Why Indonesia?

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INDONESIA INVESTMENT SNAPSHOTS AND POLICIES By: Director of Promotion Development Indonesia Investment Coordinating Board Japan, August 2013

© 2012 by Indonesian Investment Coordinating Board. All rights reserved


1

Why Indonesia? An Opportunity You Can’t Afford to Resist


Why Indonesia Country Snapshot: The Biggest Archipelago

GDP Size (nominal) GDP percapita (nominal)

GDP Growth, 2012

USD 916 Bi

Land Area

1,904,443 sq km

USD 3,562.6

Sea Area

3,116,163 sq km

6.23 %

Total Area

5,020,606 sq km

Coastal Line

81,000

Population

245.6 Million people (4th biggest population)

Main Towns

Population

GDP Share GDP/Capita

(‘000)

Jakarta (Capital) Surabaya Bandung Semarang Medan Samarinda Makassar

9,608 2,765 2,394 1,556 2,097 727 1,339

km

(%)

Jakarta (Capital) East Java West Java Central Java North Sumatera East Kalimantan South Sulawesi

16.4 14.8 14.6 8.5 5.2 6,1 2.3

(USD ‘000)

9.9 2.3 1.9 1.5 2.3 10 1.6

The rising population share of Indonesia’s middle class, those who spend USD2 - USD20 per day (% of population):

2003

Languange Indonesian (Bahasa Indonesia) As well as some 7500 other regional languanges and dialects.

2010

37.7%

56.5%

Source: various The Investment Coordinating Board of the Republic of Indonesia

Source: World Bank 3


Why Indonesia Indonesia Today…

McKinsey Global Institute: The Archipelago Economy: Unleashing Indonesia's Economic Potential September 2012

The Investment Coordinating Board of the Republic of Indonesia

4


Why Indonesia Indonesia Today… and Indonesia in 2030


McKinsey Global Institute September 2012 5


Why Indonesia Investment Climate: The World Embraces Indonesia’s Economic Performance

Indonesia's foreign debt rating Indonesia’s current position Investment grade


6


Why Indonesia Abundant Opportunities: Large Market to Served Consumer Spend in 2011 and 2030

• The burgeoning consuming class will give rise to new markets. The new wave of consuming class in Indonesia is a huge business opportunity. • With an additional 90 million consumers in Indonesia, consumer spend in urban areas would increase at 7.7% a year to become a USD 1.1 trillion business opportunity by 2030. The Investment Coordinating Board of the Republic of Indonesia

7


Why Indonesia Priority Sectors : Opportunities to be Taken 1.

Sectors that gives added value in the framework of downstreaming program or advanced product processing of mining, agriculture, fishery, and forestry

Development of Priority Industry 2010 - 2014 Indonesia Ministry of Industry

NO

Industry

Sector

1

Labor-intensive Industry

Textile, Footwear, Leather, Furniture

2

Small-Medium Industry

Fashion, Craft, Precious Stone, Ceramics, Essential Oil, etc.

3

Capital-goods Industry

Machinery, Shipyard

4

Human-capitalbased Industry

Food and Beverages, CPO, Cocoa, Rubber, Steel & Upstream Aluminum, Seaweed

5

High Growth Industry

Automotive, electronics dan Telematics

6

Special Priority Industry

Sugar Industry, Fertilizer Industry, Petrochemical Industry, Oil and Gased Based Industriy

e.g.: Smelter industry; CPO, cocoa, and fishery advance processing

2.

Sectors of industry which type of production is imported as capital goods and raw material to support other industry (the substitution of import of capital goods and raw material) e.g.: Steel and iron; automotive components; basic chemical; and machinery

3.

Sectors of industry which type of production is imported as public consumption in Indonesia (the substitution of import of consumption goods) e.g.: Food and beverages industry; home appliances; Oil Refinery (BBM, lubricant).

4.

Sectors of industry which show increasement in domestic consumption trend e.g.: Cement industry;building materials

5.

