BKPM Regulation Number 14 of 2015: Principle License

A foreign investor who is establishing a foreign investment limited liability company is required to obtain a principle license. Based on the new investment regulation the principle license can be subdivided into the following forms:

1. Principle license
2. Principle license for expansion of business
3. Principle license amendment
4. Principle license for merger
5. Investment license

Procedures of Foreign Investment

The new investment regulation regulates the procedure how to secure a foreign investment principle license. Amongst others this includes:

1. The minimum company capital amount of IDR 10 billion
2. Submission to the related government body
3. Issuance procedure of the principle license

Divestment for Foreign Investors

Under the Old Investment Regulation there was no longer regulated a divestment requirement. Divestments were only required to be made if they were set in the individual principle license of foreign investment companies. The new investment regulation sets a general divestment again of minimum IDR 10 million.

Enforcement Date

The new BKPM Regulation number 14 of 2015 is enforced on the following dates:

1. October 26, 2015 for the one-stop integrated services which are operating at the BKPM; and
2. December 8, 2015 for the one-stop integrated services which are operating at the provincial/ municipality level, free-trade areas/markets and special economic zones.

In our next column we will generally discuss the contents of the other new investment regulation: BKPM regulation number 15 of 2015.

This column is provided by PNB Law Firm Jakarta