Member Article

In order to implement Government Regulation No. 24 of 2018 which introduced an online system for processing and issuing certain business licenses (known as the Online Single Submission “OSS” system), earlier this year, the Investment Coordinating Board (“BKPM”) issued 2 new regulations on investment, ie BKPM Regulation No. 6 of 2018 on the Guidelines and Procedure for Capital Investment Licensing and Facilities (“Regulation 6/2018”) and Regulation No. 7 of 2018 on the Guidelines and Procedure for Capital Investment Supervision (“Regulation 7/2018”).

Both Regulation 6/2018 and Regulation 7/2018 revoke previous BKPM Regulation No. 13 of 2017 on The Guidelines and Procedure for Capital Investment Licensing and Facilities and Regulation No. 14 of 2017 on The Guidelines and Procedure for Capital Investment Supervision. Below is a summary of the key provisions of Regulation 6/2018 and Regulation 7/2018.

Licenses issued and supervised by BKPM

Previously, BKPM in its Announcement No. 2/Pengumuman/A.8/2018 dated 10 July 2018 stated that regardless of the launching of the OSS system, BKPM remained authorized to issue business licenses in the energy and mineral resources sector, public works and housing sector and would also continue processing applications for:

a. a Foreign Company Representative Office (Kantor Perwakilan
Perusahaan Asing – “KPPA”) for businesses in sectors other than trade
and construction;
b. a Branch Opening License for Business Actors whose business licenses
were issued by the Central PTSP;
c. a recommendation for a Limited Stay Visa (Visa Terbatas – a “VITAS”)
for shareholders;
d. a recommendation for changing a Visit Stay Permit into a Temporary
Stay Permit (Izin Tinggal Sementara – “ITAS”); and
e. a recommendation for changing an ITAS to a Permanent Stay Permit
(Izin Tinggal Tetap – “ITAP”).

Now, since the issuance of Regulation 6/2018, BKPM has finally made it clear that even though the OSS System has been launched, it will continue to handle the following licenses and these licenses will remain under the authority of BKPM:

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