Export-oriented sectors which use relatively small imported capital goods and raw materials e.g.: Industri tekstil, Hilirisasi Industri pengolahan kelapa/kelapa sawit (minyak nabati), Industri pengolahan karet, produk kayu, budidaya udang, industri kakao, kopi, rumput laut, industri makanan, dll

6.

Infrastructure sectors which development driven by the Government through the pattern of PPP e.g.: renewable energy; highway development; airport and seaport; water supply; waste processing; railway development

7.

Tourism Sector and Creative Industry


8

Souce: BKPM


2

Investment Performance The Role of Investment in Indonesia


Investment Performance

Investment to Indonesia 2010 – 2013 (Q2) Total Foreign Direct Investment to Indonesia

FDI by Country (US$. billion)

(USD billion) 30 Excl. oil, gas and financial sectors

24,565

25

17,5

19,475

20

16,215

14,221

15

Singapore Japan

36,7

USA 7,0

10

5,0

5

4,7

South Korea Netherlands Others

0 2010

2011

2012

Q-2 2013

3,5


Source: BKPM

10


Investment Performance

Japan Investment to Indonesia Based on Sectors 2010 – 2013 (Q2) Investment (US$ Million)

236 ; 3%

Motor Vehicles & Other Transport Equip. Industry

943 ; 14%

Metal, Machinery & Electronic Industry

298 ; 4%

Chemical and Pharmaceutical Industry

559 ; 8%

1.254 ; 18%

3.702 ; 53%

Trade & Repair Food Industry

Others


Source: BKPM

11


Investment

Destination of World and Japan Investment China United States India Indonesia Vietnam Thailand Mexico Brazil Malaysia Lithuania

28.011,8 20.006,2 16.263,5 11.354,2 9.948,3 9.413,5 8.805,8 7.919,2 6.868,1 6.711,0

Top-10 Destination of World Investment 2010 – 2013 (Q2) (USD million) Excl. financial sectors

China

27.237,0

United States

19.972,3

India

Top-10 Destination of Japan Investment

Indonesia

2010 – 2013 (Q2)

Thailand

(USD million) Excl. financial sectors

Mexico

16.263,5 10.504,2 9.413,5 8.805,8

Brazil

7.889,4

Vietnam

7.651,9

Malaysia Singapore The Investment Coordinating Board of the Republic of Indonesia

6.868,1 4.961,1 Source: fDi Intelligence, from the Financial Times Ltd 2013.

12


Investment Performance Overcome the Challenges: Masterplan

Basically MP3EI is based on these strategic initiatives: 1. Encourage a large scale investment realization in 22 main economic activities 2. Synchronization of national action plan to revitalize the real sector performance 3. The development of center of excellence in 6 (six) economic corridors Main strategy of MP3EI: 1. Economic potential development through economic corridor 2. Strengthening the national connectivity 3. Strengthening national human resources capability and science and technology


13


Investment Performance Overcome the Challenges: Knowing Our Potential Source: Coord. Ministry of Economic Affairs, 2011

Sumatera Corridor

Kalimantan Corridor

Sulawesi Corridor

Papua – Maluku Corridor

Bali - Nusa Tenggara Corridor

Java Corridor

“Supporting the National Service and Industry" “Central of Production and Manufacture of National Natural and Energy Resources" “Central of Production and Manufacture of National Mining and Energy Resources"

“Central of Production and Manufacture of National Agriculture, Plantation, Fishery, and Nickel Mining'' “Gate of Tourism and Supporting Provider of National Food and Agriculture'' “Central of Development of National Food, Fishery, Energy, and Mining”


14


3

How to Invest in Indonesia Investment Policies and Facilities


General Plan Of Investment ( Presidential Decree No 16 Year 2012) GENERAL PLANNING OF INVESTMENT Based on Presidential Decree Number 16 Year 2012 on General Plan Of Investment (RUPM) and its Appendix have signed by the President on February 7, 2012

Seven Directions of Investment Policies: 1. 2. 3. 4. 5. 6. 7.

