Authorized Translation

INVESTMENT COORDINATING BOARD

COPY

REGULATION OF THE INVESTMENT COORDINATING BOARD OF

THE REPUBLIC OF INDONESIA

NUMBER 6 OF 2018

CONCERNING

GUIDELINES AND PROCEDURE OF LICENSE AND INVESTMENT FACILITIES

BY THE GRACE OF GOD ALMIGHTY

CHAIRMAN OF INVESTMENT COORDINATING BOARD OF

THE REPUBLIC OF INDONESIA,

Considering : a. whereas in order to implement the provisions of

Article 88 of Government Regulation Number 24

Of 2018 concerning Electronically Integrated

Business License Services, it is necessary to

formulate norms, standards, procedures and

criteria of Business License and Investment

Facilities;

-1-
 Authorized Translation

b. whereas the Regulation of the Investment

Coordinating Board Number 13 Of 2017

concerning Guidelines and Procedures for

Licensing and Investment Facility needs to be

adjusted to the amendment of law and legislation;

c. whereas based on the considerations as referred

to in letter a and letter b, it is necessary to

stipulate Regulation of the Investment

Coordinating Board on Guidelines and Procedure

for Licensing and Investment Facility;

In view of : 1. Law Number 25 Of 2007 concerning Investment

(State Gazette of the Republic of Indonesia Year

2007 Number 67, Supplement to the State

Gazette of the Republic of Indonesia Number

4724);

2. Government Regulation Number 24 of 2018

concerning Electronically Integrated Business

License Services (State Gazette of the Republic of

Indonesia Year 2018 Number 90);

3. Presidential Regulation Number 90 Of 2007

concerning the Investment Coordinating Board as

amended by Presidential Regulation Number 86 of

2012 concerning Amendment to Presidential

-2-
 Authorized Translation

Regulation Number 90 Of 2007 concerning

Investment Coordinating Board (State Gazette of

the Republic of Indonesia Number 210);

4. Presidential Regulation Number 97 Of 2014

concerning the Implementation of One Stop

Integrated Service (State Gazette of the Republic

of Indonesia Year 2014 Number 221);

5. Presidential Regulation Number 91 Of 2017

concerning Acceleration of Entrepreneurship

(State Gazette of the Republic of Indonesia Year

2017 Number 210);

HAS DECIDED:

To Stipulate : REGULATION OF THE INVESTMENT COORDINATING

BOARD CONCERNING GUIDELINES AND PROCEDURES

FOR LICENSING AND INVESTMENT FACILITIES.

CHAPTER I

GENERAL PROVISIONS

Article 1

In these Regulations the meaning of:

1. Investment is any form of investment activity,

either by Domestic and Foreign Investor, to

-3-
 Authorized Translation

conduct business in the territory of the Republic of

Indonesia.

2. Investor is an individual or business entity

conducting Investment which may be a Domestic

and Foreign Investor which hereinafter in these

Regulations may be referred to as Investor.

3. Domestic Investor is an individual of Indonesian

citizen, Indonesian business entity, the state of

the Republic of Indonesia, or the regions

conducting Investment in the territory of the

Republic of Indonesia.

4. Foreign Investor is an individual of foreign citizen,

foreign business entity, and/or foreign

government conducting Investment in the

territory of the Republic of Indonesia.

5. Domestic Investment hereinafter abbreviated as

PMDN is the activity of investment to conduct

business in the territory of the Republic of

Indonesia performed by Domestic Investor by

using domestic capital.

6. Foreign Investment hereinafter abbreviated as

PMA is the activity of investment to conduct

business in the territory of the Republic of

-4-
 Authorized Translation

Indonesia carried out by Foreign Investors,

whether using foreign capital completely or in

association with Domestic Investors.

7. Investment Coordinating Board hereinafter

abbreviated as BKPM is a non-ministerial

government institution responsible in the field of

Investment, led by a Head who is under and

directly responsible to the President.

8. One Stop Integrated Service, hereinafter

abbreviated as PTSP, is an integrated service in

one unity of the process starting from the stage of

the application to the completion of the service

product through one door.

9. PTSP Center in BKPM is the Investment related

Services as the Government's authority conducted

on integrated basis in a unified process starting

from the application stage until the completion of

the service product through one door in BKPM.

10. Online Single Submission Management and

Organization Institution, hereinafter referred to as

OSS Institution, is a non-ministerial government

institution that conducts government affairs in the

field of investment coordination, namely BKPM.

-5-
 Authorized Translation

11. Department of Investment and One Stop

Integrated Service of Province, Regency/

Municipality, hereinafter referred to as DPMPTSP

Province, DPMPTSP Regency/Municipality is the

element of assistant regional head for the

implementation of governmental affairs of

province, regency/municipality which performs the

main function of coordination in the field of

Investment in local government of province,

regency/municipality.

12. Special Economic Zone hereinafter abbreviated to

KEK is a region with certain borders within the

jurisdiction of the Unitary State of the Republic of

Indonesia which is determined to perform

economic functions and obtain certain facilities.

13. Free Trade Area and Free Seaport hereinafter

abbreviated as KPBPB shall be an area within the

jurisdiction of the Unitary State of the Republic of

Indonesia separated from the customs area so

that it is free from imposition of entry duty, value

added tax, sales tax on luxury goods, and excise.

14. Licensing shall be any form of approval to engage

in Investment issued by the Central Government,

-6-
 Authorized Translation

Regional Government, KPBPB Enterprises Body or

KEK Administrator, which has authority in

accordance with the provisions of laws and

regulations.

15. Investment Facility is any form of fiscal and non-

fiscal incentives and easiness of Investment

services, in accordance with the provisions of laws

and regulations.

16. Business License shall mean the registration

provided to the Investor to start and operate the

business and/or activity and shall be granted in

the form of an approval as outlined in the form of

a letter/decision or fulfillment of the terms and/or

commitment.

17. Electronically Integrated Business License or

Online Single Submission hereinafter abbreviated

as OSS is Business License issued by the OSS

Institution for and on behalf of ministers, heads of

institutions, governors or regents/mayors to

Investors through an integrated electronic system.

18. Business License means a license issued by a

central PTSP in BKPM for and on behalf of the

minister or head of the institution, after the

-7-
 Authorized Translation

Investor has been registered and to start the

business and/or activity prior to the commercial or

production operation by fulfilling the requirements

and/or Commitments.

19. Business Registration Number hereinafter

abbreviated as NIB shall be the identity of the

Investor issued by the OSS Institution after the

Investor has been registered.

20. Taxpayer Identification Number hereinafter

abbreviated as TIN/NPWP is number given to a

Taxpayer as a facility in tax administration which

is used as self-identification or Taxpayer's identity

in implementing taxation rights and obligations.

21. Electronically Information and Investment License

Service System, hereinafter abbreviated as

SPIPISE, is an electronic system of Licensing and

Non-Licensing services integrated between BKPM

and ministries/non-ministerial government

agencies with licensing and non-licensing

authority, KPBPB Enterprise Board, KEK

Administrator, DPMPTSP Province, DPMPTSP

Regency/Municipality, and PTSP Implementing

Agency in the Field of Investment.

-8-
 Authorized Translation

22. Electronic Documents are any electronic

information created, forwarded, transmitted,

received, or stored in the form of analog, digital,

electromagnetic, optical, or the like, which may be

retrieved, displayed and/or heard through a

computer or electronic system, including but not

limited to writing, sound, images, maps, designs,

photographs or the like, letters, signs, numbers,

access codes, symbols or perforations that have

sense or meaning or are understandable to those

who are able to understand them.

23. Electronic Signature is a signature consisting of

Electronic Information embedded, associated or

related with other Electronic Information used as

a verification and authentication tool.

24. Day is the day of work as determined by the

Central Government.

25. Representative Office of Foreign Company,

hereinafter abbreviated as KPPA, is an office led

by an Indonesian citizen or a foreign national

appointed by a foreign company or a foreign joint-

venture overseas as its representative in

Indonesia.

-9-
 Authorized Translation

26. Decision Letter of the Head of the Investment

Coordinating Board on behalf of the Minister of

Finance concerning the granting of facilities on the

import of machinery/capital goods as well as

goods and materials shall be the granting entry

duty facility on the import of machinery/capital

goods and goods and materials for Investment.

27. Decision Letter of the Head of the Investment

Coordinating Board on behalf of the Minister of

Finance concerning the granting of exemption or

allowance of entry duty and/or value added tax on

the import of goods for the working contract and

the working agreement of the coal mining

business shall be the granting of exemption or

allowance of entry duty and/or exemption of

value-added tax on import of goods for working

contract and coal mining concession working

agreement.

28. Corporate Leader is a board of directors which is

incorporated in the articles of association or

amendment thereof who have been approved by

the Minister of Law and Human Rights for a legal

entity of a Limited Liability Company or in

- 10 -
 Authorized Translation

accordance with the provisions of the law and

regulation for non-legal entity of a Limited Liability

Company.

29. Construction is the establishment of a new

company or factory to produce goods and/or

services.

30. Development is the development of an existing

company or plant including the addition,

modernization, rehabilitation, and/or restructuring

of the production equipment including machinery

for increasing the number, type, and/or quality of

production results.

31. Machinery shall be any engine, machinery, plant

equipment, tools or devices, in installed and

disposed state used for industrial construction or

development.

32. Goods and Materials are all goods or materials, of

any type and composition, used as materials or

components to produce finished goods.

33. Power Plant Industry is an activity of producing

and providing electricity power for public interest

by any business entity conducting business in the

field of electricity supply, excluding transmission,

- 11 -
 Authorized Translation

distribution, and electric power supporting

business.

34. Business Entity in the Field of Electricity Power

shall be a legal entity which may be in the form of

a state-owned enterprise, a regional-owned

enterprise, a private entity incorporated as an

Indonesian legal entity, and/or a cooperative,

conducting business in the electricity sector,

established in accordance with the law and

legislation.

35. Transfer is the transfer of rights, asset transfer,

and changes in use of capital goods or machinery,

for other activities outside of business, export or

write-off of the company assets.

36. Transfer in the Mining Sector shall be the transfer

of rights, asset transfer, sale, exchange, grant, or

write-off of the company's assets.

37. Exports shall be the release of imported goods ex-

facility exemption or allowance of entry duty

and/or value added tax for working contract or

working agreement of coal mining business from

customs area according to the customs regulation

in the export sector.

- 12 -
 Authorized Translation

38. Taxpayer is a business entity conducting

Investment of either legal entity or non-legal

entity.

39. Investment Activity Report hereinafter

abbreviated as LKPM is a report on the progress of

Investment realization and problems faced by

Investors which must be made and submitted

periodically.

CHAPTER II

PURPOSE AND OBJECTIVES

Article 2

Guidelines and Procedures for Licensing and Investment

Facilities as set forth in these Regulations are intended

as guidance on the issuance of Licensing and

Investment Facility for:

a. central PTSP officials in BKPM, DPMPTSP Province,

DPMPTSP Regency/Municipality, KPBPB Enterprise

Body, and/or KEK Administrator according to their

authority; and

b. investors and other public communities.

Article 3

Guidelines and Procedure for Licensing and Investment

Facility aims:

- 13 -
 Authorized Translation

a. to realize standardization of the filing procedure,

the requirements of application and process of

Licensing and Investment Facilities at PTSP Center

in BKPM, DPMPTSP Province, DPMPTSP

Regency/Municipality, PTSP KEK, and PTSP

KPBPB; and

b. to provide information on the terms and

completion time of the application for Licensing

and Investment Facility.

CHAPTER III

SCOPE

Article 4

(1) The scope of service arrangements in this Agency

Regulations covers Licensing and Investment

Facility services as well as supervision on the

fulfillment of Business License commitments.

(2) Licensing and Investment Facility services as

referred to in paragraph (1) shall include the

following licenses:

a. energy and mineral resources sectors,

electricity sub-sectors, namely:

1. geothermal permits; and

- 14 -
 Authorized Translation

2. preliminary survey and geothermal

exploration assignments;

b. energy and mineral resources sectors, oil

and natural gas subsectors, namely:

1. license for utilization of oil and natural

gas data;

2. survey permit;

3. oil and natural gas storage business

license;

4. oil and natural gas processing

business license;

5. oil and natural gas transportation

business license;

6. oil and natural gas general commercial

Business License; and

7. foreign representative office license

for oil and natural gas sub-sector;

c. energy and mineral resources sectors,

mineral and coal subsectors, i.e:

1. Exploration mining business license;

2. Termination of mining business license

due to return;

- 15 -
 Authorized Translation

3. Mining business license of special

production operations for the

transport and sale as well as its

extension;

4. Mining business license of production

operations as well as its extension;

5. Mining business license of special

production operations for processing

and/or purification and its extension;

6. Temporary permits to carry out

transportation and sales;

7. Mining business license of production

operations for sale; and

8. Mining service business license and its

extension;

d. public works and public housing sector,

namely:

1. Business License for property

development and exploitation; and

2. Business License for Housing;

e. customs and taxation facilities, namely:

1. granting import facilities of machinery,

capital goods and materials for the

- 16 -
 Authorized Translation

investment of industrial sectors and

industry producing services;

2. granting facilities of machinery

importation and capital goods for

electricity power sector;

3. granting import facilities of machinery,

capital goods for working contracts

and coal mining concession works;

4. proposing facilities for exemption or

reduction of corporate income tax (tax

holiday); and

5. proposing facilities for corporate

income tax for investment in certain

business fields and/or in certain areas

(tax allowance); and

f. Investment field, namely:

1. KPPA Permit;

2. permit for opening branch office for

sector as referred to in paragraph (2)

letter a, letter b, letter c, and letter d,

with the provision of Business License

issued by PTSP Center in BKPM;

- 17 -
 Authorized Translation

3. recommendation for granting limited

stay visa as shareholder;

4. recommendation of the status transfer

of stay permit for visit to be a limited

stay permit; and

5. recommendation of the status transfer

of a limited stay permit to be

permanent stay permit.

(3) Investment License other than licensing as

referred to in paragraph (2) shall be executed

through OSS system in accordance with the

provisions in the Government Regulation

governing on electronically integrated Business

License.

(4) Supervision for the fulfillment of the Business

License commitment as referred to in paragraph

(1) includes the supervision on fulfillment of

commitments submitted by Investors at the time

of applying Business License through the OSS

system.

CHAPTER IV

GUIDELINES OF LICENSES

Part One

- 18 -
 Authorized Translation

Provisions on Investment License

Paragraph 1

Provisions of Business Field

Article 5

(1) A company that will start a business shall firstly

possess NIB and Business License in accordance

with the provisions of law and legislation.

