company registration jakarta

Business Update: Domicile Letter No Longer Required for Business Establishment in Jakarta

  • InCorp Editorial Team
  • 11 May 2019
  • 3 minutes reading time

Both local and foreign entrepreneurs looking to start businesses and establishing companies in Jakarta may feel relieved as the procedure of company registration in Jakarta has been made easier than ever before, thanks to the city’s government.

This article elaborates in more details regarding the business update related to company registration in Jakarta.

Company and Business Domicile Letters Shutdown

As the commitment of the government of Jakarta to create a much more favourable business convenience in Jakarta, non-licensing services of Company Domicile (Surat Keterangan Domisili Perusahaan – SKDP) and Business Domicile Letter (Surat Keterangan Domisili Usaha – SKDU) are no longer required.

The simplification of business establishment procedure in Jakarta has been effective since May 2, 2019. The initiative has also been officially announced in Jakarta’s One-Stop Service Center (Pelayanan Satu Pintu Terpadu – PTSP) Announcement Number 27 Year 2019.

Check more updates: OSS System Services Begin to Operate at BKPM

Application of Company and Business Domicile Letters

company registration jakarta update 2019

Both SKDP and SKDU are letters that state the domicile of a person or a business entity. Such domicile letter was required to manage various other legal documents such as SIUP, Company Registration, NPWP (Tax Identification ID), and to manage other trading businesses.

Since its first launch, SKDP was a non-licensing service at Jakarta’s One-Stop Service Center (PTSP). This requirement was seen as a matter that hindered the east of doing business in Jakarta in that the licensing process was deemed complicated.

Advantage of the Company and Business Domicile Letters Shutdown

In exchange for the Company Domicile Letter (SKDP) and Business Domicile Letter (SKDU), business people can now use business licensing documents issued by the city’s Investment Coordinating Board and One-Stop Service Center and/or from other government institutions stipulated in the legislation.

It is certainly good news for entrepreneurs because the current establishment package looks simpler, as detailed below:

  • Deed of Establishment by Notary;
  • Approval by the Ministry of Law and Human Rights;
  • NIB and Business License;
  • Location Permit (replacing Domicile Letter);
  • NPWP (Tax Identification).

 

With the shutdown of the SKDP/SKDU services as mentioned above, it is expected that the business process in Jakarta will be much simpler.

Business Licensing Process Has Been Simplified as Well

It is worth knowing that business licensing process has been simplified as well by the government of Indonesia. To speed up the business licensing procedure, Online Single Submission (OSS) system under online business licensing services has been implemented.

Current business owners and investors who are looking to expand their businesses to Indonesia are required to apply for Business Entity Number (Nomor Induk Berusaha – NIB) and other necessary business licenses via the OSS.

How Cekindo Can Help

Get in touch with us today by filling in the form below to know more about what business licenses you need and the process of setting up a company in Jakarta, or other parts of Indonesia, in details. Alternatively, you can visit us in our offices in Jakarta, Bali and Semarang to discuss business incorporation anywhere in Indonesia.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.