Infrastructur

Improvement of Investment Climate; Encourage the Distribution of Investment; Development focus on food, Infrastructure, and Energy; The Sustainable Investment (Green Investment); Empowerment of Micro, Small, Medium Enterprises, and Cooperatives (UMKMK); Provision of Facilities, easiness, and / or the Investment Incentives; Investment Promotion

Food

• Economic Diversification • More value added • Competitiveness

Energy

Supported by manufactural sector (through backward and forward linkage) The Investment Coordinating Board of the Republic of Indonesia

16


INVESTMENT LAW (UU No.25 Year 2007)

INVESTMENT FACILITIES

TAX REFORMS

 Mandate equal treatment for foreign and domestic investors  No minimum capital requirement, freedom to repatriate capital

 Simplification of business start up and licensing procedures, including the “one-stop shop” licensing provision at the Investment Coordinating Board (BKPM)  Launching of the National Single Windows for Investment  Establishing an Investor Relation Unit at the Investment Coordinating Board for information facilitation and queries handling from existing and potential investors.  Implementing a regional champion program to help select local governments accelerate investments in their respective regions  An acceleration of the VAT refund system for exporters  Establishment of a complaint management system and a code of conduct for tax officials


17


IMPORT DUTY FACILITIES

 Regulated on MoF Regulation No.176/PMK.011/2009 granted for industries which produces goods or services  Exemption from import duty on the import of machines for a period of 2 (two) years  Exemption from import duty on the imports of goods and materials for production for a maximum period of 2 (two) years  Exemption from import duty on the imports of goods and materials for production for a period of 4 (four) years, is granted to a company which is using the locally-produced machines at least 30% of the total value of machines for its production  Service industry which is eligible for the facility: 1. 2. 3. 4. 5. 6. 7.

Tourism and culture Transportation (for public transportation services) Public health services Mining Construction Telecommunication Port The Investment Coordinating Board of the Republic of Indonesia

18


VAT FACILITIES

LAND ACQUISITION BILL

TAX ALLOWANCE

 Government Regulation No. 12 of 2001 jo No. 31 of 2007  Exemption of value added tax of imported capital goods, machinery, or equipment (except spare parts) which cannot be produced domestically  Submit tax-free letter to the Director General of Taxes  In December 2011, parliament passed a new land acquisition bill (stipulated as Law No 2/2012) which provides certainties in land pricing and timing of land acquisition process. This will accelerate the construction of desperately needed roads, ports and airports to be better connect an archipelago of 17,500 islands spanning some 5,000 kilometers  Government Regulation No.52 year 2011, an amendment of Government Regulation No.62 year 2008, regarding corporate Income Tax facilities that could be granted to investors under certain conditions, has been issued currently. By this regulation, the tax allowance will be eligible for 129 business segments, expanded from 38 segments in the previous regulation. The Investment Coordinating Board of the Republic of Indonesia

19


TAX ALLOWANCE (Government Regulation No.52 year 2011)

 30% (thirty percents) reduction of corporate net income based on investment value for six years, 5% (five percents) each year.  Accelerated depreciation and amortization as follows: Tangible Fixed Assets

Economical life

Depreciation and Amortization tariff Straight line method

Before tax incentives 01. Non Structure Group 1 4 years Group 2 8 years Group 3 16 years Group 4 20 years 02. Structure Permanent 20 years Non 10 years permanent

Declining balance method

After tax incentives

Before tax incentives


Before tax incentives


2 years 4 years 8 years 10 years

25% 12.5% 6.25% 5%

50% 25% 12.5% 10%

50% 25% 12.5% 10%

100% (one time) 50% 25% 20%

10 years 5 years

5% 10%

10% 20%

n/a n/a

n/a n/a


20


TAX ALLOWANCE (Government Regulation No.52 year 2011)

