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

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

Table of Content

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
NoProduct TypeRequirementsInformation
1Investment License1. 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
2Deed and its endorsement1. 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

Tjhia Edy Tarlesno

Legal & Compliance Manager at InCorp Indonesia

Edy Tarlesno holds various certifications and a respectable degree to be an expert on internal and external legal compliance in Indonesia. His experience starts from bankruptcy and insolvency, leading to a prominent social foundation consultancy in Indonesia.

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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.

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