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31 January 2018
The Indonesian Investment Coordinating Board (BKPM) recently issued new guidelines for investment licences and facilities applications. The new guidelines, set out in the BKPM Regulation concerning Guidelines and Procedures for Investment Licensing and Facilities (13/2017), took effect on January 2 2018 for the BKPM Central One Stop Integrated Services (PTSP) Office, but will not apply to the regional PTSP offices or PTSP offices in the free trade zone or special economic zone until July 2 2018.
This update examines the key provisions of the regulation which concern issues not regulated in the previous BKPM regulations on the same subject.
A company investing in a specific business field may apply for a business licence directly without obtaining an investment registration if it:
Regulation 13/2017 is relatively more lenient than the previous regulation with regard to the divestment obligation imposed on foreign companies.(1) Under the new regulation:
The regulation further states that in the event that an Indonesia party demands divestment in the future, the shareholders will be responsible for doing so.
The maximum period of capital participation in an investment company by a venture capital company has been extended from 15 to 20 years.(2)
All applications for investment registration must be conducted online through the Electronic Investment Information and Licensing Services.(3)
For further information on this topic please contact Agus Ahadi Deradjat or Elsie F Hakim at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or email (firstname.lastname@example.org or email@example.com). The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
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Agus Ahadi Deradjat
Elsie F Hakim