With the introduction of the Online Single Submission (OSS) system, as regulated under Government Regulation Number 24 of 2018 on Integrated Business Licensing Services through Electronic System (GR 24/2018), the issuance and supervision of a significant portion of capital investment licensing has been transferred from the Capital Investment Coordinating Board (BKPM) and several other government agencies to the OSS system. At the moment, the OSS system is under the supervision of the Coordinating Ministry for Economic Affairs.

However, based on a list provided by the BKPM on June 10, several licenses and approvals are still processed at the BKPM. These include:

• License to open a Representative Office of Foreign Company (KPPA), other than in the oil and gas, trade and construction sectors;
• License to open a Branch Office, other than in the trade and transportation (transportation arrangement services) sectors;
• Limited Stay Visa (VITAS) Recommendation for shareholders;
• Recommendation to change the status of a Visit Permit to a Limited Stay Permit (ITAS);
• Recommendation to change a Limited Stay Permit (ITAS) to a Permanent Stay Permit (ITAP);
• Provision of import facilities for machinery, capital goods and materials for investment in the industrial sector and industries that provide services;
• Provision of import facilities for machinery and capital goods for the electricity sector;
• Provision of import facilities for machinery and capital goods for Work Contract (Kontrak-Karya) and Work Agreement for Coal Mining Concession (PKP2B);
• Proposal for tax holiday;
• Proposal for tax allowance;
• Development and Property Undertaking Business License;
• Housing Sector Business License.

Two licenses in the power generation subsector are still processed at the BKPM, namely:

• Geothermal Business License;
• Geothermal Support Business Approval.

For the oil and gas subsector, several licenses are still processed at the BKPM. These are:

• Utilization of Oil and Gas Data License;
• Survey License;
• Oil and Gas Storage Business License (Temporary License/Permanent License);
• Oil and Gas Processing Business License (Temporary License/Permanent License);
• Oil and Gas Transportation Business License (Temporary License/Permanent License);
• Oil and Gas General Trade Business License (Temporary License/Permanent License).

Lastly, for the mineral and coal subsector, the BKPM still processes:

• Exploration Mining Business License;
• Termination of Mining Business License due to the return;
• Mining Production Operation Business License specifically for transportation and sales, and its extension;
• Mining Production Operation Business License and its extension;
• Mining Production Operation Business License specifically for processing and/or refining, and its extension;
• Temporary License to carry out transportation and sales;
• Mining Production Operation Business License for sales;
• Mining Services Business License and its extension.

So, while the majority of capital investment licensing has been transferred from the BKPM to the OSS system, the licenses above are still subject to the issuance and supervision of the BKPM.

SSEK - 18th July 2018

Tweet

digg

Indonesia Snapshot

Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)

Related Topics

Indonesia’s 14th Economic Policy Package to Kick-Start E-Commerce Industry

Indonesia and the Internet; Online & On the Move

Indonesian Enterprises Look to ICT for Higher Productivity

Useful Documents

Government Regulation No 24 of 2018 (Indonesian)