Indonesia's Investment Coordinating Body (Badan Koordinasi Penanaman Modal / BKPM) has enacted BKPM Regulation Number 1 Year 2020 on 30 March 2020 concerning Guidelines for the Implementation of Services for Electronically Integrated Business Permits (Pedoman Pelaksanaan Pelayanan Perizinan Berusaha Terintegrasi Secara Elektronik) ("BKPM 1 of 2020"). As the implementing regulation of Government Regulation (Peraturan Pemerintah) Number 24 Year 2018 and Presidential Instruction Number 7 Year 2019, the BKPM 1 of 2020 has made a clearer assistance for the investor, especially foreign investor, in attaining primary business permits in Indonesia up to its business operation, electronically integrated.
Some important provisions in the BKPM 1 of 2020 have indicated that obtaining business permits in Indonesia become easier and more business oriented as time is of the essence in developing business as well as complying the regulations.
Applying up to obtaining major business permits are just a matter of online/electronic processes within the OSS (Online Single Submission) integrated system, which is also issuing such business permits electronically. Starting from the business/company registration by way of applying for the NIB (Nomor Induk Berusaha / Business Identification Number) which is also effective as Company Registration Permit (Tanda Daftar Perusahaan / TDP), Permit on Import Identification Number (Angka Pengenal Impor / API), Access Right to the Customs (Hak Akses Kepabeanan), and initial Employment Report (Wajib Lapor Ketenagakerjaan), also automatically registered as the member of national social security which comprises of health and manpower security (Jaminan Sosial Kesehatan and Jaminan Sosial Ketenagakerjaan) that is mandatory for each company in Indonesia. The company who employs foreign manpower can also apply for Rencana Penggunaan Tenaga Kerja Asing / RPTKA (Plan for Employing Foreigner), which is applied as Permit for Employing Foreigner.
Subsequently, the OSS integrated system manages the process of issuing Business Permit and Commercial/Operational Permit, both requiring to fulfill its "Commitment(s)" before its effectiveness. Though, the investor can start its business development activities along with fulfilling its Commitment(s) as well as applying and obtaining various investment facility and tax holiday for certain businesses offered by Indonesian government in progressive phases towards its business operation. Some of the Commitment(s) are Location Permit, Location Permit on the Waters, Location Permit on the Seas, Environmental Permit, Building Permit (Izin Mendirikan Bangunan IMB), and Certification on Functional Feasibility (Sertifikat Layak Fungsi / SLF), again, such permits are also processed and issued electronically within the OSS integrated system.
Establishing business in Indonesia has never been this easy and advantageous.