 The imposition of income tax on dividends paid to foreign tax subject amounting to 10% (ten percent), or a lower rate according to Tax Treaty Agreement.  Compensation for losses that are longer than 5 (five) years but not more than 10 (ten) years with the following conditions: 1. Additional 1 year if the new investment, as stipulated under Article 2 (1), is realized in Industrial Estate and Bonded Zone. 2. Additional 1 year if the new company employs at least 500 (five hundreds) Indonesian employees for 5 (five) years in a row 3. Additional 1 year if the new investment needs investment in economic and social infrastructure on site for minimum 10 (ten) billion rupiah. 4. Additional 1 year if the company spends research and development expense in Indonesia for products development or production efficiency at least 5% (five percents) from investment value within 5 (five) years 5. Additional 1 year if the company using local raw materials or components produced by local manufacturers which comprise minimum 70% of its production materials since the 4th year of its investment The Investment Coordinating Board of the Republic of Indonesia

21


Annex I Government Regulation No. 52 of 2011 for food sector Business Fields

Standard Classification Of Indonesian Business Fields (KBLI 2009)

Product Coverage

Requirements

Food Sector Breeding and Farming of beef cattle

01411

- Breeding of beef cattle - Local cattle farming

- > 5000 tail/year - > 5000 tail/cycle

Food industry from cocoa and cotton candy

10732

Includes the business of making all kinds of food that the main ingredient of cocoa powder, cocoa butter, cocoa fat, and cocoa oil

- Investment ≥ Rp. 100 M - Workers ≥ 100 manpower for new investment, or ≥ 200 manpower for expansion of investment - 50% using local component - Minimal 50% product containing cocoa


22


Annex II Government Regulation No. 52 of 2011 for marine products Business Fields


Product Coverage

Provinces

Requirements

Marine Fishing

03111

All kind of fish with exception of shark

Aceh, North Sumatera, Riau Islands, West Sumatera, Jambi, Lampung, Bangka Belitung, West Java, Central Java, East Java, Bali West Nusa Tenggara, East Nusa Tenggara, Maluku, Papua, West Kalimantan, East Kalimantan, North Sulawesi, Gorontalo, South Sulawesi, Southeast Sulawesi, North Maluku, West Papua

- Integrated or partnership DDI, partnership FDI by having minimal 1 KBLI among KBLI number: 10211, 10212, 10213, 10214, 10219, 10221. - Using ship with minimal size 60 GT or using machinery with minimal 180 DK power

Crustacea

03112

All kind of crustacea

Aceh, North Sumatera, West Sumatera, Bengkulu, Lampung, Banten, West Java, Central Java, Yogyakarta, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Maluku, Papua

-Integrated or partnership DDI, partnership FDI by having minimal 1 KBLI among KBLI number: 10293,10299,10221. - Using ship with minimal size 60 GT or using machinery with minimal 180 DK power

Mollusca

03113

All kind of mollusca

Aceh, North Sumatera, West Sumatera, Bengkulu, Lampung, Banten, West Java, Central Java, Yogyakarta, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Maluku, Papua, Southeast Sulawesi

-Integrated or partnership DDI, partnership FDI by having minimal 1 KBLI among KBLI number: 10293,10299,10221. - Using ship with minimal size 60 GT or using machinery with minimal 180 DK power


23


Annex II Government Regulation No. 52 of 2011 for marine products Business Fields


Product Coverage

Location

Requirements

Marine Fish breeding

03211

- Grouper fish - White snapper -Seaweed - Pomfret star

Aceh, North Sumatera, Riau Islands, Bangka Belitung, Lampung, Banten , DKI Jakarta, West Java, Central Java, East Java, West Kalimantan, East Kalimantan, Bali, West Nusa Tenggara, East Nusa Tenggara, Gorontalo, North Sulawesi, Central Sulawesi, Southeast Sulawesi, West Sulawesi, Soutrh Sulawesi, Maluku, North Maluku, Papua, West Papua

