Home Blog Update from BKPM: Three-Hour License Service For Energy Sector Business Licenses | Business Setup | Legal Updates Update from BKPM: Three-Hour License Service For Energy Sector InCorp Editorial Team 14 February 2017 3 minutes reading time Table of Contents The Nine Types of Operations The Difference between the Regular Licensing Process and three hour license service The Administrative Requirements Three-hour licensing procedure was issued by Indonesian Investment Coordinating Board (BKPM) on January 30, 2017. This is a good news for foreign investors related to energy and mineral resources. This rapid licensing procedure is for nine types of operations (eight of which are for oil and gas sectors and one of them is for electricity procurement industry). The Nine Types of Operations The nine types of operation in the field of energy sectors that are served by the three-hour licensing service include: LPG (oil, fuel, liquefied petroleum gas) Temporary business license CNG (storage of processed products or compressed natural gas) Temporary business license LNG (liquefied natural gas) Temporary business license Oil residue processing industry Temporary business license General trade of oil and fuel Temporary business license Trade of processed products Temporary business license Oil refining Temporary business license Natural gas processing, Temporary business license Electricity procurement industry Temporary business license The Difference between the Regular Licensing Process and three hour license service This new system is to boost the investment in Indonesian energy sectors because similar licenses usually take between 20 to 45 business days to complete if finish through the regular service in BKPM—which often requires companies to deal with complicated bureaucracy systems. This is often considered overwhelming, especially when there is some error in the documents as the company has to start the process from the very first step due to the unavailability of license or document revision policy. Read also: Company Registration in Indonesia Business License in Indonesia What You Should Know About the Latest Land and Building Tax Regulation The Administrative Requirements The issuing of the three-hour license service is an effort by the government of Indonesia that expects to improve foreign investment in this field. Although it is also said that investors may still experience several challenges, including the transportation and difficult topography in Indonesia that make the transportation and distribution cost becomes extremely expensive. Infrastructure is also to be another obstacle that need to improve by the government. However, this government’s attempt to cut the bureaucracy procedure in licensing, especially in the energy sector wants to be a fresh air for the foreign investors. Check more updates from BKPM: OSS System Services Begin to Operate at BKPM Companies of those nine categories can obtain the licenses if they can fulfill all of the documents and technical requirements that are set to be the administrative requirements. This written in the Decree No. 15/2016. Issued by the Ministry of Energy and Mineral Resources. This concerning the three-hour licensing service. Especially for infrastructure in the field of energy and mineral resources. How Cekindo Can Help You Cekindo has assisted many companies in setting up their businesses in Indonesia. Cekindo can help you to prepare every documents needed so that you can take the benefits of this three-hour licensing service.Cekindo can help you starting from the initial preparation of the prerequisite documents up to the final issuing of the licenses. Cekindo is also willing to answer all of your questions related to the Indonesian policies concerning the foreign investment in energy sectors. Please contact us for more details or simply leave your comments under the article. Our professional team will assist you further. Read Full Bio 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 Is having audited accounts mandatory? Audited financial statements are required for: Entities gathering funds from the public (e.g., banks, insurance companies) Entities issuing debt instruments Publicly listed companies State-owned enterprises Companies with assets and/or turnover exceeding IDR 50 billion Entities mandated by legislation What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor? You can transfer the license if your local distributor agrees to change the product license holder. How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities? A PMA company in Indonesia must obtain an NIB, which also functions as: Importer Identification Number (Angka Pengenal Impor or API) Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production. General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process. Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals. What is the Indonesian employment status in PMA company? In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment. Get in touch with us. 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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. More on Business Licenses Breaking News: New Governmental Policy Makes Export to Indonesia Easier Read more Latest Regulation: Employment of Foreign Workers in Indonesia Read more Institutions You Should Know When Doing Business in Indonesia Read more