Investment Guide

Indonesia has its Investment Coordinating Board (BKPM) that provides flexibility and simplicity upon investing in Indonesia. Investors both FDI and Domestic who would intend to invest should go through several steps of procedures in accordance with written laws and particular regulations set by the Indonesian government.

Presidential Decree No. 27/2009 has created a one stop system for BKMP in implementing a one stop solution to process business license faster by cutting unnecessary bureaucratic red tape. Five phases have been set by BKPM in its jurisdiction to provide simplicity of information needed for investors:

1.       Establishing a business and conducting registration

1.1.Foreign Investment

1.1.1.        Registration of investment

1.1.2.        Company’s Deed (PT)

1.1.3.        Legalization of PT as Legal Entity

1.1.4.        Tax Payer Number

1.2.Domestic Investment

1.2.1.        Registration of investment

1.2.2.        Company’s Deed (PT)

1.2.3.        Legalization of PT as a Legal Entity

1.2.4.        Tax Payer Number

2.       Obtaining the preparation and construction license

2.1.Since the implementation of regional autonomy in 2001, the Central Government has no longer issued permit in pertaining with investment issue. Thus, the authorization is given to regional / local government. Please note that procedures of investment can be vary depending on each region


3.       Obtaining license / permits for investment implementation and operational

3.1.Each business’ area has its own license. The central government issues some of the operational license for certain business type and specific permits for business area

4.       Employment of foreign workers

4.1.Involvement of foreign worker

4.2.Involvement of non-foreign worker

5.       Obtaining licensing facility

To attract investors, especially FDI companies, Indonesian government sets the policy concerning the granting of fiscal facility that includes:

1.       Facility of import duty on machine import

2.       Facility of import duty on goods and materials import

3.       Suggestion for obtaining income tax (PPh) facility for a corporation

Furthermore, to obtain this facility, the investor should have a principle license issued by BKPM