- n/a


24


Annex II Government Regulation No. 52 of 2011 for palm oil industry Business Fields


Product Coverage

Location

Requirements

Palm Oil Industry

10432

Bulk pal oil industry and/or branded packaging and/or simple packaging

Provinces in Sumatera and Kalimantan

- investment ≥ Rp. 60 M - labor ≥ 100 manpower - integrated industry in a region ranging from palm oil refining process, separation, and palm oil packing (bulk, branded packaging and/or simple packaging)

Edible oil industry and other animal fats and vegetable

10490

Shortening (vanaspati) and speciality fats

All provinces except Java Island

- investment ≥ Rp. 70 M - labor ≥ 100 manpower - integrated in an industrial area, made from palm oil, CPKO, and other vegetable oils into solid products


25


TAX HOLIDAY

 Government Regulation no. 94 of 2010 on Calculation of Non Taxable Income and Payment of Income Tax in the Current as the umbrella regulation of tax holiday.  The Regulation of the Minister of Finance No.130/PMK.011/2011 (according to Article 2), a taxpayer can be granted a tax holiday facility for a period of between 5 and 10 years, starting from the commencement of its commercial production.  After the expiration of the tax holiday, the taxpayer will be entitled to an income tax reduction of 50% for a further 2 years.  By considering the purpose of maintaining the competitiveness of national industries and the strategic value of certain business activities , the duration of the tax holiday and the tax reduction can be extended based on a decision by the Minister of Finance.


26


tax holiday for palm oil downstream industry Business Fields

Palm Oil Downstream Industry

Product Coverage

1. CPO refining process industry, fractination, and palm oil packing industry (bulk, branded packaging and/or simple packaging); and/or 2. Shortening industry (vanaspati) and specialty fat; and/or 3. Oleochemical industry (fatty acids, fatty esters, fatty alcohol, fatty nitrogen compound, glycerine, methyl ester and/or its derivatives); and/or 4. Pharmaceuticals industry derived from palm oil processing industry consisting industry: • • • •

Betacarotene Tocopherol Tocotrienol Medium Chain Triglyceride (MCT)


10432

and/or 10490 and/or 20115

Requirements

1. Locations: • Sei Mangke, North Sumatera • Maloy, East kalimantan • Dumai & Kuala Enok, Riau • Economic Corridor Maluku and Papua 2. Developing infrastructure (distinguished period of tax holiday facility utilization

and/or

21011

and/or

and/or 5. Management of organic waste (sludge) from palm oil mills to produce biogas as raw material for electricity production and/or hydrogen gas

38211


27


TAX HOLIDAY APPLICATION PROCEDURES (PMK No.130/PMK.011/2011)


28


Non - Fiscal Incentives

INTEGRATED ONE STOP SERVICES IN INVESTMENT SECTOR (PTSP)

ELECTRONIC INVESTMENT LICENSING AND INFORMATION SERVICE SYSTEM (SPIPISE)

Regulations :  Presidential instruction No. 1/2010 concerning Acceleration of Implementation National Development Priority  Presidential Decree No. 27/2009 concerning Integrated One Stop Services in Investment Sector The aims :  To cut bureaucratic procedures;  Allow investors to process business license faster;  Accelerate and simplify the procedures of investment; and  Reduce administration fees Regulations :  Chairman of Investment Coordinating Board Decree No. 14/2009 concerning  Electronic Investment Licensing and Information Service System (SPIPISE) The aims :  Ease of licensing process tracking,  Single submission of data & information  Single and synchronous processing of data and information  Single Decision-making for investment information & licensing process

IMPLEMENTATION OF ONE STOP SERVICE (OSS) From 33 Provinces and 497 municipals/cities in Indonesia.

- 33 provinces - 362 Municipals / Cities have been stablished One Stop Integrated Services for investment (OSS).

