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Latest Columns Business License

  • SIUP Re-Registration Process Repealed by Ministry of Trade

    SIUP Re-Registration Process Repealed by Ministry of Trade

    Recently, the Ministry of Trade issued Regulation number 7/M-DAG/PER/2/2017 (Regulation 2017), which is the third amendment of Regulation number No. 36/M-DAG/PER/9/2007 on Trade Business Licenses (Regulation 2007). Regulation 2017 is another effort of the Trade Ministry to simplify licensing procedures, focusing in this regulation on Trade Business Licenses (surat izin usaha perdagangan or SIUP). In our previous column we discussed the simplified procedure of the Company Registration Certificate (tanda daftar perusahaan or TDP). In this column we discuss the repealed SIUP re-registration procedure based on the new regulation.

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  • Mining Regulation Amendment to Provide More Certainty

    Mining Regulation Amendment to Provide More Certainty

    Recently the Indonesian Government issued Government Regulation number 1 of 2017 (Regulation 2017). The Regulation 2017 is the fourth amendment of Government Regulation 23 of 2010 on the implementation of Mineral and Coal Mining Activities. In this column we discuss the main changes in the Regulation 2017 which relate to the extension of the business license of mining companies, the sales of minerals and coal, the divestment obligation and the refinery obligation.

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  • Freight Forwarding Licenses Simplified by Indonesian Government

    Freight Forwarding Licenses Simplified by Indonesian Government

    Recently, the Ministry of Transportation issued Regulation number 130 of 2016 (New Regulation). The New Regulation is the fourth amendment of Regulation number 74 of 2015 regarding the Organization and Management of Freight Forwarding Services Companies. The New Regulation simplifies the procedure for Freight Forwarders to secure a business license. In this column we discuss the impact of the New Regulation on the Freight Forwarding business.

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  • Business Scale Classification for Industrial Companies Regulated

    Business Scale Classification for Industrial Companies Regulated

    On July 7, 2016, the Ministry of Industry issued regulation number 64/M-IND/PER/7/2016 on the Total Number of Employees and Investment Values for the Industrial Business Scale Classification (2016 Regulation). The 2016 Regulation is an implementation of article 102 (4) of Law number 3 of 2014 on Industries, which states “The amount of labor and the value of the investment for small scale industry, medium scale industry, and large scale industry is determined by the Minister”. In this column we will discuss the contents of the 2016 Regulation.

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  • Industrial Business License for Industry Companies Reregulated

    Industrial Business License for Industry Companies Reregulated

    The issuance of an Industrial Business License was previously regulated in government regulation number 13 of 1995. Recently the Indonesian Government has set new provisions regarding the arrangement of an industry business license in Government Regulation number 107 of 2015 on Industrial Business Licenses (New Regulation). The New Regulation sets the guidelines and procedures for securing the business license for industry companies. In this column we discuss the main procedures regulated by the New Regulation.

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  • Construction Business License Foreign Investment Limited Liability Companies

    Construction Business License for Foreign Investment Limited Liability Companies (PT PMA)

    Recently the Minister of Public Works (Minister) issued a new regulation no. 03/PRT/M/2016 regarding the Technical Guidelines for Granting a Foreign Investment Construction Business License (New Construction Regulation). The New Construction Regulation sets implementing guidelines on how to obtain a construction business license for foreign investment limited liability companies (PT PMA), including the documents required to be submitted and the obligations of the construction PT PMA.

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  • Simultaneous Issuance of Trade Business License (SIUP) & Company Registration Certificate (TDP)

    Simultaneous Issuance of Trade Business License (SIUP) & Company Registration Certificate (TDP)

    The Trade Ministry recently issued Regulation No. 14/M-DAG/PER/3/2016 (Amendment), which is an amendment of Regulation No. 77/M-DAG/PER/12/2013 on Simultaneous Issuance of Business License and Company Registration Certificates for Trading Companies (Regulation). The Regulation and its Amendment allow newly established companies to arrange the Trade Business License (SIUP) and the Company Registration Certificate (TDP) at one time. The Amendment now further simplifies the procedures already regulated by the Regulation.

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  • Investment in Indonesia: 59 Investors Used BKPM's 3-Hour Licensing Service

    Investment in Indonesia: 59 Investors Used BKPM's 3-Hour Licensing Service

    According to the Indonesia Investment Coordinating Board (BKPM), the government agency that provides investment services and forms the primary interface between the Indonesian government and businesses, it has assisted 59 companies through the three-hour licensing service that was started on 11 January 2016. Originally, this service was only available to big investors who either invest at least IDR 100 billion (approx. USD $7.5 million) or generate 1,000 new job positions for Indonesian workers. However, a Presidential Instruction also opened this special service to investment in four infrastructure-related sectors.

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  • New Investment Regulation Foreign Investors Indonesia (2/2)

    New Investment Regulation Foreign Investors Indonesia (2/2)

    In our previous column we discussed the changes put through by the Indonesia Investment Board (known as “BKPM”) with regard to the principle license. The principle license is the primary license required for foreign investors to start a company in Indonesia. In this week’s column we discuss BKPM regulation number 15 of 2015 on the Guidelines and Procedures for Obtaining Investment Licenses and Non-Licenses (“New Investment Regulation”). Together with the previously discussed BKPM regulation the New Investment Regulation aims to simplify investment procedures in Indonesia (both foreign and domestic).

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