Business Indonesia

FAQ
FREQUENTLY
ASKED
QUESTION
ON
INVESTMENT
www.bkpm.go.id
FAQ
FREQUENTLY ASKED
QUESTION ON
INVESTMENT
LIST
OF
CONTENT
01
Foreword
27
Government Supports

28
02
Labor
39
Land-Ownership
40
Indonesia Taxation
42
Immigration
06
49
Trade
53
Related Government
Investment Opportunities Agencies
57
06 BKPM
Priority Sectors 58
07 Indonesia Investment
Investment Policy Promotion Center (IIPC)
08
Special Economic Zones
60
and Industrial Parks
10
Investment Procedures

Acronyms
10
Starting Business
15
One-Stop Service
Center (OSS-C)
19
Investment 3-Hour
Service (I23J)
19
Direct Construction
Facility (KLIK)
21
Fiscal and Nonfiscal
Facilities
Franky Sibarani
Chairman of
the Indonesia Investment
Coordinating Board
(BKPM)
FOREWORD
I
ndonesian economy continues to offer vast potential. Thanks to the country’s
sustainable economic growth, political stability, large young population and
growing middle class, as well as abundant natural resources. Investment has a
large multiplier effect in boosting economic growth, creating job oppotunities,
and shifting the current consumption-based economy to an economy driven by
production.
Therefore, as a government agency and primary interface between the government and
investors, as well as service provider related to investment, it is the roles of The Indonesia
Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM) to
improve investment climate and to invite “smart investment” to the archipelago.
Government of Indonesia has a strong reform agenda and since January 2015, several
policies have been implemented. First, the One-Stop Service-Center (Pelayanan
Terpadu Satu Pintu or PTSP) at BKPM aimed at providing a faster, simpler, and more
transparent investment licensing service. Second, an end-to-end service for investors,
starting from earlier until commercial stage, including facilitation during the process of
investment realization. And finally, improvements of investment climate, among others
by providing more attractive incentives and facilities for investors.
As a part of our efforts to improve investment service, BKPM took an initiative to
publish “Frequently Asked Question (FAQ) on Investment in Indonesia” book. This
book compiles answers for both new and existing investors regarding, among others,
investment licensing procedures, incentives, regulations, labors, and cost of doing
business in Indonesia. We hope that this book could serve as a guidance for investors to
have a better understanding on investing and doing business in Indonesia.
Finally, we invite you to explore the opportunities Indonesia offers to your business and
BKPM is ready and more than happy to assist you to invest in Indonesia.
Jakarta, March 2016

Chairman of The Indonesia Investment Coordinating Board (BKPM)
Franky Sibarani
INDONESIA
the world’s largest
archipelagic nation
Photo credit: Ari Sanjaya Lim, Pelabuhan Tanjung Priok , 2016
6 FREQUENTLY ASKED QUESTION ON INVESTMENT

INDONESIA
Q
-1: What does Indonesia ranks the fourth most
populous country in the world. Its
make Indonesia the 250 million population and the
destination for my rapidly increasing buying power of its
investment? population is creating a significant
market. Moreover, the young population
is also increasing in the quality of its
Answer: human resources, thus providing a
The Republic of Indonesia is a desirable competitive edge.
nation blessed with almost all of the
prerequisites for transformation into a Indonesia has an abundance of
great economic power. With its abundant renewable (agricultural products) and
natural resources, large, productive and un-renewable (mining and minerals)
young population, and strategic access natural resources. It is the world’s
to the global mobility network, these largest producer of palm oil, and the
assets and access empower Indonesia to world’s second largest cocoa and rubber
be among the leading economies of the producer. The country also produces
world. tin, nickel, coal, natural gas, bauxite,
copper and gold in large quantities. It
Indonesia is an emerging global must be able to optimize the handling
powerhouse and member of the of its natural resources by increasing
prestigious G20. In 2015, with a Gross a processing industry that will provide
Domestic Product or GDP (Product high added value.
Domestic Bruto or PDB) growth rate of
4.79%, Indonesia was the group’s third Following the abundance opportunities
fastest-growing economy, only behind Indonesia has to offer, the government
India and China. Today, Indonesia is the continues reforming investment
largest economy in Southeast Asia and climate to make a safer and more
the world’s 16th largest economy with attractive investment destination.
almost a trillion dollar of GDP. President Joko Widodo has mandated
the implementation of far-reaching
Underlying Indonesia’s vibrant economy fundamental reforms to create a solid
is political stability. Indonesia has foundation for businesses to grow and
succeeded maintaining political stability prosper for the long-term. Indonesia
as the world’s third-largest democracy. is at the beginning of a promising new
The maturing democratic country has era.
held three peaceful direct presidential
elections since 2004. For the first time,
in 2015, Indonesia managed to organize
simultanous direct elections for 263
Governors and Mayors throughout the
country.
FREQUENTLY ASKED QUESTION ON INVESTMENT 7

INDONESIA
Q Q
-2: How is the -3: What does the world
infrastructure in the say about investing in
archipelago? Indonesia?
Answer: Answer:
The challenges with Indonesian • The growth of Foreign Direct

infrastructure have a lot to do with the Investment or FDI (Penanaman Modal
geographical realities in the country, Asing or PMA) in Indonesia was the
as a vast archipelago. The fiscal budget highest among the Southeast Asian
allocated for infrastructure more than countries (UNCTAD’s 2015 annual
doubled in the last five years and report).
private sector’s contribution is strongly
encouraged and facilitated. • Three out of four US companies
in Indonesia plan to expand their
The Government has issued several business (AmCham’s and US Chamber
policies, including the provision of of Commerce’s survey, 2015).
government guarantees, land acquisition
for development projects, and viability • Indonesia remains main investment
gap fund for part of Public-Private destinations in APEC region, together
Partnerships or PPP (Kemitraan with China and the US (PwC’s APEC
Pemerintah dan Badan Usaha or KPBU) CEOs survey, 2015).
project’s construction cost. In addition,
thegovernment established some • Indonesia is #1 as the top investment
financial institutions to help finance PPP destinations, followed by the US, the
projects and increase their bankability. UK, and India (Ernst and Young Capital
Confidence Barometer, 2015).
President Joko Widodo has set an
infrastructure target in the five-year • Indonesia is the most promising
development plan, to be achieved by country for overseas business, after
2019. Indonesia, among others, will India (Japan Bank for International
build 15 new airports, increase the Cooperation’s survey, 2015).
capacity of 24 seaports, add 60% to
current railway tracks, construct 1,000 • Indonesia is the priority investment
km of toll roads, as well as provide country in Asia, following China, and
35,000 megawatts of power. the highest confidence of positive
reforms, after India (The Economist’s
Asia Business Outlook Survey 2015).

INDONESIA
PRESIDENT JOKO
WIDODO HAS
MANDATED THE
IMPLEMENTATION
OF FAR-REACHING
FUNDAMENTAL
“
REFORMS TO
CREATE A SOLID
FOUNDATION FOR
BUSINESSES
TO GROW AND PROSPER
FOR THE LONG-TERM.
“
Photo credit: Areza Taqwim “Tol Laut Bali”, 2016

INVESTMENT
OPPORTUNITIES
Answer:
As of 2015, Indonesian Government has

A. PRIORITY SECTORS laid the new focus on several business
sectors as planned in The Investment
Q
Strategic Planning for the period of
-4: What sector is 2015-2019. These priorities sectors
recommended to invest in were selected based on the economic
advantages, growth factors and
Indonesia? productivity aspects. The sectors are as
follows:
35 GW power
Infrastructure generation 24 Sea ports
Agriculture Food estate Corn plantation Cattle
Labor-intensive Textile Food & Beverages Furniture Toys

industry
Import-Subtitution Chemical & Iron & Steel Component
industry Pharmaceutical
Industry Electronics CPO & derivative Wood products, Automotive

Export-oriented products pulp & paper
industry
Machinery Rubber products Fish & derivative Shrimp
products
Downstream industry Cacao Sugar Smelter

of natural resources
Maritime
Maritime Ship building Fishery industry Cold storage Technology
Strategic tourism 15 New Ind.
Tourism, SEZ & Industrial Park areas MICE 8+11 SEZs Parks

INVESTMENT OPPORTUNITIES
However, all industry or business fields in the most populated island in Indonesia.
Indonesia is open to foreign investments We offer more incentives especially to
unless mentioned otherwise in the investments located in eastern part of
Investment Guidance or previously called Indonesia, such as Nusa Tenggara, Maluku,
the “negative investment list”. This and Papua.
regulation attaches to the Investment
Law under Presidential Regulation.

B. INVESTMENT POLICY
Q
-5: Why are certain
Q
investment sectors -6: I want to invest in
prioritized? Indonesia. What are the
basic things I should know
Answer: first?
Investment together with manufacturing Answer:
industry and export are expected to be First you have to check whether your
the pillars of Indonesian economy. There business is open for FDI in Indonesia in
are three aspects where investments accordance to the Indonesia Investment
shall contribute the most to the Guidance (Daftar Negatif Investasi or DNI)
economy. under the Presidential Decree No. 39 of
2014 that stipulates the sectors which
First, supporting sustainable economic are closed and open with conditions to
growth. We seek quality investments, investment. If the business sector is not
that do not only see Indonesia as a listed in the DNI, the business will be
market, but also as a production base. considered open and allowed for up to
Investments that add value to our natural 100% foreign ownership.
resources, contribute to our export and
substitute our import. The legal entity of the FDI Company
should be a Limited Liability Company or
Second, creating jobs, improving Ltd. (Perseroan Terbatas or PT). The ‘PT’
productivity and competitiveness. company should be owned by minimum 2
Investment in manufacturing sectors parties, each party is either individual or
is prioritized, especially labor- corporate.
intensive industry, export-oriented
and import-substitution industry, and According to Indonesian law, any
also downstream industry of natural company with any percentage of foreign
resources. shareholding is considered as a FDI
Company or foreign-owned-PT-company,
Third, promoting equal development in short ‘PT. PMA’.
distribution. We encourage more
investments realized outside Java Island, Additionally, it is imperative that new

Q
investor has to learn more about -8: Can I setup a company
the location of their investment in any location in
such as the market activity, office Indonesia?
location, manpower procurement,
and the regulations pertaining to their
business sector. Answer:
Yes, you can setup company in any
Q
-7: What is the policy part of Indonesia. However, there are
restrictions for some business sectors
for foreign direct in certain regions. The Government
investment? has mandated (in PP No.24/2009 and
UU No.3/2014) that manufacturing
companies are located in industrial
Answer: estates and that tenants’basic needs
must be met, for example water and
The FDI is required to have electricity.
minimum investment ABOVE IDR
10.000.000.000,- (ten billion Today, the Indonesian Industrial Estates
Indonesian Rupiah), or equivalent to Association (Himpunan Kawasan Industri
current exchange rate. This applies to Indonesia or HKI) has 69 company
all business sectors and the amount of members, in 13 provinces, covering
minimum investment is not including total gross area of about 45,600
the value of the land and buildings hectares. There are more than 9,000
owned by the company. manufacturing companies operating
and employing some 4 million people in
In addition, the minimum paid up the industrial estates. These figures do
capital of a FDI Company (PT. PMA) not include industrial estates non HKI
is IDR 2.500.000.000 (two & a half members.
billion Indonesian Rupiah). For each
shareholder, at least IDR 10.000.000,- Main attractions of industrial
(ten millions Rupiah) or its equivalent estates are that the development is
in USD. comprehensively planned to assure a
strategic location, accessibility, building
ratio, infrastructure and supporting
services, secured land titles, and
C. SPECIAL ECONOMIC continuous maintenance and operation
ZONES and management.
INDUSTRIAL PARKS 15 new industrial estates will be
developed until 2019. 13 industrial
estates outside Java Island will
be allocated for natural resources

processing industry. While the other 3. Tanjung Lesung in Banten Province,

2 in Java Island will be allocated for for tourism.
labor-intensive, high-technology and
consumer goods industry. 4. Maloy Batuta in East Kalimantan
Province, for CPO, coal, and mineral
industry.
Q
-9: How is the development
5. Bitung in North Sulawesi Province,
of Special Economic Zones for fishery and agro industry and
(SEZ) in Indonesia? logistics.
6. Palu in Central Sulawesi Province, for

Answer: smelters, agro industry, and logistics.
There are eight existing Special
Economic Zone or SEZs (Kawasan 7. Mandalika in West Nusa Tenggara
Ekonomi Khusus or KEK) in Indonesia Province, for tourism.
and until 2019, 11 new SEZs will be
developed troughout the archipelago. 8. Morotai in Maluku Province, for
Each of SEZs is developed for specific tourism, manufacturing industry, and
sectors. The existing SEZs are: logistics.
1. Sei Mangkei in North Sumatra The government offers additional fiscal and
Province, for Crude Palm Oil (CPO) nonfiscal facilities for industries in SEZ.
and rubber industry, fertilizer About 20-100% tax discount for period up
industry, logistics, and tourism. to 25 years is offered under certain criteria.
The government also provide free value
2. Tanjung Api-api in South Sumatra added tax for importation of raw materials.
Province, for CPO, rubber, and In addition, foreign investors in SEZs are
petrochemical industry. eligible to own properties and receive
residential permits.

