5/20/2015

StartingaBusinessinBatam,IndonesiaSubnationalDoingBusinessWorldBankGroup
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StartingaBusinessin

BatamIndonesia

SUBNATIONALDATA
Legalform:LimitedLiability
CompanyPerseroanTerbatas(PT)

Belowisadetailedsummaryofthebureaucraticandlegalhurdlesanentrepreneurmustovercomein
ordertoincorporateandregisteranewfirm,alongwiththeirassociatedtimeandsetupcosts.It
examinestheprocedures,timeandcostinvolvedinlaunchingacommercialorindustrialfirmwithupto
50employeesandstartupcapitalof10timestheeconomy'spercapitagrossnationalincome.

City:Batam

TheinformationappearingonthispagewascollectedaspartoftheDoingBusinesssubnationalproject
inIndonesia.DownloadthisDoingBusinessreportorexploreothercitiesandtopics.

No.
1

Procedure

Arrangeforanotaryobtainthestandardformofthecompanydeedobtainclearanceforthecompanyname
electronicallyfromtheMinistryofLawandHumanRights

Timeto
Complete

AssociatedCosts

4days

IDR200,000(name
clearanceand
reservation)

1day

IDR3,800,000(notary
fee)

7days

Nocost

1day

Nocost

TheuniquenessofthecompanynamemustbecheckedtoensurethatithasnotbeenusedbyanotherIndonesian
company,toavoidarejectionbytheMinistryofLawandHumanRightsofthecompany'sdeedofestablishment
andarticlesofassociation.Becausetheprocessmustbedonethroughacomputerizedprocessingsystem,the
reservationandclearancemustbedonebyapublicnotary(thenewcomputerizedsystemfornontaxstaterevenue
paymentsmaybeaccessedonlybyapublicnotary).Uponpaymentandverification,theapplicantreceivesan
onlinenotification(viaemail)withtheclearedcompanyname.Thereservednamewillbeblockedfor60days.
BasedontheGovernmentRegulationNumber38of2009(enactedonMay28,2009andenteredintoforceon
June3,2009)regardingtheNonTaxStateRevenuefortheMinistryofLawandHumanRights,thefeeforthis
procedureisIDR200,000.
2

Notarizecompanydocumentsbeforeanotarypublic

OncethenotarygetsthecompanynameapprovalfromtheMinistryofLawandHumanRights,thefounderscan
signthedeedofestablishment.Standardarticlesofassociationareavailableatthenotaryoffice.
Thenotaryfeesassociatedwiththisprocedurecoverthefollowingservices:namecheck,deeddraftingand
approval,andpaymentofnontaxstaterevenue(PNBP)fees.Commonly,localnotaryassociationssetthescaleof
notaryfees.Inpractice,thefeedependsontheagreementbetweennotaryandclient.
ThecostsforaccessingtheElectronicAdministrationSystemofLegalStatus(SABH),namechecking,andPNBP
arecountedseparately.
3

ObtainacertificateofcompanydomicilefromtheVillageOffice

Thedomicileletterisrequiredasprerequisiteforotherprocedures.Thereisnoofficialfeeforthisprocedurebutin
practice,theapplicantusuallypaysIDR300,000IDR600,000.Thefollowingcopiesofdocumentsshouldbe
attached:
1.Copyofthedeedestablishment
2.CopyoftheIDcardofthedirector
3.Passphotosize3x42pcs
4.ArecommendationletterfromtheHeadofneighborhood
5.Mapofbusinesslocation
6.Theproofoftheleasingthebusinesspremises.
AsofJanuary2011,basedonMayorinstructions,theHeadoftheSubdistrictisprohibitedtoissuetheDomicile
Letterbutinpracticethisprocedureisstillrequiredbythenotaries.
4

