Non-Licensing Services

Background

The scope of investment services which includes the activity held by BKPM aside from the licensing services are the non-licensing services. Article 1 paragraph 6 of Regulation of Chairman of BKPM No. 12 year 2009 (“Perka BKPM 12/2009”) stated the definition of non-licensing services as all types of convenience services, fiscal facilities, and information regarding investment, in accordance with the regulations. Guidelines for the Application of the Non-Licensing Investment other than those stipulated in the Perka BKPM 12/2009, are in the provisions issued by technical agency/ the head of related Non-Department Government Institution/Lembaga Pemerintah Non-Departemen (LPND), governor and regent/mayor.

Types of Non-Licensing Services

Based on Article 13 paragraph 3 of Perka BKPM 12/2009, those included in the types of non-licensing services and other facilities are as follows:

  1. The facility of import duty on machinery. The period of the establishment of the Letter of Approval on the facility according to Article 46 paragraph 4 of Perka BKPM 12/2009 is at the latest within 7 (seven) working days since the receipt of a complete and correct application. The period of the issuance of this facility is for 2 (two) years and still can be extended
  2. The facility of import duty on goods and materials. The period of the establishment of the Letter of Approval on the facility according to Article 50 paragraph 6 of Perka BKPM 12/2009 is at the latest within 7 (seven) working days since the receipt of a complete and correct application. Similarly with the machinery import facility, the period of this permit is issued for 2 (years) and still can be extended
  3. Proposal to obtain the Income Tax facility/ Pajak Penghasilan (PPh). The period of the establishment of the proposal to obtain the Income Tax facility in accordance with Article 53 paragraph 4 of Perka BKPM 12/2009 is at the latest within 5 (five) working days since the receipt of a complete and correct application;
  4. Manufacturer Importer Identification Number/ Angka Pengenal Importir Produsen (API-P), as an identification number that is used as a permit to import machinery, goods, and materials for own use in the production process of related investment company. The period of the establishment of API-P according to Article 54 paragraph 5 of Perka BKPM  12/2009 is at the latest within 4 (four) working days since the receipt of a complete and correct application. The company holder of the API-P is obligated to conduct the re-registration in PTSP BKPM for every 5 (five) years since the date of the issuance
  5. The Plan for the Usage of Foreign Labor/ Rencana Penggunaan Tenaga Kerja Asing (RPTKA), as the legalization of plan on the number, position, and the duration of the usage of the foreign labor which is required as a basis for approval on foreign labor entry and the establishment of the License to Employ Foreign Labor/ Izin Mempekerjakan Tenaga Kerja Asing (IMTA). The period of the issuance  of the Decree of the Ratification on RPTKA according to Article 56 paragraph 4 of Perka BKPM 12/2009 is at the latest within 3 (three) working days since the receipt of a complete and correct application;
  6. Recommendation on Working Visa (TA.01), as a recommendation that is required to obtain working visa for foreign labors. The period of the issuance of  the  TA.01 recommendation according to Article 58 paragraph 4 of Perka BKPM 12/2009 is at the latest within 1 (one) working day since the receipt of a complete and correct application. This recommendation is applicable for the period of 2 (two) months since the publication;
  7. License to Employ Foreign Labor (IMTA), as a license for company to employ foreign labor in a certain number, position, and duration. The Investment Company and KPPA may propose an IMTA application upon the foreign labor that has obtain the working visa. The period of the issuance of the Decree on IMTA according to Article 59 paragraph 5 of Perka BKPM 12/2009 is at the latest within 3 (three) working days since the receipt of a complete and correct application;
  8. Local Incentive;
  9. Information services and complaint services.

According to Article 14 of Perka BKPM 12/2009, the scope of guidelines on the application of non-licensing investment is set out in Article 13 paragraph 3 letter a to letter g is regulated in Perka BKPM 12/2009. Meanwhile, the guidelines on the application of non-licensing investment under Article 13 paragraph 3 letter h followed the provisions issued by technical agency/ the head of related LPND, governor, and regent/mayor.

Fiscal facilities cover the facility of import duty on import machinery, facility of import duty on import goods and materials, and the proposal to obtain the facility for the income tax (PPh). While the non-fiscal facilities covers API-P, RPTKA, TA.01, and IMTA. The application for fiscal facilities and new application for non-fiscal facilities shall be submitted to One Stop Service Provider/ Pelayanan Terpadu Satu Pintu (PTSP) Investment Coordination Board Badan Koordinasi Penanaman Modal (BKPM). In the case of the amendment/ extension of  the non-fiscal facilities, the application shall be submitted to PTSP BKPM, PTSP Province Area Device in the Field of Investment/ Perangkat Daerah Provinsi bidang Penanaman Modal (PDPPM), or PTSP Regent/ City Area Device in the Field of Investment/ Perangkat Daerah Kabupaten/Kota bidang Penanaman Modal (PDKPM).

 

Renintha Karina

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