The launch of 3 Hours Investment License Service in the early of 2016 is considered as the breakthrough that foreign investors have been waiting for years. Not only will this policy be effective to cut down the bureaucratic red tape, but also minimize the potential of corruption. Based on our experience, below are our SMART tips that are useful for investors in dealing with the 3 Hours Investment License Service.
TIP #01: PREPARING THE APPLICATION
The first tip is related to the early stage, which is the Pre-Application stage. In this stage, Investors should acquire as much as information they need to know regarding the requirement, procedure, and other documents. This information will help investors to be prepared, before they submit the application.
Please make sure that the acquired information is accurate and derives from reliable source. The investors may use the helpdesk unit provided by the Indonesia Investment Coordinating Board or Badan Koordinasi Penanaman Modal (“BKPM”) at the BKPM Head Office in Jakarta to dig the information related to 3 Hours Investment License Service. They may also use the official BKPM website, www.bkpm.go.id, which contains relevant information.
In 3 Hours Investment License Service, every investor has the opportunity to meet the relevant BKPM official for a consultation session. This session should be maximized by the investor to inquire all the detail about 3 Hours Investment License Service. The investors may save the BKPM official phone number, so that they can consult at any time about 3 Hours Investment License Service.
TIP #02: KNOW WHAT INVESTMENT LICENSE YOU WILL GET
Basically, there are maximum 9 (nine) types of licenses issued in 3 Hours Investment License Service, especially for Investors who has yet to set up PMA Company (PT PMA) in Indonesia. For Investors who already has a PMA Company or is acquiring a local company, some types of licenses will be subject to each company.
In detail, those 9 (nine) types of license are Investment License, Deed of Establishment, Tax Registration Number, Certificate of Company Registration, Foreign Workers Recruitment Plan, Work Permit, Importer Identification Number, Customs Registration Number, Letter on Land Availability Information (if required).
TIP #03: ARRANGE THE SUBMISSION SCHEDULE IN ADVANCE
At the submitting application stage, the Investors should coordinate with the relevant BKPM official to arrange the submission schedule. This is because the Investors will be required to submit in person at the BKPM Head Office.
As soon as the schedule has been set, the Investors must prepare a presentation which will be presented before the Director of Application Service in BKPM office. The presentation must be detailed, and covers the description of business activity, the aspects of company operational activity, and the business projection for the next five years.
It is very important to prepare the requirement documents needed in the application submission. If the applicant company has no legal entity status, the documents must be prepared are shareholders’ passport or other identity documents, and the power of attorney in case of not all shareholders are able to attend the application submission.
Meanwhile, if the applicant company has legal entity status, the documents must be prepared are deed of establishment including the amendment and approval, directors’ passport or other identity documents, and the flowchart of company’s business activity.
If the presentation is a success and the requirement documents are complete, BKPM will state the investment license application is officially accepted. In this stage, the investors should do re-checking all related documents to make sure that there is no false or inaccurate information.
TIP #04: SAY NO TO CORRUPTION
Last but not least, the investors must avoid any corruption method related to 3 Hours Investment License Service. Always follow the rules, no bribery, and never interact with corrupted officials who usually offer an instant and illegal way.
Please note! Indonesian Government is taking serious steps to eradicate the corruption at all sectors. So, don’t you ever deal with corruption, or your personal and company’s positive image will be ruined.
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting is a one-stop Indonesian Corporate Legal Services firm. SMART has a wide experience in assisting investors, both foreign investors and domestic investors in applying successfully for investment license at the BKPM.
Contact SMART Legal Consulting now for efficient and effective Investment License application at: