invest in
CREAT THE INVESTMENT CLIMATE FOR ENSURING THE OIL AND GAS INDUSTRY SUPPORT
BKPM| Jakarta, 14 April 2015
© 2015 by Indonesian Investment Coordinating Board. All rights reserved
Director of Agribusiness Industry Planning and Other Natural Resources
Licencing and Non Licencing in BKPM Type of Service
CONSENT PRINCIPLES INVESTMENT ( IP )
Consent of Principle ( new ) Consent of Extension Priciple Consent of Company Merger Principle (Merger) Consent of Change Principle
CONSENT OF BUSINESS (IU)
Consent of Business (New) Consent of Business Expansion Consent of Business Company Merger (Merger) Consent of Business Change
FACILITIES INVESTMENT
Facilities Duty Exemption of Import Engine ( new , development , change , restructuring , modernization , rehabilitation )
Facilities Duty free import of Goods and Materials ( new , development , change ) Proposal for Tax Allowance(TA) Proposal for Tax Holiday (TH) Import Identification Number(API-P dan API-U)
CONSENT OF REPRESENTATIVE OFFICE
Consent of Representative Office Foreign Company (KPPA) Business License of Foreign Trade Representative Company (SIUP3A)
© 2015 by Indonesian Investment Coordinating Board. All rights reserved
Licencing and Non Licencing in BKPM Principles Basic Investment
Domestic Investment (DCI ) : Minimum value of domestic investment that must be processed using SPIPISE is starting from Rp . 500,000,000
Foreign Direct Investment ( FDI ) : Minimum value of the investment is greater than Rp . 10 billion or it is equivalent in US $ • The Minimum Capital is Rp . 2.500.000.000 , - or it is equivalent in US $ • The minimum equity stake in a company is Rp . 10,000,000 or it is equivalent in US $ • The calculation of the percentage of capital ( shares ) based on the nominal stock not shares. The mechanism of application in the field of services begins with the presentation of the business plan.
© 2015 by Indonesian Investment Coordinating Board. All rights reserved
The Investment Coordinating Board of the Republic of Indonesia
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Understanding
Permission of the Government , the Local Government ( Provincial / District / City ) which is must have in order to start a business .
EXPANSION PRINCIPLE LICENSE
Industrial businesses Increased production capacity for the same type of product , greater than 30 % of production capacity that
has been authorized and carried out the same location with the implementation of the previous PM . The business sectors in addition to industry
The addition of the field of business activity or increase production capacity implemented either the same
location or a different location with the implementation of the previous PM .
Licencing and Non Licencing in BKPM Principle License Investment (IP)
CHANGE PRINCIPLE LICENSE
Change of plans or realization of investment that has been approved and specified by the Central Government or Local Government . Include provision changes : Changes in the company's capital Change the location of the project Changes in the business field Change of time project completion
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM BUSINESS LICENSES
UNDERSTANDING
Permission of the Government,the Local Government ( Provincial / District / City ) which must be owned companies to begin implementation of production / operations that produce goods or services,unless otherwise provided by regulation sectoral laws .
GENERAL CONDITIONS OF BUSINESS LICENSE
Industrial businesses Conditions at least 80 % of the main engine production activities in the field of
industrial enterprises have been installed at the project site . The business sectors in addition to industry Condition of the company in the field of business be sides industry has prepared all
facilities and infrastructure in order to carry out its business activities .
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM FACILITIES INVESTMENT
UNDERSTANDING
The government provides the facility of duty import on machinery , goods and materials for capital investment , corporate income tax and importer identification number .
GETTING INDUSTRIAL FACILITIES EXEMPTION
Companies that already have a business license for the processing of raw materials , raw materials , semi-finished materials and / or finished goods , being goods with higher value
The Service Industry are getting facilities duty exemption ( Primary and Tertiary Sector ) , among others :
Tourism and culture Transportation / Transportation ( for public transport services) Public Health Services mining construction Telecommunications Industry port
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS (1)
TERMS OF FACILITIES FOR IMPORTING CAPITAL GOODS
Capital goods must be used for the needs of the industry itself .
