number 2,
number 3, number 4, and number 6 shall be
determined by the minister/head of agency.
Section Three
Authority to Provide Licensing and Investment Facilities
by Provincial Government
Article 7
(1) The authority to provide Investment Licensing and
Facilities by provincial government as referred to
in Article 5 paragraph (2) point b consists of:
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a. Investment with scope of activities across
regencies/municipalities; and
b. Investment which is the authority of the
provincial government based on the
Legislations.
(2) Cross-regencies/municipalities as referred to in
paragraph (1) point a is business location located
in more than 1 (one) regencies/municipalities in
one stretch or not in accordance with the
provisions of the legislations.
Section Four
Authority to Provide Investment Licensing and Facilities
by Regency/Municipal Government
Article 8
The authority to provide Investment Licensing and
Facilities by the regency/municipal government as
referred to in Article 5 paragraph (2) point c is an
Investment with scope of activities in a
regency/municipality.
Section Five
Authority to Provide Investment Licensing and Facilities
by KPBPB Concession Agency and KEK Administrator
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Article 9
The authority to provide Investment Licensing and
Facilities by KPBPB Concession Agency and KEK
Administrator as referred to in Article 5 paragraph (2)
point d and point e shall be conducted based on the
Mandate of the Central Government/Local Government
and observe the Legislations related to KPBPB
Concession Agency and KEK.
CHAPTER V
TERMS AND PROCEDURES OF INVESTMENT LICENSING
Section One
Terms of Investment Licensing
Paragraph 1
Terms of Starting Business and Starting
Production/Operation
Article 10
(1) Starting business includes the following activities:
a. establishment of new business, either for
PMDN or PMA;
b. starting business activities for the change of
status into PMA, as a result of the entry of
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foreign capital in the ownership of all/part of
the company's capital in legal entity;
c. starting business activities for the change of
status to PMDN, as a result of the change of
ownership of the company's capital from
previously foreign capital to be all domestic
capital;
d. adding new business fields;
e. adding new business locations;
f. increasing production capacity in the
industrial sector for business expansion; or
g. adding business type in the same business
field outside industrial sector.
(2) To start a business as referred to in paragraph (1)
both for PMDN and PMA, companies with certain
business activity criteria are required to have
Investment Registration.
(3) Investment Registration as referred to in
paragraph (2) located outside KEK/KPBPB
Concession Agency/Industrial Estate/KSPN shall
first be followed up with implementation permits
prior to the companies conducting construction
activities.
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(4) Criteria of certain business activities required to
first obtain Investment Registration as referred to
in paragraph (2) are:
a. field of business which takes time to carry out
construction activities;
b. field of business eligible for Investment
facilities in accordance with the provisions of
legislations;
c. field of business potentially inflicting impacts
of medium and large environmental pollution
in accordance with the provision of
legislations; or
d. field of business associated with state
defense, natural resources, energy and
infrastructure management; or
e. other field of business in accordance with the
provisions of legislations.
(5) For companies that already acquired Investment
Registration and is still valid as referred to in
paragraph (2), if the company is to conduct
production/operation, it must first obtain Business
License.
Article 11
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(1) To Start Production/Operation, both for PMDN and
PMA, it must obtain Business License.
(2) Investment in certain business fields may be
directly granted Business License, provided that:
a. incorporated in Indonesian with the limitation
of share ownership in accordance with the
provisions of legislations;
b. already had Taxpayer Identification Number;
and
c. already had office/place of business.
(3) Certain business fields as referred to in paragraphs
(2) must meet the following criteria:
a. areas of business that do not require
construction activities; or
b. areas of business that do not require
exemption of import duty on the import of
machinery/capital goods.
(4) Companies that have Business Licenses as
referred to in paragraph (2) shall start conducting
business activities within 1 (one) year.
(5) In the event the company as referred to in
paragraph (4) failed to start conducting activities
then the Central PTSP of BKPM, Provincial
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DPMPTSP, Regency/Municipal DPMPTSP, PTSP
KPBPB, and PTSP KEK shall, in accordance with
their authority, revoke the Business License.
Paragraph 2
Terms of Investment Value and Capital
Article 12
(1) PMA companies with large business qualifications
shall, unless otherwise stipulated by legislations,
be obliged to implement terms of investment
value and capital requirements to obtain
Investment Registration and/or Business License.
(2) Companies with large business qualifications as
referred to in paragraph (1) are:
a. has a net worth more than Rp.
10.000.000.000,00 (ten billion rupiah)
excludes land and building of business
premises based on the most recent financial
statement; or
b. has annual sales of more than
Rp.50.000.000.000,00 (fifty billion rupiah)
based on the most recent financial statement.
(3) PMA shall, in order to start the business as
referred to in Article 10 paragraph (1), meet the
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requirements of investment and capital value as
referred to in paragraph (1), unless otherwise
provided by legislations, namely to comply with
the following provisions:
a. total investment value greater than
Rp.10.000.000.000,00 (ten billion rupiah),
excluding land and buildings;
b. issued capital is equal to the paid up capital,
at least Rp.2.500.000.000,00 (two billion five
hundred million rupiah );
c. investment in share capital, for each
shareholder at least Rp.10.000.000.00 (ten
million rupiah;
d. the percentage of shareholding is calculated
based on the par value of the shares.
(4) The provisions concerning the investment value
requirements and capital for PMA as referred to in
paragraph (3) are exempted in the event of
investment with business activity of development
and management of property:
a. property in the form of:
1. the whole building; or
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2. housing complex in an integrated
manner,
Investment value greater than
Rp.10.000.000.000,00 (ten billion rupiah)
including land and building, paid-up capital of
hundred million rupiah) and investment value
in share capital, for each shareholder a
minimum of Rp.10.000.000,00 (ten million
rupiah); or
b. property unit not in:
1. 1 (one) complete building; or
2. 1 (one) housing complex in an
integrated manner,
Investment values greater than
Rp.10.000.000.000,00 (ten billion rupiahs)
excluding land and building, paid-up capital of
hundred million rupiah) and the value of
investments in the Company's capital, for
each shareholder a minimum of
Rp.10.000.000,00 (ten million rupiah)
provided that Debt to Equity Ratio (DER) 4: 1.
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(5) The provisions concerning investment value
requirements as referred to in paragraph (3) are
specific to industrial sector in accordance with the
provisions of regulation related to the industry
regarding the amount of investment value for the
classification of industrial business.
(6) Investors are prohibited from entering into
agreements and/or statements confirming the
shareholding in a limited liability company for and
on behalf of another person, in accordance with
the legislations.
(7) Where it is necessary to affirm that shareholding
in a limited liability company is not for and on
behalf of another person, the investor must make
a written statement before notary (waarmerking).
Paragraph 3
Terms of Business Sector and Form of Corporation
Article 13
(1) Application for Investment Registration and
Business License must observe:
a. provisions on closed business fields and open
business fields on conditions; and
b. regulation of ministers/LPNK,
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in accordance with the provisions of the
legislations.
(2) In the event a company is located within the KEK,
the provisions of an open business field on
conditions shall not apply, except for the business
field reserved for Micro, Small, Medium Enterprises
and Cooperatives and closed business fields for
investment.
Article 14
(1) Investment Registration and Business License for
PMDN may be given to:
a. Limited liability company (PT) wholly owned
by Indonesian nationals;
b. Limited partnership or Commanditaire
Vennootschap (CV), or Firm (Fa), or
individual business;
c. Cooperatives or foundations established by
Indonesian nationals; or
d. State Owned Enterprises (BUMN) or Regional
Owned Enterprises (BUMD).
(2) Investment Registration and Business License for
Foreign Investment is given to PT.
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paragraph (2) may be given for the establishment
of a PT.
Paragraph 4
Venture Capital
Article 15
(1) The Venture Capital Company (PMV) may become
a shareholder of an investment company with
requirements in accordance with the provisions of
legislations.
(2) Investments by PMV as referred to in paragraph
(1) with shares owned by Domestic Investors or in
the presence of foreign capital elements, are
classified as domestic equity participation.
(3) PMV capital participation is temporary and may
not exceed 10 (ten) years from the date of
investment of shares approved by the Ministry of
Justice and Human Rights.
(4) Period as referred to in paragraph (3) may be
extended 2 (two) times but the total extension
shall not extend maximum 10 (ten) years in
accordance with the provisions of legislations.
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(5) In the event of PMV period as referred to in
paragraph (3) and paragraph (4) has expired, the
company shall transfer the PMV shares to other
parties.
Paragraph 5
Terms of Divestment
Article 16
(1) PMA companies that have been subject to
investment obligation of the Companies’ shares in
the approval and/or Business License prior to
enactment hereof, such investment obligation is
still binding and must be implemented in
accordance with the predetermined period.
(2) Company that is subject to investment obligation
in accordance with the business sector still has to
carry out the divestment in accordance with the
(3) Divestment of shares of companies as referred to
in paragraph (1) and paragraph (2), may be done
to Indonesian nationals or Indonesian corporations
with share capital wholly owned by Indonesian
nationals through direct ownership in accordance
with the agreements between the parties and/or
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market domestic capital of at least
Rp.10.000.000,00 (ten million rupiah) for each
shareholder.
(4) Investment obligation as referred to in paragraph
(1) and paragraph (2) shall be conducted on the
basis of General Shareholders Meeting document
stating the parties' agreement on the
implementation of the investment obligation.
(5) Shareholding of Indonesian participants sue to
divestment, after obtaining approval from the
Minister of Justice and Human Rights may be
resold to Indonesian nationals/foreign
individuals/Indonesian entities/foreign business
entities while remain observing the provisions of
legislations.
(6) Investment obligation as referred to in paragraph
(1) shall not be carried out if the document in the
General Meeting of Shareholders:
a. for joint venture, the Indonesian participant
stated that do not require/demand
shareholding in accordance with the
divestment provisions stated in the letter of
approval and/or business license; or
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b. for foreign investment company 100% owned
by foreign shareholders, the shareholders
stated that they did not have any
commitments/agreements with the
Indonesian side to sell any shares.
(7) In the event divestment cannot be carried out as
referred to in paragraph (6), if in the future any
Indonesian parties insist the implementation of
divestment obligation, it shall be the responsibility
of the shareholder/company.
(8) In the event of the implementation of the
divestment obligation as referred to in paragraph
(1) and paragraph (2), the company shall apply
for Investment Registration with the change type
of registration to PTSP BKPM, PTSP KPBPB, or
PTSP KEK in accordance with their authority.
(9) Upon agreement of shareholders as referred to in
paragraph (6), the company shall apply for
Investment Registration with change type of
registration to PTSP BKPM, PTSP KPBPB, or PTSP
KEK in accordance with their authority to cancel
the divestment obligation.
Part Two
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Terms and Procedures for Investment Registration
Paragraph 1
General
Article 17
Application for Investment Registration for domestic
and foreign companies shall be submitted before or
after the companies have been incorporated in
Indonesia.
Article 18
Investment Registration can be issued if the request
meets:
a. provisions on private and public business field on
conditions; and
b. completeness of application requirements.
Paragraph 2
Type of Investment Registration
Article 19
Type of registration in Investment Registration
includes:
a. new;
b. change of status; and
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c. change.
Article 20
(1) The companies to start business in accordance
with Article 10 paragraph (1) a, d, e, f, and g are
required to have Investment Registration with
type new that meet the criteria of business
activities as referred to in Article 10 paragraph (4)
and in accordance with the provisions of
legislations.
(2) In the event a PMDN company is to change status
to a foreign company as referred to in Article 10
paragraph (1) point b, it shall apply for
Investment Registration by type of change of
status.
(3) In the event a foreign company is to change status
to PMDN company as referred to in Article 10
paragraph (1) point c, it shall apply for Investment
Registration by type of change of status.
(4) Companies as referred to in paragraph (3) shall
further apply for their licensing to DPMPTSP in
accordance with their authority.
(5) Upon issuance of Investment Registration with the
status changed to PMA as referred to in paragraph
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(2), it has to be followed by the subsidiary to file a
Investment Registration by type of change of
status as foreign company at the time the
subsidiary takes corporate action.
(6) Upon issuance of Investment Registration with the
status changed to PMDN company as referred to in
paragraph (3), a subsidiary status shall be
determined based on the shareholding.
(7) In the event a subsidiary as referred to in
paragraph (5) has changed its status to a foreign
company and has a private or public business
fields on conditions, the subsidiary shall not run
private business activities.
(8) In the event a subsidiary has public business fields
on condition as referred to in paragraph (7), the
subsidiary shall carry out business activities in
Article 21
(1) Company may make changes to the data included
in the Investment Registration by applying for
Investment Registration under new registration
type with validity period in accordance with those
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stated in the Investment Registration of which the
change is proposed.
(2) Changes to the data as referred to in paragraph
(1) for the extension of Project Completion Period
shall be filed under new registration type with a
maximum validity period of 3 (three) years.
(3) Especially for companies that would make changes
to data related with:
a. company name;
b. Taxpayer Identification Number;
c. head office address; and
d. equity in the company's capital,
they should first apply for Investment Registration
under change type.
(4) Changes as referred to in paragraph (1) and
paragraph (3) is intended for companies that have
Investment Registration only and have not had
Business License/Expansion License.
(5) In the event of a change of location for domestic
investment projects, the Company shall apply for
type in the new location.
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(6) In the event of change of company's capital to
PMA resulted in a decrease in the company's
capital, the company must first obtain approval
from the Minister of Justice and Human Rights.
(7) In the event of change of company's capital for
foreign companies listing its shares in Capital
Market, it should be carried out indirectly or
through a portfolio of domestic capital markets,
the provision of public business fields on
conditions become public business field.
(8) PMDN Company selling shares directly in the
capital market in the country, if there are Foreign
Investors buying the shares and recorded in the
deed of the company, the company must make
changes to the status from Domestic into PMA.
Paragraph 3
Validity Period of Investment Registration
Article 22
(1) The validity period of Investment Registration is
the same as the Project Completion Period
specified in the Investment Registration.
(2) The Project Completion Period set forth in the
Investment Registration is granted for a period of
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1 (one) to 5 (five) years in accordance with the
characteristics of the business field.
(3) Request for extension of Project Completion Period
shall be filed no later than 30 (thirty) days before
the expiration of the period specified in the project
completion period of the Investment Registration.
(4) Request for extension of Project Completion Period
as referred to in paragraph (3) should have been
declared complete and correct no later than the
expiry date of the project completion period
specified in the Investment Registration.
(5) In the event Investment Registration of which the
Project Completion Period has expired becomes
null and void and unenforceable, the Company
cannot apply for an extension of Project
Completion Period.
(6) In the event the company as referred to in
paragraph (5) is a PMA company:
a. if the company does not have another valid
license and not interested in doing business,
the company must be liquidated; and
b. if the company is still interested in doing
business:
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1. in the same field, the company shall file
an Investment Registration under new
registration upon provisions as agreed in
the permit that has expired; and
2. in different business fields than those
listed in the permit that has expired, the
company shall file an Investment
Registration upon provisions in
accordance with the provisions of the
legislations at the time of submission.
Paragraph 4
Procedures of Application for Investment Registration
Article 23
(1) Application for Investment Registration shall be
done online through SPIPISE by enclosing the
requirements.
(2) Requirements as referred to in paragraph (1) are
as set forth in Appendix I that forms Inseparable
part hereof.
(3) For Provincial DPMPTSP, Regency/Municipal
DPMPTSP, PTSP KPBPB, or PTSP KEK that have not
implemented online registration, the application
for Investment Registration shall be filed offline.
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(4) Investment Registration Application form as
referred to in paragraph (3) shall be as set forth in
Appendix II, which forms integral part hereof, by
enclosing the requirements as referred to in
paragraph (2).
(5) If further explanations are required related to the
activities of the company, the directors of the
company may be required to make a presentation
on their business activities before the officials of
Central PTSP of BKPM, Provincial DPMPTSP,
Regency/Municipal DPMPTSP, PTSP KPBPB, or
PTSP KEK.
(6) The implementation of presentation as referred to
in paragraph (5) may be done by utilizing
information technology.
(7) In the event the application for Investment
Registration in which the prospective shareholders
are Indonesian nationals KMILN holder, then the
Identity Card requirements as referred to in
Appendix I that forms Inseparable part hereof may
be replaced with KMILN and Taxpayer
Identification Number is not required.
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(8) In the event the KMILN holder as referred to in
paragraph (7) has lived in Indonesia for more than
183 (one hundred and eighty three) days then the
provision on Tax Payer Identification Number must
be fulfilled.
(9) Investment Registration filed before incorporation
in Indonesia shall be issued maximum 1 (one)
working day from the receipt of complete and
correct application.
(10) Investment Registration filed after incorporation in
Indonesia shall be issued maximum two (2)
business days from the receipt of complete and
(11) Change to Investment Registration shall be issued
no later than two (2) business days from the
receipt of complete and correct application.
paragraph (9), paragraph (10), and paragraph