(2) Business License as referred to in paragraph (1)

shall be granted in accordance with the

nomenclature, format and provisions stipulated by

the ministry/non-ministerial government

institution supervising the sectors.

(3) In the case of a Company that already has a valid

principle license, investment permit, investment

registration, or Business License, the application

for other necessary licensing services must

include NIB as a condition.

Paragraph 2

Provisions of Investment and Capital Values

Article 6

(1) An PMA Company is qualified as a large scale

business, unless otherwise stipulated by law and

regulation, shall be obliged to implement

- 19 -
 Authorized Translation

provisions, investment value requirements and

capital for obtaining Investment License.

(2) Companies with large business qualification as

referred to in paragraph (1) are:

a. has a net worth of more than

Rp10,000,000,000.00 (ten billion rupiah)

excluding land and building of premises

based on the latest financial statements; or

b. has annual sales proceeds of more than

Rp50,000,000,000.00 (fifty billion rupiah)

based on the latest financial statements.

(3) PMA companies as referred to in paragraph (1),

unless otherwise stipulated by laws and

regulations, shall comply with the provisions of

investment value, namely:

a. total investment value larger than

Rp10,000,000,000.00 (ten billion rupiah),

excluding land and buildings;

b. the value of the issued capital equals the

paid up capital, at least Rp2,500,000,000.00

(two billion five hundred million rupiah);

- 20 -
 Authorized Translation

c. the percentage of share ownership is

calculated based on the par value of the

shares; and

d. The nominal value of the shares as referred

to in letter c, for each shareholder is at least

Rp10,000,000.00 (ten million rupiah).

(4) In case of Investor with business activity of

property development and exploitation, capital

requirement provisions for PMA related to

investment value as referred to in paragraph (3)

namely:

a. in the form of property of a complete

building or housing complex in an integrated

manner:

1. investment value larger than

Rp10,000,000,000.00 (ten billion

rupiah) including land and building;

2. paid up capital of at least

Rp2,500,000,000.00 (two billion five

hundred million rupiahs) and the value

of equity participation in the

company's capital; or

- 21 -
 Authorized Translation

b. in the form of a property unit not in 1 (one)

complete building or 1 (one) housing

complex in an integrated manner,

1. investment value larger than

Rp10,000,000,000.00 (ten billion

rupiah) outside land and buildings;

2. paid up capital of at least

Rp2,500,000,000.00 (two billion five

hundred million rupiahs); and

3. the value of participation in the

Company's capital for each

shareholder is at least

Rp10,000,000.00 (ten million rupiahs)

provided that the Debt to Equity Ratio

(DER) 4: 1.

(5) The investment value as referred to in paragraph

(2) and/or paragraph (3) must be fulfilled by the

Company within 1 (one) year after the date the

Company obtains the Business License.

(6) Investors are prohibited from entering into

agreements and/or statements confirming the

ownership of shares in limited liability companies

for and on behalf of others.

- 22 -
 Authorized Translation

Paragraph 3

Provisions of Business Field

Article 7

(1) In order to obtain NIB and Business License, the

Company shall pay attention to:

a. provisions on closed business fields and

open business fields with the requirements;

and

b. regulations of the minister/non-ministerial

government institutions, in accordance with

the provisions of law and legislation.

(2) The location of business activities shall be in

accordance with the Local Spatial Plan.

(3) In the case of a company located within KEK, the

provisions concerning open business fields with

requirements are not applicable, except for

business sectors reserved for Micro, Small,

Medium Enterprises and Cooperatives as well as

closed business fields for Investment.

Part Two

Business License Procedures

Article 8

- 23 -
 Authorized Translation

(1) The application for licensing as referred to in

Article 4 paragraph (2) shall be made online basis

through SPIPISE.

(2) In the event that the application for licensing as

referred to in Article 4 paragraph (2) cannot be

submitted online, the application shall be filed

offline by attaching the requirements as stipulated

in the laws and regulations.

(3) Submission of online applications as referred to in

paragraph (2) shall be submitted to the Central

PTSP in BKPM by using the application form in the

format as contained in Appendix I constituting as

an inseparable part of this Agency Regulations or

application form as regulated in the technical

related ministerial/non-ministerial government

institution.

(4) The application as referred to in paragraph (1)

and paragraph (2) shall be completed with general

provisions, namely:

a. legal aspects of legal entity, in the form of:

1. the deed of incorporation of the

company and/or its amendment which

- 24 -
 Authorized Translation

has been approved by the Minister of

Law and Human Rights;

2. TIN/NPWP of the company that has

been done its Confirmation of

Taxpayer Status in accordance with

the provisions of law and legislation;

and

3. NIB;

b. the legality aspect of the domicile is the

company's head office address and/or the

legality of the company's project location in

the form of Sale and Purchase Deed (AJB),

Land Rights Certificate (HGB/HGU), lease

agreement or borrowing-use agreement for

the companies/affiliates group;

c. environmental legality aspect in the form of

Environmental Management document;

d. proof of online final period LKPM acceptance

through SPIPISE for companies that already

have an obligation to submit LKPM; and

e. power of attorney if the application is not

made directly by the Company's Chief.

