Professional Documents
Culture Documents
Registration Of Investment
Any Foreign Investor (PMA-Penanam Modal Asing) is obligated to register its investment through the One-door
Integrated Services (PTSP-Pelayanan Terpadu Satu Pintu) of Investment in BKPM. Registration functions as
the facility for checking whether the business area to be engaged in by the investor is listed in the investment
negative register of not. There is no obligation for Domestic Investors (PMDN-Penanam Modal Dalam Negeri)
to register unless it is necessary to do so.
The Investment registration by Foreign Investor can be performed before or after having a Notarial Deed and
before or after the Company's Legal Entity is legalized by the Department of Law and Human Rights. Within a
period after the Investment Registration, it has to be followed by drawing up the Company's Deed and
obtaining the Company's Legal Entity Legalization.
Taxpayer Number
Having Taxpayer Number (NPWP-Nomor Pokok Wajib Pajak) is an obligation for any individual and legal entity
categorized as Investor (Foreign/Domestic) serving as the identity of taxpayer for the business activities
conducted. Taxpayer Number is also a requirement for drawing up the Company's deed and for obtaining other
licenses. Taxpayer Number is submitted to and processed at the Tax Service Office available in every region.
FACILITY OBTAINED
Investment Principle License
Registered Foreign Investor or Domestic investor willing to obtain facility in the framework of investment is
obligated to have a Principle License. The available investment facilities are exemption from machinery import
duty, goods and material/substance import duty, VAT, and reduction of Income Tax. The Principle License can
be obtained through the One-Door Integrated Services of Investment at BKPM. For Domestic Investors, by
obtaining the principle license, the facilities that can be obtained are exemption from machinery import duty,
goods and materials import duty, VAT, and reduction of Income Tax.
Importer Identity Number (API-U or Angka Pengenal Importir-Umum) is allotted for the import of capital goods
and goods and materials that are for re-selling (trading area).
ENVIRONMENT
Hinder Regulation
In order to assure that the investment activity does not disturb the surrounding communities, the Regional
Government obliges the investors to have Hinder Regulation (HO-Hinder Ordinasi) for their investment activity
(Foreign or Domestic) outside the special area. The regional governments issue the Hinder Regulation through
the authorized agency or one-door integrated services in their respective regions.
SPECIFIC LICENSING
Business establishment licensing is various among sectors. Investment Step by Step is for knowing the step
of licensing, time, and cost in establishing a business area.
BUSINESS EXTENSION
Principle License Of Investment Extension
The Principle License for Investment Extension should be possessed for performing investment activity and
business activity by foreign as well as domestic investors intending to extend the investment activity that has
been carried out and the investors have previously had the Investment Principle License. Principle License of
Investment Extension is issued in BKPM. Principle License of Investment Extension is submitted to and
processed by using the One-Door Integrated Services in BKPM.
OWNERSHIP CHANGE
Registration of Investment Change
The Registration of Investment change should be possessed for performing investment activity and business
activity by foreign as well as domestic investors changing the ownership of the investment that has been
carried out and the investor previously does not have/has not had Investment Principle License or Business
License. Registration of Investment Change is issued in BKPM. Registration of Investment Extension can be
submitted to and processed by using the One-Door Integrated Services in BKPM.
INDUSTRIAL AREA
Industrial Area is a place for the centralization of processing industry's activities completed with infrastructure,
facility, and other supporting facilities provided and managed by the Industrial Area Company.
A Permanent License provided for Domestic Investors is effective as long as such Companies of Industrial
Area still run their operational activity. A permanent License provided for Foreign Investors is effective for 30
years. The requirements that should be fulfilled in order to obtain a permanent license are:
1.
Filling in Model PMK II form as contained in the Decree of the Minister of Industry No.
291/M/SK/10/1989;
2.
Partial Site Plan that has been legalized by the Regional Government;
3.
Confirmation from the Land Regulatory Office in the Region that the land requested is already freed and
free of claim filed by any other party;
4.
Recommendation of AMDAL or EIA and declares that the investor concerned will perform all of its
obligations of managing the environment such those that will be recommended in the RKL/RPL that has
been legalized by the Central Commission of AMDAL of the Department of Industry;
5.
Evidence that the land requested is already prepared to be used physically by the industrial Company
for commencing the preparations of its industrial development.
Principle Approval
The approval that should be had for conducting preparations such as providing land, planning, site planning in
the Industrial Area, and the efforts of development/construction, procurement, and installation or necessary
equipment. The Principle Approval is submitted to and processed at the Ministry of Industry.
Location Permit
A permit that should be possessed by a company for using a land plot as wide as that is really required for the
interest of the Industrial Area development in accordance with the Region's Planning. Location Permit is
submitted to and processed in SPKD authorized by the Regional Government in the location of the Industrial
Area.
BONDED ZONE
Bonded Zone is a building, place or area with certain borders in which the industrial business activities of
goods and substances/materials processing, architecture/building construction designing, engineering, sorting,
initial inspection, final inspection, and packing of imported goods and materials or goods and materials coming
from the Indonesia's other Customs Areas (DPIL), especially those for export, are undertaken.
2.
Analisa Mengenai Dampak Lingkungan (AMDAL)/Environment Impact Assessment (EIA) or UPL & UKL;
3.
Photocopy of Company's establishment deed legalized by the Department of Law and Human Rights of
the Republic of Indonesia (previously the Department of Justice);
4.
5.
6.
Minutes of Location Inspection from the Head of the Customs and Excise Service Office supervising the
activity, attached with the attachments-location map/place blueprint/layout and pictures of locations to
be made as Bonded Zone that have been legalized by the supervisory PKBC;
7.
Decision Letter from the relevant agency of the Regional Government/Regional Regulation determining
the area that is a Bonded Zone candidate is an Industrial Area/Area Alloted for Industry (in the future,
such Bonded Zone permit will be given to the companies in the INDUSTRIAL AREA);
8.
Photocopy of Identity Card (KTP-Kartu Tanda Penduduk or KITAS-Kartu Izin Tinggal Sementara) under
the name of the responsible person of the Company and the photocopy of Work Permit of the foreign
worker (if the responsible person is a foreign citizen);
9.
2.
3.
Photocopy of Company's establishment deed legalized by the Department of Law and Human Rights of
the Republic of Indonesia (previously the Department of Justice);
4.
5.
6.
Minutes of Location Inspection from the Head of the Customs and Excise Service Office supervising the
activity, attached with the attachments-location map/place blueprint/layout and pictures of locations to
be made as Bonded Zone that have been legalized by the supervisory PKBC;
7.
Initial Balance of raw material, materials in process, ready-made goods, capital goods, and factory's
equipment;
8.
Photocopy of Identity Card (KTP-Kartu Tanda Penduduk or KITAS-Kartu Izin Tinggal Sementara) under
the name of the responsible person of the Company and the photocopy of Work Permit of the foreign
worker (if the responsible person is a foreign citizen);
9.
BUSINESS TERMINATION
Any investor who wants to terminate its investment is obligated to submit an investment revocation. The
investment revocation is for cancelling the investment registration, investment principle license, investment
approval, or Permit of Foreign Company Representative Office.
The submission of investment revocation request to BKPM or investment agency in the region should be
conducted by fulfilling the following requirements:
1.
2.
Recording of General Meeting of Shareholders approving the agreement to revoke the Investment
Registration, Investment Principle License, Investment Approval, or Permit of Establishment of Foreign
Company Representative Office, and Business License of Permanent Business License;
3.
4.
LKPM (laporan Kegiatan Penanaman Modal) or Report on Investment Activity for the latest period;