(11) shall be issued in the form of a certificate
with a digital signature in a portable document
format (pdf) and enclosing attestation page.
(13) In the event Provincial DPMPTSP,
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PTSP KEK has not been able to issue Investment
Registration in the form as referred to in
paragraph (12), the Investment Registration shall
be issued offline.
(14) The form of Investment Registration as referred to
in paragraph (12) and paragraph (13) shall be as
set forth in Appendix III that forms Inseparable
part hereof.
(15) In the event the application for Investment
Registration as referred to in paragraph (1) and
paragraph (3) is rejected, the Head of BKPM, Head
of Provincial DPMPTSP, Head of Regency/Municipal
DPMPTSP, KEK Administrator, Head of KPBPB
Concession Agency or the appointed official shall
issue Letter of Rejection no later than 5 (five)
business days.
(16) Letter of Rejection as referred to in paragraph
(15) shall be as set forth in Appendix IV that
forms Inseparable part hereof.
Section Three
Terms and Procedures for Obtaining Business License
Paragraph One
General
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Article 24
(1) Company that will conduct
manufacturing/operation must have a business
license in accordance with the provisions of
legislations in the business sector.
(2) Company which has valid Investment
Registration/Principle Permit/Investment Permit
and will conduct manufacturing/operation must
have business license in accordance with the
provisions of legislations in the business sector.
(3) Company may directly apply for business license in
accordance with the provisions of legislations in
the business sector without going through the
application for Investment Registration, if:
a. complying with the criteria listed in Article 11
paragraph (2) and paragraph (3); or
b. already had Business License/Expansion
Permit and to change the status of the
company.
Paragraph 2
Type of Business License
Article 25
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The type of Business License as referred to in Article 24
shall consist of:
a. Business License for a variety of business sectors,
including for mergers;
b. Expansion Permit for Investment in the industrial
sector; and
c. Change of Business License.
Article 26
(1) Business License as referred to in Article 25
consist of Business License in the sector:
a. Agriculture;
b. Environment and forestry;
c. Energy and Mineral Resources;
d. Maritime Affairs and Fisheries;
e. Industry;
f. Trading;
g. Public Works and Housing;
h. Tourism;
i. Health;
j. Transportation;
k. Communication and Information;
l. Labor;
m. Education and culture; and
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n. Police.
(2) Business License as referred to in paragraph (1)
shall be provided in accordance with the
nomenclature, formats and conditions stipulated
by the Ministry/LPNK the founder of the sector.
Article 27
(1) Foreign/domestic investment company may, in
order to meet the requirements to obtain a decree
of the Finance Minister on the Granting of
Entrepreneur Permit in Bonded Zone (PDKB),
apply for Industrial Business License as
Entrepreneur of Bonded Zone.
(2) In the event the Decree of the Minister of Finance
on the Granting of PDKB License:
a. can be issued, no later than seven (7) days
after the decree was issued, the company
must update the folder company by
uploading the decree of the Minister of
Finance regarding the granting of PDKB
license to Central PTSP of BKPM, Provincial
KPBPB, and PTSP KEK in accordance with
their authority; or
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b. cannot be published, the Industrial Business
License as referred to in paragraph (1) shall
not apply, the legality of the company shall
be back to the Investment
Registration/Principle Permit/Investment
License and the Company shall reapply for
business license at the time it is ready for
production in accordance with the provisions
of legislations.
Article 28
(1) Company that already had a business license
issued by:
a. Central PTSP BKPM, PTSP KPBPB, PTSP KEK;
or
b. Provincial DPMPTSP, Regency/Municipal
DPMPTSP for business field other than
trading;
shall not be required to have Trading Business
License (SIUP) issued by the Local Government.
(2) Local Government and other relevant agencies are
prohibited from requiring ownership of Business
License for companies outside the trade sector.
Article 29
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(1) PMDN Company that has valid Investment
Registration/Principle License/Investment License
and issued by Central PTSP of BKPM with more
than one (1) project site, the Business License
shall be filed to Provincial DPMPTSP or
Regency/Municipal DPMPTSP respectively in
accordance with their authority unless otherwise
provided by legislations.
(2) PMDN Company that has valid Investment
Registration/Principle License/Investment License
and issued by the Provincial DPMPTSP with project
site across the regency/municipality, shall apply
for Business License to Provincial DPMPTSP or
Regency/Municipal DPMPTSP in accordance with
Article 30
(1) PMA/PMDN Company whose valid Investment
Registration/Principle Permit/Investment License
lists more than 1 (one) business fields, shall apply
for the Business License Permit simultaneously.
(2) In the event the Business License is not filed
simultaneously then the business field not applied
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for Business License shall be considered not
realized or canceled.
(3) For the business field unrealized or canceled as
referred to in paragraph (1), if the company is still
interested in undertaking such business then:
a. it may apply for Investment Registration, or
b. with respect to such business field the
company may immediately file a business
license without obtaining Investment
Registration in accordance with the terms and
criteria set forth in Article 11 paragraph (2)
and paragraph (3),
in accordance with the provisions of legislations.
Article 31
(1) Merger of companies can be done by PMA
companies or PMDN companies provided that they
already have a Business License.
(2) Upon the occurrence of merger of companies as
referred to in paragraph (1), the surviving
company shall apply for business license for the
merger of the companies.
(3) Business License as referred to in paragraph (2)
shall be issued separately for each sector, in
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accordance with the provisions of the
Ministry/LPNK founder of the sector.
Article 32
(1) Company that will carry out manufacturing for
business expansion in industrial sector is required
to have expansion permit in accordance with the
(2) Especially for PMA Company, the approve Principle
Expansion Permit with an investment of less than
Rp.10.000.000.000,00 (ten billion rupiah)
excluding investments in land and buildings, the
provision of value realization of investment shall
be adjusted to above Rp.10.000.000.000.00 (ten
billion rupiah) excluding investments in land and
buildings.
Article 33
(1) Company that already had a Business
License/Expansion Permit may make changes to
the identity/company in accordance with the
(2) Company is required to have a business license
containing the changes as referred to in paragraph
(1).
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(3) Change of identity/company as referred to in
paragraph (1) and paragraph (2) is excluded In
the event of changes in participation in the
company's capital.
(4) Upon a change in the participation in the
company's capital as referred to in paragraph (3)
it shall be issued Investment Registration under
change registration type.
(5) In the event of change of fixed capital in the
company investment components, it shall be
reported in LKPM.
Paragraph 3
Validity Period of Business License
Article 34
(1) The validity period of business license is set as
along the company is still conducting
manufacturing/operations.
(2) Validity period of business licenses as referred to
in paragraph (1) shall not apply to:
a. PMA company that has not met the
requirements as a company with a large
business qualifications as stipulated in the
legislations, the Business License shall be
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granted with a validity period of 1 (one) year
from the stipulation date.
b. business field provided in the legislations in
accordance with the business sector.
(3) Company with a large business qualifications as
referred to in paragraph (2) point a, namely:
a. has a net worth of more than
Rp.10.000.000.000,00 (ten billion rupiah),
excluding land and building of business based
on the most recent financial statements; or
b. has an annual sales turnover of more than
Rp.50.000.000.000,00 (fifty billion rupiah)
based on the most recent financial
statements.
(4) Company that has Business Licenses as referred to
in paragraph (2) point a may apply for a Business
License with a validity period as long as the
company is still conducting business after fulfilling
the conditions as large business qualifications.
(5) Company as referred to in paragraph (2) point a
that has not been able to meet the conditions,
may apply for extension of the validity period of
maximum 1 (one) year to file a Business License
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changes before the validity period expires and
cannot be extended.
(6) Application for extension of period of validity of
Business Licenses as referred to in paragraph (4)
shall be filed no later than 30 (thirty) days prior to
the expiration date specified in the License.
(7) Application for extension of period of validity of
Business Licenses as referred to in paragraph (6)
shall have been declared complete and correct on
the date prior to the expiration date specified in
the License.
(8) In the event the period of validity as referred to in
paragraph (2) point a has expired, application for
extension of the validity period of Business License
cannot be processed, the Business License shall
become null and void, and unenforceable.
(9) In the event the company as referred to paragraph
(6) is still interested in conducting its business
activities, then:
a. it may apply for Investment Registration; or
b. In the event of certain business fields, the
company may immediately file a Business
License without obtaining Investment
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Registration in accordance with the terms and
criteria set forth in Article 11 paragraph (2)
and paragraph (3),
in accordance with the provisions of legislations.
Paragraph 4
Procedures of Application for Business License
Article 35
(1) Application for Business Licenses as referred to in
Article 24 paragraph (2) shall be conducted online
through SPIPISE.
(2) In the event of application for Business Licenses as
referred to in Article 24 paragraph (2) cannot be
submitted online, offline application is submitted
by enclosing the requirements as stipulated in the
legislations.
(3) Offline application as referred to in paragraph (2)
shall be submitted to the One-Stop Center at
BKPM/Provincial DPMPTSP/Regency/Municipal
DPMPTSP, PTSP KPBPB, or PTSP KEK using the
application form set forth in Appendix V that forms
inseparable hereof or the application form as
stipulated in the Regulation of the Minister.
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(4) Application for Business License as referred to in
paragraph (1) and paragraph (2) shall be
submitted no later than 30 (thirty) days prior to
the expiration date set forth in the Investment
Registration/Principle License/Investment License.
paragraph (4) shall have been declared complete
and correct no later on the date prior to the
expiration specified in the Investment
Register/Principle License/Investment License.
paragraph (1) and paragraph (2) shall enclose:
a. general requirements, namely:
1. Legal aspects of legal entities:
a. Investment Registration/Principle
License/Investment
License/Business License if any;
b. certificate of incorporation and/or
the amendment that has acquired
the approval/notification of the
Minister of Justice and Human
Rights
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c. Taxpayer Identification Number of
the company that has done
Taxpayer Status Confirmation in
accordance with the provisions of
legislations
2. Legality aspect of domicile:
a. legality of the company head office
address; and/or
b. legality of the project site of the
company, in the form of Sale and
Purchase Agreement (AJB),
Certificate of Land (HGB/HGU), lease
agreement or leasing agreement for
group company/affiliates.
3. Legality aspects of environment in terms
of Environment Management documents
4. LKPM receipt of the last period online for
company that already had Investment
Registration/Principle License/Investment
License; and
5. Power of attorney if application has not
been done directly by the management
of the company;
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b. special requirements, such as:
1. recommendation of the ministry/agency
founder if required in accordance with
the terms on business field; and
2. supporting documents if required in
accordance with the terms on business
field,
in accordance with the provisions of
legislations of the sector.
(7) Application for Business Licenses as referred to in
Article 24 paragraph (3) made online through
SPIPISE equipped with the requirements, namely:
1. certificate of incorporation and/or
amendments that has get
validation/approval/notification from Minister
of Justice and Human Rights;
2. Taxpayer Identification Number company that
has made the confirmation status of the
taxpayer in accordance with the provisions of
legislations;
3. address the legality of the company's
headquarters in the form of Sale and
Purchase Agreements (AJB), Land Rights
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Certificate (HGB/HGU), lease agreement or
leasing agreement for group
company/affiliates; and
4. power of attorney if submission is not done
directly by the company.
(8) In the event that it needed further explanation
related to the activities of the company, directors
of the company may be asked to make a
presentation in front of their business activities in
the Central PTSP BKPM officials, Provincial
KPBPB, or PTSP KEK.
(9) The presentation as referred to in paragraph (8)
can be done using information technology.
(10) Where necessary, officials at the Centers PTSP
DPMPTSP, PTSP KPBPB, or PTSP KEK can carry out
field inspections;
(11) Business License issued no later than 5 (five)
business days or according to as stipulated in the
legislations, the date of receipt of complete and
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(12) Permit for Company Incorporation issued not later
than six (6) business days from receipt of
complete and correct application.
(13) Changes in Business License issued no later than 5
(five) business days of receipt of complete and
correct applications.
(14) In the event of the issuance of the industrial
license, after the application is complete and
correct, to do inspection Industrial locations that
result mentioned in the investigation report.
(15) Industrial site audits and the minutes of inspection
as referred to in paragraph (14) is carried by
BKPM can be done by utilizing information
technology for the company with an investment of
less than Rp100.000.000.000,00 (one hundred
billion rupiah).
(16)Industrial site inspection and investigation report
as referred to in paragraph (14) carried by
PTSP KPBPB, or PTSP KEK can be done using
information technology.
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(17) Industrial Business License issued a tau rejected
later than 5 (five) business days after the
investigation report is received.
(18) The Business Licenses as referred to in paragraph
(11), paragraph (12) and paragraph (13) shall be
issued in the form of a certificate with a digital
signature in portable document format (pdf) and
including attestation page.
(19) In the event of Provincial DPMPTSP,
PTSP KEK cannot issue a Business License in the
form of as referred to in paragraph (18) then
Business License shall be issued offline.
(20) The form of Business Licenses as referred to in
paragraph (18) and paragraph (19) listed in
Appendix VI to the Appendix XIX that Inseparable
forms part of the Regulation This body or under
(21) In the event application for Business Licenses as
referred to in paragraph (1) and paragraph (2) is
rejected, the Head of BKPM, Head Provincial
DPMPTSP, Head Regency/Municipal DPMPTSP, KEK
Administrator, Head of Concession or appointed
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officials makes Rejection Letter no later than 5
(five) business days.
(22) Form of Rejection Letter as referred to in
paragraph (21) shall be as set forth in Appendix IV
that forms Inseparable part hereof.
CHAPTER VI
TERMS AND PROCEDURES OF APPLICATION FOR
REPRESENTATIVE OFFICE AND BRANCH OFFICE
PERMIT
Section One
Terms of Representative Office Permit
Paragraph 1
General
Article 36
Representative Office Permit as referred to in Article 4
paragraph (2) c consists of:
a. Foreign Company Representative Office (KPPA)
Permit;
b. Foreign Trading Company Representative Office
(KP3A) Permit;
c. Foreign Construction Service Enterprise
Representative Offices (BUJKA) Permit; and
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d. KPPA Migas Permit.
Paragraph 2
KPPA
Article 37
(1) KPPA activities are limited:
a. as supervisor, liaison coordinator, and taking
care of the interests of the company or its
affiliated company;
b. prepare for the establishment and business
development PMA company in Indonesia or in
other countries and Indonesia;
c. located in the office building in the provincial
capital;
d. not looking for anything income from sources
in Indonesia is not justified conducting or
doing something Engagement/sales and
purchases of goods or commercial services to
company or individuals in the country; and
e. did not participate in any form in the
management of something company,
subsidiaries or branches of company in
Indonesia.
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(2) To carry out the activities of representative offices
of foreign enterprises in Indonesia are required to
have KPPA Permit.
(3) Head of KPPA must reside in Indonesia, are fully
responsible for the smooth running of Office, is not
justified to activities outside the activities of the
Office and not concurrent positions as head of the
company and/or other KPPA.
(4) In the event the Head of KPPA designated are
foreigners and/or employment of foreign workers,
migrant workers must be employed in accordance
with the provisions of legislations.
(5) KPPA permit as referred to in paragraph (2) shall
apply not later than three (3) years unless
otherwise specified less than 3 (three) years in a
point of appointment and may be extended in
accordance with the designation validity period
stated in the point of appointment.
(6) KPPA shall file extension KPPA permit no later than
30 (thirty) days before the expiration date on the
charge in KPPA permit expires.
(7) Request KPPA Permit as referred to in paragraph
(6) should have been declared complete and
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correct maximum on the date prior to the
expiration date specified in the permit KPPA ends.
(8) KPPA may make changes to the provisions
contained in the License KPPA.
Paragraph 3
KP3A
Article 38
(1) KP3A may be in the form of Selling Agent and/or
Manufacturers Agent and/or Buying Agent.
(2) KP3A as referred to in paragraph (1) is prohibited
from conducting trading and sales transactions,
either from the beginning until completion as
submitted tenders, signing contracts, settle
claims, and the like.
(3) To exercise right KP3A activities in Indonesia must
have a Business License of Foreign Trade
Company Representative (SIUP3A).
(4) KP3A may be opened in the provincial capitals and
regencies/cities in all regions of the Republic of
Indonesia.
(5) In the event the appointed Head of KP3A is
foreigners and/or employment of foreign workers,
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Indonesian workers must be employed in
(6) KP3A head may employ foreign workers as
referred to in paragraph (5) as Assistant of Head
of KP3A or Assistant of Head of KP3A Branch Office
whose duties are in accordance with the
department which includes assistant in the field of
Promotion, Market Survey, and Sales and
Purchasing Supervision.
Article 39
(1) SIUP3A consists of:
a. Temporary Approval Letter of Appointment of
Foreign Trade Company Representative;
b. New SIUP3A of Head Office;
c. New SIUP3A of Branch Office;
d. SIUP3A Extension; and
e. SIUP3A Change.
(2) SIUP3A as referred to in paragraph (1) a shall be
valid for a period of 2 (two) months from the issue
date.
(3) SIUP3A as referred to in paragraph (1) point b
shall be valid for a period of 1 (one) year from the
issue date.
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(4) SIUP3A as referred to in paragraph (1) c and d
shall be valid for a maximum period of 3 (three)
years unless specified less than 3 (three) years in
a letter of appointment and may be extended in
accordance with the validity period specified in the
letter of appointment.
(5) In the event SIUP3A as referred to in paragraph
(1) has expired, it must reapply for SIUP3A as
referred to in paragraph (1) point a.
(6) KP3A may make changes to the provisions
contained in the SIUP3A as referred to in
paragraph (1) point b, c, and d.
Article 40
(1) KP3A may open Branch Office of Foreign Trade