- 25 -
 Authorized Translation

(5) Business License shall be issued no later than 3

(three) Days since the acceptance of complete

and correct application.

(6) The change of business license shall be issued no

later than 3 (three) days since the acceptance of

complete and correct application.

(7) Business License on the application as referred to

in paragraph (1) shall be issued in certificate form

with Electronic Signature in portable document

format (pdf) format and completed with validation

sheet.

(8) The form of Business License as referred to in

paragraph (7) shall be issued in accordance with

the provisions in the law and legislation.

(9) In the event that the application for Business

License as referred to in paragraph (7) is rejected,

the Chairman of BKPM or the appointed official

shall submit a Rejection Letter not later than 2

(two) Days.

(10) The form of Rejection Letter as referred to in

paragraph (9) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

- 26 -
 Authorized Translation

Article 9

The validity period of the Business License is stipulated

insofar as the company is still conducting the

production/operation business, unless otherwise

stipulated under the provisions of the law and

legislation.

CHAPTER V

PROVISIONS AND PROCEDURES OF REPRESENTATIVE

OFFICE AND BRANCH OFFICE PERMITS

Part One

KPPA Permission Provisions

Paragraph 1

General

Article 10

(1) To carry out KPPA activities in Indonesia shall

have KPPA Permit.

(2) The activities of KPPA as referred to in paragraph

(1) are limited:

a. as supervisor, liaison, coordinator, and take

care of the interests of the company or its

affiliated companies;

b. preparing the establishment and

development of enterprises of foreign

- 27 -
 Authorized Translation

companies in Indonesia or in other countries

and Indonesia;

c. located in an office building in the provincial

capital;

d. does not seek any income from sources in

Indonesia including is not allowed to carry

out activities or engage in any conduct/sale

transaction and purchase of commercial

goods or services with any company or

individual in the country; and

e. does not participate in any form in the

management of any company, subsidiary or

branch company in Indonesia.

(3) The Head of KPPA must stay in Indonesia, fully

responsible for the smooth running of the Office,

is not allowed to engage in activities other than

KPPA activities and does not hold concurrent

positions as Corporate Leaders and/or more than

1 (one) KPPA.

(4) In the event that the appointed Head of KPPA is a

foreign national and/or employ foreign worker,

KPPA shall employ Indonesian workers in

- 28 -
 Authorized Translation

accordance with the provisions of law and

legislation.

(5) The KPPA Permit as referred to in paragraph (1)

shall be valid as long as the representative office

conducts activities.

(6) KPPA may amend the provisions contained in the

KPPA Permit.

Paragraph 2

Procedures for Application and Issuance of KPPA Permit

Article 11

(1) Application for KPPA Permit shall be made online

through SPIPISE with the conditions as set forth in

Appendix III which is an integral part of this

Agency Regulations.

(2) The application as referred to in paragraph (1)

shall be issued no later than 3 (three) days after

the acceptance of a complete and correct

application.

(3) The KPPA Permit shall be issued in the form of a

certificate with Electronic Signature in pdf format

and completed with validation sheet.

(4) The form of KPPA Permit as referred to in

paragraph (1) as contained in Appendix IV

- 29 -
 Authorized Translation

constituting as an inseparable part of this Agency

Regulations.

(5) In the event that the application for KPPA Permit

is rejected, the Chairman of BKPM or the

appointed official shall make a Rejection Letter not

later than 2 (two) Days.

(6) The form of Rejection Letter as referred to in

paragraph (5) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

Part Two

Terms and Procedures for Opening of Branch Office

Paragraph 1

Conditions for Opening of a Branch Office

Article 12

(1) PMA/PMDN Company may open branch offices

throughout Indonesia which is a unit or part of its

parent Company which may be located in different

place and may be independent or having duty to

perform part of its parent company's duties.

(2) PMA/PMDN company whose business license shall

be issued by PTSP Center in BKPM as referred to

in Article 4 paragraph (2) letter f number 2 and

- 30 -
 Authorized Translation

will open a Branch Office, shall report the plan of

Branch Office opening to BKPM unless otherwise

stipulated by the provisions of the law and

legislation.

Paragraph 2

Procedures for Application and Opening of Branch

Offices

Article 13

(1) The Application for Opening of a Branch Office as

referred to in Article 12 paragraph (2) shall be

conducted online through SPIPISE, subject to the

terms set forth in Appendix III which is an integral

part of this Agency Regulations.

(2) The establishment of a Branch Office as referred

to in paragraph (1) shall be issued in the form of a

certificate with Electronic Signature in pdf format

and completed with validation sheet.

(3) The opening of a Branch Office as referred to in

paragraph (2) shall be published in the form

stated in Appendix V which is an integral part of

this Agency Regulations.

- 31 -
 Authorized Translation

(4) The opening of a Branch Office shall be issued no

later than 3 (three) days after the acceptance of a

complete and correct application.