- OSSI of 33 Provinces and 265 Municipals/Cities (229 Municipals and 36 Cities) have been quilified for National standards.

All 33 provinces and 90 Municipals/Cities have been used Online Licensing System (SPIPISE)


29


NEGATIVE INVESTMENT LIST (Presidential Regulation No.36 Year 2010)

 The regulation come into force as of May 2010  The Negative Investment List is reviewed every 3 years  40 business sectors are more open for investors

No.

Sectors

More Open

More Restrictive

1.

Agriculture

-

2

2.

Forestry

1

-

3.

Maritime and Fishery

1

-

4.

Energy and Mineral Resources

1

-

5.

Industry

2

3

6.

Public Works

1

-

7.

Trade

1

-

8.

Culture and Tourism

17*

1

9.

Transportation

4*

1

10.

Communication and Information

2

2

11.

Manpower and Transmigration

2

-

12.

Health

8*

-

13.

Security

-

1

40

10

Total *) Including business field open with condition for ASEAN Investors


30


Closed Food Industry Business Fields to Investment

Business Fields

KBLI

Marijuana Cultivation

01289

Capturing of Fish Species as Stated in Appendix I Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

01701 03119

Alcohol Beverage Industry (Liquor, Wine, and Malt Containing Beverages)

11010 11020 11030


31


Negative Investment List on Food Industry (1) Business Fields

KBLI

Conditions

The use of Genetic Agriculture Resources

00000

Maximum 49 % for foreign capital ownership , and recommendation of the Minister of Agriculture

The use of GMO Products (Genetic Engineering)

01640


Main crop cultivation (corn, soy, peanuts, green beans, rice, cassava, sweet potato), in an area of more than 25 Ha

01111 01113 01114 01115 01120 01135


Main crop plant culturing medium/nursery business (corn, soy, peanuts, green beans, rice, cassava, sweet potato

01111 01113 01114 01115 01120 01135


Processed Food from seeds and roots, sago, Gnetum gnemon nut and copra industry

10391 10392 10792 10793 10794

Reserved for micro, small, medium enterprises and cooperatives

Palm sugar

10722


Sweetening and saline fruits and vegetable industry

10211 10214

Partnership


32


Negative Investment List on Food Industry (2) Business Fields

KBLI

Conditions

Processed Food from seeds and roots, sago, Gnetum gnemon nut and copra industry: • Copra industry • Soya sauce industry • Soy made food and peanuts other than soya sauce, tempe, tofu industry • Cracker, chip, peanut cracker and the like

10421 10771 10793

Milk powder process and condensed milk industry

10510

Partnership

Tobacco drying and processing industry

12091

Partnership

Partnership

10794


33


Negative Investment List on Palm Oil Industry Business Fields

KBLI

Conditions

Palm plantation cultivation for an area less than 25 Ha

01262


Seeding palm plantation business for a land area that is less than 25 Ha

01262


Palm Oil Industry below certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment

10431


Palm plantation for an area of 25 Ha or over, up until a certain area according to Regulation of Minister of Agriculture Number 26 of 2007, without a processing unit

01262

maximum 95 % for foreign capital ownership , and recommendation of the Minister of Agriculture cq. The Director General of Plantation

Crude oil industry (edible oil) from vegetable and animal, and Palm oil industry, similar capacity or exceeding a certain capacity, according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment

10411 and 10432


Palm plantation and palm oil industry (CPO) for 25 Ha area of land or more, integrated to the processing unit by the same capacity or exceeding a certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment

01262 and 10431



34


Negative Investment List on Cocoa Business Fields

KBLI

Conditions

Beverage material crop plantation (Tea, Coffee and Cocoa) cultivation for an area less than 25 Ha

01270


Peeling, Cleaning and Drying Cocoa Industry below certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its amendement

10613


Crop plantation for beverage material (Tea, Coffee and Cocoa) for an area of 25 Ha or over, up until a certain area according to Regulation of Minister of Agriculture Number 26 of 2007, without a processing unit