Company Representative in the capital of the
province and/or regency/municipality.
(2) The opening of branch office as referred to in
paragraph (1) may be conducted after KP3A Head
Office has had New SIUP3A of Head Office.
(3) Head of Branch Office of KP3A shall be different
from Head of KP3A Head Office.
Paragraph 4
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Foreign Construction Service Enterprise Representative
Office
Article 41
(1) Representative permit is granted to Foreign
Construction Service Enterprise (BUJKA) of large
qualification.
(2) BUJKA shall enter into a joint operation with
Construction Service Enterprise (BUJK) based on
construction service equality principle and
construction service qualification equivalence
principle.
(3) Representative permit can be used to perform
construction services business in all parts of
Indonesia.
(4) Representative permit shall be valid for a period of
3 (three) years and may be extended.
(5) In the implementation of the activities, it must
have Representative Permit for Foreign
Construction Service Enterprise (BUJKA) of Central
PTSP of BKPM and meet other conditions as
stipulated in the legislations.
Article 42
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(1) Representative Permit of Foreign Construction
Service Enterprise (BUJKA) consists of:
a. BUJKA New Permit;
b. BUJKA Renewal Permit;
c. Change of BUJKA Permit Data; and
d. Closure of BUJKA Permit.
(2) Application for New Permit, Permit renewal and/or
change of permit data as referred to in paragraph
(1), shall be subject to an administration fee as
follows:
a. Construction planner/supervision consulting
services USD5,000 (five thousand United
States dollars); and/or
b. Construction contractor USD10,000 (ten
thousand United States dollars).
(3) The administrative fee as referred to in paragraph
(2) shall be directly deposited by BUJKA to the
State treasury.
Paragraph 5
KPPA Migas
Article 43
(1) Enterprises may apply representative office
opening permit in the sub sector of oil and gas.
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(2) To carry out the activities of representative offices
as referred to in paragraph (1), company is
required to have a KPPA Migas permit from Central
PTSP of BKPM based on the recommendation of
the Directorate General of Oil and Gas, Ministry of
Energy and Mineral Resources in accordance with
(3) In the event the appointed Head of KPPA Migas is
a foreign national and/or hire foreign workers,
Indonesian workers must be employed in
(4) KPPA Migas permit as referred to in paragraph (2)
shall be valid for maximum 3 (three) years and
may be extended.
(5) KPPA Migas shall apply for KPPA Migas Extension
Permit no later than 30 (thirty) days before the
validity period specified in the KPPA Migas permit
expires.
(6) Application for KPPA Migas Permit as referred to in
paragraph (5) should have been declared
complete and correct no later than on the date
prior to the expiration date set forth in the KPPA
Migas Permit.
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(7) KPPA Migas may make changes to the provisions
contained in the KPPA Migas Permit.
Paragraph 6
Procedures of Application for and Issuance of
Representative Office Permit
Article 44
(1) Application for Representative Office Permit as
referred to in Article 36 points a, b, and d shall be
done online through SPIPISE with the
requirements as set forth in Appendix I that forms
Inseparable part hereof.
(2) Application as referred to in paragraph (1) shall be
issued not later than 5 (five) business days from
the receipt of complete and correct application.
(3) Representative Office Permit as referred to in
paragraph (2) shall be issued d of natural forms
with digital signature certificate in a format
portable document format (pdf) and fitted sheet
attestation.
(4) Application for Representative Office Permit as
referred to in Article 36 point c shall be submitted
offline to Central PTSP of BKPM, by enclosing
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Inseparable part hereof.
issued no later than ten (10) business days from
the receipt of complete and correct application.
(6) The form of Representative Office Permit as
referred to in Article 36 points a and b shall be as
set forth in Appendix XX and Appendix XXI that
forms inseparable part hereof.
referred to in paragraph (4) shall be as set forth in
Appendix XXII that Forms inseparable part hereof
or in accordance with the provisions of legislations.
referred to in Article 36 point d shall be as set
forth in Appendix XXIII that forms inseparable part
hereof or in accordance with the provisions of
legislations.
(9) In the event the application for Permit Office as
referred to in paragraph (1) and paragraph (4) is
rejected, the Head of BKPM or officer appointed
shall issue Rejection Letter no later than five (5)
business days.
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(10) The form of Rejection Letter as referred to in
that forms Inseparable part hereof.
Section Two
Terms and Procedures of Application for Opening of
Branch Office
Paragraph 1
Terms of Opening of Branch Offices
Article 45
(1) PMA/PMDN Company may open branch offices
throughout Indonesia which is a unit or part of the
holding company which may be domiciled in the
different place and may be independent or be
assigned to carry out some tasks from its holding
company.
(2) PMA/PMDN Company for which the permit is the
authority of the central government and will open
a branch office shall report the plan of Opening of
Branch Office to Central PTSP of BKPM unless
otherwise determined by the provisions of
legislations.
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(3) PMDN company whose permit is the authority of
local government, and will open a Branch Office,
shall report the plan of Opening to Provincial
DPMPTSP.
Paragraph 2
Procedures of Application for Opening of Branch Office
Article 46
(1) Application for Opening of Branch Office as
referred to in Article 45 paragraph (2) shall be
done online through SPIPISE, by enclosing the
inseparable part hereof.
(2) Opening of Branch Office as referred to in
paragraph (1) shall be issued in the form of a
certificate with the digital signature format in
portable document format (pdf) and include
attestation page.
(3) Application for Opening of Branch Office as
conducted offline, with the requirements as set
forth in Appendix I that forms inseparable part
hereof.
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(4) Opening of Branch Office as referred to in
paragraph (3) shall be issued in the form as set
forth in Appendix XXIV that forms inseparable part
hereof.
(5) Opening of Branch Office shall be issued no later
than three (3) business days of the receipt of
complete and correct application.
(6) In the event the application for Opening of Branch
Office as referred to in paragraph (1) is rejected,
the Head of BKPM, Head of Provincial DPMPTSP,
Head of Regency/Municipal DPMPTSP, KEK
Administrator, Head of Concession or appointed
official shall issue Rejection Letter no later than
five (5) business days.
(7) The form of Rejection Letter as referred to in
that forms inseparable part hereof.
(8) Branch Office may make changes to the provisions
listed in the Opening of the Branch Office.
(9) Form of Opening of Branch Office Permit Changes
as referred to in paragraph (7) shall be as set
forth in Appendix XXIV that forms inseparable part
hereof.
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CHAPTER VII
TERMS AND PROCEDURES OF CUSTOMS AND
TAXATION FACILITIES
Section One
Terms and Procedures of Application for Import Duty
Exemption Facilities
Paragraph 1
Terms and Procedures of the Provision of Import Duty
Exemption Facility on the Import of Machinery as well
as Goods and Materials for Construction or Industrial
Development with respect to Investment
Article 47
(1) Company that has Investment Registration/
Principle Permit/Investment Permit either new
investments, expansion, changes, and has been
incorporated or having valid Business
License/Expansion License may obtain fiscal
facilities in accordance with the provisions of
legislations.
(2) Fiscal facilities as referred to in paragraph (1)
include:
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a. exemption from import duty on machinery not
including spare parts; and
b. exemption from import duty on the import of
goods and materials.
Article 48
(1) The procedures for the submission of application
for the facilities by the Company as referred to in
Article 47 paragraph (1) shall be as follows:
a. application for facilities shall be filed online
through SPIPISE to the Central PTSP of BKPM
by enclosing requirements as set forth in
Appendix I that forms inseparable part
hereof;
b. facilities as referred to in paragraph (1) shall
be issued in hardcopy or certificate with a
digital signature in a portable document
format (pdf) and include attestation page;
c. Company must have access rights in order to
apply for the facilities online to Central PTSP
through SPIPISE;
d. Company to apply for the facilities must
upload the required documents;
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e. Company must complete company folder
which has been owned by the most recent
data;
f. Company shall fill out and submit the form of
application for facilities along with a list of
engine/goods and materials online through
SPIPISE;
g. application as referred to in paragraph d shall
be verified by the administrative officer;
h. incomplete and incorrect application
documents verified by the officer shall be
returned to the Company online through
SPIPISE;
i. incomplete and incorrect application
documents verified by the officer shall be
given technical clarifications in the form of
technical meetings and/or visits to the project
site;
j. the result of the technical clarification:
1. shall be issued a receipt if the application
may be processed in accordance with the
provisions;
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2. shall be returned to the Company online
through SPIPISE if it cannot be
processed in accordance with the
provisions; or
3. the application is rejected because it
does not comply with the provisions,
k. for results of technical clarification as referred
to in point j number 2, the Company shall be
given no later than five (5) business days to
complete and submit documents back online
by SPIPISE to the Central PTSP of BKPM;
l. in the event the Company has complied and
completed the document as referred to in
point k, it shall be issued a receipt;
m. in the event the Company does not comply
with the provisions as referred to in point i,
the application shall be rejected;
n. the completion of the facility application shall
be no later than five (5) business days from
the issuance of the receipt as referred to in
point j number 1 and point l;
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o. settlement of rejection of application as
referred to in point j no 3 and point m shall
be no later than three (3) business days.
(2) Submission of application as referred to in
paragraph (1) for import duty the facility on
machinery for import of machinery for
construction/development (expansion) or for
import of machinery for development
(restructuring/modernization/rehabilitation), shall
be signed on duly stamped paper by the
directors/head of the company and affixed with
the company seal, equipped with form
corresponding with formats as set forth in
Appendix XXV that forms inseparable part hereof.
(3) Submission as referred to in paragraph (1) for the
determination of changes in facility on import of
machinery with an explanation reasons for the
change, shall be signed on duly stamped paper by
the directors/head of the company and affixed
with the company seal, equipped with form
Appendix XXVI that forms inseparable part hereof.
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paragraph (1) for the extension of the term of
facility on the import of machinery shall be done
before the expiry of the facility, along with an
explanation of reasons to the completion of the
realization of the import of machinery, shall be
signed on duly stamped paper by the
Appendix XXVII that forms inseparable part
hereof.
paragraph (1) for an extended period of time on
the import of machinery facilities made after the
expiry of the facility, shall be signed on duly
stamped paper by the directors/head of the
company and affixed with the company seal,
equipped with form corresponding with formats as
set forth in Appendix XXV and Appendix XXVII that
paragraph (1) to move the location of the
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machineries imported shall be done offline to
Central PTSP of BKPM, accompanied by an
explanation of reasons to move the location on the
machineries, shall be signed on duly stamped
paper by the directors/head of the company and
affixed with the company seal, equipped with form
Appendix XXVIII that forms inseparable part
hereof.
paragraph (1) for facility on import of goods and
materials, shall be signed on duly stamped paper
by the directors/head of the company and affixed
with the company seal, equipped with form
Appendix XXIX that forms inseparable part hereof,
as well as a stamped statement signed by the
management of the company stating that the
machineries would be applied for the facilities of
goods and materials provided that no collateral, no
dispute with the other party and still in
control/ownership of the company, in accordance
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with the format specified in Appendix XXX that
paragraph (1) to change the establishment of
facilities for the import of goods and materials,
shall include an explanation of reasons of changing
facilities of goods and material, shall be signed on
duly stamped paper by the directors/head of the
set forth in Appendix XXXI that forms inseparable
part hereof.
facility of import duty on imported goods and
materials shall be done before the expiry of the
facility, including explanation of reasons to the
completion of the realization of the import of
goods and materials, shall be signed on duly
stamped paper by the directors/head of the
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set forth in Appendix XXXII that forms inseparable
part hereof.
facility of import duty on the import of goods and
materials done after the expiry of the facilities,
shall be signed on duly stamped paper by the
Appendix XXX and Appendix XXXII that form
Article 49
Guidelines and procedures for submission of application
for the facility as referred to in Article 47 paragraph (1)
for company located in KPBPB Concession Agency and
KEK shall be governed by a regulation of KPBPB
Concession Agency and KEK Administrator, in
Article 50
(1) Exemption from import duty on machinery as
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issued for the construction and development
projects.
(2) Application for import duty exemption on imports
of machinery as referred to in paragraph (1) shall
be submitted no later than 3 (three) years from
the issuance of Investment
Registration/Investment Permit/Principle
Permit/Principle Permit Expansion.
(3) Expansion as referred to in paragraph (1) which is
an additional production capacity of more than
30% (thirty percent) shall be classified as business
expansion.
(4) Development as referred to in paragraph (1)
conducted by company that already have a
Business License/Expansion Permit and did not
result in changes in production capacity that
exceeds 30% (thirty percent) shall be classified as
restructuring/modernization/rehabilitation.
Article 51
(1) Exemption of import duty on machinery shall be
given to company that already had Investment
either new investments, expansion, or changes
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issued by BKPM, or Provincial DPMPTSP, or
Regency/Municipal DPMPTSP.
(2) Company in the implementation of Investment
may use domestic and/or import machineries.
(3) Company that already had Investment
either new investments, expansion, or changes as
referred to in paragraph (1):
a. for industrial businesses that produce goods
may be granted exemption from import duty
on machinery as well as goods and materials;
and/or
b. for industrial businesses that produce services
may be granted exemption from import duty
on machinery.
(4) Exemption of import duty as referred to in
paragraph (3) may be given to machinery, goods,
and materials derived from KPBPB Concession
Agency, KEK, or Bonded Hoarding.
(5) Provision of facilities as referred to in paragraph
(3) shall refer to the Regulation of the Minister of
Finance on the exemption of import duty on
machinery as well as goods and materials for the
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construction or development of the industry for
investment.
(6) Import duty facility on imports of machinery as
referred to in paragraph (1) shall be given as long
as the machineries:
a. not produced in the country;
b. already produced in the country but does not
meet the required specifications; or
c. already produced in the country but
insufficient number of industries,
based on engine list established by the ministry
responsible for industrial affairs.
(7) For machineries that do not comply with the
provisions as referred to in paragraph (5) it may
be given import duty facility after getting the
technical recommendations of the ministry
responsible for industrial affairs.
(8) Provision of the import duty exemption on
machinery expires after the date of issuance of
Business License/Expansion Permit on the
implementation of the Investment
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either new investments, expansion, or changes as
referred to in paragraph (1).
Article 52
(1) Imported machinery as referred to in Article 47
paragraph (2) point a may be in the form of new
machineries and/or non-new machineries.
(2) Importing of non-new machinery as referred to in
paragraph (l) shall comply with the provisions
stipulated in the Regulation of the Minister of
Trade and Regulation of the Minister of Industry.
Article 53
(1) Company that already had Business
License/Permit Expansion and will carry out
restructuring/modernization/rehabilitation that will
result in changes in production capacity does not
exceed 30% (thirty percent) of the capacity of
production license as stipulated in the Business
License/Expansion Permit, may be granted
exemption from import duty on machinery.
(2) Exemption from import duty on machinery as
referred to in paragraph (1) does not include
goods and materials.
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(3) Company whose Business License is issued by the
Ministry/LPNK/Provincial DPMPTSP/Regency or
Municipal DPMPTSP/KPBPB Concession
Agency/KEK Administrator may apply for
machinery import facilities for the
restructuring/modernization/rehabilitation.
(4) Company applying for facility on import of
machinery for the
restructuring/modernization/rehabilitation shall be
subject to direct survey to project site.
Article 54
(1) The decision of exemption from import duty as
referred to in Article 51 and Article 53 is subject to
changes.
(2) Changes as referred to in paragraph (1) include:
a. change, replacement and/or addition of
machineries;
b. change, replacement of HS Code of
machineries;
c. change, replacement of machinery technical
specifications;
d. changes in the value of the machineries;
e. change, replacement of the machinery unit;
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f. change, replacement and/or addition of
details of the machineries;
g. change, replacement and/or addition of port
of unloading;
h. change, replacement and/or addition of
countries of loading;
i. change, replacement and/or addition of
project site; and/or
j. corporate entity data changes.
(3) Changes to the decision to grant the facility as
referred to in paragraph (2) may only be done in
the event:
a. the machineries has not been imported, yet to
obtain number of registration (Nopen) on the
Import Declaration (PIB); and
b. still in the period of exemption.
(4) To clarify the validity of the data as referred to in
paragraph (3) point a, it may first be done
clarification to the Directorate General of Customs
and Excise.
(5) Application for change on determination of the
provision of import duty facility on machinery may
be filed after three (3) months from the issuance
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of the determination of import duty facility on the
machineries.
(6) Application for change on determination of the
provision of import duty facility on machinery may
be submitted before the three (3) months from
the issuance of the determination of import duty
facility on the machineries by attaching the
following requirements:
a. Bill of Lading (B/L) or Air Waybill (AWB);
b. Packing list;
c. invoice;
d. Contract; and/or
e. Technical explanations.
Article 55
(1) The period of validity of import duty facility on the
import of machinery is given maximum two (2)
years from the issue of decisions of import duty
facility on import of machineries.
(2) In the event the completion time of the project on
Investment Registration/Principle
Permit/Investment License is less than 2 (two)
years, the term of the facility of import duty on
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machinery as referred to in paragraph (1) shall be
given for the rest of the project completion time.
(3) Period as referred to in paragraph (1) may be
extended each year maximum in accordance with
the completion time of the project as specified in
the Investment Registration/Principle