(5) In the event that the application for opening of a

Branch Office as referred to in paragraph (1) is

rejected, the Chairman of BKPM or the appointed

official shall make a Rejection Letter not later than

2 (two) Days.

(6) The form of Rejection Letter as referred to in

paragraph (5) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

(7) Branch Offices may amend the terms stated in the

Opening of Branch Offices.

CHAPTER VI

TERMS AND CONDITIONS OF CUSTOMS AND TAXATION

FACILITIES

Part One

Terms and Procedures for Application of Import Duty

Exemption Facility

Paragraph 1

Provisions and Procedures for Provision of Import Duty

Exemption on Import of Machinery and Goods and

- 32 -
 Authorized Translation

Materials for the Industrial Construction or Development

in the framework of Investment

Article 14

(1) The Companies possessing NIB and/or Business

License may obtain fiscal facilities in accordance

with the provisions of law and legislation.

(2) The fiscal facility as referred to in paragraph (1)

includes:

a. entry duty exemption facility on Machinery

excluding spare parts; and

b. exemption facility on import duty of Goods

and Materials.

Article 15

(1) Procedures for submission of application for fiscal

facilities as referred to in Article 14 paragraph (1)

are:

a. applications for facilities shall be filed online

through SPIPISE completed with the

requirements set out in Appendix III which

are an integral part of this Agency

Regulations;

b. facilities as referred to in paragraph (1) shall

be issued in hardcopy or certificate with

- 33 -
 Authorized Translation

Electronic Signature in pdf format and

completed with validation sheet;

c. companies must have access rights to apply

for facilities to BKPM online through

SPIPISE;

d. the company that will apply for the facility

must upload the required documents;

e. the company shall fill out and submit the

facility application form along with the list of

Machinery/Goods and Materials online

through SPIPISE;

f. the application as referred to in letter d shall

be administratively verified by the officer;

g. if the applications verified by the officers are

considered incomplete and incorrect, then

the application shall be returned to the

Company online through SPIPISE;

h. the company must complete the company's

data through the company's folder on the

online system in SPIPISE as long as it

cannot be withdrawn online through the

OSS system;

- 34 -
 Authorized Translation

i. the Company's completed and correct

application documents shall be made

technical clarification in the form of technical

meeting and/or visit to the project site;

j. Technical clarification results:

1. it shall be issued receipt if the

application can be processed in

accordance with the provisions;

2. it will be returned to the Company

online if it cannot be processed in

accordance with the provisions; or

3. the application is rejected because it is

not in accordance with the provisions;

k. to the result of the technical clarification as

referred to in letter j point 2, the Company

shall be given time no later than 5 (five)

days to complete and file the document

again online through SPIPISE;

l. in the case that the Company has met and

completed the documents as referred to in

letter k, it shall be issued a receipt;

m. in the event that the Company does not

comply with the provisions as referred to in

- 35 -
 Authorized Translation

letter i, the Company's application is

rejected;

n. completion of facility application shall be no

later than 5 (five) Days as from the issuance

of receipt as referred to in letter j number 1

and letter l; and

o. the rejection of application as referred to in

letter j number 3 and letter m shall be no

later than 3 (three) Days.

(2) The application as referred to in paragraph (l) for

import duties facility on Machinery for the

Development (extension) or restructuring/

modernization/rehabilitation facilities) shall be

signed on sufficient stamp duty by the board of

directors/Company’s Managements and provided

with company’s stamps completed with the form

in accordance with the format as contained in

Appendix VI which is an integral part of this

Agency Regulations.

(3) The application as referred to in paragraph (1), for

the changes to the determination of facilities on

the import of Machinery shall be accompanied

with the clarification on the reason for the

- 36 -
 Authorized Translation

amendment, and signed on sufficient stamp duty

by the Company’s Management and provided with

the company’s seal, completed with the form in

accordance with the format as contained in

Appendix VII, constituting as inseparable part

from these Regulations.

(4) The application as referred to in paragraph (1), for

the extension of the facility period for the import

of Machinery shall be made prior to the expiration

of the facility period, accompanied by an

clarification on the reason for the non-completion

of the import of Machinery, signed on sufficient

stamp duty by the Company’s Management and

provided with the company’s seal, completed with

the form according to the format as contained in

Appendix VIII which form an integral part of this

Agency Regulations.

(5) The application as referred to in paragraph (1), for

the extension of the facility period for the import

of Machinery shall be made after the expiration of

the facility period, signed on sufficient stamp duty

by the Company’s Management and provided with

the company’s seal, completed with the

- 37 -
 Authorized Translation

application form in accordance with the format as

contained in Appendix VI and Appendix VIII which

is an integral part of this Agency Regulations.

(6) The application as referred to in paragraph (1), to

move the location of Imported Machinery is done

online to BKPM, accompanied by an clarification

on the reason for moving the location of the

Machine, signed on sufficient stamp duty by the

Company’s Management and provided with the

company’s seal, completed with the form

according to the format as contained in Appendix

IX which is an integral part of this Agency

Regulations.