INVESTMENT
PROCEDURES

A. STARTING BUSINESS
Q
-10: How do I establish a following information:
company in Indonesia? 1. Name and address of the company
2. Line of business of the company
3. The articles of association
Answer: 4. The composition of the Board of
Directors or BOD (Dewan Direksi) and
First, you have to issue Principle License the Board of Commissioners or BOC
(Izin Prinsip or IP) at BKPM One Stop (Dewan Komisaris) of the company
Service - Center or OSS-C (Pusat
5. The identity of the company
Pelayanan Terpadu Satu Pintu or PTSP shareholders and the share of
Pusat). After that you are able to establish ownership
the legal entity of your company in
Indonesia by engaging a public notary to After the establishment of the legal entity,
issue a Deed of Establishment. the public notary will register the new PT.
PMA to the Ministry of Justice and Human
The Deed of Establishment of FDI Rights of the Republic of Indonesia. Once
Company (PT. PMA) could be issued registered, the establishment of new PT.
by public notary in Indonesia and it is PMA will be published in the state gazette.
prepared in Bahasa Indonesia.
The ratification of legal entity by the
The Deed of Establishment contains the Ministry of Justice and Human Rights of

INVESTMENT PROCEDURES
Perusahaan or SKDP), can be

the Republic of Indonesia will serve as obtained from the local or regional
the basis of establishment of PT. PMA. authority where the PT. PMA is
From this point, the PT. PMA will be located and applicable through
able to start setting-up the company the office of building management
infrastructure and related operational or industrial estate management.
licenses.
3. General Importer Identification
Number (Angka Pengenal Importir
Umum or API-U) or Producer
Note: Importer Identification Number
• Before establishing the PT. PMA, you (Angka Pengenal Importir
should check the availability of the Produsen or API-P) is applicable
company name that you Rights of the through BKPM OSS-C.
Republic of Indonesia through public
notary in Indonesia.
Q
• With respect to applications of -11: What are the licenses
any licences from BKPM or other required to start a
government institutions in Indonesia,
all information on the application has business?
to refer to the Deed of Establishment
of PT. PMA. Any changes of company’s
Answer:
condition which is not relevant with
the Deed of Establishment, such
Yes, it depends on the business sector.
as change or expansion of business
Generally, trading or service provider
sector, change of company’s location
company could start the business
or business activity’s location, should
operation as soon as it receives the
be informed to the BKPM and related
Business License (Izin Usaha or IU).
government agencies to get licenses
However, other business sectors,
amendments.
such as manufacturing, plantation,
• The additional documents in setting- information and technology, education,
up the PT. PMA include, but are not medical and health, and hospitality,
limited to, the following: should obtain specific licenses
1. Taxpayer Identification Number or pertaining to their business sector
Tax ID (Nomor Pokok Wajib Pajak from relevant government agencies or
or NPWP), can be applied through ministries.
online service of Indonesia
Directorate General of Taxes at For example: The company operations that
https://ereg.pajak.go.id (currently could potentially impact the environment
the service is only available in is required to undertake environmental
Bahasa Indonesia). impact analysis and gain approval from
2. Company Domicile Certificate the Ministry of Forestry and Environment
(Surat Keterangan Domisili of the Republic of Indonesia.

Q
-12: Other than setting-up The functionality of KPPA is limited to:
a company (PT. PMA), is • Manage the parent company’s
there another method to corporate interests.
evaluate Indonesian market? • Prepare the establishment and
development of its business in
Indonesia.
Answer:
The documents required to
Yes, foreign investor could setup a incorporate
Representative Office to study the
market for a maximum period of 5 years. KPPA are as follows:
Foreign Representative Office is an office • Copy of Articles of Association of
incorporated by an overseas company to the foreign company represented
represent itself in Indonesia with a view and any amendment(s) in English or
to manage the interest of the company or its translations in Bahasa Indonesia
the affiliated companies in Indonesia and/
or in other countries and/ or to prepare the
establishment and development of foreign
investment companies in Indonesia.
Foreign Representative Office usually

has limited functionality and generally
are prohibited from directly engaging in
operational activities, signing contracts,
issuing official invoices, receiving
payments from its clients, and directly
engaging in any other profit generating
activities. from sworn translator.
• Letter of appointment from the
The requirements and procedure to foreign company represented to
form a representative office in Indonesia whom which will be proposed as a
is governed by the Regulation of The Representative Executive.
Chairman of BKPM No. 15 of 2015 • Copy of passport of director of
Regarding Guidelines and Procedures for company to be represented.
Licensing and Non-Licensing Investment. • Copy of valid passport (for
According to this regulation there are 3 foreigner) or copy of identification
types of Representative Offices which can card number (for Indonesian
be incorporated in Indonesia, namely: citizen) who will be proposed as a
Representative Executive.
1. Foreign Company Representative
• Letter of statement concerning
Office (Kantor Perwakilan Perusahaan
the willingness of Representative
Asing or KPPA).
Executive to stay, and only work in

the position as the Representative

Executive without doing other Perdagangan Asing or KP3A).
business in Indonesia.
The functionality of KP3A is limited to:
• Power of attorney if the application
• Introduce, promote and market
is not obtained directly by
the goods produced by a parent
Representative Executive. company, as well as providing
information, or directions for
Important Notes for KPPA: use and importation of goods to
companies or users in Indonesia.
• KPPA can only be incorporated in
capital of Indonesian provinces • Conduct market research and
surveillance in Indonesia for
(e.g. Jakarta, Bandung, Yogyakarta,
domestic sales of goods produced
Kalimantan, etc.). by parent company.
• The location of KPPA must be in • Conduct market research on
office building. the items required by parent
• KPPA permit is valid for 3 years and companies abroad (who appointed
the company in Indonesia) as well
as providing information about the
terms of the export of goods to
companies in Indonesia.
• Closing contracts for and on
behalf of the company that is
appointed by the parent company
in Indonesia for export of goods.
In order to perform the trading related

activities in KP3A, a Foreign Company
Trade Representative License (Surat
can be extended 2 times for 1 year Izin Usaha Perwakilan Perusahaan
each. Perdagangan Asing or SIUP3A) must
• After 5 years KPPA may be granted be obtained from BKPM OSS-C. The
extension for different activities documents required to obtain SIUP3A
than before. are as follows:
• KPPA must be incorporated in an • Letter of appointment from the
office building or tower. foreign company represented to
• In case Representative Executive whom which will be proposed as a
is foreigner, he/ she must obtain Head of Representative Office.
Temporary Stay Permit Card (Kartu • Letter of intent concerning the
Izin Tinggal Terbatas or KITAS) and activity of reprecentative office in
Work Permit to stay and work in Indonesia and the regulation to not
Indonesia. engage in any trading activities as
well as selling transaction.
2. Foreign Company Trade Representative • Letter of statement concerning
Office (Kantor Perwakilan Perusahaan the willingness of Representative

Executive to stay, and only work in and Work Permit to stay and work
the position as the Representative in Indonesia.
Executive without doing other
business in Indonesia. 3. Foreign Company Construction
• Letter of reference from Representative Office (Kantor
a Commercial Attaché/ Perwakilan Badan Usaha Jasa
Representative of the Embassy of Konstruksi or BJUK).
the Republic of Indonesia in the
country of origin. License can be obtained by a Foreign
• Head of Representative Office must Construction company with large
attach following documents: scale qualification as stipulated in the
1. Curriculum Vitae or CV (Daftar Ministerial Regulation. BJUK License
Riwayat Hidup) can be used to undertake construction
2. Foreign citizen: copy of valid service business activities throughout
passport and Foreign Worker the territory of Indonesia. BJUK
Employment Plan (Izin License is valid for 3 years and can be
Mempekerjakan Tenaga Kerja extended.
Asing or IMTA).
3. Indonesia citizen: copy of valid Documents required for obtainment of
resident identity card (Kartu BJUK are as follows:
Tanda Penduduk or KTP) and Tax • Aplication Letter (original in
ID (NPWP). Bahasa Indonesia).
• Letter of domicile of KP3A from • Copy of Article of Association of
building management or local Company from mother country
official. which has been legalized by
• Copy of temporary SIUP3A. a public notary or competent
• Power of attorney if the application authorities in the country of
is not obtained directly by Head of origin.
Representative Executive. • General data of foreign
construction services business
Important Notes for KP3A: entity.
• KP3A is prohibited to carry out • Original letter of recommendation
any trading activities and sales from Indonesian Embassy in
transactions such as submitting country of origin which states that
tenders, signing contracts, settling construction company is legally
claims, etc. registered in the country and has a
• KP3A can be incorporated in capital good reputation.
of provinces, districts and cities in • Copy of valid construction service
Indonesia. permit of parent company which
• KP3A must be incorporated in an has been certified by the issuing
office building or tower. authourity.
• In case Representative Executive • Copy of equalization certificate
is foreigner, he/ she must obtain legalized by an Institute of
Temporary Stay Permit Card (KITAS) national level.

• Original letter of appointment for

the Chief Representative of BJUK BKPM-Online Service Platform or
by the parent company. Electronic Investment Information and
License Service System (Sistem Pelayanan
• Record of latest financial Informasi dan Perizinan Investasi secara
statements of parent company Elektronik or SPIPISE). Other licenses such
which has been audited by a as Import Identification Number (Angka
public accountant. Pengenal Importir or API) and several
• Copy of passport or identity card Business License (IU) still go through
of Chief Representative. BKPM OSS-C in Jakarta.
• CV of Chief Representative.
• Domicile Certificate of the
Q
Representative Office in Indonesia -14: How do I open a bank
issued by the local municipality account?
office.
• Letter of statement of truth
and authenticity of documents
(original). Answer:
• Statement letter that the
The regulation of Central Bank of
directors or commissioners of
Indonesia requires that all banking
parent company are not serving
transactions (such as capital injection,
as commissioners or board of
administration of loans, payment of
directors in other construction
capital equipment, raw material, etc.) of a
companies (original).
newly established PT. PMA be transacted
• Original power of stamped and through a special foreign investment
signed by company directors if the bank account in Indonesia. In general, the
application is not directly carried required documents to open such account
out by Chief Representative are as follows:
Executive along with documents
1. BKPM Principle License (IP), the Deed
of receiver of Power of Attorney
of Establishment, Company Domicile
(POA).
Certificate (SKDP), Tax ID (NPWP).
2. The power of attorney to the person
who is given the authority to open
Q
-13: Do I have to register bank account.
for licenses at BKPM 3. Resident Identity Card (KTP) or
passport of the authorized person to
Jakarta Head Office? open bank account.
4. Photo of the authorized person to
Answer: open bank account.
5. Minimum deposit of IDR 10 million or
For the time being, application for USD 1.000.
Principle License (IP) has to go through

B. ONE STOP SERVICE -CENTER (OSS-C)
Q
-15: What is the One Stop and government institutions are
Service - Center (OSS-C)? now integrated. Investment licenses
for almost all sectors have been
delegated and served at BKPM, such as
manufacturing industry, power, oil and
Answer: gas and tourism sectors.
The OSS-C at BKPM was innaugurated Having investment licenses processed

on 26 January 2015 to provide a simpler, in one system and working together
faster, more transparent and integrated under one roof will facilitate better
service for investors in Indonesia. coordination among related parties
at the national level. This allows
Investors no longer need to go authorities to reduce the process time,
around Jakarta to consult and obtain synchronize procedures, avoid authority
permits. At the OSS-C, 22 ministries overlap and eliminate red tape.
THE FLOW OF BKPM

NEW OSS-C CONCEPT

The One Stop Service-Centre

(OSS-C)
The platform was formed by joint

operation between BKPM & 22
government bodies consisting of
various ministries, government
agencies, and institutions.
Photo credit: Humas BKPM, “BKPM OSS-C Launching”, 2015
Q
-16: What are the service document admission pertaining to
investment subject matter which is
provided at the OSS-C?
performed by FO, while the Back Office
will focus on due diligence groundwork
and processing of investment related
Answer: licensing matters. Diagram below shows
the current frameworks on the flow of
The OSS-C offers the service to facilitate BKPM new OSS-C concept.
various consultations, inquiries, and

THE FRAMEWORKS OF INVESTMENT PROCEDURE

INITIAL-STAGE into appropriate business field
as stipulated in Indonesian
Classification of Business Field
INVESTOR: (Klasifikasi Baku Lapangan Usaha
Indonesia or KBLI)
• Investor is expected to plan-out
their investment activity thoroughly • If the business sector is open or open
and submit an investment proposal with condition, the foreign investor
complete with business description will be able to apply for Principle
to BKPM OSS-C. License (IP), to begin the investment
process, subject to the condition
BKPM OSS-C: stated in Indonesia Investment
• The proposal will be screened by Guidance (DNI).
BKPM OSS-C where it’s classified