Permit/Investment License either new
investments, expansion, or changes.
(4) Application for extension of facilities as referred to
in paragraph (3) must be submitted no later than
30 (thirty) days prior to the expiration date of the
facility of import duty on imported machinery.
(5) In the event submission of extension of time of
provision of facilities of import duty on machinery
is made after the expiry of the facility, the facility
of import duty on the rest of the machineries may
be supplied though re-establishment from the
stipulated date and is valid until:
a. 1 (one) year less the late submission; or
b. the completion time of the project as stated in
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investments, expansion, or changes less the
late submission.
(6) Against submission as referred to paragraph (5),
Central PTSP of BKPM may first clarify it to the
Directorate General of Customs and Excise, and if
necessary a visit to the project site.
(7) The period of validity of import duty facility on the
import of machinery for the development of
restructuring/modernization/rehabilitation shall be
given for maximum 2 (two) years from the issue
of a decision and cannot be extended.
(8) The period of completion of projects as set forth in
investments, expansion, or changes upon
submission of application for the import facility is
still valid so that it can accommodate the import
facility period as referred to in paragraph (5).
Article 56
(1) Machineries that have obtained exemption from
import duty as referred to in Article 51 and Article
53, shall be used in accordance with the purpose
of revenue by the relevant company in the
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locations listed in the Decree of the Minister of
Finance on Determination of exemption from
import duty Facility on import of machinery.
(2) Machineries as referred to in paragraph (1) may
be transferred to the mechanism as stipulated in
the Regulation of the Director General of Customs
and Excise.
(3) Transfer as referred to in paragraph (2) in the
event re-export shall be done after first obtaining
the recommendation from the alienation of Central
PTSP of BKPM.
(4) Machineries as mentioned in paragraph (1) may
be removed from the location listed in the Ministry
of Finance Decree on Determination of the
Provision of exemption from import duty Facility
on import of machinery to a new location within
the same legal entity.
(5) The new location as referred to in paragraph (4)
shall be in accordance with the project site listed
in the Investment Registration/Principle
License/Investment License either new, expansion,
changes, or Business License/Extension Permit.
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(6) Application to move the location on the
machineries that has been imported as referred to
in paragraph (4) shall be submitted offline to
Central PTSP of BKPM.
(7) Against the application as referred to in paragraph
(6), where required, it may be done visit to the
project site.
Article 57
License/Extension Permit, may be given the facility
of import duty on the import of goods and
materials as the raw material requirements of two
(2) years of the production of:
a. the use of machineries that have obtained
exemption from import duty on the Minister
of Finance; and/or
b. the use of imported production machinery
purchased in the country.
(2) Application for facility of import duty on imported
goods and materials as referred to in paragraph
(1) shall be submitted no later than 2 (two) years
from the issuance of Business License/Expansion
Permit.
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License/Expansion Permit and use machineries
with Domestic Component at least 30% (thirty
percent) as declared by the minister in charge of
industrial affairs or his representative, shall be
given the facility of import duty on goods and
materials as a raw material for the needs of 4
(four) years production.
(4) Application for facility of import duty on imported
goods and materials as referred to in paragraph
(3) shall be submitted no later than 3 (three)
years from the issuance of Business
License/Expansion Permit.
(5) The company applying for import facilities for
goods and materials is subject to direct visit to the
project site.
Article 58
(1) Exemption from import duty on imported goods
and materials as referred to in Article 57 is subject
to changes.
(2) Changes of decision as referred to paragraph (1)
include:
a. change/replacement of goods and materials;
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b. change, replacement of HS Code of goods and
materials;
c. change/replacement of technical
specifications of goods and materials;
d. changes in the value of goods and materials;
e. change, replacement, and/or addition of port
of unloading; and/or
f. change, replacement and/or addition of
countries of loading.
(3) Changes to the decision of the provision of
facilities as referred to in paragraph (2) may only
be done if:
a. goods and materials have not been imported,
and yet to obtain number of registration
(Nopen) on the Import Declaration (PIB); and
(4) Changes of decision as referred to in paragraph
(2) do not change the total quantity of goods and
materials that have been approved.
(5) Application for change/replacement of import
facilities for goods and materials is subject to
direct survey to the project site.
Article 59
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(1) Import duties Facilities on imported goods and
materials shall be given import period of 2 (two)
years.
(2) The Company that failed to complete its imports
within 2 (two) years may be granted an extension
of time of the import.
(3) Extension of the import period as referred to in
paragraph (2) shall be granted 1 (once) for the
import of maximum 1 (one) year after the
expiration of import and cannot be extended.
(4) Company using domestic machineries with
Domestic Component least 30% (thirty percent)
with import period of goods and materials shall be
given at one time maximum 4 (four) years from
the date the decision on import duty facility on the
import of goods and materials.
(5) Company as referred to in paragraph (4) which
import used specifically for the goods and
materials are arranged in the import regulation is
based on Regulation of the Minister responsible for
trade and has not yet completed its imports in a
period of 4 (four) years may be granted an
extension of 1 (one) times for the import period
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maximum 1 (one) year after the issuance of the
Decree on Extension of period of import and
cannot be extended.
(6) Submission of application for extension of period
of import of goods and materials as referred to in
paragraph (3 ) and (5) must be submitted no later
than 30 (thirty) days before the period of validity
of import duty facility on the import of goods and
materials expires.
(7) Provision of extension of period as referred to in
paragraph (5) with taking into account the amount
of goods and materials to the production needs of
a maximum of 1 (one) year and pay attention to
the allocations of quotas granted by the minister
responsible for the field of trade.
(8) In the event of submission for extension of import
duty facility on the import of goods and materials
as referred to in paragraph (3) is made after the
expiry of the facility, the facility of import duty on
the rest of the goods and materials that have not
been realized may be provided through the i-
setting back from the stipulated date and valid up
to one (1) year period minus the late submission.
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(9) Against the submission as referred to in paragraph
(8) Central PTSP of BKPM may clarify prior to
Directorate General of Customs and Excise, and if
necessary may be a visit to the project site.
Paragraph 2
Terms and Procedures of Provision of Import Duty
Facility on Import of Capital Goods for Development or
Expansion of Power Plant Industry for Public Interest
Article 60
Enterprises engaged in Power Generation Industries for
Public Interest that have had Investment
Registration/Principle Permit/Investment License either
new investments, expansion, as well as changes and
IUPTL may apply for an exemption from import duty on
capital goods.
Article 61
(1) The procedures of submission of application for
the facility as referred to in Article 48 paragraph
(1) applies in mutatis mutandis basis to the
provisions concerning the procedures for
submission of application for exemption from
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import duty on capital goods as referred to in
Article 60.
(2) The submission of the application as referred to in
paragraph (1) for the facilities for the import of
capital goods shall be signed on duly stamped
affixed with company seal, by enclosing form in
accordance with the format set forth in Appendix
XXXIII that forms inseparable part hereof;
(3) The application as referred to in paragraph (1) to
change the establishment of facilities for the
import of capital goods, accompanied by an
explanation of reasons change in import of capital
goods, shall be signed on duly stamped paper by
the directors/head of the company and affixed
with company seal, by enclosing form in
XXXIV that forms inseparable part hereof.
facility of import duty on capital goods,
accompanied by an explanation of reasons have
not been completed with the import of capital
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goods such, shall be signed on duly stamped
affixed with company seal, by enclosing form in
XXXV that forms inseparable part hereof.
(5) Exemption of import duty for the Power
Generation Industry as referred to in Article 60,
may be given to enterprises:
a. PT Perusahaan Listrik Negara (Persero) (PT
PLN (Persero)); or
b. IUPTL holder.
(6) IUPTL holder as referred to in paragraph (5) point
b shall include:
a. IUPTL holder who have a business area;
b. IUPTL holder for power generation enterprises
that have a pact of electricity trading (Power
Purchase Agreement (PPA)) with PT PLN
(Persero) stating all electricity generated will
be purchased by PT PLN (Persero);
c. IUPTL holder for power generation enterprises
that have an agreement of the lease (Finance
Lease Agreement (FLA)) with PT PLN
(Persero); or
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d. IUPTL holder for power generation enterprises
that have a power purchase agreement with
the holder of IUPTL which has its business
areas, stating se shed electricity generated
will be purchased by holders IUPTL which has
its business areas.
accompanied by Import Plan of Goods (RIB) Needs
Project has been approved and validated by
Director General of Electricity, Ministry of Energy
and Mineral Resources.
Article 62
(1) Exemption from import duty as referred to in
Article 60 is subject to changes.
(2) Changes decision as referred to in paragraph (1)
include:
Capital Goods;
b. change, replacement of HS Code of Capital
Goods;
c. change, replacement of technical specification
of capital goods;
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d. change, replacement and/or addition of port
of entry;
e. change, replacement and/or addition of
f. changes in the value of capital goods;
g. change, replacement of unit of Capital Goods;
details of Capital Goods;
project sites; and/or
j. corporate entity data changes.
(3) Changes to the facility of import duty as referred
to in paragraph (2) may only be done if:
a. the machineries have not been imported, yet
to obtain number of registration (Nopen) on
Notice of Imported Goods (PIB); and
(4) Changes to the facility of import duty as referred
to in paragraph (2) shall be filed with the attached
Revised Import Plan (RIBP) needs projects
approved and signed ratified by the Director
General of Electricity, Ministry of Energy and
Mineral Resources.
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Article 63
(1) Period of import of capital goods which could be
given the facilities as referred to in Article 60 is
given a period of 2 (two) years from the issue of
the decision to grant duty exemption on imports of
capital goods.
(2) Duration of imports of capital goods as in
paragraph (1) may be extended a maximum of
twelve (12) months from the expiry of import
realization expected in late apply for an extension
with the import of at least 14 (fourteen) days prior
to the expiration date of a decision on import duty
exemption.
(3) In the event of submission for extension of import
duty facility for the import of B charcoal Capital as
referred to in paragraph (2) is made after the
expiry of the facility, the facility of import duty on
the rest of the imports of capital goods unrealized
be provided through the reestablishment date of
its enactment and valid up to 1 (one) year period
minus the late submission.
(4) Against submission as referred to paragraph (3)
Central PTSP of BKPM may clarify in advance to
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the Directorate General of Customs and Excise,
and if necessary may be a visit to the project site.
Article 64
(1) Capital goods that may be given the facilities as
referred to in Article 60 may be carried out in
accordance with the transfer of the mechanism
prescribed in the Regulation of the Minister of
Finance regarding exemption of import duty on
capital goods for the construction or development
of the electric power generation industry for the
general interest and the regulation of
implementation.
(2) Transfer of capital goods as referred to in
paragraph (1) shall be done after obtaining
permission from the Director General of Customs
and Excise on behalf of the Minister, on the
recommendation of the Head of BKPM or a
designated official.
(3) Terms application recommendation as referred to
in paragraph (2) shall be as set forth in Appendix I
Paragraph 3
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Terms and Procedures of Exemption or Relief of Import
Duty and/or Exemption of Value Added Tax on
Imported Goods for Contract of Work and Work
Agreement of Coal Mining Concession
Article 65
(1) The import of goods for Contracts of Work and
Coal Mining Agreement granted exemption or
relief from import duty in accordance with the
contract owned.
(2) VAT exemption on imported coal for Coal Mining
Work Contract and Work Agreement may only be
granted to contractors whose contracts include the
exemption of Value Added Tax on the import of
goods to the Coal Mining Work Contract and Work
Agreement.
(3) Application for Exemption or Relief of Import Duty
and/or exemption of Value Added Tax on Imported
Goods for Coal Mining Work Contract and Work
Agreement as referred to in paragraph (1) and
paragraph (2) shall be submitted by the owner of
the Coal Mining Work Contract and Work
Agreement.
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(4) The procedure of submission of application for the
facility as referred to in Article 48 shall apply
mutatis mutandis to the provisions regarding the
procedure of application exemption or relief from
import duty and/or exemption of Value Added Tax
on Imported Goods for Coal Mining Work Contract
and Work Agreement as referred to in paragraph
(1) and paragraph (2).
paragraph (1) and paragraph (2) for exemption or
reduction of import duty and/or exemption of
value added tax, shall be signed on duly stamped
affixed with company seal, by enclosing form of
facility on import of goods capital in accordance
with the format set forth in Appendix XXXVI that
paragraph (1) and paragraph h (2) to change the
decision of exemption or reduction of import duty
and/or exemption of value added tax on imported
goods, accompanied by an explanation of reasons
changing facilities imported goods, shall be signed
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on duly stamped paper by the directors/head of
the company and affixed with company seal, by
enclosing form of facility on import of goods
capital in accordance with the format set forth in
Appendix XXXVII that forms inseparable part
hereof.
paragraph (1) and paragraph (2) for extension on
exemption or relief from import duty and/or
exemption of Value Added Tax on Imported
Goods, accompanied by an explanation of reasons
to the completion of the realization of the import
of goods, shall be signed on duly stamped paper
by the directors/head of the company and affixed
with company seal, by enclosing form of facility on
import of goods capital in accordance with the
format set forth in Appendix XXXVIII that forms
(8) The application as referred to in paragraph (3)
shall be filed by enclosing Master list
recommendation of the Director General of Mineral
and Coal, Ministry of Energy and Mineral
Resources.
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Article 66
(1) On exemption or reduction of import duty on
imported goods and/or exemption of Value Added
Tax on the import of goods to the Coal Mining
Work Contract and Work Agreement to contractors
whose contracts include the exemption or
reduction of import duty and/or exemption of
Value Added Tax on the import of goods for Coal
Mining Work Contract and Work Agreement as
referred to in Article 65 may be changed.
(2) Changes to decision as referred to in paragraph
(1) include:
goods;
b. change, replacement of HS Code of goods;
c. change, replacement of technical
specifications of goods;
d. change, replacement and/or addition to the
port of unloading;
e. change, replacement and/or addition of
f. changes in the value of the goods;
g. change, replacement of unit of goods;
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details of the goods; and/or
project site.
(3) Changes as referred to in paragraph (2) may only
be done if:
a. the goods have not been imported, yet to
obtain number of registration (Nopen) on the
Import Declaration (PIB); and
(4) Changes as referred to in paragraph (2) submitted
by attaching a Point of Recommendation which has
been approved and validated by the Director
General of Mineral and Coal, Ministry of Energy
Article 67
(1) The period of the exemption or relief from import
duty and/or VAT exemption refers to the
provisions of the Coal Mining Work Contract and
Work Agreement.
(2) The period of provision of facilities as referred to in
paragraph (1) shall be conducted every year and
ends on December 31 of the current year.
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(3) The period of provision of facilities as referred to in
paragraph (2) may be extended based on
recommendations from the Director General of
Mineral and Coal, Ministry of Energy and Mineral
Resources.
Article 68
(1) Imported goods receiving facilities:
a. Exemption or reduction of import duty;
and/or
b. Value Added Tax Exemption, for Coal Mining
Work Contract and Work Agreement as
referred to in Article 65,
may be transferred, re-exported, or destroyed.
(2) Imported goods that will be transferred, re-
exported, or destroyed as referred to in paragraph
(1) shall be conducted in accordance with the
mechanism set out in the Regulation of the
Minister of Finance regarding the exemption or
relief of import duties and/or exemption of value
added tax on imported goods to Coal Mining Work
Contract and Work Agreement and implementation
regulation.
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(3) Application as referred to in paragraph (2) is
equipped with a recommendations letter from the
Investment Coordinating Board, in the event
alienation made after two (2) years to 5 (five)
years from the date of import customs notification.
Paragraph 4
Procedures of Application for Recommendation of
Transfer/Re-Export/Destruction
Article 69
(1) The procedures of application for transfer/re-
export/destruction filed by the company/entity as
referred to in Article 56 paragraph (3), Article 64
paragraph (2), and Article 68 paragraph (3),
namely:
a. corporate/business entities submit application
documents of recommendation of transfer/re-
export/destruction offline to Central PTSP of
BKPM;
b. application documents as referred to in
paragraph a shall be verified by
administrative officer.
c. application documents verified by the officer if
not considered complete and correct, the
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application documents shall be returned to
the Company/Enterprise;
d. for application documents of
Company/Enterprises that have been
complete and correct it shall be issued
recommendation of transfer/re-
export/destruction within 5 (five) business
days; and
e. settlement of rejection of application as
referred to in point c shall be no later than
three (3) business days.
paragraph (1) for:
a. recommendation of transfer for re-exports of
machinery under facilities already imported;
and
b. recommendation of transfer for re-export of
capital goods,
shall be accompanied by an explanation of
reasons of transfer for re-export on the
machineries, signed on duly stamped paper by the
the company seal, by enclosing form in
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accordance with the format as set forth in
Appendix XXXIX that forms inseparable part
hereof.
paragraph (1) for a recommendation transfer, re-
export, or destruction of the imported goods that
get exemption or reduction of import duty and/or
exemption value added tax of imports of goods,
accompanied by an explanation of reasons
transfer, signed on duly stamped paper by the
the company seal, by enclosing form in
accordance with the format as set forth in
Appendix XL that forms inseparable part hereof.
Paragraph 5
Issuance of Decree on Import Duty Exemption Facility
Article 70
(1) In case the application for the provision of
facilities, as referred to in Article 48 paragraph
(2), Article 48 paragraph (3), Article 48 paragraph
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(10), Article 61 paragraph (2), Article 61
paragraph (3), Article 61 paragraph (4), Article 65
paragraph (5), Article 65 paragraph (6), and
Article 65 paragraph (7) is approved, the Head of
BKPM or appointed official shall, on behalf of the
Minister of Finance, issue Decree on Provision of
Facilities.
(2) The form of the Decree on Provision of Facilities as
referred to in:
a. Article 48 paragraph (2) shall be as set forth
in Appendix XLI that forms inseparable part
hereof;
b. Article 48 paragraph (3) shall be as set forth
in Appendix XLII that forms inseparable part
hereof;
c. Article 48 paragraph (4) as set forth in
Appendix XLIII that forms inseparable part
hereof;
d. Article 48 paragraph (5) shall be as set forth
in Appendix XLIV that forms inseparable part
hereof;
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e. Article 48 paragraph (6) as set forth in
Appendix XLV that forms inseparable part
hereof;
f. Article 48 paragraph (7) as set forth in
Appendix XLVI that forms inseparable part
hereof;
g. Article 48 paragraph (8) as set forth in
Appendix XLVII that forms inseparable part
hereof;
h. Article 48 paragraph (9) shall be as set forth
in Appendix XLVIII that forms inseparable
part hereof;
i. Article 48 paragraph (10) as set forth in
Appendix XLIX that forms inseparable part
hereof;
j. Article 61 paragraph (2) shall be as set forth
in Appendix L that forms inseparable part
hereof;
k. Article 61 paragraph (3) shall be as set forth
in Appendix LI that forms inseparable part
hereof;
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l. Article 61 paragraph (4) as set forth in
Appendix LII that forms inseparable part
hereof;
m. Article 65 paragraph (5) shall be as set forth
in Appendix LIII that forms inseparable part
hereof;
n. Article 65 paragraph (6) as set forth in
Appendix LIV that forms inseparable part
hereof; and
o. Article 65 paragraph (7) as set forth in
Appendix LV that forms inseparable part
hereof.
(3) In the event the application is rejected, the Head
of BKPM or officials appointed on behalf of the
Minister of Finance shall issue a Letter of Rejection
of Provision of Facility by specifying the reasons
for the rejection.
(4) Form of Rejection Letter of Provision of Facilities
as referred to in paragraph (3) shall be as set
forth in Appendix LVI that forms inseparable part
hereof.
Paragraph 6
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Issuance of Recommendation of Transfer/Re-
Export/Destruction
Article 71
(1) In the event of the application for recommendation
as referred to in Article 69 was approved, issued
on transfer/re-export/destruction.
(2) Form of Recommendation of Transfer/Re-
Export/Destruction as referred to in paragraph (1)
shall be as set forth in Appendix LVII and
Appendix LVIII that forms inseparable part hereof.
(3) In the event of the application as referred to in
Article 69 is rejected, the Head of BKPM or
appointed official shall issue Letter of Rejection by
specifying the reasons for rejection.
paragraph (3) shall be as set forth in Appendix LIX
Section Two
Terms and Procedures of Application for Corporate
Income Tax Facilities for Investment in Certain
Business Fields and/or in Certain Regions
Article 72
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(1) Tax Allowance may be granted to taxpayers who
do investment, either new investment or
expansion of existing businesses in:
a. Certain Business Fields; and/or
b. Certain Business Fields and Certain Regions,
provided in Regulation Government regulating
income tax facilities for investment in Certain
Business Fields and/or in Certain Regions.
(2) Application for Tax Allowance as referred to in
paragraph (1) shall be submitted by taxpayers
who already had Investment Registration/Principle
Permit/Investment License either new, expansion,
or changes issued by the One-Stop Center at
DPMPTSP, PTSP KPBPB, or PTSP KEK.
(3) Application for Tax Allowance as referred to in
paragraph (1) shall be submitted by the taxpayer
offline to Central PTSP of BKPM using the
application form set forth in Appendix LX that
forms inseparable hereof by enclosing
Article 73
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(1) The documents as referred to in Article 72
paragraph (3) shall be submitted to the Front
Officer of Central PTSP of BKPM for verification.
(2) In conducting the verification as referred to in
paragraph (1), Front Officer of Central PTSP of
BKPM may request further clarification to the
taxpayer on the application being submitted.
(3) Based on the clarification Taxpayer as referred to
in paragraph (2), if the Investment License is
issued by other agencies authorized by
Legislations, Front Officer of Central PTSP of BKPM
may request further clarification from the
institution issuing the investment license.
(4) Based on the clarification as referred to in
paragraph (2) and paragraph (3), it is made the
clarification outcome document namely a
document that is inseparable from the application
submitted by the taxpayer.
(5) Based on the results of the clarification document
as referred to in paragraph (4):
a. Technical Ministry shall issue Certificate of
compliance with quantitative requirements
set out in the Regulation of the Minister of
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Technical concerning the implementation of
Regulation of Government governing income
tax facility for Investment in Certain Business
Fields and/or in Certain Regions;
b. Central PTSP of BKPM/Provincial DPMPTSP,
Regency/Municipal DPMPTSP, shall issue
Change to Investment Registration/Principle
Permit/Investment License if necessary;
c. Taxpayers complement other data, if
necessary, with a maximum period of 5 (five)
business days from the receipt of clarification
of Central PTSP of BKPM.
(6) In case a period of 5 (five) business days as
referred to in paragraph (5) is not met, the
application shall be returned to the Taxpayer.
(7) In the event the application is complete and
correct, Central PTSP of BKPM shall issue a receipt
of the application using the format set forth in
Appendix LXI that forms inseparable part hereof.
Article 74
(1) In the event application is complete and correct to
follow up, the agency will hold a meeting of the
Trilateral inviting level officials Echelon-I or a
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representative of the Ministry of Finance cq
Director General of Tax and Advisor to the Minister
of Finance and Technical Ministries in accordance
with the business concerned in the application.
(2) Trilateral meeting resulted in an agreement set
forth in the minutes using the format set forth in
Appendix LXII which was signed by all participants
of the meeting contained decision stating that the
Head of BKPM or appointed official:
a. approve the application of the taxpayer to
submit the proposal for the provision facilities
of Tax Allowance at the request of the
taxpayer to the Minister of Finance through
the Director General of Taxes; or
b. reject the application of the Taxpayer.
Article 75
(1) In the event the application of the taxpayer is
approved as referred to in Article 74 paragraph (2)
point a, Head of BKPM or appointed official shall
issue proposal letter of provision of Tax Allowance
to the Finance Minister through the Director
General of Taxation.
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(2) Proposal of provision of Tax Allowance as referred
to in paragraph (1) and all documents as referred
to in Article 72 paragraph (3) and Article 73
paragraph (5), shall be delivered no later than
three (3) business days from the date of
convening the Trilateral Meeting.
(3) The form of the proposal of provision of Tax
Allowance shall be as set forth in Appendix LXIII
Article 76
(1) In the event the application of taxpayer is rejected
as referred to in Article 74 paragraph (2) b, the
Head of BKPM or appointed officials shall issue a
Rejection Letter within a maximum period of three
(3) business days of Trilateral Meeting.
(2) The form of Rejection Letter of application as
referred to in paragraph (1) is contained in
Appendix LXIV that forms inseparable part hereof.
Article 77
(1) In the event the Trilateral Meeting cannot made
decision to approve or reject the application of
Taxpayer as referred to in Article 74 paragraph
(2), BKPM shall hold further trilateral meetings.
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(2) Further Trilateral Meeting as referred to in
paragraph (1) resulted in an agreement set forth
in the minutes using the format set forth in
Appendix LXII that forms inseparable hereof,
which is signed by all participants containing a
decision stating that the Head of BKPM or officer
appointed:
a. approve the taxpayer application to submit
proposal for the provision of Tax Allowance at
the request of the taxpayer to Minister of
Finance through the Director General of
Taxation; or
b. reject the application of Taxpayer.
Article 78
(1) In case further Trilateral Meeting decides to
approve the application of taxpayer as referred to
in Article 77 paragraph (2) point a, the provisions
of Article 75 applies on mutatis mutandis basis.
(2) In case further Trilateral Meeting decides to reject
the application of taxpayer as referred to in Article
77 paragraph (2) b, provisions of Article 76 applies
on mutatis mutandis basis.
Article 79
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The decision of Trilateral Meeting as referred to in
Article 77 paragraph (2) shall be made at least 15
(fifteen) days after the clarification as referred to in
Article 73 paragraph (3) received in the Central PTSP
BKPM.
Section Three
Terms and Procedures of Application for Exemption or
Relief of Corporate Income Tax
Article 80
(1) Tax Holiday may be given to taxpayer who
perform new investment included as Pioneer
Industry.
(2) Pioneer Industry as referred to in paragraph (1),
includes:
a. Upstream metal industry;
b. Petroleum refining industry or industry and
infrastructure of petroleum refining, including
those using the scheme of the Government
and Enterprises Cooperation (KPBU);
c. Organic basic chemicals Industry derived from
petroleum and natural gas;
d. Machinery Industry that produces industrial
machinery;
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e. Agricultural, forestry, and fishery product-
based processing industry;
f. Telecommunications, information, and
communication industry; and/or
g. Marine transportation industry.
(3) Taxpayer as referred to in paragraph (1) may be
given Tax Holiday who meet the following criteria:
a. new taxpayer;
b. make new investment in pioneer industry;
c. has plans of new investment that obtain
authorization from the competent authority,
at least Rp.1.000.000.000.000,00 (one
trillion rupiah) or for pioneer industry as
referred to in paragraph (2) at least
Rp.500.000.000.000,00 (five hundred billion
rupiah) and meet the requirements of
introducing high technology (high tech);
d. comply with the provision on the ratio
between debt and capital, as referred to in
Regulation of the Minister of Finance on the
determination of the ratio between debt and
capital company for the purposes of
calculating the income tax;
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e. submit a statement of willingness to place
funds in banks in Indonesia at least 10% (ten
percent) of the total planned investment as
referred to in letters c and these funds are
not withdrawn prior to the commencement of
the implementation of the realization of the
investment;
f. have a status of Indonesian corporation
whose ratifications set since or after 15
August 2011; and
g. in the event taxpayer as referred to in
paragraph (1) are owned directly by domestic
and/or foreign taxpayers in the form of fixed
establishment, in addition to meeting the
criteria as referred to in paragraph (1)
domestic and/or foreign taxpayer in the form
of fixed establishment must have a fiscal
certificate issued by the Directorate General
of Taxation with the provisions governing the
procedures of granting fiscal certificate.
Article 81
(1) Application for Tax Holiday filed by the taxpayer
offline to Central PTSP of BKPM shall enclose
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documents as set forth in Appendix I that forms
inseparable hereof in the form of:
a. application signed on duly stamped paper by
the board of Taxpayer in accordance with the
format as set forth in Appendix LXV that
forms inseparable part hereof;
b. Records on Investment Registration/Principle
Permit/Investment License and the
amendments issued by the Central PTSP
BKPM, Provincial DPMPTSP,
PTSP KEK;
c. record of establishment deed of the company
and/or the amendments that have secured
approval/notification of the Ministry of Justice
and Human Rights;
d. Record of Taxpayer Identification Number
that has been subject to KSWP Agency in
accordance with the provisions of legislations;
e. review of criterion of pioneer industry;
f. the original of letter of undertaking to put
funds in banks in Indonesia as referred to in
Article 80 paragraph (3) point e;
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g. the original of certificate of fiscal for
Taxpayers who comply with the provisions in
Article 80 paragraph (3) point g;
h. explanation of sources of financing of the
company's investment with the supporting
documents;
i. explanation of regulatory compliance of ratio
between the debt and the amount of capital
as referred to in the Regulation of the
Minister of Finance on the determination of
the ratio between debt and capital company
for the purposes of calculating the income
tax; and
j. power of attorney, duly stamped, if the
applications is not done directly by the board
of the taxpayers.
(2) The provisions as referred to in paragraph (1)
point g does not apply In the event of corporate
taxpayer:
a. owned directly by the Central Government or
Local Government; and/or
b. the ownership consist of shares listed with
exchanges in Indonesia.
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Article 82
(1) Application documents for Tax Holiday shall be
submitted offline to Central PTSP of BKPM.
(2) The documents as referred to in paragraph (1)
shall be subject to verification of fulfillment of
requirements.
(3) Based on the clarification of Taxpayer as referred
to in paragraph (2), if the Investment License is
issued by other competent authorities in
accordance with the provisions of legislations,
Front Officer of Central PTSP of BKPM may request
further clarification of the issuer of investment
license.
(4) In the event the decision of clarification of
compliance of requirements holds the application
documents are complete and correct, it shall issue
a receipt of application using the format as set
forth in Appendix LXVI that forms inseparable part
hereof.
(5) Follow-up of the clarification of eligibility as
referred to in paragraph (2), it shall be carried out
a technical clarification meetings in the presence
of the taxpayer, representatives of the Ministry of
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Technical/LPNK, Ministry of Finance, experts,
academics and associations in accordance with the
business field concerned.
(6) Based on the clarification of eligibility as referred
to in paragraph (2) and technical clarification
meeting as referred to in paragraph (4), it shall be
conducted meeting decision to accept or reject the
application.
(7) After further investigation, the fulfillment of the
requirements as referred to in paragraph (2), the
meeting for clarification of technical as referred to
in paragraph (5), and a decision-making meeting
as referred to in paragraph (6) each set forth in
Minutes signed by all meeting participants using
the format listed in appendix LXVII that forms
(8) In case the meeting for taking decision as referred
to in paragraph (6) decided to accept the
application, the Head of BKPM or appointed official
shall issue proposal for the provision of Tax
Holiday to Finance Minister through the Director
General of Taxation using the format set forth in
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Appendix LXVIII that forms inseparable part
hereof.
(9) In case the meeting for taking decision as referred
to in paragraph (6) decided to reject the
application, the Head of BKPM or appointed official
shall issue Rejection Letter using the format set
forth in Appendix LXIX that forms inseparable part
hereof.
Article 83
(1) The term of the clarification process until the issue
of the proposal or accept/reject a maximum of 25
(twenty five) business days after the issuance of a
receipt.
(2) If in the process of technical clarification there is a
shortage of documents that must be completed by
the taxpayer but by the deadline stated in the
Minutes of the Technical Clarification Taxpayers
cannot complete the additional documents in
question, the application is returned to Taxpayer.
Article 84
Against Taxpayers who at the time of submission of
application for the provision of facilities Exemption or
Reduction of Corporate Income Tax/Tax Holiday has
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also been chosen to be awarded Income Tax facilities
based on government regulation governing income tax
facilities for investment in Certain Business Fields
and/or Certain Regions provisions shall apply:
a. In the event of an application for Tax Holiday
rejected by the Minister of Finance:
1. Facilities may apply the Tax Allowance in
accordance with the application procedures
set out in the Regulation The agency with a
point of refusal to grant Tax Holiday of the
Minister of Finance; and
2. application to get Tax Allowance as referred
to in item 1 using the Application for Tax
Holiday which has been rejected.
b. The taxpayers concerned in the event an
application for Tax Holiday:
1. Taxpayers may submit application for Tax
Allowance by enclosing letter from the
taxpayer to the Head of BKPM or appointed
official with a copy of the statement of
Finance Minister concerning statement of
withdrawal of application for Tax Holiday; and
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2. procedures of application for Tax Allowance as
referred to in item 1 refers hereto.
CHAPTER VIII
TERMS AND PROCEDURES OF ISSUANCE OF API
PROVISION OF IMMIGRATION FACILITIES
Section One
Terms and Procedures of Application for API
Paragraph 1
General
Article 85
(1) Imports of goods may only be done by importers
who have API
(2) API only be held by the company's headquarters.
(3) Each importer only have one (1) type of API and
Signing Card Authorization API is the Board of
Directors and the Board of Directors.
(4) API applies since established and applied to each
import activity in all regions of Indonesia
(5) API application filed using API form, in accordance
with the provisions of legislations regarding the
importer identification number, to:
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a. Central PTSP of BKPM for PMA/PMDN under
the authority of government;
b. Provincial DPMPTSP for the PMDN under the
authority of the region; and
c. KPBPB Concession Agency for PMA/PMDN
incorporated and domiciled in KPBPB
Concession Agency under the authority of
KPBPB Concession Agency.
(6) API as referred to in paragraph (1) shall consist
of:
a. API-P; and
b. Public API (API-U).
Paragraph 2
API-P
Article 86
(1) API-P is given only to company that import goods
to be used alone as capital goods, raw materials,
auxiliary materials, and/or materials to support
the production process.
(2) The imported goods as referred to in paragraph
(1) is prohibited to be traded or transferred to
another party.
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(3) In the event of imported goods as referred to in
paragraph (2) are capital goods granted
exemption from import duty and has used its own
minimum of 2 (two) years from the date of import
customs notification, the import goods may be
transferred to other party.
Paragraph 3
API-U
Article 87
(1) API-U is given only to company that import certain
goods for trading purposes.
(2) Imports of certain goods as referred to in
paragraph (1)only for groups/types of goods listed
in the Trading Business License.
Paragraph 4
Procedures of Application and Issuance of API
Article 88
(1) Application for API as referred to in Article 86 and
Article 86 brought offline to Central PTSP of BKPM,
Provincial DPMPTSP or PTSP KPBPB in accordance
with their authority, using the application form
contained in Appendix LXX by enclosing the
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inseparable hereof.
(2) Company owning API as referred to in Article 86
and Article 87, shall re-register at the Central
PTSP BKPM, Provincial DPMPTSP, or PTSP KPBPB in
accordance with their authority, every five (5)
years from the date of issue.
(3) Re-registration as referred to in paragraph (2)
shall be at least 30 (thirty) days after the period of
5 (five) years.
(4) API as referred to in paragraph (1) shall be issued
no later than five (5) business days from the
receipt of the complete and correct application by
the Head of BKPM or Head or Head of the
Provincial DPMPTSP, KPBPB Concession Agency or
designated official.
(5) Form of API issued shall be as set forth in
Appendix LXXI and Appendix LXXII that form
integral part hereof.
(6) In the event of the API application as referred to in
paragraph (1) is rejected, the Head of BKPM or
Head or Head of the Provincial DPMPTSP KPBPB
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Exertion or appointed official Rejection Letter API
