Indonesian Investment Coordinating Board Decree on Guide and Procedure of Investment Permit
12 Jun
2017

Indonesian Investment Coordinating Board Decree on Guide and Procedure of Investment Permit

In order to reform and intensify foreign investment activities in Indonesia, the Head of Indonesian Investment Coordinating Board (BKPM) recently released new decree No. 12/2013 on Guide and Procedure of Investment Permit.

New regulation that need to be highlighted, especially related to investors activities to increase their production capacities is in the article 81 point 4, that stated: time period given to custom facilities on the importation of machinery (master list) in order to restructure/modernization/rehabilitation is granted for 2 (two) years since the release of decree (from BKPM) to the investor and can be extended according to the period of principal permit.

This regulation hoped to ease investors to do their planning and production activities. In the previous regulation, master list for investor’s restructurization activities, can not be extended.

Moreover, in article 81 point 5, it is stated that application on import facilities for machinery or equipment is to be request with form (as was exampled in Addendum IX-A) has to be completed with requirements such as follows:

  • Valid Business Permit (Izin Usaha-IU) in accordance with the investment decree
  • List of Machinery and the soft copy in relation with BKPM Investor Module, that consist of type (of machine), HS Code, technical specification, Country of Load, amount and price estimation in detail as per inbound port.

Change from the previous regulations that the mentioned process did not require HS number. The HS number will improve the checking procedures of custom officer in Indonesian port