NEW BKPM REGULATIONS ON GUIDELINES AND PROCEDURES FOR INVESTMENT APPLICATIONS

The Investment Coordinating Body of Indonesia ("BKPM") issued BKPM Regulation No. 12 of 2009 regarding Guidelines and Procedures Application (December 23, 2009) (“BKPM Reg 12/09”) that replaced the previous BKPM Regulations on the Guidelines and Procedures for Investment Applications under Domestic and Foreign Investments. There are several points to be highlighted amongst others: the application … Continue reading NEW BKPM REGULATIONS ON GUIDELINES AND PROCEDURES FOR INVESTMENT APPLICATIONS

The Obligation of Foreign Investment Company in Indonesia

After the Foreign Investment Company (“PT PMA”) has been approved by Ministry of Laws and Human Rights (“MoLHR”), it means that PT PMA is duly established in Indonesia. PT PMA should take the following obligations. Corporate Housekeeping There are several corporate actions must be conducted by PT PMA. PT PMA must held First Meeting of … Continue reading The Obligation of Foreign Investment Company in Indonesia

Prevention of Misuse of Double Taxation Agreements

The Directorate General of Taxation of Indonesia issued a new regulation to prevent the misuse of double taxation agreements and avoidance of taxes (“Directorate General Taxation No.PER-62/PJ/2009 of 2009 regarding Prevention of Misuse of Double Taxation Agreement (November 5, 2009) (“DG Tax 62/09”)).  The definition of Avoidance of Double Taxation Agreement (“P3B”) is any agreement … Continue reading Prevention of Misuse of Double Taxation Agreements

Implementation of One Stop Services on Investment Licenses in Indonesia

Investment Law Indonesia has mandated the establishment of One Stop Services (“OSS”). Following the implementation of OSS, the President has issued regulation on OSS (President Regulation No.27 of 2009). This regulation stipulates that the Coordinating Investment Body (BKPM) will be responsible for establishment OSS in local regions. Further, the Ministry of Industrial delegated its authority … Continue reading Implementation of One Stop Services on Investment Licenses in Indonesia

INVESTMENT LAW IN INDONESIA

      Introduction   Indonesia has a New Investment Law No.25 of 2007 (April 26, 2007) (“Law 25/07”). The Law 25/07  supersedes both Law No.1 of 1967 regarding Foreign Investment (January 10, 2007) and Law No.6 of 1968 regarding Domestic Investment (July 3, 1968).   Law 25/07 integrates the previous investment laws and its … Continue reading INVESTMENT LAW IN INDONESIA