As mentioned in our other Articles, BKPM Updates Investment Regulations, Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal) also known as BKPM, has issued 4 (four) regulations as part of the Indonesian Government’s Economic Stimulus package.
We understand that through Head of BKPM Regulation No. 14 of 2015 concerning Investment Principle License (“BKPM Regulation No. 14/2015”) which became effective on 26 October 2015, BKPM regulates all requirements to start and establishing your business in Indonesia, whether in the form of Local Investment (Penanaman Modal Dalam Negeri or PMDN), or Foreign Direct Investment (Penanaman Modal Asing or PMA).
The key change BKPM Regulation No.14/2015 is the Presentation. As of now, BKPM required the applicants, i.e.: Shareholder and/or Director and/or Employee to make a presentation to obtain a Principle License. The purpose of the Presentation is to explain to BKPM regarding the company’s business activities, including the financial plans (Fix Capital and Working Capital). However, BKPM give flexibility for the applicants to be accompanied by consultant and/or translator in presenting their Presentation.
There are 31 (thirty one) lines of business required to give a presentation before BKPM, including computer programming, portal web service, consulting (tourism, transport, and other management services), advertising, real estate, and other lines of business listed in Appendix 1 of BKPM Regulation No. 14/2015.
Here is the procedure to register for a Presentation at BKPM:
IMPORTANT NOTE: The procedures described in this article are the general requirements, therefor for specific business sectors may require additional establishment licenses, permits, and/or documents. An Investors must always seek legal advice before engaging into any investment activity in Indonesia.
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting has extensive experience in assisting Investors, both Local Investment (Penanaman Modal Dalam Negeri or PMDN), or Foreign Direct Investment (Penanaman Modal Asing or PMA) to establish a Company in Indonesia. If you need immediate assistance, please contact the SMART Help Desk at: