Why Indonesia: BKPM Reforms On Investment

BKPM REFORMS ON INVESTMENT

3 HOUR INVESTMENT SERVICES

BKPM already launched the 3-hour service where investors can obtain 8 different kind of licenses within 3-hour time frame. This service will provide them with certainty to work, to start a business, and to import capital goods. Those who are using the service will receive 8+1 licensing products, such as:

  1. The investment license (Principle License or IP).
  2. The Deed of Establishment and legal entity approval from the Ministry of Justice and Human Rights of the Republic of Indonesia.
  3. Tax ID (NPWP).
  4. Company Registration Number (Tanda Daftar Perusahaan or TDP).
  5. Foreign Worker Employment Permit (IMTA).
  6. Foreign Worker Employment Plan (Rencana Penggunaan Tenaga Kerja Asing or RPTKA).
  7. Producer Importer Identification Number (API-P).
  8. Custom Registration Number (Nomor Identitas Kepabeanan or NIK).
  9. Letter on Land Availability Information (optional).

The criterias to get this investment quick service are:

  1. Planned value of investment at least IDR 100 billion, and/ or absorbing at least 1,000 local workers.
  2. The investor come in person into BKPM OSS-C, if a candidate of shareholder represents other shareholders, he/ she has to bring the letter of authorization. Now we are expanding this service to Energy and Mineral Resources sector by issuing 10 type of permits. Batam Free Trade Zone Authority is also implementing this service by issuing 8 type of licenses. Going forward, we are encouraging more sectors and local governments to provide this facility.

 

DIRECT CONSTRUCTION

BKPM also provide fast-track project construction facility (KLIK) within certain industrial estates. With this license, investor is allowed to do the Construction-Stage directly after obtaining Principle License (IP). Once the KLIK license is obtained, the investor is allowed to obtain other licenses parallel while doing the Construction-Stage, such as Building Permit (IMB), Environmental Permit (AMDAL and UKL/UPL), etc (Note: these licences should be completed prior entering Commercial-Stage).

 This facility can be enjoyed by any investor because there are no minimum investment amount required for investment value or the number of labor as long as the investment plan located in certain industrial/ bonded zones assigned by Government of Indonesia. So far, there are 32 industrial parks that have been set up by the government to implement this facility.

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