INVESTMENT IN INDONESIA
Domestic Investment (DI) is an investment done based on the Act No. 6 Year 1968 about Domestic Investment as has been amended with the Act No. 12 Year 1970.
THE PROCEDURE IN APPLYING FOR DOMESTIC INVESTMENT
(Based on the Minister of Investment Activator/Head of the Investment Coordination Decree Number 38/SK/1999)
- The proposal for Domestic Investment (New) can be applied by the enterprises with the form of Limited Corporation, Limited Partnership, Firm, Co-operative, BUMN (enterprise owned by the State), BUMD (enterprise owned by the Territorial Government) or Private.
- The application is proposed to:
- - The Minister of Investment Activator/ Head of the Investment Coordination or
- - the Province Governor/Head of the Territorial Investment Coordination
- The application is made double (two sets), using the Type I Form/PMDN and attaching necessary document.
- The approval of the investment application will be made by the Minister of Investment Activator/Head of the Investment Coordination or the Head of the Teritorial Investment Coordination for the Province Governor in behalf of the Minister of Investment Activator/ Head of the Investment Coordination in the form of approval Letter on the Domestic Investment (Surat Persetujuan Penanaman Modal Dalam Negeri or SP.PMDN)
- The approval letter (SP.PMDN) is issued in10 (ten) days of work at the latest since the complete and correct proposal being accepted
THE AUTHORIZATION PROCEDURE
1. Central Authorization
The approval for the investment facilities is filed to the Head of the Investment Coordination. The Central Authorization Implementation consists of:
- Investment Agreement (Foreign Capital Investment/Domestic Capital Investment)
- Custom Office Facility Agreement on the capital goods and raw materials/supporting supplies
- Permanent Enterprise Permission
- The Planning of Employing Foreign Labor Legalization
- Limited Import Number Identification
2. Territorial Authorization
In order to implement the capital investment in the Territorial, every Foreign Capital Investment/Domestic Capital Investment company must have territorial permission, which consists of:
- Letter of Approval on the Terrain Release
- Letter of Land Usage Reference
- Permission in Constructing Building/Permission of the Building Usage
- Authorization in the Disturbance Regulation
- AMDAL (Analysis about the Environment Impact) Recommendation
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