PREPARATION-STAGE of Indonesia to be legalized and
officially posted in the state gazette.
PROVINCIAL GOVERNMENT:
INVESTOR:
• Once the investment proposal is • In parallel to establishing FDI
evaluated and allowed under the Company Deed, investor will also
Indonesia Investment Guidance be able to apply for the necessary
(DNI), investor will be able to apply provincial government licenses,
for Principle License (IP) from BKPM which mainly refer to the regional
OSS-C, and start to setup legal regulation and certification for
business entity in Indonesia. operating business entity.
• The BKPM OSS-C IP is the right • Depending on the business sector,
given to foreign investor to certify the licenses are Company Domicile
that the investment activity is Certificate (SKDP), Environmental
acknowledged and thus allowed to License, Building Permit (Izin
establish legal business entity in Mendirikan Bangunan or IMB),
Indonesia. Nuisance Ordinance Permit, Location
Permit, and Company Registration
BKPM OSS-C:
Certificate.
• All application for Principle License
(IP) will be done through BKPM- MINISTRY OF JUSTICE AND HUMAN
Online Service Platform or Electronic RIGHTS OF THE REPUBLIC OF
Investment Information & License INDONESIA, DIRECTORATE OF TAX,
Service (SPIPISE) [http://online- IMMIGRATION:
spipise.bkpm.go.id]. All investor will • These set of ministries and
always be able to approach BKPM government agencies will issue
office for advice and assistance in the main licenses and its related
the aplication process. certifications needed by FDI
Company to start its construction
PUBLIC NOTARY:
or setting-up stage. These main
• Once the Principle License (IP) is licenses are ratification on the
approved by BKPM OSS-C, investor Deed of Establishment, Taxpayer
will be able to setup its business Identification Number or Tax ID
entity by engaging any public notary (NPWP), and issuance of Foreign
office to draft the establishment Worker Employment Permit (IMTA).
of FDI Company (PT.PMA), which
Information on the establishment of FDI
is called “Company Deed of
Company in more details is explained
Establishment”. This draft will need
in the Chapter of ‘Investment Policy’,
to be ratified by Ministry of Justice
Question 6-8.
and Human Rights of the Republic


SETTING-UP STAGE pertaining to legal procedures and
technicalities on their Business
License (IU).
BKPM OSS-C: • During their Setting-up Stage or
• In the Setup Stage, investor with Construction Stage, investor will
legal business entity will be able be able to apply for the technical
to start setting-up its business licenses with BKPM OSS-C to
infrastructure and processing all simplify and expedite the setting-
the required licenses from technical up process, and start the business
ministries. With the establishment operation as soon as possible.
of OSS-C, high officials from 22
technical ministries and government
agencies will be positioned in BKPM
to attend to all investment inquiries FINAL-STAGE
and also application of the technical
licenses pertaining to their business
sector. BKPM OSS-C:
• Even at the Preparation Stage of • Once the company is ready for
prior to committing to apply Principle Commercial Stage, FDI Company
License (IP), investor will be able to will be able to apply for its Business
consult directly with these technical License (IU) from BKPM OSS-C to
ministries to understand in-depth start its business operation.
* Additional Notes:
All foreign investors who setup business
entities are mandatory to submit Investment
Activity Report
(Laporan Kegiatan Penanaman Modal or
LKPM) periodically to BKPM.
The FDI Company will be need to update the
LKPM every quarterly during its setting-up
period (after owning Principle License or IP)
and biannually after receiving its operational
(after owning Business License or IU).

C. INVESTMENT 3-HOURS 3. Tax ID (NPWP).

4. Company Registration Number
SERVICE (I23J) (Tanda Daftar Perusahaan or TDP).
5. Foreign Worker Employment Permit
Q
(IMTA).
-17: What is the
6. Foreign Worker Employment Plan
3-Hours Service (I23J)
(Rencana Penggunaan Tenaga Kerja
for investment? Asing or RPTKA).
7. Producer Importer Identification
Answer: Number (API-P).
8. Custom Registration Number (Nomor
As one of a support in drawing more Identitas Kepabeanan or NIK).
investment, Indonesia Government,
through BKPM, officially launched “The 9. Letter on Land Availability
Investment Licensing Service in 3 Hours” Information (optional).
(Layanan Izin Investasi 3 Jam or I23J) on
January 11st 2016. The service, which is
Q
part of the government’s 2nd economic
policy package, aims to cut the time to -19: What is the
wrap up licensing procedure for only 3 requirement for 3-Hours
hours from workdays normally. The total Service?
permits issued by this service are ‘8+1’
products.
Answer:
Q
The criterias to get this investment
-18: What kind of license
will I obtain within three quick service are:
hours? 1. Planned value of investment at least
IDR 100 billion, and/ or absorbing at
least 1,000 local workers.
Answer: 2. The investor come in person into
Those who are using the service will BKPM OSS-C, if a candidate of
receive ‘8+1’ licensing products, such as: shareholder represents other
1. The investment license (Principle shareholders, he/ she has to bring
License or IP). the letter of authority.
2. The Deed of Establishment and legal
entity approval from the Ministry
of Justice and Human Rights of the
Republic of Indonesia.


other licenses paralelly while do the
D. DIRECT CONSTRUCTION Construction-Stage, such as Building
FACILITY (KLIK) Permit (IMB), Environmental Permit
(AMDAL and UKL/UPL), etc (Note: these
Q
licences should be completed prior
-20: What is the Direct entering Commercial-Stage)
Construction Facility
(KLIK)?
Q
-21: What is the criteria
for Direct Construction
Answer:
Facility?
Ease of Direct Investment Construction
(Kemudahan Investasi Langsung
Answer:
Konstruksi or KLIK), officially launched
on February 22nd 2016, is a license that This facility can be enjoyed by any
will be given to the investor who have investor because there are no minimum
investment plan in certain industrial/ limits required for investment value
bonded zones. With this license, investor or the amount of labor as long as the
is allowed to do the investment plan located in certain
industrial/ bonded zones assigned by
Government of Indonesia.
Q
So far, there are 14 industrial parks that
-20: What is the Direct
have been set up by the government to
Construction Facility implement this facility:
(KLIK)? 1. Central Java Province:
• Kendal Industrial Park
Answer: • Bukit Semarang Baru Industrial
Park
Ease of Direct Investment Construction • Wijayakusuma Industrial Park
(Kemudahan Investasi Langsung 2. East Java Province:
Konstruksi or KLIK), officially launched • Java Integrated Industrial and
on February 22nd 2016, is a license that Port Estate (JIIPE)
will be given to the investor who have 3. South Sulawesi Province:
investment plan in certain industrial/ • Bantaeng Industrial Park
bonded zones. With this license, investor 4. Banten Province:
is allowed to do the Construction-Stage • Modern Cikande Industrial Estate
directly after obtaining Principle License • Krakatau Industrial Estate
(IP). Cilegon Industrial Park
5. West Java Province:
Once the KLIK license is obtained, • Bekasi Fajar Industrial Estate
the investor is allowed to obtain Industrial Park


• Delta Silicon 8 Industrial Park
• Karawang International Industrial
E. FISCAL and NONFISCAL
City Industrial Park FACILITIES
• Suryacipta City of Industry
Industrial Park
Q
• GT Tech Park Industrial Park
• Medan Industrial Park
-22: Is there any fiscal
facility offered by
government for foreign
investors?
Answer:
Yes. Indonesian government provides

Investment Incentives as follows:
Import Duties
All investment projects of PMA as well
as Domestic Direct Investment or DDI
(Penanaman Modal Dalam Negeri or
PMDN) projects which are approved by
BKPM or by the office of investment
in the respective districts, including
existing FDI and DDI companies
expanding their projects to produce
The Government of Indonesia similar product(s) in excess of 30% of
through BKPM installed capacities or diversifying their
officially launched products, will be granted the exemption
of Import Duty so that the final tariffs
become 0%. This facility applicable on:
“INVESTMENT 3-HOURS
SERVICE (I23J)” 1. The importation of capital goods
on January 11 , 2016 st namely machinery, equipment, and
& auxiliary equipment for an import
period of 2 years, started from the
“DIRECT CONSTRUCTION date of stipulation of decisions on
FACILITY (KLIK)” import duty relief.
on February 22nd, 2016
2. The importation of goods and
materials or raw materials regardless
Photo credit: Fitrayogi “Flyover Kelok Sembilan”, 2016 FREQUENTLY ASKED QUESTION ON INVESTMENT 27
Photo credit: “Instalasi Sumur Geothermal Dieng”, 2016
of their types and composition, of 2 years and can be extended by a

which are used as materials or maximum 1 year. This facility is not
components to produce finished applicable for transmision, distribution,
goods or to produce services for the supporting services, and repairing
purpose of 2 years full production equipment.
(accumulated production time).
For the importation of goods in term
3. The importation to the extant of of Contract of Work or CoW (Kontrak
machines, goods, and materials Karya or KK) or Coal Mining Business
which: Work Agreement (Perjanjian Karya
• Are not produced in Indonesia. Pengusahaan Pertambangan Batubara or
• Are produced in Indonesia but PKP2B) will be granted the exemption
they don’t meet the required and/ or relief from import duty based on
specifications. the owned contract.
• Are produced in Indonesia but the
quantity is not sufficient for the The application can be requested by
need of the industry. attaching recommendation letter from
Directorate General of Mineral and
The exemption of import duty will also Coal, Ministry of Energy and Mineral
be granted to the importation of capital Resources of the Republic of Indonesia.
goods of electricity for an import period

Tax Facilities (Tax Allowance) Area and/ or Bonded Zone

• Company operating in
Based on the latest Government construction development for
Regulation No. 18 of 2015, pertaining infrastructure sector
to Income Tax facilities for investment • Company that use domestic raw
in certain business sectors and/ or in materials at least 70%
certain locations, the domestic and • Company that is absorbing 500-
foreign investors will be granted tax 1,000 of domestic workforces
allowances in certain sector and/ or • Company that is conducting
area. This latest regulation replace research and development (R&D)
its previous preceding Government • Company that is doing a re-
Regulation No. 52 of 2011. investment
• Company that exports at least
Facilities provided by the new 30% of sales or export
Government Regulation No. 18 of 2015
are: For detailed information on the list
of business sectors that are eligible
1. Reduction of net income by 30%
for tax allowance, please refer to the
of the total investment in the form
Attachment I & II of Government
of tangible fixed assets, including
Regulation No. 18 of 2015. There are 66
any land used for the business main
business sectors listed in Attachment
activities, shall be charged for 6
I and 77 business sectors listed in
years, respectively at 5% per year
Attachment II.
calculated from the commencement
of commercial production.
Some of the differencies in Government
2. Accelerated depreciation on Regulation No. 18 of 2015 compared to
tangible assets and amortization Government Regulation No. 52 of 2011:
on intangible assets acquired in the
1. Criteria for companies that can
framework of new investment and/
get the facilities tax allowance in
or business expansion, with the
Government Regulation No. 52 of
usefull lives and depreciation rates
2011 is now part of the requirements
as well as amortization rates.
in the main body of the regulation.
3. The imposition of income tax on The main criteria to receive tax
dividens paid to any non-resident allowance facilities include:
taxpayer other than a permanent • High investment value or export-
established in Indonesia of 10% or oriented
lower tariffs in accordance with any • High labor employment
applicable double taxation treaty. absorption
• High domestic component usage
4. Compensation for losses that are
later than 5 years but not more than 2. Additional facility for company who
10 years, for: re-invest and for company that
export 30% of its sales value.
• Company located in the Industrial

In regards to Green Investment, several Directorate General of Tax and

business sectors that received tax technical ministry (according to
allowance are as follows: the applicant business sector) will
receive and process the application.
3. Once the application assessment is

completed, the BKPM will arrange
for a ‘Clarification Meeting’ between
the company and representative
from Directorate General of Tax. The
meeting is held for the purpose of:
• Company presentation on
the project and business plan
intended to receive the tax
allowance facility.
• Inquiries by technical ministry(s),
if needed, to provide further
clarification in regards to the
presentation and/ or application.
4. Based on the clarification meeting,

one (or more) of the following will
occur:
• Ministry will issue ‘Certificate
on Compliance of Quantitative
Requirements’.
• BKPM will issue Change in
PROCEDURE ON THE APPLICATION FOR Principal License (if needed).
TAX ALLOWANCE (New Applicant) • Applicant will be required to
furnish additional supporting
For new applicant or application of documents.
new project for tax allowance, below
is the framework on the application 5. In the case that clarification and
procedures: document are completed, BKPM will
issue ‘Receipt of Application’ and
1. Corporate Taxpayer (company) will schedule for a ‘Trilateral Meeting’.
need to submit application of tax
allowance Incentives directly by 6. Trilateral Meeting is held for
attaching its supporting documents. final discussion in regards to the
tax allowance application, to be
2. FO of BKPM OSS-C, which consist proposed by BKPM to Ministry of
of representatives from the 3 Finance of the Republic of Indonesia
main government bodies: BKPM, (with Directorate General of Tax).

