Recent Posts by indonesiaforeigninvestmentlaw

Types of Licenses and the Period of Establishment

Background BKPM held 2 (two) types of services on investment activity for the investor in the territory of Indonesia, which is licensing service and non-licensing service. Based on Article 1 paragraph 6 of Peraturan Kepala BKPM No.12 year 2009 (“Perka BKPM 12/2009”), what is included in the licensing services is any type of agreement to…
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Mechanism of the Investment Licenses

Background Mechanism of the investment licenses that is applied by BKPM to the investor covers provisions concerning business sector and business entity that could be managed by the investor in the territory of Indonesia. Principally, provisions on the mechanism of the investment licenses apply the same treatment to all of the investors, either foreign investor…
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Investment Law Dispute Settlement through International Center for Settlement of International Disputes (ICSID)

Background International Center for Settlement of International Dispute (“ICSID”) was established on the basis of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States of 1966 ("ICSID Convention"). This ICSID Convention regulates the settlement of dispute between a country with foreign individual or company who have invested their capital…
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Merger on Investment Company

Background Merger is a legal action conducted by one or more company to merge with another existing company causing the assets and liabilities of the merging company transferred by law to the surviving company. Moreover, the legal entity status of the merging company will be ended by law. In relation to investment activity, the Government…
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Closed Business Sector (Negative Investment List)

Background One of the government's efforts in improving the flow of investment in Indonesia is by providing flexibility for investors to determine the business sector of investment based on its interest. This triggers a simplification process of rules towards the Priority Scale List to become the Negative Investment List/ Daftar Negatif Investasi (DNI) DNI is…
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