Types of Licenses and the Period of Establishment

Background

BKPM holds 2 (two) types of services on investment activity for the investor in the territory of Indonesia, which is the licensing service and the non-licensing service. Based on Article 1 paragraph 6 of Regulation of Chairman of BKPM Number 12 of 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 the authority under the regulations. Guidelines for the Application of Investment Licensing other than stipulated in the Perka BKPM 12/2009, is also stipulated in the provisions issued by technical agency/ the head of related Non-Department Government Institution/ Lembaga Pemerintah Non Departemen (LPND), governor and regent/ mayor.


Type of Investment Licenses

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

  1. Registration of Investment (“Registration”) is a preliminary approval from the Government as a basis to start the investment plan. The period of the issuance of the Registration according to Article 33 paragraph 4 of Perka BKPM 12/2009 is 1 (one) working day since the the receipt of a complete and correct application;
  2. Investment Principle License (“Principle License”), is a license to start conducting investment activity in the area of business which can obtain fiscal facility and requires fiscal facility in the implementation of its investment. The period of the issuance of Principle License is applied similarly to foreign investor and domestic investor. According to Article 34 paragraph 4 and Article 35 paragraph 5 of Perka BKPM 12/2009, the Principle license will be issued within 3 (three) working days since the receipt of a complete and correct application;
  3. Extension of the Investment Principle License (“Extension Principle License”), is a license to start the extension plan of the investment activity in the area of business which obtains fiscal facility and requires fiscal facility in the implementation of the investment activity. The period of the issuance of the Extension Principle License according to Article 36 paragraph 3 of Perka BKPM 12/2009 is 3 (three) working days since the receipt of a complete and correct application;
  4. Investment Amendment Principle License (“Amendment Principle License”), is a license to conduct an amendment on the issued provisions in the Principle License/previous Extension Principle License. The period of the issuance of the Amendment Principle License according to Article 42 paragraph 3 of Perka BKPM 12/2009 is 5 (five) working days since the receipt of a complete and correct application;
  5. Business License, Extension Principle License, License on the Merger of the Investment Companies, and Amendment Principle License. In the Business License, Extension Principle Licene, and License on the Merger of the Investment Companies, the period of the issuance according to Article 45 paragraph 8 of Perka BKPM 12/2009 is 7 (seven) working days since the receipt of a complete and correct application. While for the Amendment Principle License, the period of the issuance in accordance with Article 45 paragraph 9 of Perka BKPM 12/2009 is 5 (five) working days since the receipt of a complete and correct application;
  6. Location License;
  7. Agreement on Area Utilization;
  8. Building Construction License/ Izin Mendirikan Bangunan (IMB);
  9. Occupancy Worthiness Permit/ Izin Gangguan (UUG/HO);
  10. License on Underground Water Intake/ Surat Izin Pengambilan Air Bawah Tanah;
  11. Company Registration/ Tanda Daftar Perusahaan (TDP)
  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 application of the investment license as set out in Article 13 paragraph 2 (a) until (e) are governed by Perka BKPM 12/ BKPM. Meanwhile,the guidelines on the application of the investment license under 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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