(7) The application as referred to in paragraph (1), for

facilities on the import of Goods and Materials,

shall be signed on sufficient stamp duty by the

Company’s Management and provided with the

company’s seal, completed with the form in

accordance with the format as contained in

Appendix X which is an integral part of the Agency

Regulation and stamped Statement Letter signed

by the Company’s Management stating that the

Machine to be applied for the facilities of Goods

- 38 -
 Authorized Translation

and Materials are not pledged, not disputed with

other parties and still in the possession/ownership

of the company, in accordance with the format as

contained in Appendix XI constituting as an

inseparable part from these Regulations.

(8) The application as referred to in paragraph (1), for

the amendment of facilities for the import of

Goods and Materials, along with an clarification on

the reason for the change of the Goods and

Materials facility, shall be signed on sufficient

stamp duty by the Company’s Management and

provided with the company’s seal, stated in

Appendix XII which is an integral part of this

Agency Regulations.

(9) The application as referred to in paragraph (1), for

the extension of the period of entry duty facility

on the import of Goods and Materials shall be

made before the expiration of the facility period,

accompanied with the clarification on the reason

for the non-completion of the import of Goods and

Materials, signed on sufficient stamp duty by the

Company’s Management and provided with the

company’s seals, completed with forms according

- 39 -
 Authorized Translation

to the format as contained in Appendix XIII which

is an integral part of this Agency Regulations.

(10) The application as referred to in paragraph (1), for

the extension of the period of entry duty facility

on the import of Goods and Materials shall be

made after the expiration of the facility period,

signed on sufficient stamp duty by the Company’s

Management and provided with the company’s

seal, the format as contained in Appendix XI and

Appendix XIII which form an integral part of this

Agency Regulations.

Article 16

(1) The entry duty exemption facility on the import of

machinery as referred to in Article 14 paragraph

(2) letter a, may be given for the Construction

and Development project.

(2) The Application for entry duty exemption facility

on the import of machinery as referred to in

paragraph (1) shall be submitted no later than 3

(three) years since the issuance of NIB and/or

Business License.

(3) The development as referred to in paragraph (1),

which is the addition of production capacity of

- 40 -
 Authorized Translation

more than 30% (thirty percent) shall be classified

as business expansion.

(4) The application for facilities for development as

referred to in paragraph (3) must complete a

statement from the Company’s Management

regarding the additional production capacity with

the letter format as contained in Appendix XIV

constituting as an inseparable part of this Agency

Regulations.

Article 17

(1) The entry duty exemption facility on the import of

machinery may be provided to the companies

owning NIB and/or Business License.

(2) The Company in the implementation of

Investment activities may use domestic and/or

imported production machinery.

(3) The Companies which already have NIB and/or

Business License as referred to in paragraph (1)

may be granted facilities with the following

provisions:

a. for the field of industrial business which

produces goods may be granted facilities of

- 41 -
 Authorized Translation

entry duty exemption on the import of

Machinery and Goods and Materials; and/or

b. for the field of industrial business providing

services may be granted facilities of entry

duty exemption on the import of machinery.

(4) Exemption of entry duty as referred to in

paragraph (3) may be given to Machinery, Goods

and Materials derived from KPBPB, KEK or Bonded

Piling Site.

(5) The granting of facilities as referred to in

paragraph (3) shall refer to the Regulations of the

Minister of Finance which regulates the exemption

of entry duty on the import of machinery as well

as Goods and Materials for the Development or

Industrial Development for Investment.

(6) The entry duty facility on the import of machinery

as referred to in paragraph (1) may be given as

long as the Machinery:

a. has not yet been produced domestically;

b. has already been produced domestically but

not yet meet the required specifications; or

c. has already been produced domestically but

the amount is not sufficient for the industry,

- 42 -
 Authorized Translation

based on the list of machines set by the

ministry in charge of industry.

(7) For the Machines that fail to comply with the

provisions as referred to in paragraph (6) may be

granted entry duty facility after obtaining

technical recommendation from the ministry that

is responsible in the field of industry.

Article 18

(1) Machinery in the provision of exemption of entry

duty on the import of machinery as referred to in

Article 14 paragraph (2) letter a may be a new

machine and/or a non-new machine condition.

(2) Non-New Machinery import as referred to in

paragraph (1) shall follow the provisions

stipulated in the ministerial regulation in charge of

trade and ministerial regulation in charge of

industry.

Article 19

(1) A company that already has a Business

License/Expansion License and will conduct

restructuration/modernization/rehabilitation which

will result in a change in production capacity not

exceeding 30% (thirty percent) of production

- 43 -
 Authorized Translation

capacity of the license as stipulated in the

Business License/expansion permit, and/or other

documents that include production capacity may

be granted facilities of entry duty exemption on

the import of machinery.

(2) The entry duty exemption facility on the import of

machinery as referred to in paragraph (1) shall

not include Goods and Materials.

(3) Against the companies applying for facilities for

import of machinery for restructuring/

modernization/rehabilitation shall be carried out a

direct review to the project site.

