On December 23 2009 the Investment Coordinating Board (BKPM) issued BKPM Regulation 12 of 2009 concerning Guidance and Procedures for Investment Application to replace its earlier regulation of 2004.
Pursuant to the Regulation, there are four types of investment service routes: (i) investment services processed by the central government administered by the BKPM; (ii) investment services processed by the provincial governments administered by the provincial institution upon delegation by the governors; (iii) investment services processed by the district or city governments administered by the district or city institution upon delegation by the regents or mayors; and (iv) investment services provided in special economic zones.
|Oene Marseille, Ali Budiardjo Nugroho Reksodiputro|
The investment services administered by the BKPM are specifically for cross-provincial investments, investments in non-renewable natural resources, high priority industries, cross-provincial transportation, defence and security, investments made by foreign individuals, entities or governments, and other investments in fields that are controlled by the central government based on the applicable law.
The investment must be made through the following procedures:
1) Application for a registration to the BKPM, the respective province, or district or city. The registration statement is issued within one day of receipt of the application;
2) Foreign investment companies with a limited liability company status and so eligible for fiscal facilities may first obtain a principle permit to BKPM. The principle permit is issued within three days of receipt of the application;
3) Investment companies that intend to perform commercial or production activities must file an application for a business licence to the BKPM or the respective province or district or city. The licence will be issued at the latest seven days after receipt of the application.
Other than the above, BKPM also introduces Regulation 13 of 2009 regarding Guidance for and Procedures of Investment Control; Regulation 11 of 2009 regarding One Stop Service, and Regulation 14 of 2009 regarding Electronic Information Services and Investment Licensing System in order to improve its services to investors in Indonesia.
© 2021 Euromoney Institutional Investor PLC. For help please see our FAQs.