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 conduct investment which is issued by the Government and local government who has authority in accordance with the legislation. Guidelines for the Application of Investment Licensing other than stipulated in the Perka BKPM 12/2009, also stipulated in the provisions issued by technical agency/the head of related LPND (Lembaga Pemerintah Non Departemen), governor and regent/mayor.

Type of Investment Licenses

Article 13 paragraph 2 of Perka BKPM 12/2009 mentioned types of investment licenses, as follow:

  1. Registration of Investment (“Registration”), which is a preliminary approval from the Government as a basis to start the investment plan. The period of issuance Registration according to Article 33 paragraph 4 of Perka BKPM 12/2009 is 1 (one) working day since the receipt of complete and correct application;
  2. Principle License of Investment (“Principle License”), which is a license to start conducting investment activity in the area of business which obtains fiscal facility and in the practice, the investment activity requires fiscal facility. The period of issuance Principle License applies the same to foreign investor and domestic investor, according to Article 34 paragraph 4 and Article 35 paragraph 5 of Perka BKPM 12/2009 is 3 (three) working days since the receipt of complete and correct application;
  3. Extension Principle License of Investment (“Extension Principle License”), which is a license to start the extension plan of the investment activity in the area of business which obtains fiscal facility and in the practice, the investment activity requires fiscal facility. The period of issuance Extension Principle License according to Article 36 paragraph 3 of Perka BKPM 12/2009 is 3 (three) working days since the receipt of complete and correct application;
  4. Amendment Principle License of Investment (“Amendment Principle License”), which is a license to conduct an amendment on the issued provisions in the Principle License/Extension Principle License. The period of issuance Amendment Principle License according to Article 42 paragraph 3 of Perka BKPM 12/2009 is 5 (five) working days since the receipt of complete and correct application;
  5. Business License, Extension Business License, Investment Company License on Merger and Amendment Business License. For the Business License, Extension Business License and Investment Company License on Merger, the period of issuance according to Article 45 paragraph 8 of Perka BKPM 12/2009 is 7 (seven) working days since the receipt of complete and correct application. While for Amendment Business License, the period of issuance according to Article 45 paragraph 9 of Perka BKPM 12/2009 is 5 (five) working days since the receipt of complete and correct application;
  6. Location License;
  7. Agreement on Area Utilization;
  8. Building Construction License;
  9. Occupancy Worthiness Permit;
  10. License on Underground Water Intake (Surat Izin Pengambilan Air Bawah Tanah);
  11. Company Registration;
  12. Right on Land;
  13. Other licenses for the implementation of investment activity.

According to Article 14 of Perka BKPM 12/2009, the scope of guidelines on the investment licensing application covering what is set out in Article 13 paragraph 2 (a) until (e) are governed by Perka BKPM 12/BKPM, while the guidelines on the investment licensing application as meant in Article 13 paragraph 2 (f) until (m) are governed by the provisions issued by technical agency/the head of related LPND, governor and regent/mayor.

Renintha Karina

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