PaytheStateTreasuryforthenontaxstaterevenue(PNBP)feesforlegalservicesatabank

Thispaymentisfornameclearancesandcompanyapproval.
Becausethenewcomputerizedsystemfornontaxstaterevenuepayments(PNBP)whichhasbeenimplemented
bytheMinistryofLawandHumanRightsmaybeaccessedonlybyanotarypublic,paymentforregisteringor
establishingacompanyisnormallydonethroughanotary.
Therequirementtopaythenontaxstaterevenue(PNBP)feeforlegalservicesinrelationtotheestablishmentofa
smallcompany(PerseroanTerbatasPT)isbasedonGovernmentRegulationNo.38of2009concerningtypes
andtariffsonnontaxstaterevenuesreplacingthepreviousregulationwhichisregulationNo.19of2007.

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andtariffsonnontaxstaterevenuesreplacingthepreviousregulationwhichisregulationNo.19of2007.
5

ApplytotheMinistryofLawandHumanRightsforapprovalofthedeedofestablishment

14days

IDR1,580,000(IDR
1,000,000for
validationofcompany
aslegalentity+IDR
30,000forpublication
intheStateGazette,
BNRI+IDR550,000
forpublicationinthe
Supplementtothe
StateGazette,TBNRI)

3days

Nocost

3days

IDR500,000(forTDP)

3days

Nocost

7days

Nocost

BasedonArticles9,10,29and30oftheIndonesianCompanyLawNo.40/2007,thepublicnotarypreparingthe
companydeedofestablishmentmustelectronicallyfiletherequireddocumentswiththeMinistryofLawand
HumanRights.Theprocesswilltakeplaceasfollows:
1.Theapplicationshouldbefillednolaterthan60dayssincethedateofthedeed
2.In30dayssincethenoticeofnoobjectionfromtheMinistryofLawandHumanRights,theoriginalapplication
andsupportingdocumentsshouldbesubmitted
3.Sevendaysafterthefulfillmentofaboverequirements,theMinistryofLawandHumanRightswillissuethe
legalizationoftheestablishmentofthecompany
4.Thecompanydata(name,location,objectandpurpose,capital)willbeinsertedintheCompanyRegistry
5.TheMinistryofLawandHumanRightswillannouncetheestablishmentofthecompanyintheSupplementState
Gazette(TBNRI)within14daysoftheMinistry'sApprovalLetter.
ByvirtueofGovernmentRegulation38/2009(enactedonMay28,2009andenteredintoforceonJune3,2009)
regardingtheNonTaxStateRevenuefortheMinistryofLawandHumanRights,anewscheduleofofficialfees
wasenforcedfortheestablishmentofadomesticlimitedliabilitycompany(PT).
DelaysdependontheworkloadoftheMinistryandontheapprovedcourierserviceusedbytheMinistrytodeliver
itsapprovaltothenotary.Theprocessusuallytakes7daysforprocessingandapproximately7daysforcourier
service.Thereisimprovementinqualityofcourierservice,byusingPosorTIKIexpressservicesnowtheprocess
todeliverthedocumentsisfasterwithin47days.
6

Obtainataxpayerregistrationnumber(NPWP)fromthelocalTaxOffice

ThisprocedureisrequiredasaprerequisiteforSIUP.NPWPcanbeappliedforonlineat:www.pajak.go.id.But,in
practice,mostapplicantsdonotusetheonlinesystem.Eveniftheserviceisavailableonline,theapplicantstillhas
tovisittheTaxOfficeinpersontosubmittheoriginaldocuments.
Thefollowingcopiesofdocumentsshouldbeattached:
1.Copyofdeedofestablishment
2.CopyofIDcard
3.CopyofdomicileletterfromtheHeadofVillage
4.ReceiptofpaymentofLandandBuildingTax(PBB)
5.Proofoflandownershiportheleasespremises.
Timetocompletethisprocedureis27daysandthereisnoofficialcost.Inpractice,theapplicantusuallypaysIDR
50,000200,000.
InBatam,basedonthecircularletteroftheGeneralDirectorofTaxNo.37of2009,NPPKPisnolongerneeded.
7