Duration import is 2 ( two ) years and it may be extended according to the
timing of the project ( JWPP ) in investment approval .
Companies that have received exemption from duty import based on
other provisions can not use the provisions of this facility .
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS(2)
TERMS OF FACILITIES FOR IMPORTING RAW MATERIAL
Raw materials must be used for the needs of the industry itself .
The raw material is given 2 years for the needs production, it can be
extended the deadline of the importation is 1 ( one ) year .
Companies that using the machine / equipment domestic production are
given raw material import facilities for 4 ( four ) years ,
, extendable deadline for the importation is 1 ( one ) year , with the
following provisions:
Import period is 4 ( four ) years , extendable deadline for the importation
is 1 ( one ) year .
Determination of criteria for the company as domestic production engine
users are set by the Ministry of Industry .
The Investment Coordinating Board of the Republic of Indonesia
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THE FACILITIES OF MACHINERY IMPORT LIMITATION, GOODS AND RAW MATERIALS
Import duty exemption machinery , goods, and material are given if: It has not been produced in the country. Already produced in the country but it does not meet the requirement
specification. Already produced in the country but the amount is insufficient for the
industry necessity.
Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS(3)
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM FACILITIES OF TAX ALLOWANCE AND TAX HOLIDAY(1)
TAX ALLOWANCE FACILITIES
Reduction of net income is 30% of the total investment that is charged for 6 years .
Depreciation and amortization are accelerated .
The imposition of income tax on dividend is paid to foreign tax subject 10% or a tax treaty rates .
Compensation of losses that are older than 5 years and it is not more than 10 years with certain requirements .
TAX HOLIDAY FACILITIES
Corporate Income Tax exemption may be granted for a maximum period is 10 ( ten ) fiscal years and the shortest is five fiscal years, starting from the beginning of the tax year commercial production .
After the expiration of the exemption provision of Corporate Income Tax , Tax Payer is given the reduction of income tax 50 % from the income tax payable for two (2 ) fiscal year .
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM FACILITIES OF TAX ALLOWANCE AND TAX HOLIDAY (2)
TERMS OF TAX HOLIDAY
New corporate taxpayers with an investment : 1 Trillion
A minimum of 10 % is placed in a national bank
Indonesian legal status per 15 August 2010
Industry pioneers :
- Basic metal industry
- Petroleum refining industry and / or organic basic chemicals derived from
petroleum and natural gas
- Machinery Industry
- The field of industial renewable resources
- Industry of communication equipment
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM IMPORTER IDENTIFICATION NUMBER (API)
UNDERSTANDING
Importer is the individual or business entity that is a legal entity or non-legal entity conducting import .
TYPE OF API
API Manufacturers
Awarded to companies that only import goods for itself , as capital goods , raw materials , auxiliary materials or supporting materials production activities .
API Public
Given to companies who only do the import of certain goods for trading purposes .