made no later than five (5) business days.
(7) Rejection Letter form as referred to in paragraph
(6) listed in Appendix IV that forms inseparable
part hereof.
Paragraph 5
API Changes
Article 89
(1) For any changes to the provisions stipulated in the
API must apply changes to the API.
(2) In the event changing the status of the company,
owner of the API required to submit a report to the
company's change in status of the issuer of the
API as referred to in Article 85 paragraph (5) and
restore the original API.
(3) Application an API change as referred to in
paragraph (1) shall apply to contingencies listed in
Article 89.
Section Two
Provisions and Procedures of Application for
Immigration Service Facilities
Paragraph 1
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General
Article 90
Immigration facility in the field of investment consists
of:
a. RPTKA;
b. IMTA;
c. Recommendations for Limited Stay Visa;
d. Recommendations for Change of Stay Visit Permit
to Limited Stay Permit; and
e. Recommendation for Change of Status of Limited
Stay Permit to Permanent Stay Permit.
Paragraph 2
Foreign Worker Employment Plan (RPTKA)
Article 91
(1) The Company that will employ foreign workers
must have RPTKA.
(2) Application for approval of RPTKA, either new,
renewal, or changes shall be submitted to the
Central PTSP of BKPM online, in accordance with
the provisions of legislations on employment.
(3) Application for extension of RPTKA that does not
contain a change in one (1) region of the
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provinces submitted to the Provincial DPMPTSP
offline or online, in accordance with the provisions
of legislations on employment.
(4) Application to obtain a decision RPTKA for KEK and
KPBPB Concession Agency submitted to the
authorized officials of KEK and KPBPB Concession
Agency, in accordance with the provisions of
legislations on employment.
(5) Application for RPTKA as referred to in paragraph
(2) and (3) by enclosing requirements in
accordance with the provisions of legislations on
labor.
(6) RPTKA as referred to in paragraph (1) is used as
the basis for the IMTA.
(7) Decision to approve RPTKA, either new or renewal
as referred to in paragraph (2) and (3) shall be
issued at least 3 (three) business days from
receipt of complete and correct application.
(8) The decision of approval of RPTKA changes as
referred to in paragraph (2) shall be issued no
later than two (2) business days from the receipt
of complete and correct application.
Paragraph 3
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License to Employ Foreign Workers (IMTA)
Article 92
(1) Application for new IMTA shall be submitted to
Central PTSP of BKPM using IMTA form, in
accordance with the provisions of legislation on
labor.
(2) Application for extension of IMTA shall be
submitted using IMTA form, in accordance with the
provisions of legislations on labor, to:
a. Central PTSP of BKPM online, for foreign
workers who work in more than 1 locations of
1 (one) area of the provincial and foreign
workers who work in offices;
b. Provincial DPMPTSP offline or online, for
foreign workers who work in locations across
the territory of the regency/municipality
within 1 (one) province; or
c. Regency/Municipal DPMPTSP offline or online,
for foreign workers in places of work in one
regency/municipality.
d. Application for IMTA at KEK and KPBPB shall
be submitted using IMTA form offline or
online to designated officials in KEK and
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KPBPB in accordance with the provisions of
legislations on labor.
(3) Application for IMTA as referred to in paragraph
(1) and paragraph (2) shall be by enclosing
requirements in accordance with the provisions of
legislations on labor.
(4) IMTA as referred to in paragraph (1) and
paragraph (2) shall be issued no later than three
(3) business days from the receipt of complete
and correct application.
Paragraph 4
Recommendations of Issuance of Limited Stay Visa
Article 93
(1) Recommendation for Issuance of Limited Stay Visa
as referred to in Article 90 point c is
Recommendation for limited stay visa not for work
for foreigners who make foreign investment and
requirement to obtain the approval of Limited Stay
Visa.
(2) Application for Recommendation of Issuance of
Limited Stay Visa as referred to in paragraph (1)
shall be submitted offline to Central PTSP of BKPM,
using the application form contained in Appendix
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LXXIII that forms inseparable part hereof by
enclosing requirements as set forth in Appendix I
(3) Recommendation for Issuance of Limited Stay Visa
as referred to in paragraph (1) shall be issued no
later than five (5) business days from the
submission of complete and correct application.
(4) Form of Limited Stay Visa Issuance
recommendation as referred to in paragraph (1)
shall be as set forth in Appendix LXXIV that forms
(5) In the event the application for Limited Stay Visa
Issuance recommendation as referred to in
paragraph (2) is rejected, the Head of BKPM or
appointed official makes Rejection Letter no later
than five (5) business days.
Paragraph 5
Recommendation for Change of Status
Of Visit Stay Permit to Limited Stay Permit
Article 94
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(1) Recommendation for Change of Status from Visit
Stay Permit to Limited Stay Permit as referred to
in Article 90 paragraph d is a requirement for
approval change of status into limited stay permit.
(2) Application for Recommendation of Change of
Status of Visit Stay Permit to Limited Stay Permit
as referred to in paragraph (1) shall be filed in
offline Central PTSP of BKPM, using the application
form contained in the Appendix LXXV that forms
inseparable hereof by enclosing requirements as
set forth in Appendix I that forms inseparable part
hereof.
(3) Recommendation of Change of Status of Visit Stay
Permit to Limited Stay Permit as referred to in
paragraph (1) shall be issued no later than five (5)
business days from the submission of a complete
(4) Form of Recommendation of Change of Status of
Visit Stay Permit to Limited Stay Permit as
Appendix LXXVI that forms inseparable part
hereof.
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(5) In the event the application for recommendation of
Change of Status of Visit Stay Permit to Limited
Stay Permit as referred to in paragraph (2) is
rejected, the Head of BKPM or appointed official
makes Rejection Letter no later than five (5)
business days.
Paragraph 6
Recommendation for Change of Status of Limited Stay
Permit to Permanent Stay Permit
Article 95
(1) Recommendation for Change of Status of Limited
Stay Permit to Permanent Stay Permit as referred
to in Article 90 e is the requirements for approval
of change of status of limited stay permit to
permanent stay permit.
(2) Recommendation of Change of Status of Limited
Stay Permit to Permanent Stay Permit shall be
granted to foreigners who meet the following
criteria:
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a. investor and serves as board of the company
provided that the shareholding is at least
Rp.1.000.000.000,00 (one billion rupiah) or
the equivalent in the currency of the United
States dollar; or
b. investor and not as the board of company
with shareholding of at least
Rp.10.000.000.000,00 (ten billion rupiah) or
equivalent in the currency of the United
States dollar;
(3) Application for Recommendation of Change of
Status of Limited Stay Permit to Permanent Stay
Permit as referred to in paragraph (1) shall be
filed offline to Central PTSP of BKPM, using the
application form contained in the Appendix LXXVII
that forms inseparable hereof by enclosing
(4) Recommendation for Change of Status of Limited
Stay Permit to Permanent Stay Permit as referred
to in paragraph (1) shall be issued no later than
five (5) business days from receipt of complete
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(5) Form of Recommendation for Change of Status of
Limited Stay Permit to Permanent Stay Permit as
Appendix LXXVIII that forms inseparable part
hereof.
(6) In the event the application for recommendation
for Change of Status of Limited Stay Permit to
Permanent Stay Permit as referred to in paragraph
(3) is rejected, the Head of BKPM or appointed
official makes Rejection Letter within 5 (five)
business days.
CHAPTER IX
SERVICE PRIORITY
Section One
General
Article 96
(1) The implementation of accelerated Undertaking
Licensing in the form of compliance with
requirements (checklist) shall be conducted by:
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a. Central PTSP of BKPM
b. Provincial DPMPTSP or regency/municipal
DPMPTSP in accordance with their authority
for company located in Industrial Estate and
KSPN;
c. PTSP KPBPB; and
d. PTSP KEK.
(2) Industrial and tourism business Estate in KSPN as
referred to in paragraph (1) point b must have a
Industrial Zone Business License/Tourism Business
Registration Certificate.
(3) Company that has temporary Undertaking
Licensing and is located in KPBPB Concession
Agency, KEK, Industrial Estate, KSPN may
immediately begin construction.
(4) KPBPB Concession Agency and KEK as referred to
in paragraph (3) shall have been declared ready
for operation by the National Council of
KEK/Coordinating Minister for Economic Affairs.
(5) Industrial Estate as referred to in paragraph (3)
shall be determined by the Head of BKPM or
authorities.
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(6) KSPN as referred to in paragraph (3) shall be
determined by the competent authority.
Section Two
Terms and Procedures of Accelerated Undertaking
Licensing in KEK
Paragraph 1
Terms of Accelerated Undertaking Licensing in KEK
Article 97
(1) The Company shall apply for Undertaking
Licensing to PTSP KEK through integrated
electronic undertaking licensing system (Online
Single Submission) to obtain Investment
Registration as well as:
a. Establishment Deed of Company and the
approval by the Ministry of Justice and
Human Rights;
c. Certificate of Company Registration;
d. RPTKA;
e. IMTA;
f. API; and
g. Customs Access.
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(2) Submission of Undertaking Licensing as referred to
in paragraph (1) as well as application for issuing
of licenses required, in the form of commitment to
fulfill the requirements (checklist) as set forth in
Appendix LXXIX that forms inseparable part
hereof, comprising:
a. permits for construction and commercial,
which include at least:
1. Environmental Management Effort and
Environmental Monitoring Effort (UPL-
UKL);
2. Land certificate;
3. Building Engineering/Building Permit
(IMB); and
4. Business License in accordance with the
provisions of the business sector.
b. facilities where necessary, namely:
1. Income Tax facilities;
2. Value Added Tax or Value Added Tax and
Sales Tax on Luxury Goods;
3. customs and excise facilities;
4. facilities and ease of freight traffic;
5. facilities and ease of labor;
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6. facilities and ease of immigration; and/or
7. facilities and ease of land.
(3) A commitment to compliance with the
requirements (checklist) as referred to in
paragraph (2) registered by KEK PTSP.
paragraph (1) and register as referred to in
paragraph (3) an temporary Undertaking Licensing
to start construction activities and endeavor.
(5) In the event of KEK have not been able to publish
Undertaking Licensing as referred to in paragraph
(1) and (2), Central PTSP of BKPM may issue a
Permit Sought meant by a statement from KEK
Administrator to the Head of BKPM or written
assignment of the Coordinating Ministry for
Economic Affairs.
(6) Company must begin construction no later than 90
(ninety) days from the registered as referred to in
paragraph (3).
(7) The company may convey obstacles in the
implementation of accelerated undertaking at KEK
to the National Task Force and may be delivered
to the Task Force of ministries/agencies and
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relevant provincial Task Force through complaint
service.
Article 98
(1) In case for the implementation of construction and
commercial it is still required other technical
requirements, the company shall apply for
fulfillment of technical requirements concerned to
ministries/agencies through PTSP KEK.
(2) PTSP KEK shall facilitate the completion of the
technical licensing as referred to in paragraph (1),
in coordination with the ministries/agencies.
Paragraph 2
Procedures of Accelerated Undertaking Licensing in KEK
Article 99
(1) Company fill out and sign the application form
issuance of permits required in the form of
fulfillment of requirements (checklist) as referred
to in Article 97 paragraph (1) independently
accompanied by the commitment and the time
period of eligibility must be met.
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(2) The application form accompanied by a
commitment as referred to in paragraph (1) shall
be registered by KEK PTSP.
(3) Based on the application, along with commitment
of as referred to in paragraph (1) it shall be issued
Register of Statement of Fulfillment of
Requirements of Licensing at least 1 (one)
business day from the receipt of the application.
(4) Form of Register of Statement of Fulfillment of
Requirements of Licensing as referred to in
paragraph (3) shall be as set forth in Appendix
LXXX that forms inseparable part hereof.
(5) PTSP KEK reported the Investment Registration as
referred to in Article 97 paragraph (1) and register
as referred to in paragraph (2) to the Task Force
on National and may be delivered to the Task
Force ministries/agencies and the Task Force
Provincial Related least seven (7) business days.
(6) In the event the company does not fulfill whole or
part of the requirements contained in the checklist
and turnaround time commitment and have not
started construction as referred to in paragraph
(5), PTSP KEK:
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a. gives a written warning;
b. imposes suspension of Undertaking Licensing
in terms of checklist;
c. gives extension of time to complete the
requirements that have not been met;
d. suspends the activities; and/or
e. revokes Undertaking Licensing temporarily.
(7) An extension of time to complete the outstanding
requirements as referred to in paragraph (6) c
filed no later than five (5) business days prior to
the expiration of the time specified in the checklist
which have been registered.
(8) PTSP KEK shall provide Register of Extension of
Fulfillment of Requirements of Licensing on a
commitment to compliance with the requirements
(checklist) that have not been met as referred to
in paragraph (7) within 1 (one) day after the
application is received.
(9) In the event that the company has complied with
all the requirements contained in the form of
checklist, PTSP KEK Undertaking Licensing
required to publish in accordance with the
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Section Three
Licensing in KPBPB Concession Agency
Paragraph 1
Terms of Accelerated Undertaking Licensing in KPBPB
Concession Agency
Article 100
(1) Undertaking Licensing submitted to the KPBPB
Concession Agency in accordance with the
authorities through Integrated Electronic
Undertaking Licensing System (Online Single
Submission) to obtain investment registration as
well as:
Human Rights;
d. RPTKA;
e. IMTA;
f. API; and
g. Customs Access.
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(2) Submission of Undertaking Licensing as referred to
in paragraph (1) as well as application for issuing
of licenses required, in the form of commitment to
fulfill the requirements (checklist) as set forth in
Appendix LXXIX that forms inseparable part
hereof, comprising:
UKL);
(IMB); and
4. Business License in accordance with the
provisions of the business sector.
b. facilities where required, namely:
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paragraph (2) registered by KEK PTSP.
paragraph (3) a temporary Undertaking Licensing
to start construction and undertaking activities.
paragraph (3).
service.
Article 101
ministries/agencies through PTSP KEK.
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(2) PTSP KEK shall facilitate the completion of the
technical licensing as referred to in paragraph (1),
in coordination with the ministries/agencies.
Paragraph 2
Accelerated Undertaking Licensing Procedures in KPBPB
Concession Agency
Article 102
be registered by PTSP of KPBPB Concession
Agency.
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(5) PTSP of KPBPB Concession Agency reported the
Investment Registration as referred to in Article
101 paragraph (1) and register as referred to in
paragraph (2) to the National Task Force and may
be delivered to the ministries/agencies Task Force
and relevant Provincial Task Force at least seven
(7) business days.
(5), PTSP of KPBPB:
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shall be filed no later than five (5) business days
prior to the expiration of the time specified in the
checklist which have been registered.
(8) PTSP KPBPB shall provide Register of Extension of
Fulfillment of Requirements of Licensing on a
commitment to compliance with the requirements
(checklist) that have not been met as referred to
in paragraph (7) within 1 (one) day after the
application is received.
checklist, PTSP KPBPB Undertaking Licensing
required to publish in accordance with the
Section Four
Licensing in the Industrial Estate and KSPN
Paragraph 1
Terms of Accelerated Undertaking Licensing in
Industrial Estate and KSPN
Article 103
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(1) Undertaking Licensing shall be submitted to
Central PTSP of BKPM, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP in accordance with
their authority through a Online Single Submission
to obtain Investment Registration as well as:
Human Rights;
d. RPTKA;
e. IMTA;
f. API; and
g. Customs Access.
(2) Undertaking Licensing in the form of fulfillment of
paragraph (1), comprising:
UKL);
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(IMB); and
4. Industrial Business License (IUI) or
Certificate of Tourism Registration
(TDUP).
b. facilities where required, namely:
2. Value Added Tax o Value Added Tax and
Sales Tax on Luxury Goods facilities;
3. customs and/or excise facilities;
4. facilities and ease of freight traffic;
paragraph (2) registered by Central PTSP of BKPM,
Provincial DPMPTSP, or Regency/Municipal
DPMPTSP in accordance with their authority.
paragraph (3) a temporary Undertaking Licensing
to start construction and undertaking activities.
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paragraph (3).
service.
Article 104
ministries/agencies through Central PTSP,
Provincial DPMPTSP, or DPM PTSP
Regency/Municipal.
(2) Central PTSP, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP shall facilitate the
completion of the technical licensing as referred to
in paragraph (1), in coordination with the
ministries/agencies.
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Article 105
(1) Accelerated Undertaking Licensing as referred to in
Article 103 paragraph (1) may be given within a
period of three (3) hours to domestic and foreign
company whose licenses meet the following
criteria:
a. investment value of at least
Rp.100.000.000.000,00 (one hundred billion
rupiah); or
b. Indonesian employment of at least 1.000
(one thousand) people;
(2) Criteria as referred to in paragraph (1) shall be
excluded for:
a. certain industry, certain region or place which
obtain Inland Free Trade Arrangement, in
accordance with the regulation set by the
Minister of Industry;
b. company of certain industrial businesses that
are part of the supply chain, provided that
submitting an affidavit or memorandum of
understanding as supplier of enterprise user
of product to be produced;
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c. company attending Tax Amnesty, provided
that submitting Certificate of Tax Amnesty
issued by the Finance Minister or appointed
official on behalf of the Minister of Finance;
d. infrastructure projects and/or the National
Strategic Projects that have been established
in the legislations;
(3) For Tax Amnesty for new projects is also given to
an individual, provided that enclosing record of
Certificate of Tax Amnesty issued by the Minister
of Finance or appointed official on behalf of the
Minister of Finance.
(4) For Tax Amnesty Program of expansion project is
also given to individuals who have individual PMDN
business as referred to in paragraph (3) provided
that enclosing record of Certificate of Tax Amnesty
issued by the Minister of Finance or appointed
official on behalf of the Minister of Finance.
Paragraph 2
Procedures of Accelerated Undertaking Licensing in
Industrial Estate and KSPN
Article 106
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be registered by the Central PTSP of BKPM,
Provincial DPMPTSP, or Regency/Municipal
DPMPTSP.
(5) Central PTSP of BKPM, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP reported the
Investment Registration as referred to in Article
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103 paragraph (1) and register as referred to in
(2) to the National Task Force and may be
delivered to the ministries/agencies Task Force
and relevant Provincial Task Force.
(5), Central PTSP of BKPM, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP:
shall be filed no later than five (5) business days
prior to the expiration of the time specified in the
checklist which have been registered.
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Regency/Municipal DPMPTSP shall provide Register
of Extension of Fulfillment of Requirements of
Licensing on a commitment to compliance with the
requirements (checklist) that have not been met
as referred to in paragraph (7) within 1 (one) day
after the application is received.
fulfillment of requirements (checklist), Central
PTSP of BKPM, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP shall issue the
Undertaking Licensing.
Article 107
(1) Application for Accelerated Undertaking Licensing
as referred to in Article 105 paragraph (1) shall be
submitted directly by all prospective shareholders.
(2) In the event prospective shareholders unable to be
present, they may be represented by one of the
candidates by enclosing the original power of
attorney from the prospective shareholders who
cannot attend.
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(3) In the event the company was incorporated, the
application submitted by the company.
submitted to Central PTSP of BKPM, Provincial
DPMPTSP, and Regency/Municipal DPMPTSP in
accordance with their authority, using the
application form contained in Appendix LXXXI by
enclosing requirements as set forth in Appendix I
that forms inseparable part hereof,
(5) Accelerated Undertaking Licensing Application as
referred to in paragraph (1) shall be issued no
later than three (3) hours of receipt of complete
and correct applications at the Central PTSP BKPM,
Provincial DPMPTSP, and Regency/Municipal
DPMPTSP in accordance with their with authority.
Section Five
Terms and Procedures for Accelerated Undertaking
Licensing outside KEK, KPBPB Concession Agency,
Industrial Estate, and KSPN
Article 108
(1) Company shall apply for Undertaking Licensing
online to Central PTSP of BKPM, Provincial
DPMPTSP, or Regency/Municipal DPMPTSP by
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submitting complete and correct application form
and complete all the requirements set out in the
Undertaking Licensing.
paragraph (1) shall be 1 (one) time by the
company.
(3) In the event the Undertaking Licensing has not
been mandated by ministries/agencies to Central
PTSP of BKPM, the company shall submit the same
to the work unit of the ministries/agencies.
Regency/Municipal DPMPTSP receiving the
application for Undertaking Licensing as referred
to in paragraph (1) shall issue Investment
Registration as well as:
a. Deed of Establishment of the Enterprise and
the approval from the Ministry of Justice and
Human Rights;
b. Taxpayer Identification Number; and
c. Certificate of Company Registration.
paragraph (4) is used to obtain:
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a. the necessary documents for the construction
of buildings, which include at least: location
permits, building permit, environmental
permits, traffic impact analysis, certificate of
function eligibility, technical buildings,
Industrial Business License (IUI), and
licensing of the industrial sector; and/or
b. facilities where required, namely taxation,
customs, excise, and other facilities.
(6) Central PTSP of BKPM, work unit of
ministries/agencies, provincial DPMPTSP, or
Regency/Municipal DPMPTSP shall carry out
verification of the technical requirements and the
completeness no later than 5 (five) business days.
(7) The completion of the necessary documents for
the construction of buildings as referred to in
paragraph (4), shall be conducted simultaneously
through the use of data sharing.
(8) In the event the requirements of the company has
been complete and correct, Central PTSP of BKPM,
work unit of ministries/agencies, Provincial
DPMPTSP, or Regency/Municipal DPMPTSP shall
provide a receipt of the application.
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(9) In the event the requirements of the company has
been complete and correct, it shall be issued
Undertaking Licensing no later than 5 (five)
business days from receipt of the application was
issued as referred to in paragraph (8).
(10) In the event of incomplete or incorrect
requirements of the company, Central PTSP of
BKPM, work unit of ministries/agencies, Provincial
notify the company to complete such incomplete
requirements and/or to correct the same
maximum three (3) business days after the receipt
of the application was issued as referred to in
paragraph (8).
(11) The Company shall promptly complete the
incomplete requirements and/or correct the same
as referred to in paragraph (10) and submit to
Central PTSP of BKPM, work unit of
Regency/Municipal DPMPTSP.
(12) In the event that the company has completed the
requirements as referred to in paragraph (10),
Central PTSP BKPM, work unit of
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Regency/Municipal DPMPTSP shall provide a
receipt for completeness of requirement.
(13) In the event the company has obtained a receipt
for completeness requirement, Central PTSP of
BKPM, work unit of ministries/agencies, Provincial
issue the Undertaking Licensing no later than 3
(three) business days from the receipt was issued
as referred to in paragraph (12).
Regency/Municipal DPMPTSP shall report the
Investment Registration as referred to in
paragraph (1) and the issuance of Undertaking
Licensing as referred to in paragraph (13) to the
National Task Force and where necessary to the
relevant Task Force of ministries/agencies,
Provincial Task Force, and/or Regency/Municipal
Task Force.
(15) Company may convey obstacles in the
implementation of the acceleration outside KEK,
KPBPB Concession Agency, Industrial Estate, and
KSPN to the National Task Force and where
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necessary to the relevant Task Force of
ministries/agencies, provincial Task Force, and/or
Regency/Municipal Task Force through complaint
service.
Article 109
The procedures of applying for Undertaking Licensing
as referred to in Article 108 paragraph (1) for domestic
and foreign company whose licenses is the authority of
the Central Government shall apply on mutatis
mutandis basis to the provisions on the procedure of
application for Accelerated Undertaking Licensing as
referred to in Article 107.
Article 110
(1) Central PTSP of BKPM, work unit of
ministries/agencies, Provincial DPMPTSP, or
Regency/Municipal DPMPTSP shall carry out
accelerated Undertaking Licensing outside KEK,
KPBPB Concession Agency and Industrial Estate,
and KSPN as referred to in Article 108 in the form
of fulfillment of requirements (checklist).
(2) The implementation of accelerated Undertaking
Licensing in the form of fulfillment of requirements
- 178 -
(checklist) as referred to in paragraph (1) may be
conducted in the event:
a. the Undertaking Licensing does not endanger
public safety and security;
b. has had detailed master plan of the
regency/municipality or area of strategic
spatial planning of the regency/municipality;
and/or
c. have had technical standards set by the
Government.
(3) The provisions concerning the implementation of
accelerated Undertaking Licensing in the form of
to in paragraph (1) shall apply on mutatis
mutandis basis to the implementation of the
Undertaking Licensing in Industrial Estate and
KSPN as referred to in Article 103.
Section Six
Terms and Procedures of 3 (Three) Hours Quick
Licensing Service related to Infrastructure in Energy
and Mineral Resources Sector
Paragraph 1
- 179 -
Terms of 3 (Three) Hours Quick Licensing Service
Related to Infrastructure of Energy and Mineral
Resources Sector
Article 111
(1) 3 (Three) Hours Quick Licensing Service related to
Infrastructure of Energy and Mineral Resources
Sector shall be given to the applicant in the
business under the authority of Minister of Energy
Sector, as referred to in paragraph (1) includes:
a. Power Generation Business Sector;
b. Power Transmission Business Sector; and
c. Temporary Permit of Downstream Oil and Gas
which consists of:
1. Temporary Business License of
Petroleum/Fuel/Processed/Liquid
Petroleum Gas (LPG)/Composed Natural
Gas (CNG)/Liquid Natural Gas (LNG)
Storage;
2. Temporary Business License of
Petroleum Storage with refinery capacity
- 180 -
of over 20.000 (twenty thousand)
barrels of oil per day/Temporary
Business License of Gas
Processing/Temporary Business License
of Processed Products; and
3. Temporary Business License of General
Trading of Petroleum/Fuel/Processed
Products.
Paragraph 2
Procedures of 3 (Three) Hours Quick Licensing Service
related to Infrastructure in Energy and Mineral
Resources Sector
Article 112
Sector as referred to in Article 111 shall be
submitted directly by the company to Central PTSP
of BKPM by enclosing administrative and technical
requirements.
(2) In the event the applicant is a consortium and not
yet incorporated, the application shall be filed by
one of the consortium members.
- 181 -
(3) The application form for 3 (Three) Hours Quick
Licensing Service related to Infrastructure of
Energy and Mineral Resources Sector as referred
to in paragraph (1) is set forth in Appendix LXXXI
(4) Administrative requirements and technical
requirements as referred to in paragraph (1) shall
be as set forth in Appendix I that forms
(5) Fulfillment of administrative requirements and
technical requirements as referred to in paragraph
(4) may be a statement/written commitment that
must be met independently by the applicants as
set forth in Appendix LXXXI that forms inseparable
part hereof.
Sector, as referred to in paragraph (1) shall be
issued no later than three (3) business hours by
Central PTSP of BKPM.
(7) The form of license as referred to in paragraph (6)
shall be as set forth in Appendix LXXXII that forms
- 182 -
(8) The fulfillment of the requirements as referred to
in paragraph (5), contains requirements that must
be fulfilled independently and commitment to fulfill
the requirements maximum 60 (sixty) calendar
days after issuance of license.
(9) Head of BKPM or appointed official shall provide a
certificate of completeness of administrative and
technical requirements as referred to in paragraph
(7) to the License Applicant after fulfilling
commitments of administrative and technical
requirements completely and correctly as referred
to in paragraph (8) using the format set forth in
Appendix LXXXII that forms inseparable part
hereof and the discretion of the Ministry of Energy
(10) In the event the License Applicant failed to meet
the commitment of requirements as referred to in
paragraph (8), Head of BKPM or the appointed
official shall issue revocation based on the
consideration of the Ministry of Energy and Mineral
Resources.
CHAPTER X
MISCELLANEOUS
- 183 -
Section One
Notification of Application
Article 113
(1) Application submitted online via SPIPISE that has
been verified and there is still a lack of data shall
receive notice that will be sent automatically via e-
mail to the applicant and record of the detailed
results of verification can be found in the
application system online.
(2) If application is submitted offline, and there is still
a lack of data, then the officer in the Central PTSP
DPMPTSP, PTSP KPBPB, or PTSP KEK in
accordance with their authority shall immediately
return the application accompanied by detailed
notes on the results of verification.
(3) In the event the notification as referred to in
paragraph (1) and paragraph (2) have been
carried out maximum three (3) times in different
days and the application is still not acceptable,
PTSP KEK in accordance with their authority may
- 184 -
require the attendance of the company
management and attorney of the application to
give an explanation directly and cannot be
represented.
(4) In the event the application done online through
SPIPISE is declared complete and correct, then the
notification is sent automatically via e-mail to the
applicant.
(5) In the event the application done offline is
declared complete and correct, it shall be issued
the receipt of the application.
Section Two
Attorney of Application
Article 114
(1) Application for Investment Registration filed before
obtaining Indonesian legal entity status and under
the authority of the government shall be
submitted online through SPIPISE by one of the
shareholders or other authorized parties.
(2) Application for Investment Registration filed before
obtaining Indonesian legal entity status and under
the authority of the Provincial DPMPTSP,
- 185 -
PTSP KEK, shall be signed by all prospective
shareholders or other authorized parties.
(3) Application for Investment License and Facility
submitted after obtaining Indonesian legal entity
status shall be done by the Management of the
Company or other authorized parties to Central
PTSP of BKPM, Provincial DPMPTSP,
PTSP KEK in accordance with their authority.
(4) Other authorized parties as referred to in
paragraph (1), paragraph (2) and paragraph (3)
shall have power of attorney and have the
competence and ability to provide complete and
correct information to the Officer of Provincial
KPBPB, or PTSP KEK in accordance with their
authority and responsible for all information
submitted.
Article 115
(1) The power of attorney as referred to in Article 114
paragraph (4) shall use the format of power of
attorney as set out herein, duly stamped, bearing
- 186 -
the seal of the company, and enclosing record of
identity of the principal and the agent.
(2) The form of power of attorney to submit the
applications shall be as set forth in Appendix
LXXXIII that forms inseparable part hereof.
Section Three
Signing
Article 116
(1) Issuance of Investment License and Facilities shall
be signed by an officer in accordance with their
authority by:
a. Electronic signatures; or
b. Wet signature.
(2) Electronic signature as referred to in paragraph
(1) point a shall have the same effect as the
documents issued by the authorities concerned in
the form of a wet signature.
Article 117
(1) Issuance of Investment License and Facilities as
referred to in Article 6 shall be signed by Head of
BKPM or high ranking officials of BKPM on behalf
of the Head of BKPM or Echelon II in charge of
- 187 -
Ministry of Investment on behalf of the Head of
BKPM.
(2) Especially for Issuance of Investment Registration
and register it shall be signed by:
a. Echelon II in charge of Ministry of Investment
on behalf of the Head of BKPM for Investment
Registration for company that has been
incorporated in Indonesia; or
b. Echelon III of units of the Deputy Ministry of
Investment on behalf of the Head of BKPM for
company that has not been incorporated in
Indonesia.
Article 118
Issuance of Licensing based on Mandates as referred to
in Article 7 shall be signed by the Head of Provincial
DPMPTSP or Head of Implementing Agency of
Provincial PTSP.
Article 119
Issuance of Licensing based on Mandate and
assignment as referred to in Article 8 shall be signed
by the Head of Regency/Municipal DPMPTSP or Head of
Implementing Agency of Regency/Municipal PTSP.
- 188 -
Article 120
Issuance of Licensing in KPBPB as referred to in Article
9 shall be carried out by PTSP KPBPB in accordance
with the provisions of legislations on KPBPB with
reference hereto, signed by the head of PTSP KPBPB.
Article 121
Issuance of Licensing in KEK as referred to in Article 9
shall be carried out by the PTSP KEK in accordance
with the provisions of legislation on KEK by referring
hereto, signed by KEK Administrator.
Section Four
Numbering of Investment License and Facilities
Article 122
(1) For the sake of uniformity in the numbering on
Investment Licensing and Facility issued by the
Central PTSP BKPM, Provincial DPMPTSP,
PTSP KEK, it is necessary to regulate the
numbering format.
(2) Company numbering is assigned automatically by
SPIPISE.
Section Five
- 189 -
Copy
Article 123
In case application for Investment License and
Facilities is approved, Central PTSP of BKPM, Provincial
DPMPTSP, Regency/Municipal DPMPTSP, PTSP KPBPB,
or PTSP KEK, shall, in accordance with their authority,
issue the license, with copies sent to:
1. Ministry/LPNK founder in accordance with the
business sector of the applicant;
2. Provincial DPMPTSP and Regency/Municipal
DPMPTSP in accordance with the project site of the
applicant; and/or
3. Relevant agencies.
Section Six
Warranty
Article 124
Prospective shareholders, Management of the Company
or the applicant of Licensing should understand the
statement contained in application form of Investment
License and Facilities, which represents, warrants and
is responsible for:
a. the authenticity of all documents submitted;
- 190 -
b. the conformity of all records/copies of data
submitted with the original document; and
c. the authenticity of all signatures contained in the
application.
Section Seven
Sanctions
Article 125
(1) Management of Company and/or attorney of the
applicant providing false information and/or data
shall be banned from taking care of Licensing and
Facility Investment at Central PTSP of BKPM,
PTSP KPBPB, PTSP KEK in accordance with their
authority, for at least 1 (one) year and will be
announced publicly.
(2) Management of Company and/or attorney of
applicant of Investment License and Facilities
providing false information and/or data that has
been proven in the application submitted to the
Regency/Municipal DPMPTSP, PTSP KPBPB, PTSP
KEK in accordance with their authority, shall be
- 191 -
subject to sanctions in accordance with the
CHAPTER XI
TRANSITIONAL PROVISIONS
Article 126
(1) Investment Registration that has been issued
based on Regulation of Head of BKPM Number 12
of 2009 on Guidelines and Procedures of
Investment Licensing is required to apply for a
Business License within a period of six (6) months
from the effective date hereof.
(2) If the Investment Registration as referred to in
paragraph (1) within a period of six (6) months
from the effective date hereof did not apply for
Business Licenses the Central PTSP of BKPM,
PTSP KPBPB, and PTSP KEK shall, in accordance
with their authority, revoke the Investment
Registration.
(3) Principle Permit issued prior to the effective date
hereof shall remain be valid until the expiry of the
Principle License in accordance with the Project
- 192 -
Completion Period contained in the Principle
Permit.
(4) Application for Principle Permit that has been
accepted and declared complete and correct
before the entry into force hereof and is still being
finalized, shall be processed in accordance with
the provisions hereof.
(5) PMA Company that already had Business License
and not meeting the requirement as referred to in
Article 12 paragraph (2), prior to performing
activities of starting a business as referred to in
Article 10 paragraph (1), shall apply for
and meet the provisions as referred to in Article 12
paragraph (2).
CHAPTER XII
CONCLUSION
Article 127
Upon the enactment hereof,
a. Regulation of Head of Investment Coordinating
Board Number 8 of 2015 on Procedures of
Application for Tax Allowance for Investment in
Certain Business Fields and/or in Certain Areas
- 193 -
(State Gazette of the Republic of Indonesia of
2015 Number 681), as amended by Regulation of
Head of Investment Coordinating Board Number
18 of 2015 on Amendments to Regulation of Head
of Investment Coordinating Board Number 8 of
2015 on Procedures of Application for Tax
Allowance for Investment in Certain Business
Fields and/or in Certain Areas (State Gazette of
the Republic of Indonesia of 2015 Number 1482);
b. Regulation of Head of Investment Coordinating
Board Number 13 of 2015 on Procedures of
Application for Tax Holiday (State Gazette of the
Republic of Indonesia of 2015 Number 1336) as
amended by Regulation of Head of Investment
Coordinating Board Number 19 of 2015 on
Amendments to Regulation of Head of Investment
Coordinating Board Number 13 of 2015 on
Procedures of Application for Tax Holiday (State
Number 1483);
c. Regulation of Head of Investment Coordinating
Board Number 14 of 2015 on Guidelines and
Procedures of Principle Investment License (State
- 194 -
Number 1478) as amended several times, most
recently by Regulation of Head of Investment
Coordinating Board Number 8 of 2016 on the
Second Amendment to Regulation of Head of
Investment Coordinating Board Number 14 of
2015 concerning Guidelines and Procedures of
Principle Investment License (State Gazette of the
Republic of Indonesia of 2016 Number 1623);
d. Regulation of Head of Investment Coordinating
Procedures for Investment Licensing and Non-
Licensing (State Gazette of the Republic of
Indonesia of 2015 Number 1479); and
e. Regulation of Head of Investment Coordinating
Procedures of Investment Facility Services (State
Number 1480),
are revoked and declared invalid.
Article 128
This Regulation of Board comes into force:
a. for Central PTSP of BKPM on 2 January 2018; and
- 195 -
b. for Provincial DPMPTSP, Regency/Municipal
DPMPTSP, PTSP KPBPB, and PTSP KEK maximum
on 2 July 2018.
For public cognizance, ordering the promulgation of
hereof by publishing in the Official Gazette of Republic
of Indonesia.
Stipulated in Jakarta
on 4 December 2017
HEAD OF INVESTMENT COORDINATING BOARD OF
REPUBLIC OF INDONESIA,
Signed
THOMAS TRIKASIH LEMBONG
Promulgated in Jakarta
on 11 December 2017
DIRECTOR GENERAL OF
LEGISLATION REGULATION OF
MINISTRY OF LAW AND HUMAN RIGHTS OF
THE REPUBLIC OF INDONESIA
[Signature]
WIDODO EKATJAHJANA
- 196 -
STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2017 NUMBER
1767
True copy
Main Secretariat of BKPM
Head o Legislations Regulation Bureau,
Public Relations and Management Administration
[signed and stamped]
Ariesta R. Puspasari
AFFIDAVIT
This is to certify that have translated the foregoing from Indonesian to English, that
is true and complete, and I am competent in both languages.
Jakarta, 16th January 2018
- 197 -
Drs. Sularno Popomaruto
Sworn Translator by virtue SK.Gub.KDKI Jkt.No.1715/2000