The Trilateral Meeting will be headed Republic of Indonesia, latest 3

by BKPM officials and attended working days since the Trilateral
by representatives from BKPM, Meeting or Extension Trilateral
Ministry of Finance of the Republic Meeting.
of Indonesia, and Directorate General
of Tax. 11. In the case of rejection on the tax
allowance application, Chairman
7. The Trilateral Meeting produce of BKPM will need issue Rejection
agreement that is recorded in Letter, within 3 working days since
meeting minutes and decision from Trilateral Meeting or Extension
the Chairman of BKPM pertaining to Trilateral Meeting.
one of the following outcome:
• Approval on the tax allowance Note:
application to be submitted The following procedures are the
to Ministry of Finance of the simplified framework on tax allowance
Republic of Indonesia. application procedure. The full and
complete details of it is available in the
• Rejection on the tax allowance
Regulations of Chairman of BKPM No. 18
application.
of 2015.
• Pending decision on the tax
allowance application.
8. In the case of pending decision on Export Manufacturing

the tax allowance, BKPM will arrange
for the ‘Extension Trilateral Meeting’. There are many incentives provided for
At the end of this meeting, decision exporting manufacture products. Some
will need to be issued pertaining to: of these incentives are as follows:
• Approval on the tax allowance
application. 1. Restitution (drawback) of import
on the importation of goods and
• Rejection on the tax allowance
materials needed to manufacture the
application.
exported finished products.
9. The outcome of Trilateral Meeting
and the arrangement for Extension 2. Exemption from Value Added Tax
Trilateral Meeting will need to be or VAT (Pajak Pertambahan Nilai)
issued 15 days from the Clarification and Sales Tax on Luxury Goods and
Meeting. materials purchased domestically, to
be used in the manufacturing of the
10. In the case of approval on the tax exported products.
allowance application, Chairman of
BKPM will issue ‘Recommendation 3. Can import raw materials required
Letter’ on the grant of tax allowance regarding of the availability of
to Ministry of Finance of the comparable domestic products.

Bonded Zones Free Trade Zone

The industrial companies which are The companies operating in Free Trade
located in the bonded areas are provided Zone or FTZ (Zona Bebas Perdagangan)
with many incentives as follows: areas enjoy several incentives such as
exemption of import duty and excise,
1. Exemption from import duty, excise, import-related taxes (VAT, Withholding
income tax of imported goods Tax/ Income Tax) not collected.
(Income Tax Article 22), VAT on Additionally, FTZ also offer faster
Luxury Goods, of the importation issuance on investment related licenses
of capital goods and equipment and immigration clearance in terms of
including raw materials for the foreign employee. The limitation for
production process. operating in FTZ is that exporting goods
out of FTZ into Indonesian custom area,
2. Allowed to divert their products will apply the tax duty and excise back
amounted to 50% of their export (in on the previously dutyexempted goods.
term of value) for the final products,
and 100% of their exports (in term of
Q
value) for other than final products to
the Indonesian customs area, through
normal import procedure including
-23: What about tax ho
payment of customs duties.
investors?
3. Allowed to sell scrap or waste to
Indonesian custom area as long as Answer:
it contains at the highest tolerance
of 5% of the amount of the material According to the Regulation of the
used in the production process. Ministry of Finanance No. 159/
PMK.010/2015 and the Regulation of the
4. Allowed to lend their own Chairman of BKPM No. 19 of 2015 the
machineries and equipment to their applicant or company should meet the
subcontractors located outside following criteria:
bonded zones for no longer than 2
years in order to further process their 1. The company was established as an
own products. Indonesian business entity after 15th
August 2011.
5. Exemption of VAT and Sales Tax
on Luxury Goods on the delivery of 2. Having new investment plan which
products for further processing from has institution of no less than IDR
bonded zones to their subcontractors 1,000,000,000,- (ten trilion Rupiah).
outside the bonded zones or the
other way around as well as among 3. Submitting statement of ability to
companies in these areas. place fund in Indonesia banking

of not less than 10% of the total THE COMPANY CAN

investment plan as refered to IMPORT RAW
in letter point 2, and such fund MATERIALS REQUIRED
shall not be withdrawn before the REGARDING OF THE
commencement of investment
realization implementation.
AVAILABILITY OF
COMPARABLE DOMESTIC
4. Be involved in ‘Pioneer Industry’ such PRODUCTS
as:
• Upstream metal industry
• Oil refinering industry
• Industry of organic basic
chemicals derived from oil and
natural gas
• Industry of machinery that
produces industrial machinery
tax holiday for foreign
• Processing industry of
agricultural, forestry and fishery
products
• Industry of telecommunications,
information and communication
• Marine transportation industry
• Processing industry which is a
major industry in the Special
Economic Zone or SEZ (KEK); and/
or
• Economic infrastructure
in addition to the use of
Government and Business Entity
or Public Private Partnership
(PPP/ KPBU) Scheme.
It is, then, eligible for the following

incentives:
Photo credit: Stanlie “Produk Ekspor Industri Padat Karya”, 2016

1. An exemption from corporate income

tax for a period from 5 and up to 15
years, beginning from the first date
of commercial production.
2. Corporate Income Tax Reduction

shall be granted not exceeding 100%
and not less than 10% of the total
amount of payable Corporate Income
Tax.
Q
24: Besides fiscal facilities,
is there any other facility
provided?
Answer:
Yes. Starting 2016, the government

accelerates custom clearance process
for imported capital goods, aiming at
speeding up project under construction.
Capital goods no longer need screening
at the ports. So, it will cut the processing
time from five days to only 30 minutes.
Since September 2015, Indonesian

government has been issuing several
economic policy packages, among others,
to improve investment climate. We set
a minimum wage formula so investors
can predict annual increase of wage,
considering inflation and economic
growth. We support business to reduce
production costs, by cutting the price
of fuel, gas, and electricity for industry.
We revised the Indonesia Investment
Guidance (DNI) to be more open and
easier for (foreign) investors, including
industrial sector, creative economy, and
tourism.
Photo credit: Buruh garmen - Ruteur


GOVERNMENT
SUPPORTS
35
Photo credit: Said Harahap “Gerbang Masyarakat Ekonomi ASEAN”, 2016

GOVERNMENT SUPPORTS

A. LABOR
Q
-25: What is the minimum
Photo credit: Pekerja merakit motor di pabrik Astra Honda Motor
wages in Indonesia?
• Minimum wage calculation GR
78 introduces a new formula for
Answer: provinces to calculate their minimum
wage each year, beginning in 2016.
In Indonesia, minimum wages is the The introduction of the formula
monthly wage payable to labor. It is should bring certainty to the annual
mainly consist of fixed basic wage that calculation of minimum wage and
is stipulated by regional governor as help create a more reliable business
safety net. climate.
The new formula is as follows:
New minimum wage = current

Q
minimum wage + (current minimum
-26: What is the list wage x (Inflation + % GDP annual
of minimum wage in increase during the year)
Indonesia for the year of
• Wages must be paid in Rupiah
20xx? The Article 21 of GR 78 requires that
wages for all employees be paid in
Answer: Indonesian Rupiah and does not
differentiate between foreign and
The latest Government Regulation No. local employees.
78 of 2015 regarding Wages (GR 78)
introduces several important changes, • Wage scale and structure
notably those concerning the calculation GR 78 requires employers to
of provincial minimum wages and thh prepare a wage scale and structure
requirement that all employees in for employees by taking into
Indonesia be paid in Rupiah. consideration the group, positions,
years of service, education, and
GR 78 implements the Article 97 of Law competence of employees. Employers
No. 13 of 2003 regarding Manpower, must inform employees of this
and repeals and replaces Government wage scale and structure, and GR
Regulation No. 8 of 1981 regarding the 78 requires that a copy of the wage
Protection of Wages. scale and structure be attached to
company regulation registration or
The main points of GR 78 are: renewal applications.

GOVERNMENT SUPPORTS
Penyelenggara Jaminan Sosial untuk

Ketenagakerjaan dan/ atau Kesehatan or
BPJS-TK and BPJS-KS) will continue to
ensure that employer takes part in the
mandatory social security programmes
such as Pension Guarantee, Life
Insurance, and Work-accident Insurance.
For more information on the details

to social security pay-out structure,
submission of application, working
details, and latest updates please
directly contact BPJS for Workers
at www.bpjsketenagakerjaan.go.id
and BPJS for Health at www. bpjs-
Q
kesehatan.go.id.
-27: Is there any obligation
for employer to pay
Q
employes provident fund -28: Can I employ
or other social foreigners in my company
security fund? and how many foreigners
Answer: are allowed?
Yes, based on State Law No. 24 of Answer:
2011, employer will have to contribute
a certain share based on employee Yes, in the framework of investment,
monthly wage into the social security foreigners are allowed to hold
funding programme. The programme will positions where Indonesian nationals
provide economic assurance for every are not available or do not meet the
employee’s wellbeing. requirements to do the job and subject
to the conditions that such positions are
The new Social Security Agency open for foreigners. Foreigners can be
for Workers and/ or Health (Badan employed in Indonesia only for certain
Foreigners are allowed to hold positions where

Indonesian nationals are not available or do not meet
specific requirements.

GOVERNMENT SUPPORTS
Photo credit: Jimmy Sanjaya “Kegiatan Industri 4”, 2016
positions and period. of Federal Civil Firm (Firma/ Fa), the

Limited/ Federal Partnership (CV),
Employers of foreign workers in this shall Associated Business (Usaha Bersama or
include: UB), Trading Company (Usaha Dagang or
1. Government body(s) UD) prohibited from employing foreign
2. International body(s) labor except as provided in the State
Law.
3. Representatives of foreign country
4. International organization
5. Foreign Company Representative
Q
Office (KPPA), Foreign Company -29: What about
Trade Representative Office (KP3A), employing foreigner as a
Foreign Press Office
member of board of
6. Foreign private company, foreign
business entity director?
7. Legal Entity established under the Answer:
Indonesian Law in form of Ltd. (PT)
or foreign private organisation For all FDI, a foreigner could hold
8. Social institute and other institute position as a member of:
for religious, education, or cultural 1. Board of Director (BOD)
purpose 2. Board of Commissioner (BOC)
9. Impresario service entity 3. Builder Members
4. Board Members
5. Supervisory
Employers of foreign labor can
only employ foreign workers in an Except for DDI, a foreigner cannot hold
employment relationship for a certain a position as a member of Board of
position and a certain time. Commissioner.
Employers of foreign labor in the form According to the Attachment of

GOVERNMENT SUPPORTS
Manpower Decree No. 40 of 2012, the Republic of Indonesia.

foreigner cannot hold a position as:
1. Personnel Director
Q
2. Industrial Relation Manager -31: What is the flow
3. Human Resource Manager procedures to recruit
4. Personnel Development Supervisor foreign worker?
5. Personnel Recruitment Supervisor
6. Personnel Placement Supervisor
Answer:
7. Employee Career Development
Supervisor
8. Personnel Declare Administrator First of all, employer (either local or PT.
9. Chief Executive Officer PMA) should submit Foreign Worker
Employment Plan (RPTKA) application
10. Personnel and Careers Specialist
via online to the Ministry of Manpower
11. Personnel Specialist of the Republic of Indonesia to get
12. Career Advisor approval through link http://tka-online.
13. Job Advisor naker.go.id.
14. Job Advisor and Counseling
15. Employee Mediator Once approved, Indonesia Ministry of
Manpower of the Republic of Indonesia
16. Job Training Administrator
will issue RPTKA Endorsement to the
17. Job Interviewer employer. The RPTKA Endorsement
18. Job Analyst will then be used for Foreign Worker
19. Occupational Safety Specialist Employment Permit (IMTA)’s application.
This application should be submitted
via online to the Directorate General
Q
of Guidance Employment and Broaden
-30: How much the Employment Opportunities through
charges working permit the Director of Foreign Manpower
for foreigner? Management or go to BKPM OSS-C.
General requirement for IMTA as follows:

Answer: 1. RPTKA Endorsement.
2. Transfer receipt of Compensation
Companies employing foreigners are
Fund for Foreign Worker (Dana
charged USD 100/ month (USD 1,200
Kompensasi Penggunaan or DKP)
per year per foreign employee as
with the value of USD 1,200 per year
compensation fund for foreign workers
from Government Bank, which is
(Article 40 Manpower Act No. 35 of
appointed by Minister of Manpower
2015). This charge is administered
of the Republic of Indonesia.
through government bank which is
appointed by Minister of Manpower of 3. Proof of insurance policy from the

GOVERNMENT SUPPORTS
Photo credit: Misbachul Munir “Industri Kayu Olahan Playwood & Pulp”, 2016
insurance company incorporated in 1. Application letter

