17 February 2020 (closed)
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The new BKPM (investment body) Regulation number 14 of 2015 regarding the Guidelines and Procedures for the Investment Principle Permit (New BKPM Regulation) sets a new special fast investment procedure for specific foreign investment companies. Under the fast investment procedure companies are able to obtain their investment license within 3 hours as of submission of the application. This procedure is however only open for large investments in Indonesia. In this column we will discuss the requirements for the fast Investment procedure.
Eligible Companies for the Fast Investment Procedure
In order to accelerate the investment procedure, the foreign investment companies to be established must fulfill the following requirements:
- The investment value of at least 100 hundred billion rupiah;
- Employ at least 1,000 Indonesian workers
Where normal foreign investment companies receive a principle permit (Izin Prinsip), the companies following the fast investment procedure receive the investment license (Izin Investasi). The investment license is similar to the principle permit, however it points out that it belongs to a company which fulfilled the investment requirements set out above.
Advantages of the Fast Investment Procedure
Besides the issuance of the investment permit (Izin Investasi) within three hours, there is another major advantage. Foreign investment companies which have their business location in a special industrial zone can immediately start construction of the factory. These companies do not require any other licenses, such as the building permit (IMB) and the environmental permit (Izin Lingkungan). Companies can arrange these licenses while building the factory.
Rejection of Investment Permit
In the case BKPM rejects the application of the investment permit, BKPM shall prepare a rejection notice. BKPM delivers such notice no later than three hours as of receipt of the request.
This column is provided by PNB Law Firm Jakarta