The Investment Coordinating Board of the Republic of Indonesia
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K/L dan LOCAL GOVERNMENT
LICENSE OF PRINCIPLE
LICENSE OF BUSINESS
Facility duty engine Tax Allowance or Tax
Holiday
Fasilitas bea masuk barang dan bahan
INS
TALL
AT
ION
B
HI
CO
NS
TR
AC
TIO
N
LICENSING BUSINESS / OTHER SUPPORT
BKPM
Importer Identification Number – Manufacturers (API-P)
Angka Pengenal Importir-Umum (API-U)
Businessmen
PR
OD
UC
TIO
N /
C
OM
MER
CIA
L O
PER
ATI
ON
S
Licencing and Non Licencing in BKPM Before PTSP LICENSING PROCESS FLOW
The Investment Coordinating Board of the Republic of Indonesia
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Licencing and Non Licencing in BKPM After PTSP LICENSING PROCESS FLOW
Investor
Desk BKPM
Desk K/L
Desk K/L
1. reception Document
2. consultation
K/L
K/L
Back Office
K/L
K/L
Desk K/L
Desk K/L
Online K/L
Front Office
Licensing processing
Online K/L
Online SPIPISE* BKPM
Monitoring Online
* SPIPISE : Sistem Pelayanan Informasi dan Perizinan Investasi Secara Elektronik / Licensing Information Service System and Electronic Investment
PTSP center in BKPM
The Investment Coordinating Board of the Republic of Indonesia
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TIMELINE OF WORK PTSP CENTER
Launching of the online licensing
BKPM
December 2014
January 2015
2016
Launching of PTSP
Center (26 Jan)
Regional PTSP 24 Provinces - 120 Regency / City ( Feb- December)
Regional PTSP 34 provinces 561 districts /
cities
PTSP PURPOSE CENTER : The achievement of the licensing process is fast, simple , transparent and integrated. PTSP CONCEPT CENTER : • Investors come to BKPM as organizers PTSP licensing center to take care of the
investment , no longer need to drive around the Ministry / Agency • Investors can monitor the process of licensing online • Investors get certainty about deadlines licensing
Test PTSP Center (15
Jan)
socialization PTSP Center ( Jan -
March)
Acceleration and Simplification of Licensing ( Feb-
April)
February- December
The Investment Coordinating Board of the Republic of Indonesia
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FOCUS ARES PTSP PTSP CENTER
Source: BKPM, data per 27 January 2015 KPBPB: Kawasan Perdagangan Bebas dan Pelabuhan Bebas / Free Trade Zone and Free Port KEK: Kawasan Ekonomi Khusus / Special Economic Zones Legal : Perpres 97/2014
NO REGIONAL TOTAL
IMPLEMENTATION PTSP
NOMENCLATURE BPM-PTSP
IMPLEMENTATIONSPIPISE DELEGATION
ALREADY FORMED
BUSINESS INVESTMENT FOR PTSP HAS FORMED
FORMED NOT YET DONE NOT YET EXIST NOT YET DONE NOT YET MERGER SEPERATE
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
1 PROVINCE 34 34 0 3 31 33 1 34 0 27 7
2 DISTRICT 416 362 54 3 413 236 180 351 9 226 136
3 CITY 98 97 1 1 97 70 28 99 0 54 43
4 KPBPB 5 4 1 0 5 4 1 4 0 0 4
5 KEK 8 1 7 0 8 1 7 1 0 0 1
TOTAL 561 498 63 7 554 344 217 489 9 307 191
Focus development PTSP Regional : • 63 areas that have not yet established PTSP • 217 that have not implemented SPIPISE • 191 areas that still separate the affairs of investment with PTSP
The Investment Coordinating Board of the Republic of Indonesia 20
ALREADY ONLINE IN CENTRAL PTSP
• SPIPISE : Sistem Pelayanan Informasi dan Perijinan Investasi Secara Elektronik. / Licensing Information Service System and Electronic Investments .