Indonesia. 2. Copy of savings book
4. Foreign worker’s passport. 3. Valid passport with minimum 18
5. Photo size of foreign worker 4×6 cm months validity for 1 year stay period
(2 copies). or 30 months validity for 2 years
6. Sufficient educational background staying period
proof from the foreign worker for the 4. Recommendation letter: RPTKA &
job position. IMTA
7. Competency certificate or working
experience minimum 5 years There are 2 options for VITAS application:
correspondent with the job position.
8. Contract agreement between the 1. VITAS which is submitted by the
foreign worker and the employer. employer:
9. Reccomendation for the foreign • The employer submits VITAS
worker from the authorized agency application to Directorate of
based on the job field (if required). Immigration.
• The employer has to pay for the
After receiving IMTA, employee will then
telex visa approval cost.
be able to apply for Temporary Stay Visa
(Visa Tinggal Terbatas or VITAS). General • When the VITAS application
requirement for VITAS application as is approved, the employer
follows: will get visa approval letter,

GOVERNMENT SUPPORTS
and the approval was also the local immigration office

sent to Indonesian Embassy where he/ she domicile in
representative. Indonesia to take biometric and
• The foreign worker has to come interview and also pay the cost
to the Indonesian representative of limited stay permit.
to apply for a visa while carrying • VITAS issued.
the approval letter and pay for
visa fee. The foreign worker should apply for
• After obtaining a visa, the foreign KITAS from the local immigration
worker will head to Indonesia, office where he/ she domicile in
and will be granted with Indonesia within 7 days after entering
admission stamp upon arrival. Indonesia. The following procedures
• Foreign worker should report also applies to the temporary
to the local immigration office hired foreigner/ expertise, such as
where he/ she domicile in specialized technician for temporary
Indonesia to take biometric and repair work, expert personnel for
interview and also pay the cost of short-term job position and any
limited stay permit. affiliated foreigner for specific work
• VITAS issued. function.
2. VITAS which is submitted by the
Q
foreign worker:
• The foreign worker submits -32: What are the
VITAS application to Indonesian procedures to apply
Embassy Representative. for Foreign Worker
• The foreign worker should pay for Employment Plan
the telex visa approval cost.
(RPTKA)?
• The Indonesian Embassy
Representative will forward the Answer:
application to Directorate of Employers who will employ foreign
Immigration. worker shall have RPTKA. RPTKA
• When the VITAS application is a basis to obtain Foreign Worker
is accepted, The Indonesian Employment Permit (IMTA). In order
Embassy Representative will to receive RPTKA, the employer must
issue the visa. The foreign worker apply via online to the Directorate
also has to pay for the visa fee. General of Guidance Employment and
• After obtaining a visa, the foreign Broaden Employment Opportunities
worker will head to Indonesia, through the Director of Foreign
and will be granted with Manpower Management by enclosing:
admission stamp upon arrival. 1. Explanation and reason to employ
• Foreign worker should report to expatriate.

GOVERNMENT SUPPORTS
2. Completed RPTKA form.

3. Licence from authorize ministry.
4. Article of association of legal entity
that has been legalized by authorized
ministry. As a follow up to the above regulation,
Ministerial Decree of Manpower No.16
5. Organization structure of the
of 2015 article 41 concerning Procedures
employer company.
for Licensing Hiring Foreign Workers
6. Letter of the employer domicile from stipulate, that the employer (sponsor) of
regional government. foreign labor is prohibited to hold more
7. Letter of Appointment for Indonesian than 1 job position or department.
manpower as assistant to the
foreigner and mentoring program Additionally, employer or sponsor
plan. of foreign labor is prohibited from
8. Letter of Statement for the capacity employing foreign labor that has already
to provide education and training for been employed by other employer,
Indonesian manpower in accordance unless the foreign labor is appointed
with the qualifying position occupied as Director or Commissioner in other
by the foreign worker company as stated in its General
9. Employer Tax ID (NPWP). Meeting of Shareholders.
10. Copy of valid obligatory report of
employment in accordance to State
Q
Law No. 7 of 1981.
-34: What is the
11. Recommended position that will be
occupied by the foreign worker from procedure to recruit a
technical ministries (if required). local worker?
Answer:
Q
-33: Can foreign worker/
foreigner hold multiple According to the Article 35 of Law of
jobs in Indonesia? the Republic of Indonesia No. 13 of
2003 about Manpower, employer can
recruit a local worker directly or through
Answer: a worker placement service providers
or agency. The employer shall provide
According to the Article 42 paragraph (4) protection covering welfare, safety,
and (5) of Law of the Republic of Indonesia and physical and mental health of the
No. 13 of 2003 pertaining to Employment, worker. The worker placement service
foreign labor can only be employed in agency shall provide protection as
Indonesia for a stipulated position and from the recruitment to the manpower
department. placement.

GOVERNMENT SUPPORTS
Q
-36: Is outsourcing
Photo credit: Jakarta Globe
allowed?
Q
-35: What is the status of Answer:
working relations between Yes, it is allowed. Outsourcing in this
employer and employee? regard, is defined as a submission of
partial execution of the work or business
process to other business entity by
Answer:
entering into full work contract or
provision of services contract. However
There are 2 kinds of working relations in society perspective, majority of the
between employer and employee: outsourced workers are employed under
temporary appointment work agreement
1. Working relation for unspecified or temporary contract worker.
period applied to permanent
employee. The working agreement Related with this, there will be 2
for unspecified period can require a definitions of outsourcing:
probation period for 3 months at the
maximum and the wage received by 1. If what is meant for outsourcing is
the employee shall not below the the recruitment of workers directly
minimum wages. conducted by the employer with
the status of working relationships
2. Working relation for specified period. are specified period and unspecified
This working relation shall be based period work agreement, thus this
on the period of time (maximum outsourcing definition is associated
3 years) and the completion of a with the Article 56-59, Law of the
certain job. Working agreement for Republic of Indonesia No.13 of 2003
specified period cannot require a and Ministerial Decree of Manpower
probation period. It can be applied for No.100/MEN/VI/2004.
a period of 2 years at the maximum
and only extendible once for 1 year Specified period work agreement
at the maximum. is for a particular job that will be
completed within a specified time,
which included in a category, as
Note: follows:
Please refer to Law of the Republic of • Job which is once done or
Indonesia No.13 of 2003 for further temporary
information. • Job which is estimated a
maximum of 3 years for its
completion

GOVERNMENT SUPPORTS
Photo credit: Muhammad Syofri Kurniawan “Membangun Dermaga Baru”, 2016
EVERY LABOR SHALL

ENTITLE TO ESTABLISH
AND BECOME A
MEMBER OF LABORS
UNIONS

GOVERNMENT SUPPORTS
• Job which is seasonal • Worker service provider (worker

• Job which is deal with new only), should be a supporting
product, new activity or service or not deal directly with
additional product that are still in the production process:
experiment or poll 1. Cleaning service
2. Catering for workers
Meanwhile, uncertain time work 3. Security
agreement is for the job that does 4. Supporting services in oil and
not meet the certain time work gas industry
agreement’s categories. 5. Transportation provider for
workers
2. If what is meant for outsourcing
is submission of partial execution
Q
of the work or business process -37: Is it allowed to
to a party or other company, then
outsourcing in this definition must establish a labor union in
be in accordance with Ministerial Indonesia?
Decree of Manpower No.19 of 2012.
Submission of partial execution of
Answer:
the work or business process to a
party or other company is divided
into 2 types, which are: Yes. according to the Article 102 of Act
No. 13 of 2003 about Manpower, Labors
• Whole package service provider, and Labors Unions shall function to
must meet the conditions, as execute jobs in accordance with their
follow: obligations, maintain orderliness for
1. Conducted separately from continuous production, channel their
the main activity, not only aspirations democratically, and develop
management but also the their skill and expertise as well as to
implementation of work take part in promoting companies and
activities. ensuing welfare of their members and
2. Performed with a direct order families.
or indirect order from the
employer. Every labor shall entitle to establish
3. Supporting activities that and become a member of labors unions.
support and facilitate the main The labors union shall entitle to
activity. accumulate and manage funds as well as
4. Do not hinder production to hold accountability for the funds of
process directly. organization.

GOVERNMENT SUPPORTS
Q Q
-38: How’s the role of -39: Is there any law in
government in case of Indonesia that regulates
dispute between the labors strike?
employer and labor union?
Answer:
Answer:
According to the Article 102 of Act No. Yes, Labors strikes is regulated by the
13 of 2003 about Manpower, Labors and Minister of Manpower Decree No. 232
Labors Unions, the government shall of 2003. According to this regulation,
function to stipulate policies provide strike is defined as labors’/ workers’
service, supervise, and take action action which is projected and carried out
against any violation of provisions of law jointly and/ or by worker/ labors union
in force. The government refers to the to stop or slow down the works. Strike
Ministry of Manpower of the Republic is part of human right of workers/ labors
of Indonesia at the national level, and that should be conducted legally, orderly
Department of Manpower at provincial and peacefully as the consequence of
level. failed negotiation.
Representative of government is member Failed negotiation shall be negotiation

of the tripartite cooperation institutions, that all parties could not reach an
together with employer organization agreement in the dispute settlement
and labors union. Tripartite cooperation because the employer is not willing
institution provides recommendations, to cinduct negotiation or the worker/
suggestions and opinions for the labors union or the workers/ labors have
government and parties concerned in the requested in writing the employer 2
formulation of policies and settlement of (twice) within the period of 14 working
manpower issues. days or the negotiation is deadlocked
stated by the parties in the minutes of
In the case of industrial relations negotiations.
dispute, employer and labors union
should undertake negotiation at the The strike shall be deemed illegal if it is
first place. If negotiation fails, the conducted:
dispute should be brought to tripartite 1. Not because of failed negotiations;
cooperation institution. and/ or;
2. Without notification to the employer
Note: and competent agencies in the field
Further information about industrial
of manpower;
relations dispute settlement can
be refered to Act of the Republic of 3. With a notification of less than 7
Indonesia No. 2 of 2004 concerning days before the implementation of
Industrial Relations Disputes the strike;
Settlement. 4. At a public company and/ or a similar

GOVERNMENT SUPPORTS
company in which the activity may

harm safety of human being. with labors union or labors individually
in the case of the said laburs is not
An Illegal strike as meant shall be members of labors union.
classified as absent. The summon
to resume work for the strikers shall In the case of the negotiation as meant
be conducted by the employer twice in the above paragraph totally fail to
consecutively within the grace period result in an agreement, employer only
7 days in the form of appropriate and can discontinue working relations with
writing summons. The workers/ labors labors after obtaining a stipulation
who do not answer the summon shall be from the authorized to settle industrial
considered to have resigned. relations dispute.
In the case of workers staging labors Application for stipulation of

strike legally in raising demand for discontinuation of working relations
normative rights rally violated by shall be submitted in writing to the
employer, they shall be entitled to institution authorized to settle industrial
obtain wage. relations dispute, accompanied
by reasons as the basis of the
discontinuation.
Q
-40: What is the The institution authorized to settle
regulation of employment industrial relations dispute can accept
the application for stipulation if it
terminaton? has been negotiated. The institution
authorized to settle industrial relations
Answer: dispute only can issue stipulation of
the application for discontinuation
The discontinuation of working relations of working relations if the plan for
is regulated in Chapter XII Act No. 13 discontinuation of working relations
of 2003 on Manpower. Labors dismissal has been negotiated by the negotiation
shall be termination of working realtions failed to result in an agreement.
because of a certain matter that
discontinues rights and obligations Employer shall be prohibited from
between workers/ labors and employer. discontinuing working relations with the
following reasons:
Employer, labors, labors unions, and the
1. Workers/ labors fail to come because
government, by all means, shall strive
they are sick according to certificate
to avoid discontinuation or working
of doctor as long as the period of
relations. In the case of all efforts
absence does not exceed 12 months
being made, but discontinuation of
continuously.
working relations being unavoidable,
employer shall negotiate the plan for 2. Workers/ labors are unable to
discontinuation of working relations undertake their jobs because they

have to fulfil obligations to the state cannot be ascertained yet.

in accordance with the provisions of
laws. Application for stipulation of
discontinuation of work relations shall
3. Workers/ labors who practice their be unnecesary, in the case of:
religions.
1. Workers/ labors being in the
4. Workers/ labors who perform probation period, if it has been
marriage. stated in writing previously.
5. Female workers/ labors who are 2. Workers/ labors tendering their
pregnant, give birth, suffer abortion. resignation, in writing on the basis
6. Workers/ labors who have blood of their intention without indication
relations by the same and/ or married of pressure or intimidation from
with the other workers/ labors employers.
in companies, unless otherwise 3. Expiration of working relations in
stipulated in working agreement, accordance with working agreement
corporate rule or collective working for a specified period for the first
agreement. time.
7. Workers/ labors establish, become 4. Workers/ labors enter the mandatory
members and/ or executive of retirement age in accordance
workers/ labors unions, workers/ with the stipulation in working
labors undertake activities or agreement, corporate rule, collective
workers/ labors unions outside the working agreement or laws in force.
working hour during the working
hour on the basis of agreement 5. Workers/ labors passed away.
of employer or on the basis of the 6. In the case of labors dismissal,
provisions stipulated in working employer shall be obliged to pay
agreement, corporate rule or appropriate severance payment and/
collective working agreement. or gratitude payment.
8. Workers/ labors report employer to
the authorized parties with regard to
action of employer committing act of
crime.
EMPLOYER, LABORS,
9. Because of the different faith,
LABORS UNIONS AND
religion, political ideology, ethnic, THE GOVERNMENT,
race, group, sex, physical condition
or marital status.
BY ALL MEANS, SHALL
10. Workers/ labors disabled STRIVE TO AVOID
permanently, sick because of DISCONTINUATION OF
working accident or disease related
to working relations whose recovery WORKING RELATIONS.
period, according to letter of doctor,

