3-hour Investment Licensing Service: A Breakthrough in Indonesia’s Economic Package

  • InCorp Editorial Team
  • 25 April 2016
  • 3 minutes reading time

Investing in Indonesia is getting faster and easier now. Since January 2016, The Investment Coordinating Board (BKPM) has launched a three-hour investment permit service for investors.

The service is part of BKPM’s One-Stop Integrated Service (PTSP) program, which will allow prospective investors with a minimum investment of IDR 100 billion (US$7.33 million) and/or absorb a workforce of more than 1,000 people to have their preliminary permits.

The whole investment license process took only 3 hours at the BKPM office. The investor is supposed to receive eight preliminary permit documents including a principal license, tax ID and work permits (RPTKA), deed of establishment, include the land-booking letter issued by the Ministry of Agrarian and Spatial Planning.

The process to get the permits is much shorter now. Before this service launched, the maintenance of three principal permission to invest in Indonesia, like permits investment principles, Deed of Establishment, and Taxpayer Identification Number (TIN) take up to 11 days.

3-hour Investment Licensing Service Process

Infographic - 3 Hour Investment Licensing in Indonesia

Several details to be considered:

  1. Planned value of investment at least IDR 100 billion.
  2. and / or absorbing at least 1.000 local workers
  3. Application must be submitted directly by at least one candidate of the proposed company shareholder
No Product Type Requirements Information
1 Investment License 1. A valid passport, if the individual foreign participants

2. Article of Association, if the foreign participant companies

3. ID card and Tax ID, when the individual participant Indonesia

4. Deed and attestation Menkumham, when participants Indonesian companies

5. Flowchart of the production process for industrial business field

BKPM
2 Deed and its endorsement 1. Passport (Foreign Shareholders people)

2. ID / NPWP (individual shareholders Indonesia)

3. Article of Association (Pemegnag shares of foreign companies)

4. Deeds + TIN (Indonesian company shareholders)

5. Name of the Company

6. Purpose and Objectives

7. Name of Shareholders

8. The composition of the percentage of share ownership

9. The composition of the Board of Directors and Commissioners

10. Limitation of authority of Directors and Notary

11. Investment Permit

12. Tax ID company

Notary

For additional information, when it comes to PTSP Centre at BKPM, besides shareholder (all or one of them), it must also be present in charge of the PT that will be established in Indonesia (Commissioner and Director) is intended for the maintenance of Tax ID and more licenses (TDP, API, RPTKA, etc.) in the Central PTSP BKPM requiring the identity of the responsible PT to be established in Indonesia.

Cekindo will assist you to get investment permit service in Indonesia through this breakthrough 3-hour Investment Licensing Service. Please feel free to contact us.

Verified by

Hotdo Nauli

Senior Legal & Delivery Manager at InCorp Indonesia

Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). 

Frequently Asked Questions

    A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.

    Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information.
    They must approve significant matters through general meetings of shareholders with specified quorums, such as:

    • Amending articles of association
    • Changing share capital
    • Appointing or dismissing directors and commissioners
    • Approving major transactions, dividends, and financial statements
    • Company reorganization

    In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as:

    • Annual financial report
    • Investment realisation report
    • Manpower and employee welfare report
    • Expatriate utilisation report
    • Company loan repot
    • Foreign exchange and prudential principles report

    However, depending on the business activities and classification relevant authority may require additional reports from a PMA company.

    Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.