Applyforthepermanentbusinesstradinglicense(SuratIzinUsahaPerdagangan,SIUP)andregistration
certificate(TandaDaftarPerusahaanTDP)attheOneStopShop

BasedonMayorDecreeNo.8of2001andthestandardprocedure(SOP)intheintegratedlicensingservices
(http://www.bpbatam.go.id/ini/aboutBida/pemko2.jsp),therequirementstoobtainSIUPare:
1.Applicationform,includingthephonenumberandthestampofthecompany
2.Copyofdeedestablishment
3.OriginalandcopyofthecompanyapprovalfromtheMinistryofLawandHumanRights
4.CopyofIDcard
5.CopyofNPWPPT
6.CopyofthedomicileletterfromtheHeadofVillage
7.Proofoflandownershiporleaseofpremises
8.Mapofbusinesslocation
9.Theoriginalbalancesheetofthecompany
10.Passphotosize3x44pcs.
Theofficialtimetocompletethisprocedureis3daysandit'simplementalsoinpractice.
*8

RegisterwiththeMinistryofManpoweratthelocalManpowerOffice

AccordingtoLawNo.13/2003,companieswithmorethan10workersoramonthlypayrollofIDR1millionmust
registerwiththeMinistryofManpower.Thisprocedurecanbecompletedconcurrentlywithotherpostregistration
proceduresbyfilingthecompulsoryreportwiththelocalofficeoftheMinistryofManpower.Theapplicantgetsa
receiptofdocumentsubmission.TheManpowerofficeconductsaverificationprocessandissuesanofficialcopyof
theregistrationtotheapplicant.Theapplicantreturnstotheofficetopickuptheofficialcopyoftheregistration.
Althoughthereisnoofficialfee,anunofficialadministrativefeemaybecharged,whichusuallystartsatIDR
150,000.
*9

ApplyfortheWorkersSocialSecurityProgram(JamsostekProgram)

Accordingtolegalprovisionsonworkerssocialsecurity(LawNo.3/1992),itismandatoryforeverycompanyor
individualemploying10workersormoreorgeneratingamonthlypayrollofatleastIDR1milliontoapplyforthe
WorkersSocialSecurityProgram(Jamsostek).Thissocialsecurityprogramcoversoccupationalaccidents,death,
oldage,andhealthsecurity.Itisarrangedafterthecompanystartstorecruitworkers.

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oldage,andhealthsecurity.Itisarrangedafterthecompanystartstorecruitworkers.
ArrangingforJamsostekisthesameforallIndonesianlocations:
1.Fillintheform,whichcanbedownloadedfromthewebsitejamsostek.go.idorobtainedfromJamsostekBranch
Offices
2.VisittheJamsostekOfficetosubmitthefilledinform
3.JamsostekofficialconductsdatainputtoJamsostekdatabase
4.Theapplicantreceivesthecompanymembershipcertificate.
Fromsubmittingtheapplicationformuntilobtainingthemembershipcertificateitusuallytakesbetween1and3
days.Inpractice,ifthecompanydoesn'tpickupthecertificate,thelocalJamsostekOfficewillmailittotheapplicant
nolaterthan7daysfromthedateoftheapplication.In30days,thecompanyshouldpaythefirstinsurance
premium.Havingreceivedthefirstpayment,theJamsostekOfficewillissuemembershipcertificatesforeach
employee.
AcompanyisnotobligedtoenrollitsemployeesintheJamsosteksocialsecurityprogramifitoffersan
independentsocialsecurityprogramtoitsemployees,withcomparableorbetterbenefitsthanthoseofferedbythe
PackageofBasicHealthMaintenanceSecurity(accordingtoGovernmentRegulationNo.14/1993,asamendedby
GovernmentRegulationNo.28/2002).

*Takesplacesimultaneouslywithanotherprocedure.

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