B. LAND-OWNERSHIP HGU, HGB, and The Right of Use can
be held by Indonesian citizen, foreigner
residing in Indonesia, corporate bodies
Q
-41: Can I buy and own that are established under Indonesian
Law and are based in Indonesia,
land in Indonesia? and foreign companies that have a
representative office in Indonesia.
The ownership of HGU and HGB is

Answer:
allowed to change during the validity of
The investors can buy and own land in contract period. Meanwhile, The Right
Indonesia for a specified period of time of Use of land can be transferred to
by means of the following rights: another party with approval of relevant
government official.
1. The Right of Exploitation (Hak Guna
Usaha or HGU) is granted for a The Right of Use of land belonging to
period of not longer than 25 years individuals can also change hands.
and could be renewed for 25 years.
To an enterprise/ a corporate bodies
Q
that needs a longer period, HGU
for not longer than 35 years may be -42: Can a foreigner or PT.
granted. PMA purchase a property
in Indonesia?
2. The Right of Building (Hak Guna
Bangunan or HGB) is the right to
build and to own buildings on land Answer:
which is not one’s property for a
period of not longer than 30 years Yes, it depends on the type of property:
and can be extended by a period not
longer than 20 years. 1. For a landed building (house, office,
factory) it is only allowed for a
3. The Right of Use (Hak Pakai) is foreigner or PT. PMA and the status
the right to use and/ or to collect of the land is The Right of Building
the product, from land directly (HGB) or the Right of Use.
controlled by the state, or land
owned by the other persons which Regarding the ownership of landed
gives the rights and obligations house, recently the Government
stipulated in the decision upon of Indonesia has revealed the new
granting his right by the authorized Government Regulation No. 103
official, or in the agreement to work of 2015 on House Ownership of
the land, as far as it is not conflict Foreigners Residing in Indonesia. This
with the spirit and the provision of regulation allows foreigners to buy a
the law. landed houses under the Right of Use

Q
category for a period up to 80 years -43: I want to buy
(an initial period of 30 years and can plantation land in
be extended twice by 20 years and a
further 30 years).
Indonesia. What will be
the status of the land?
2. For a condominium or apartment
and office space, the foreigner or PT.
Answer:
PMA can own it as long as it isn’t
a part of a government-subsidized 1. The title of the plantation land is
housing development and the land The Right of Exploitation (HGU)
status of the building is strata title for agricultural, fishery or animal
status under the Right of Use. husbandry purposes. You may buy
and own the land, but the status of
Still based on the same regulation, the land is state-owned land and the
regarding apartments, foreigner HGU is only valid for certain period
allows to purchase an apartment of time.
under the Right of Use category
and this is only involves luxurious 2. The type of plantation crops should
apartments priced over IDR 10 be suitable with the HGU.
billion.

3. This right can be held by Indonesian PMA that is located and carries out
individuals or entities as well as business activities in Indonesia and
government approved PT. PMA foreign individual who is working and
(foreign joint venture) companies and earn income in Indonesia generally have
may be mortgaged. to assume the same tax obligations as
resident taxpayers. A self-assessment
method is used to calculate income tax.
Q
-44: What is the status of Tax rates for individual(s) and corporate
land for a PT. PMA who is are described in the following tables:
a property developer?
Answer:
PT. PMA who is a property developer

may buy a land in Indonesia to develop
the property. The status of the land is
The Right of Building (HGB) which will
be split to small lots accordingly. Later
on, the buyer of the property could apply
to change the status of the land lots
to The Right of Ownership (Hak Milik)
which is allowed only for Indonesian
citizen.
Withholding Tax (Pajak Pemotongan)

C. TAXATION system is used in Indonesia to collect
the income tax. Where a particular item
Q
of income is subject to withholding tax,
-45: How is the tax the payer is responsible for withholding
structure for FDI? or collection of the tax. For example,
employers are required to withhold
income tax of the salaries payable to
their employees and pay the tax to the
Answer: tax office on their behalf.
The basic tax obligation is Income Note:

Tax (Pajak Penghasilan or PPh) which Detailed information on Income Tax
is progressive and applied to both should refer to The Income Tax Law No.
individual(s) and enterprises. A PT. 36 of 2008.

GOVERNMENT SUPPORTS
Q
-46: Is there any other Sales Tax on Luxury Goods (Pajak
information related to tax Penjualan atas Barang Mewah or
obligation for foreign PPnBM)
investors? These tax ranges from 10% to 75%. The
list of the tax should be referred to The
Answer: Government Regulation No. 12 of 2001
Land & Building Tax (Pajak Bumi dan jo. No. 43 of 2002 jo. No. 46 of 2003
Bangunan or PBB) and other related tax implementation
regulations.
The owners of land & buildings have to
pay tax annually on land, buildings and
permanent structures. The effective Stamp Duty
rates are nominal, typically not more
than one tenth of one percent per The stamp duties nominal are either
annum (0.1%) of the value of such IDR 3,000 or IDR 6,000 on certain
assets. documents. The rate of IDR 6,000 is
applicable for letters of agreement and
Value Added Tax or VAT (Pajak other letters, such as Notary Deed and
Pertambahan Nilai or PPN) Land Deed including its copies. For all
documents bearing a sum of money, the
In normal cases, 10% VAT is applied to rate is IDR 6,000 when the value stated
imports, manufactured goods and most in the document is more than IDR 1
services. However, according to the million, and IDR 3,000 when the value is
Government Regulation No. 7 of 2007. between IDR 500,000 and IDR 1 million.
Free Charge of VAT to the importation Below IDR 500,000 is not subject to
of certain VAT charged goods having the stamp duty. For cheques, the rate is IDR
strategic term which consist of: 3,000 regardless of money value stated.
1. Capital goods in the form of

machineries and factory equipment, Deemed Withholding Tax
either in installed or separated,
including spare parts. Applicable for Trade Representative
Office in Indonesia. Decree of
2. Feed of poultry and fish and raw Directorate General of Taxation, KEP-
materials to make feed. 667/PJ./2001, states that deemed
withholding tax for Trade Representative
3. Seed and/ or seeding of agricultural Office is payable at the rate of 0.44%
material, plantation, forestry, out of 1% gross export value.
livestock, aquaculture, or fishery.
This is only applicable to foreign
4. Agricultural products. taxpayer that has no double-tax treaty
agreement. For more information of

GOVERNMENT SUPPORTS
the payment details, please refer to with no option of renewal or converted

Directorate General of Taxation Circular to other type of visa.
No. SE-2/PJ.03/2008.
Q
Tax aside, local government at provincial
or municipal level sometimes apply -48: I have heard about
retribution for some business sectors. It Visa Free Visits to
varies from each region.
Indonesia, may I know
what is it about?

D. IMMIGRATIONS
Answer:
Q
-47: Do I need a visa to Based on the Presidential Regulation
No. 104 of 2015 on Amendment of
visit Indonesia? Presidential Decree No. 69 of 2015 on
the Visa Free Visits, the Government
of Indonesia provide more flexibility
for foreign tourists to visit Indonesia
Answer: and increased the number of countries
Yes, foreigners who will travel to granted exemptions from the obligation
Indonesia should apply visa from the to have a visitor’s visa for a limited time
Indonesian Embassy in their respective frame and for specific purposes.
countries unless they come from one of
the visa extemp countries or one of the Nationals holding passport from the
countries eligible for Visa on Arival or following 90 countries and territories
VOA (Visa Kunjungan Saat Kedatangan). are eligible to enter and remain in
Indonesia without a visa for 30 days and
All visitors must hold a passport valid for with no option of renewal of converted
6 months from the date of arrival and to other type of visa.
have valid return ticket. The immigration
officer at the port of entry may ask the Passport holders from 15 countries
passenger to produce any necessary and territories can visit Indonesia
documents (such as hotel reservation for the purpose of tourism, business,
and proof of finance). education, government related tasks,
socio – culture, journalism or transit.
Regarding the purpose of visit, These 15 countries can enter and exit
the visitors with ASEAN Countries Indonesia through any airport or harbour.
nationalities are able to visit Indonesia Meanwhile, nationals from 75 countries
without any visa for the purpose of and territories can visit Indonesia for the
official duties, education, tourism, purpose of tourism only and can only
business, government and social culture enter and exit Indonesia through certain
purpose. They may stay up to 30 days airports and harbours:

GOVERNMENT SUPPORTS

GOVERNMENT SUPPORTS
CERTAIN AIRPORTS & HARBOURS

of 30 days by paying a certain amount
SPECIAL FOR 75 COUNTRIES TO of money. The rate is the same for any
OBTAIN VISA FREE VISIT: passenger of any age. Infants need to
pay this visa fee as well. The Indonesia
Five airports
VOA can be extended once by another
• Bali; Ngurah Rai International Airports (DPS). 30 days:
• Jakarta; Soekarno Hatta International Airport
1. Andorra 3. Brazil
(CGK).
2. Australia 4. Libya
• Medan; Kualanamu International Airport
(KNO).
• Surabaya; Juanda International Airport (SUB).
• Batam; Hang Nadim International Airport Nationals who are not eligible for Visa
(BTH). Free Visits or VOA need to apply the visa
at an Indonesian embassy or consulate.
Nine harbours Nationals from 10 following countries
require an approval from Immigration
• Batam, Batam Center Harbour.
Office in Indonesia before travelling
• Batam, Citra Tri Tunas Harbour.
for business, tourist and social visits
• Batam, Marina Teluk Senimba Harbour.
purposes:
• Batam, Nongsa Terminal Bahari.
1. Afghanistan 6. Niger
• Batam, Sekupang Harbour.
• Bintan, Sri Bintan Harbour.
2. Cameroon 7. Nigeria
• Bintan, Tanjung Uban, Bentan Telani/Lagoi 3. Guinea 8. North Korea
Harbour. 4. Israel 9. Pakistan
• Riau, Karimun, Tanjung Balai Karimun. 5. Liberia 10. Somalia
• Riau, Tanjung Uban, Sri Udana Lobam Harbour.
Q
-50: What are the general
Q
-49: Other than Visa Free requirements to apply
Visits, is there any kind of visa?
visa?
Answer:
Answer: All the applicants for any types of

visa must comply with the general
Yes, they are Visa on Arival (VOA) and requirements below:
Visa before Arrival or Indonesian Calling
Visa. 1. Provide complete and signed visa
application form. The application
Nationals of the following 4 countries form is available in the Embassy
may apply for a VOA for a length of stay or could be downloaded from the

Q
website of respective embassy of -51: How much should I
intended application. pay for the visa?
2. The original passport and the copy.
3. The passport must have at least 2 Answer:

blank pages left for the use of visa
sticker and stamps. For single entry In regards to visa application fees,
visa, the passport must be valid for the currency fluctuation visa fees
at least 6 months after the date of are adjusted accordingly to the each
entry, and for the multiple business country’s currency. For this reason,
visa and Temporary Stay Visa each visa applicant is recommended
(VITAS), it must be valid for at least to contact directly to the Indonesian
18 months after the date of entry. Embassy or Consulate General located
at the respective country. In the
4. A guarantee of the available of case where Indonesian Government
funds to cover living expenses representative is not available at the
while in Indonesia (e.g. the last 3 applicant resident city or area, please do
months bank statement or traveller’s contact Indonesian Minister of Foreign
cheque). Affairs of the Republic of Indonesia at
the following links: www.kemlu.go.id.
5. Two (2) photos (with colour
backgrounds, passport size).
Q
6. The applicants are not in the -52: How to apply for
immigration alert list and come in visa to work and stay in
person.
Indonesia?
Note: Answer:
• The Embassy has the authority to
reject any applicants. The applicant can apply online by go
to website www.imigrasi.go.id and
• Additional documents will be click Visa Section or come directly to
required, depending on the purpose Directorate of Immigration.
of stay.