• Advatages of SPIPISE :
• Having a tracking system with clear SOP
• Easy , investors can access from anywhere by online
• Safe , secure enterprise data confidentiality
• Review SOP pada Februari 2015
11 Licenses in BKPM have been online since December 15, 2014
No Type of license SOP
1 The new License Principle 3 working days
2 Extension license principle 3 working days
3 License Change princile 5 working days
4 Business License change 5 working days
5 Licensing representative offices of foreign companies
5 working days
6 Business License 7 working days
7 Business License extension 7 working days
8 Business license merger 7 working days
9 Facilities for exemption duty import of machinery
7 working days
10 Facilities for exemption duty import of materials and goods
7 working days
11 License principle incorporation 10 working days
The Investment Coordinating Board of the Republic of Indonesia 21
22 MINISTRY / AGENCIES INVOLVED in PTSP CENTER
Kem. Agraria, Tata Ruang, dan BPN 1 kelompok izin
Kementerian ESDM 10 kelompok izin
Kementerian Perindustrian 11 kelompok izin
Kementerian Pertanian 5 kelompok izin
Kementerian Perdagangan 7 kelompok izin
Kementerian Keuangan 2 kelompok izin
Kementerian Perhubungan 7 kelompok izin
Kementerian Hukum dan HAM 1 kelompok izin
Kem. Lingkungan Hidup dan Kehutanan 35 kelompok izin
Kementerian Kesehatan 9 kelompok izin
Kementerian Pariwisata 19 kelompok izin
Kementerian Komunikasi & Informatika 14 kelompok izin
Kementerian Ketenagakerjaan 5 kelompok izin
Kementerian PU dan Perumahan Rakyat 7 kelompok izin
KEPOLISIAN RI 1 kelompok izin
Kementerian Kelautan dan Perikanan 1 kelompok izin
Kementerian Pendidikan & Kebudayaan 1 kelompok izin
Kementerian Pertahanan 1 kelompok izin
BPOM 1 kelompok izin
BSN 1 kelompok izin
LEMSANEG
PT. PLN Persero
Total from 150 licenses were served in the PTSP Center , 118 licenses delegated to BKPM and 32 licenses were not delegated but served in the PTSP Center .
The Investment Coordinating Board of the Republic of Indonesia 22
READINESS PTSP CENTER
PTSP Center is ready to serve all areas of business investment license , unless the upstream oil and gas and banking sectors
Total of 77 liaison (liaison officer- LO ) from 22 Ministries / Institutions are ready to serve investors
The LO served in the front office and back office : 1. LO front office tasks : accept the licensing application and consultation on investors 2. LO back office tasks : perform processing permits
PTSP has a contact center 0807-100-2576 ( BKPM ) . Information services provided include :
1. General information 2. Services , licensing and regulation 3. Service desk online system BKPM 4. Information related technical ministries 5. Complaints
Kemenaker
Kemenhut dan LH
PTSP REG/CITY
Investor
1. Izin Prinsip/IUPL Sementara
2. APIP (Inatrade) 3. Fasilitas Bea
Masuk (DBC)* 4. NIK (DBC)* 5. IUPTL
6. Izin Operasi 7. Penetapan
Wilayah Usaha 8. Penugasan Survei
Panas Bumi 9. Izin Panas Bumi
1. Rencana Penggunaan Tenaga Kerja Asing (RPTKA)
2. Izin Mempekerjakan Tenaga Kerja Asing (IMTA)
PLN
1. RUPTL 2. Pengadaan
(Lelang, Pemilihan langsung, Penunjukan
langsung) 3. PPA/PJBL 4. Financing Date
1. Surat Jaminan Kelayakan Usaha (SJKU)
1. IPPKH 2. AMDAL
1. Pertimbangan Teknis
2. Pengadaan tanah (tahap
pelaksanaan) 3. Sertifikasi
Kemenhub
Kemenko Ekon
Perizinan Daerah
1. Izin Terminal Khusus
2. Izin Navigasi
1. Persetujuan Pinjaman Komersial Luar Negeri (PKLN)
Kem PU Pera
1. Izin Bendungan 2. Izin konstruksi
* Online oleh investor
Kemenkeu
KESDM
BPN
1. Komisioning 2. Pemeriksaan, pengujian, dan
penerbitan SLO
1. IMB (Kab/Kota) 6. Izin Penggunaan Genset 2. Izin Lingkungan 7. Izin Penangkal Petir 3. Izin Lokasi (Kab/Kota) 8. TDP 4. Izin Penggunaan Boiler 9. Izin Kesehatan dan Keselamatan Kerja 5. Izin Penggunaan Lif
Perizinan Daerah
* Jika lokasi lintas kabupaten/kota diperlukan Izin Lokasi tingkat Provinsi PTSP PROVINCE*
PTSP CENTER
Service Integration License of Electricity in PTSP