The Indonesian Capital Investment Coordinating Board (“BKPM”) has issued a new regulation in Regulation of the Head of Capital Investment Coordinating Board Number 5 of 2013 concerning Guidelines and Procedures for Capital Investment Licensing and Non-Licensing Services (“Perka BKPM No.5/2013”) replacing the previous, Regulation of the Head of the Capital Investment Coordinating Board Number 12 of 2009 concerning Guidelines and Procedures for Capital Investment Applications (Perka BKPM No.12/2009).
This Perka BKPM No.5/2013 will come into effect in BKPM on 27 May 2013 and at the capital investment administrator level within provincies and/or municipalities/cities at the latest 90 (ninety) days as from its enactment on 12 April 2013 (in the middle of July 2013).
In general, Perka BKPM No.5/2013 has the following provisions, among others: (i) minimum investment for foreign capital (PMA) must be higher than IDR10 billion or the equivalent nominal value in USD; (ii) a simplification of licensing procedures that it removes the Capital Investment Registration Permit (Izin Pendaftaran Penanaman Modal) so that the investor can directly file an application for a Principle License (Izin Prinsip) after fulfilling the specific requirements; (iii) the use of domestically produced and/or imported machineries; (iv) a 2 year validity period for import duty facilities for the import of machinery/equipment, which can then be extended annually in accordance with the project completion period as specified in the Principle License.
To find out more and details regarding the capital investment guidelines and procedures under this Perka BKPM No.5/2013, please contact the partners in our firm.