GOVERNMENT SUPPORTS
Photo credit: Dwi Prasetya “Industri Penerbangan”, 2016
Q
Any foreigner intending to work and stay -53: Can i bring my family
in Indonesia must get Temporary Stay to Indonesia?
Visa (VITAS). To get VITAS, applicant
must have a sponsor both in their home
country and in Indonesia.
Answer:
The application should be submitted by
sponsor in Indonesia to the Directorate Yes, you can bring your family to
Indonesia. They should get Temporary
General of Immigration in Jakarta. Stay Visa (VITAS) and Temporary Stay
Once the application approved, the Permit Card (KITAS) by following the
Directorate General of Immigration in same procedures mentioned above.
Jakarta will give the approval letter to
the sponsor or counterpart in Indonesia
Q
and to the Indonesian Embassy where
the visa will be collected. -54: Is there any
facilitation of visa for
The embassy will issue the VITAS
investors?
only after receiving approval from the
Directorate General of Immigration
in Jakarta. Once the foreigner enters Answer:
Indonesia by using VITAS, they should
apply for Temporary Stay Permit Card Yes, there is visa facilitation scheme
(KITAS) from the local immigration applicable for investor in the Special
office. Economic Zone or SEZ (KEK). Currently,
Head of Integrated Investment Service
Note: Unit (Kepala Unit Pelayanan Investasi
Application of working permit will be Terpadu or UPIT), which has been
explained further in the Chapter of designated by the Director General of
‘Labors Law’. Immigration to implement the licensing

GOVERNMENT SUPPORTS
authority in the provision of facilities • Fill out the application and guarantee
for licenses and investment to investors form
who are in a SEZ which cover certain • Company or sponsor profiles.
areas in Batam, Bintan and Karimun in • Foreign Worker Employment Plan
Riau Islands. (RPTKA)
• CV or resume of applicant
Immigration officials can grant approval • Copy of passport
of Limited Stay Visa to foreigners who • Photo 4x6 cm (2 copies)
live in the SEZ for people coming as:
• Investors Multiple Visit Visa Requirements (for
• Working as an expert SEZ area):
• Spouse of Limited Stay Permit • Application from the company
holders • Fill out the application and guarantee
• Parents of child under 18 years old form
• Foreign home owner and/ or • Company or sponsor profiles
elderly in accordance with existing • CV or resume of applicant
regulation. • Copy of passport
• Photo 4x6 cm (2 copies)
Officials at the Overseas Indonesian
Rpresentative can grant a Temporary
Stay Visa (KITAS) for 2 years for
investors after receiving approval from
the immigration officer at UPIT in SEZ.
In the framework of assessment or

business development in the SEZ,
Authorized Overseas Indonesian VISA FACILITATION
Representatives are allowed to provide a
Multiple-Trip Visa which is applicable for SCHEME
1 year for foreigners with a period of stay
of 60 days.
APPLICABLE
In regards to provision of short-term
FOR INVESTOR
work for the development of SEZs,
foreigners with access to Visa-Free
IN THE SPECIAL
Temporary Visit (Bebas Visa Kunjungan ECONOMIC ZONE
Singkat or BVKS) can be given VOA for a
period of 7 days. (SEZ)
Temporary Stay Visa (VITAS)
Requirements (for SEZ area):
• A request from the company or
sponsor

GOVERNMENT SUPPORTS

GOVERNMENT SUPPORTS
related to food and drugs, it should be

E. TRADE registered to the National Agency of
Drug and Food Control (BPOM) [www.
Q
-55: I want to export my pom.go.id].
product to Indonesia.
Q
What should I do?
-56: I was informed that
Importer Company in
Answer:
Indonesia must have an
There are 2 ways to export product to Importer Identification
Indonesia:
Number (API). What is API?
1. Appointing local company in Answer:
Indonesia as your agent or
distributor. Importer Identification Number (Angka
Pengenal Importir or API) constitutes
A local distributor company will identification those importers must
fulfill all requirements to import your posses in order to import goods.
products, including registration of API is used by the government as
products to (Badan Pengawas Obat an instrument to regulate orderly
dan Makanan or BPOM). However, if importation for the purpose of
there dispute arises; the ownership implementing the foreign trade policy in
of product registration right may the field of imports.
cause conflicting issues on the
possession of the rightful owner of Importation without API can only be
the market trademark. done after obtaining approval from
Minister of Trade of the Republic of
2. Establishing your own company Indonesia and only for goods such as:
as the Trading (import/ export/
1. Simple imported goods.
distributor) Company.
2. Promotional items.
In case the activity of your trading 3. Goods for the purpose of science
company is just importing, your research and development.
company could not distribute the
product by yourself to client and will 4. Shipment goods.
still have to appoint local distributor 5. Goods as grants, gifts, or gifts for the
or agent company. purpose of public worship, charity,
social, cultural, or natural disaster
In both ways, your product should be interests.
registered to the Ministry of Trade of
the Republic of Indonesia before allowed 6. Goods which are medicines and
to be distributed. If the products are medical equipment that is using

GOVERNMENT SUPPORTS
government budget.
API can be obtained from BKPM OSS-C.
7. Goods which have been exported The API is valid for 5 years and can be
for repair and testing, and then extended. It is applicable to the entire
was imported back in amounts Indonesian customs area.
which are not exceed the amount
at the time of they were being
export in accordance with the
Q
Notification of Export Goods -57: Is it allowed to export
(Pemberitahuan Ekspor Barang). or import any kind of
8. Exports of goods declined by products and commodities
buyers abroad and then imported
back with the most number
to and from Indonesia?
according to Notification of Export Answer:
Goods.
Of course there are some restrictions
9. Sample goods that are not for sale. and limitations to export and
10. Goods for the purposes of import some specified products and
government institutions or commodities. You may check the list on
agencies that is imported by the the website of Indonesia National Single
agency or institution in question Window or INSW as follows: http://
itself. eservice.insw.go.id/
11. Goods which are belong to
the representatives of foreign
Q
countries and their officers who -58: What about the
served in Indonesia.
export and import tariff of
12. Goods for the purposes of
products and commodities
international agency and their
officials assigned in Indonesia. in Indonesia?
13. Moving goods. Answer:
You also may check directly to the

website of INSW as mentioned in the
API consists of the following types: previous question.
1. API for General Importer (API-U),
Q
which should be obtained by a
trading company. -59: What are the
2. API for Producer Importer (API-P), procedures of import
which should be obtained by an custom duties in
industrial company importing raw Indonesia?
materials and capital goods for its
own use. Answer:

GOVERNMENT SUPPORTS
Q
In a general and simplified explanation,
the steps of custom clearances for -60: Where can I find more
imported products are as follow: information on Import Tax
duties rate?
1. Importer will be required to submit
Notification of Imported Goods Answer:
(Pemberitahuan Import Barang or
PIB) to the custom office. Information on Import Tax Duties rate
can be found at the following Indonesian
2. Importer proceeds to pay for official custom website: http://www.
custom duties and import tax at beacukai.go.id/?page=apps/browse-
the bank. tarif-dan-lartas.html.
3. Process custom clearance by The information of it requires the

submitting: importer to identify the exact
• Proof of payment Harmonized System (HS) Codes for
their imported products. HS Codes can
• Importer Identification Number
be found in the website of INSW as
(API)
mentioned in the previous question.
• Tax ID (NPWP)
• Customs Registration Number
Q -61: How to find out list

(NIK)
• Notification of Imported Goods of goods prohibited from
(PIB) imports to Indonesia?
• Tax and custom deposit letter
• Invoice Answer:
• Packing list Indonesian Import-Export Prohibition
• Bill of lading (Dokumen and Restriction Regulations (Larangan
Pengangkatan Barang or B/L) dan/ atau Pembatasan Ekspor-Impor
• Insurance document or LARTAS) maintain the full details of
products restricted from import and
Once the custom is cleared, importer export actoivities. LARTAS information
will be issued Customs Clearance can be found in the website of INSW as
Approval Certificate (Surat Perintah mentiones in the previous question.
Pengeluaran Barang or SPPB).
Q
Importer will be able to release the
goods from custom by enclosing: -62: What is the procedure
to register the food and
• Delivery order from shipping agency drug products to National
• SPPB Agency and Food Control
(BPOM)?

GOVERNMENT SUPPORTS
Answer:
with the mechanism of Single Sign
All food and drug products includes of On.
drug, traditional medicine, cosmetics,
food supplement and processed food 2. Upload following supporting
must fulfill all safety requirements documents to one of both website
to enter the Indonesian market. This above:
imported food and drug registration is • Letter of application signed by
regulated under Indonesian National the directors or the power of
Agency of Drug and Food Control attorney of directors.
(BPOM), one of the provisions is the
• Letter of responsibility (original).
Regulation of the Head of the Agency
of Drug and Food Control Republic of • Importer Identification Number
Indonesia No. 12 of 2015 concerning the (API).
Oversight of Food and Drug Imports into • Trade license (Surat Izin Usaha
Indonesian Territory. Perdagangan or SIUP) [original].
The registration must be done by the local

company, local agent or distributor before
the products clear Indonesian customs.
The registration must be done by the • Tax ID (NPWP) [original].

local company, local agent or distributor • Letter of power of attorney in
before the products clear Indonesian importing which is made in the
customs. form of General Certificate by a
notary, in terms of the applicant
To import drug and food, the importer is a company who have been
must apply Letter of Import (Surat authorized to import (original).
Keterangan Impor or SKI) to the Head of
• List of HS code of product to
BPOM.
import.
The procedure to obtain SKI are as • Especially for the SKI of drug,
follow: the aplicant should attach
Pharmaceutical industry license.
1. Do the online registration to the
aplication of e-bpom (http://www.e- 3. Do the e-payment (as one of Non-
bpom.pom.go.id) or the website of tax Revenue [Penerimaan Negara
INSW (http://eservice.insw.go.id/) bukan Pajak or PNBP]).

GOVERNMENT SUPPORTS
64
4. Submit the electronic documents serum, the applicant should attach:

such as: • Batch/ lot release certificate
• Distribution approval license from the Body of Authority in
• Certificate of analysis the country where the vaccine
released.
• Invoice
• Summary of batch/ lot protocol
• Proof of payment of Non-Tax
which is published by the factory.
Rvenue (PNPB)
• Certificate of analysis which
5. For the application of vaccine and includes source of an active

GOVERNMENT SUPPORTS
65
Photo credit: Stanlie “Industri Minuman”, 2016
substance. 8. Additional documents or tests might

be required depending on the product
6. Letter from producer in the origin category.
country (if the exporter is different
from the producer).
7. For processed food importation:

letter of recommendation from
Ministry of Agriculture in the animal
origin country.

GOVERNMENT SUPPORTS
F. RELATED GOVERNMENT
AGENCIES
Ministry of Trade of the Republic of Indonesia
(Kementerian Perdagangan RI)
Q
Jalan M. I. Ridwan Rais No. 5
-63: Where can I find Jakarta Pusat, DKI Jakarta 10110
information about Tel : +62 21 - 385 8171
Email : contact.us@kemendag.go.id
government agencies Web : www.kemendag.go.id
and other
institutions related to?
Answer:
Following is the list of government

agencies and other institutions relevant Ministry of Industry of the Republic of Indonesia
to investments in Indonesia: (Kementerian Perindustrian RI)
Jalan Jend. Gatot Subroto Kav. 52-53
Jakarta Selatan, DKI Jakarta 12950
Tel : +62 21 - 525 5509, ext. 2737
Fax :+62 21 - 525 5609
Web : www.kemenperin.go.id
Indonesia Investment Coordinating Board

(Badan Koordinasi Penanaman Modal/ BKPM)
Jalan Jend. Gatot Subroto Kav. 44,
Jakarta Selatan, DKI Jakarta 12190
Ministry of Manpower of the Republic of
Tel : +62 21 - 525 2008 Indonesia(Kementerian Ketenagakerjaan RI)
Contact Center OSS-C : +62 807 100 2576 Jalan Jend. Gatot Subroto Kav. 51
Email : info@bkpm.go.id Jakarta 12950
Web : www.bkpm.go.id Tel/ Fax : +62 21 - 522 9285/+62 21 - 797 4488
Web : www.naker.go.id
Ministry of Environment and Foresty of

the Republic of Indonesia
(Kementerian Lingkungan Hidup & Ministry of Public Works and Public Housing
Kehutanan RI) (Kementerian Komunikasi dan Informasi RI)
Gedung Manggala Wanabakti Blok I Jalan Jalan Pattimura 20, Kebayoran Baru,
Gatot Subroto, Senayan, Jakarta 10270 Jakarta Selatan - 12110
Tel : +62 21 - 570 4501-04/+62 21 - 573 Tel : +62 21 - 722 8497
0191 Web : www.pu.go.id
Web : www.menlhk.go.id

GOVERNMENT SUPPORTS
Ministry of Agriculture of the Republic of Ministry of Communication and Information

Indonesia (Kementerian Komunikasi dan Informasi RI)
(Kementerian Pertanian RI) Jalan Medan Merdeka Barat No. 9, Jakarta
Jalan Harsono RM. No. 3, Ragunan, 10110
Jakarta Selatan, DKI Jakarta 12560 Tel : +62 21 - 345 2841
Tel : +62 21 - 780 6131/ +62 21 - 780 4116 Email : humas@mail.kominfo.go.id
Fax : +62 21 - 780 6305 Web : www.kominfo.go.id
Email : webmaster@pertanian.go.id
Web : www.pertanian.go.id
National Standardization Agency

(Badan Standarisasi Nasional RI)
Gedung I BPPT Jalan M.H. Thamrin No.8,
Ministry of Tourism of the Republic of Kebon Sirih, Jakarta Pusat 10340
Indonesia Call Center: +62 21 - 392 7422
(Kementerian Pariwisata RI) Fax : +62 21 - 392 7527
Gedung Sapta Pesona, Jalan Medan Merdeka Email : bsn@bsn.go.id
Barat No. 17 Jakarta 10110 Web : www.bsn.go.id
Tel : +62 21 - 383 8167/ +62 21 - 383 8899
Fax : +62 21 - 384 9715
Web : www.kemenpar.go.id
Ministry of Marine and Fishery

Ministry of Health of the Republic of Indonesia (Kementerian Kelautan dan Perikanan RI)
(Kementerian Kesehatan RI) Jalan Medan Merdeka Timur No. 16 - Jakarta
Jalan HR. Rasuna Said Blok X.5 Kav. 4-9, Pusat
Jakarta 12950 Tel : +62 21 - 351 9070
Tel : +62 21 - 520 1591 (hunting) Fax : +62 21 - 386 4293
Fax : +62 21 - 5292 1669 Email : birokeramas@kkp.go.id
Email : kontak@kemkes.go.id Web : www.kkp.go.id
Web : www.kemkes.go.id
Ministry of Finance
Police Force (Kepolisian RI) (Kementerian Keuangan RI)
Jalan Trunojoyo No.3, Jakarta Selatan, Gedung Djuanda I Lt. 12 Jalan Dr. Wahidin Raya
DKI Jakarta 12110 No. 1 Jakarta 10710
Call Center: +62 21 – 9126 1059 Tel : +62 21 - 386 1489
Fax : +62 21 – 721 8741 Fax : +62 21 - 350 0842/ +62 21 - 350 0847
Email : mabes@polri.go.id, Web : www.polri. Web : www.kemenkeu.go.id
go.id

GOVERNMENT SUPPORTS
Ministry of Transportation Ministry of Agrarian and Spatial Planning

(Kementerian Perhubungan RI) (Kementerian Agraria dan Tata Ruang RI)
Jalan Medan Merdeka Barat No.8, Jalan Sisingamangaraja Nomor 2,
Jakarta Pusat 11011 Kebayoran Baru, Jakarta 12110
Tel : +62 21 - 381 1308/ +62 21 - 350 5006 Tel : +62 21 - 739 3939
Email : info151@dephub.go.id Email : humas@bpn.go.id
Web : www.dephub.go.id Web : www.bpn.go.id
Ministry of Energy and Mineral Resources Ministry of Culture and Primary &
(Kementerian Energi dan Sumber Daya Mineral RI) Secondary Education
Jalan Medan Merdeka Selatan No. 18, (Kementerian Kebudayaan dan Pendidikan
Jakarta 10110 Dasar dan Menengah RI)
Tel : +62 21 - 380 4242 Jalan Jend. Sudirman Senayan,
Fax : +62 21 - 344 0649 Jakarta Pusat 10270
Email : puskom@esdm.go.id Tel : +62 21 - 5 703 303/ +62 21 - 571 1144
Web : www.esdm.go.id Ext. 2115
Call Center: 177
Email : pengaduan@kemdikbud.go.id
Web : www.kemdikbud.go.id

GOVERNMENT SUPPORTS
Ministry of Justice & Human Rights of the Republic State Electricity Company
of Indonesia (PT. Perusahaan Listrik Indonesia)
(Kementerian Hukum dan Hak Asasi Manusia RI) Jalan Trunojoyo Blok M1 No. 135, Jakarta Selatan
Jalan HR. Rasuna Said Kav 6-7, Kuningan Tel : +62 21 726 1122/ +62 21 725 1234
Jakarta Selatan 12940 Ext. 4000
Tel/ Fax : +62 21 - 525 3004 Fax : +62 21 722 2328
Web : www.kemenkumham.go.id Email : infopublik@pln.co.id
Web : www.pln.co.id
Ministry of Defence National Agency of Drug and Food Control

(Kementerian Pertahanan RI) (Badan Pengawas Obat dan Makanan RI)
Jalan Medan Merdeka Barat No. 13-14 Jakarta Jalan Percetakan Negara No.23,
Pusat, 10110, KOTAK POS 2005 , AKARTA 10020 Jakarta 10560 Indonesia
Tel : +62 21 - 384 0889 Tel : +62 21 - 424 4691/ +62 21 - 4288 3309/
Email : ppid@kemhan.go.id Fax : +62 21 - 426 3333
Web : www.kemhan.go.id Email : ulpk@pom.go.id
Web : www.pom.go.id

GOVERNMENT SUPPORTS

G. BKPM
Q
-64: What is BKPM?
Answer:
The Indonesia Investment Coordinating
Board (BKPM) is the primary interface
between business and government in
Indonesia. BKPM is mandated to boost
domestic and foreign direct investment
through creating a conducive investment
climate.
BKPM was restored to Ministerial status

in 2009, and reporting directly to the
President of the Republic of Indonesia.
This investment agency’s goal is not

only to seek more domestic and foreign focused. One team is dedicated for one
investment, but also to seek quality country. We facilitate investors from
investments that boost economic exploring investment opportunities,
growth, improve social inequality, and getting licences, constructing their
reduce unemployment. The agency projects, until they are running
also works as a proactive advocate for commercial operation.
investments as well as a matchmaker for
investors. We are enhancing reforms that have
been implemented. More one-stop
Q
integrated service at regional level will
-65: How does BKPM be established. More license and facility
support my investment? will be provided in the 3-hour service.
More industrial estates will be eligible
to implement the direct construction
facility.
Answer:
Working closely with business
BKPM develop strategies to improve its associations and investors, BKPM
end-to-end service for investors. Our continuously encourages government to
marketing team is strengthened and issue pro investment policies.

GOVERNMENT SUPPORTS

H. INDONESIA INVESTMENT
PROMOTION CENTER
(IIPC)

TOKYO SINGAPORE
Fukoku Seimei Building 23F 2-2-2 8 Temasek Boulevard, Suntec Tower 3,
Uchisaiwai-cho, Chiyoda-ku Tokyo 100- #33-03 Singapore 038988
0011 Japan P : +65 6334 4410
P : +81 3 3500 3878 F : +65 6334 4891
F : +81 3 3500 3879 W : http://www.bkpm.go.id/en/home-iipc/
W : http://www.bkpm.go.id/en/ singapore/10
home-iipc/tokyo/13 PIC : Ricky Kusmayadi
PIC : Saribua Siahaan (Mr) E : invest@bkpmsingapore.com
E : bkpm521@bkpm-jpn.com

TAIPEI SEOUL
6F, No. 550, Rui Guang Road, Neihu Two IFC, 15 fl. 10 Gukjegeumyung-ro,
District Taipei 114 Yeoungdeungpo-Gu, Seoul 150-945,
P : +886 2 8752 6170 ext. 31, Republic of Korea
+886 2 8752 6084 (direct) P : +82 2 6137 9455
F : +886 2 8752 3706 F : +82 2 6137 9456
W : http://www.bkpm.go.id/en/ W : http://www.bkpm.go.id/
home-iipc/taipei/12 en/home-iipc/seoul/9
PIC : Mohamad Faizal (Mr) PIC : Imam Soejoedi
E : mohamad.faizal@kdei-taipei.org E : imams@bkpm.go.id,
iipc.seoul@bkpm.go.id

SYDNEY NEW YORK
Suite 903 / 1 Alfred St, Gold Fields House, 370 Lexington Ave. Suite 1903 New York,
Sydney 2000 Australia NY 10017, United States
P : +612 9252 0091 P : +1 646 885 6600
F : +612 9252 0092 F : +1 646 885 6601
W : http://www.bkpm.go.id/en/home- W : http://www.bkpm.go.id/en/
iipc/ home-iipc/new-york/8
sydney/11 PIC : Rahardjo Siswohartono
PIC : R.R. Sri Moertiningroem (Ms.) E : anton@bkpm.go.id
E : iipc-aussie@bkpm.go.idd Faizal (Mr) rahardjo.siswohartono@gmail.com
E : mohamad.faizal@kdei-taipei.org

GOVERNMENT SUPPORTS

LONDON ABU DHABI
St. Martins House, 16 St. Martins le Grand, Level 4 Building B- Al Mamoura

3rd Floor London, EC1A 4EN, United Mohammed Bin Khalifa Street (15th St)
Kingdom Muroor District, Abu Dhabi, UEA
P : +44 207 397 8564; +44 207 397 P : +971 2659 4275 / 2659 4274
8566 F : +971 2659 4150
F : +44 207 397 8565 W : http://www.bkpm.go.id/en/home-
W : http://www.bkpm.go.id/en/home- iipc/
iipc/ abu-dhabi/6
london/7 PIC : Agus Prayitno
PIC : Nurul Ichwan E : iipc.abudhabi@bkpm.go.id
E : nurulichwan@bkpm.go.id
LONDON
NEW YORK
SEOUL TOKYO
ABU DHABI
TAIPE
SINGAPORE
SYDNEY
IIPC is a representative of BKPM aiming

to develop networks to promote
business opportunities and to boost FDI
into Indonesia.

ACRONYMS

ACRONYMS

ACRONYMS

ACRONYMS

ACRONYMS
CONTACT CENTRE
0807-100-2576 (BKPM)
Facebook Twitter You Tube Subscribe to

info@bkpm.go.id
Pan page BKPM @BKPM Channel BKPM e-newsletter at
THEBKPMVIDEO www.bkpm.co.id


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FAQ

Jakarta, March 2016

Photo credit: Ari Sanjaya Lim, Pelabuhan Tanjung Priok , 2016

6 FREQUENTLY ASKED QUESTION ON INVESTMENT

FREQUENTLY ASKED QUESTION ON INVESTMENT 7

The challenges with Indonesian • The growth of Foreign Direct

8 FREQUENTLY ASKED QUESTION ON INVESTMENT

As of 2015, Indonesian Government has

Agriculture Food estate Corn plantation Cattle

Labor-intensive Textile Food & Beverages Furniture Toys

Industry Electronics CPO & derivative Wood products, Automotive

Downstream industry Cacao Sugar Smelter

10 FREQUENTLY ASKED QUESTION ON INVESTMENT

FREQUENTLY ASKED QUESTION ON INVESTMENT 11

Yes, you can setup company in any

12 FREQUENTLY ASKED QUESTION ON INVESTMENT

processing industry. While the other 3. Tanjung Lesung in Banten Province,

6. Palu in Central Sulawesi Province, for

FREQUENTLY ASKED QUESTION ON INVESTMENT 13

14 FREQUENTLY ASKED QUESTION ON INVESTMENT

Perusahaan or SKDP), can be

FREQUENTLY ASKED QUESTION ON INVESTMENT 15

Foreign Representative Office usually

16 FREQUENTLY ASKED QUESTION ON INVESTMENT

the position as the Representative

In order to perform the trading related

FREQUENTLY ASKED QUESTION ON INVESTMENT 17

18 FREQUENTLY ASKED QUESTION ON INVESTMENT

• Original letter of appointment for

FREQUENTLY ASKED QUESTION ON INVESTMENT 19

B. ONE STOP SERVICE -CENTER (OSS-C)

The OSS-C at BKPM was innaugurated Having investment licenses processed

THE FLOW OF BKPM

20 FREQUENTLY ASKED QUESTION ON INVESTMENT

The One Stop Service-Centre

The platform was formed by joint

Photo credit: Humas BKPM, “BKPM OSS-C Launching”, 2015

FREQUENTLY ASKED QUESTION ON INVESTMENT 21

THE FRAMEWORKS OF INVESTMENT PROCEDURE

22 FREQUENTLY ASKED QUESTION ON INVESTMENT

FREQUENTLY ASKED QUESTION ON INVESTMENT 23

24 FREQUENTLY ASKED QUESTION ON INVESTMENT

C. INVESTMENT 3-HOURS 3. Tax ID (NPWP).

FREQUENTLY ASKED QUESTION ON INVESTMENT 25

26 FREQUENTLY ASKED QUESTION ON INVESTMENT

Yes. Indonesian government provides

Photo credit: “Instalasi Sumur Geothermal Dieng”, 2016

of their types and composition, of 2 years and can be extended by a

28 FREQUENTLY ASKED QUESTION ON INVESTMENT

Tax Facilities (Tax Allowance) Area and/ or Bonded Zone

FREQUENTLY ASKED QUESTION ON INVESTMENT 29

In regards to Green Investment, several Directorate General of Tax and

3. Once the application assessment is

4. Based on the clarification meeting,

30 FREQUENTLY ASKED QUESTION ON INVESTMENT

The Trilateral Meeting will be headed Republic of Indonesia, latest 3

8. In the case of pending decision on Export Manufacturing

FREQUENTLY ASKED QUESTION ON INVESTMENT 31

Bonded Zones Free Trade Zone

32 FREQUENTLY ASKED QUESTION ON INVESTMENT

of not less than 10% of the total THE COMPANY CAN

tax holiday for foreign

It is, then, eligible for the following

FREQUENTLY ASKED QUESTION ON INVESTMENT 33