3 August, 2018
President Joko Widodo signed Government Regulation Number 24/2018 on June 21, 2018 (“Regulation 24/2018”), which transfers virtually all authority to process and issue permits and licenses from the Indonesian Investment Coordinating Board (“BKPM”) to the Coordinating Ministry for Economic Affairs to be processed under the Online Single Submission (OSS) System. Please find further information concerning this topic here.
BKPM has since July, suspended all processing and issuance of permits and licenses for the time being. All processes will resume at the Coordinating Ministry for Economic Affairs.
In accordance with guidance provided by the Coordinating Minister for Economic Affairs, BKPM will “warehouse” on a temporary basis, all incoming applications for permits and licenses, to be channeled to the OSS System and to answer any queries.
According to information received by BKPM, there are several permits and licenses which will continue to be processed by BKPM even after Regulation 24/2018 has come into effect, such as:
1. Consultative powers:
- Providing information on investment policy on certain sectors;
- Assisting investors on the procedure of license application at the OSS system;
- Facilitating investor with regards to problems faced by the investor in realizing their investment; and,
- Synchronizing and coordinating the system with the related ministries, including provincial
- officials, regionals, administrator of Special Economic Zone and Free Trade Zone and Free Port Authority.
2. Licenses under BKPM:
- License to open a Representative Office of Foreign Company (KPPA), other than in the oil and gas, trade and construction sectors;
- License to open a Branch Office, which are issued by the central one-stop integrated service (PTSP Pusat) at BKPM
- Limited Stay Visa (VITAS) Recommendation for shareholders;
- Recommendation to change the status of a Visit Permit to a Limited Stay Permit (ITAS); and, Recommendation to change a Limited Stay Permit (ITAS) to a Permanent Stay Permit (ITAP).
3. BKPM will also accept application of licenses that are not regulated under Regulation 24/2018, including:
Public Works and Public Housing sector:
- Property Development and Expansion Business License; and,
- Housing Sector Business License.
Tax facilities and allowances:
- Provision of import facilities for machinery, capital goods and materials for investment in the industrial sector and industries that provide services;
- Provision of import facilities for machinery and capital goods for the electricity sector;
- Provision of import facilities for machinery and capital goods for Work Contract (Kontrak- Karya) and Work Agreement for Coal Mining Concession (PKP2B);
- Proposal for tax holiday; and,
- Proposal for tax allowance.
Geothermal power generation sector:
- Business License; and,
- Support Business Approval.
Oil and gas sector:
- Utilization of Oil and Gas Data License;
- Survey License;
- Oil and Gas Storage Business License (Temporary License/Permanent License);
- Oil and Gas Processing Business License (Temporary License/Permanent License);
- Oil and Gas Transportation Business License (Temporary License/Permanent License);
- Oil and Gas General Trade Business License (Temporary License/Permanent License);
- Oil and Gas Foreign Representative Office License.
Mining and coal sector:
- Exploration Mining Business License;
- Termination of Mining Business License due to the return;
- Mining Production Operation Business License specifically for transportation and sales, and its extension;
- Mining Production Operation Business License and its extension;
- Mining Production Operation Business License specifically for processing and/or refining, and its extension;
- Temporary License to carry out transportation and sales;
- Mining Production Operation Business License for sales; and,
- Mining Services Business License and its extension.
Please note that the above mentioned may be amended as the reform is still in application. BKPM has announced that the OSS System integration may take up to 5 months.
DS Avocats is monitoring closely the evolution of such transfer. Please feel free to contact us should you have any further queries concerning contemplated and pending applications with BKPM.
For further information, please contact:
Lucas Mascarade, DS Avocats