BKPM Chairman Regulation Number 13 2017

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BKPM Chairman Regulation Number 13 2017

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INVESTMENT COORDINATING BOARD OF

REGULATION OF INVESTMENT COORDINATING BOARD OF

GUIDELINES AND PROCEDURES OF INVESTMENT LICENSING

BY THE GRACE OF GOD ALMIGHTY

HEAD OF INVESTMENT COORDINATING BOARD OF

Considering : a. that in order to implement the Presidential

Regulation Number 91 of 2017 concerning

Accelerated Implementation of Business Licensing,

it has been conducted evaluation of various legal

basis of the implementation of the Business

b. that regulation of Investment Coordinating Board

in relation with investment licensing and non-

licensing services needs to be adjusted to the

dynamics of developments of legislations;

c. that based on consideration as referred to in point

a and point b, it is necessary to establish a

Regulation of Investment Coordinating Board on

Guidelines and Procedures of Investment

Licensing and Facility;

In view of : 1. Law Number 25 of 2007 concerning Investments

(State Gazette of the Republic of Indonesia of

2007 Number 67, Supplementary State Gazette of

the Republic of Indonesia Number 4724);

2. Presidential Regulation Number 90 of 2007

concerning Investment Coordinating Board

as amended by Presidential Regulation Number 86

of 2012 concerning Amendment to the

Presidential Regulation Number 90 of 2007

concerning Investment Coordinating Board (State

Gazette of the Republic of Indonesia of 2012

3. Presidential Regulation Number 97 of 2014

concerning Implementation of One Stop

Integrated Service (State Gazette of the Republic

of Indonesia of 2014 Number 221);

4. Presidential Regulation Number 91 of 2017

concerning Accelerated Implementation of

Business Licensing (State Gazette of the Republic

of Indonesia of 2017 Number 210);

To stipulate : REGULATION OF INVESTMENT COORDINATING BOARD

CONCERNING GUIDELINES AND PROCEDURES OF

INVESTMENT LICENSING AND FACILITY.

In this Board Regulation meant by:

1. Investment is any form of investing activities,

either by Domestic Investor or Foreign Investor, to

conduct business in the territory of the Republic of

2. Investor is an individual or corporation conducting

Investment, which can be either Domestic

Investor or Foreign Investor.

3. Domestic Investors are Indonesian citizens,

Indonesian corporations, the state of the Republic

of Indonesia, or any region conducting Investment

in the territory of the Republic of Indonesia.

4. Foreign Investor is an individual foreign citizen,

foreign corporation, and/or foreign government

conducting Investment in the territory of the

5. Domestic Investment, hereinafter referred to as

PMDN, is the activity of investing to do business in

the territory of Republic of Indonesia by Domestic

Investor using domestic capital.

6. Foreign Investment hereinafter referred to as PMA,

is the activity of investing to conduct business in

the territory of the Republic of Indonesia by