01270


Peeling, Cleaning and Drying cocoa Industry similar capacity or exceeding a certain capacity, according to regulation of Minister of Agriculture Number 26 of 2007 and/or its amendment

10613


Cocoa plantation and Peeling Cleaning and Drying Cocoa Industry for 25 Ha area of land or more, integrated to the processing unit by the same capacity or exceeding a certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007 and/or its Amandment

01270 and 10612



35


Negative Investment List on Fishery Business Fields

KBLI

Conditions

Fishery Processing Business Conducted in an integrated manner by Catching Fish in Public Water

03131 03132


Fishery Processing Business • Salt/Fish Drying and Other Water Biota Industry • Smoke Fish and Other Water Biota Industry

Partnership 10211 10212

Fishery Processing (UPI) Business, Fermentation, Reduction/Chemical Process, Surimi and Jelly Fish Process

10219

Partnership

Salting/drying fish and other water biota industry and smoked fish industry

10211 10214



36


Japan Investment Realization in Food Industry

2010

2011

2012

2013

Food Industry

84.785,3

39.323,9

45.863,9

66.236,0

Food Crops & Plantation

3.769,0

100,0

66,5

0,0

Livestock

6.575,0

1.166,7

0,0

0,0

120,0

2.038,7

3.292,1

0,0

Fishery


37


INVESTMENT GUIDE


38


INVESTMENT GUIDE Permit License Mechanism Attachments required to be submitted with applications : 1. Letter of recommendation from the related country or letter which is issued by the Embassy/ Representative Office of the related country in Indonesia if the applicant is The Government of another country; 2. Copy of valid passport if the applicant is a foreign individual; 3. Copy of Articles of Association of the company in English or its translations in Bahasa from sworn translator if the applicant is a foreign company; 4. Copy of valid Identity Card (KTP) if the applicant is an Indonesian individual; 5. Copy of Articles of Establishment of the company and any amendment (s) and approval from the Minister of Law and Human Rights if the applicant is incorporated under the law of Republic of Indonesia; 6. Copy of Tax Registration Code Number (NPWP) for the applicant, either for Indonesian individual or company which is incorporated under the law of the Republic of Indonesia; 7. This application should be properly and duly signed with sufficient stamp duty by all applicants (if the company is not yet incorporated) or by the company's Board of Directors (if the company is already incorporated) attached with Power of Attorney with sufficient stamp duty from whom signs and/or submits the application if the applicant is represented by another party (provisions concerning the Power of Attorney is strictly regulated in this regulation (article 63). One Stop Shop Based on Presidential Decree 27/2009 and as part of its 100-day program, BKPM is implementing a one-stop-shop system (PTSP), to cut bureaucratic redtape and allow investors to process business licenses faster. Its goal is to streamline and consolidate the number of steps and places an investor must go for business permit issuances. The program requires the consent of some 16 ministries relevant to the investment approval process, to delegate its authority to BKPM in granting licensing and non-licensing services. As of February 5, 2009, all relevant ministries have signed off on the various decrees necessary, and BKPM is moving forward with the implementation process at both the central and regional level. National Single Window for Investment (NSWI) In order to facilitate PTSP even further, the National Single Window for Investment (NSWi) was created. NSWi is an electronic platform for investments that enables investors to apply for license and non-license services online. The ability to fully automate the investment license process would significantly enhance the efficiency of licensing services. The system was first launched in January 2010 in the Free Trade Zone and Free Port of Batam. The Investment Coordinating Board of the Republic of Indonesia

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International Representatives Office

THANK YOU Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board

invest in

Jalan Jenderal Gatot Subroto No. 44, Jakarta 12190 P.O. Box 3186, Indonesia T : +62 21 5292 1334 F : +62 21 5264 211 E : [email protected] The Investment Coordinating Board of the Republic of Indonesia

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© 2012 by Indonesian Investment Coordinating Board. All rights reserved