Article 20

(1) A decision on the granting entry duty exemption

facility on the import of machinery as referred to

in Article 17 and Article 19 may subject to a

change of decision.

(2) The changes of the decision as referred to in

paragraph (1) shall include:

a. change, replacement and/or addition of

Machinery;

b. change, replacement of HS Code of

Machinery;

- 44 -
 Authorized Translation

c. changes, replacement of technical

specifications of Machines;

d. Change of Machine value;

e. change, replacement of Machine unit;

f. change, replacement and/or addition of

Machine details;

g. change, replacement and/or addition of

unloading port;

h. change, replacement and/or addition of

country of origin;

i. change, replacement and/or addition of

project location; and/or

j. change of corporate entity data.

(3) The change of decision as referred to in paragraph

(2) can only be done in case of:

a. The machine has not been imported, i.e. has

not obtained the registration number

(Reg.No.) on the Goods Import Declaration

(PIB); and

b. The machine is still within the release

period.

(4) The data of Machinery have not yet been imported

as referred to in paragraph (3) a, may be clarified

- 45 -
 Authorized Translation

in advance to the Directorate General of Customs

and Excise, Ministry of Finance.

(5) A request for amendment to the stipulation of the

granting of an entry duty facility on the Machine

may be filed after 3 (three) months as of the

issuance of the stipulation on granting the entry

duty facility on the Machine.

(6) A request for amendment to the stipulation of the

granting on entry duty facility of the Machine may

be submitted before 3 (three) months as of the

issuance of issuance of the stipulation on granting

the entry duty facility on the Machine by enclosing

the following requirements:

a. Bill of Lading (B/L) or Air Waybill (AWB);

b. packing list;

c. invoice;

d. contract; and/or

e. technical explanation.

Article 21

(1) The period of the granting entry duty facility on

the import of machinery may be given no later

than 2 (two) years as of the issuance of the

decision on the entry duty facility of the Machine.

- 46 -
 Authorized Translation

(2) The period as referred to in paragraph (1) may be

renewed annually as long as the Company has not

conducted commercial activities as evidenced by a

declaration of not yet commercially production as

stated in Appendix XV which is an integral part of

this Agency Regulations.

(3) The application for extension of facility period as

referred to in paragraph (2) shall be submitted no

later than 14 (fourteen) Days prior to the

expiration of entry duty facility on the Machine.

(4) In the event that the application of extension of

the period of granting entry duty facility on the

import of Machinery shall be made after the expiry

of the facility period, the entry duty facility of the

un-imported Machine may be given through re-

determination from the date of stipulation and

valid up to 1 (one) year minus the delay period of

the submission.

(5) In the case of the extension of the period as

referred to in paragraph (4), BKPM may clarify in

advance to the Directorate General of Customs

and Excise, Ministry of Finance and in case of

- 47 -
 Authorized Translation

necessary, it may be conducted visits to the

project site.

(6) The validity period of entry duty facility on imports

of Machinery for the development with the

intention of restructuring/modernization/

rehabilitation, may be given no later than 2 (two)

years since the issuance of the decision and

cannot be extended.

Article 22

(1) Any Machines which have obtained entry duty

exemption facilities as referred to in Article 17 and

Article 19 shall be used in accordance with the

purpose of entry by the Company in concerned at

the locations stated in the Minister of Finance's

Decree on the Provision of Import Duty Exemption

Facility on the Import of Machinery.

(2) The machinery as referred to in paragraph (1)

may be carried out by Transfer of Machine with

mechanism as regulated in the Regulation of the

Director General of Customs and Excise, Ministry

of Finance.

(3) The transfer of machinery as referred to in

paragraph (2), in the case of Re-exported, may be

- 48 -
 Authorized Translation

made after obtaining the recommendation of

Transfer from BKPM.

(4) The machinery as referred to in paragraph (1)

may be transferred from the location as stated in

the Minister of Finance Decree on the Provision of

Import Duty Exemption Facility on the Import of

Machinery, to a new location subject to the

provisions of transfer of Machinery performed by

and for the same company.

(5) The new location as referred to in paragraph (4)

shall be in accordance with the project location

stated in the NIB and/or the Business License.

(6) Application for transfer of location of imported

Machinery as referred to in paragraph (4) shall be

submitted online to BKPM.

(7) To the application as referred to paragraph (6), in

case of necessary, BKPM may conduct a visit to

the project site.

Article 23

(1) A company that has completed industrial

development and is ready to carry out commercial

activities, may be granted entry duty facility on

- 49 -
 Authorized Translation

the import of Goods and Materials as raw

materials for 2 (two) years of production on:

a. the use of machines that have obtained the

entry duty exemption facility from the

Minister of Finance; and/or

b. the use of imported domestic production

Machinery.

(2) The application of entry duty facility on the import

of Goods and Materials as referred to in paragraph

(1) shall be submitted no later than 1 (one) year

since the company is ready to carry out

commercial activities.

(3) The Companies using Machinery with a domestic

component level (Domestic Content Level) of at

least 30% (thirty percent) as stated by the

ministers in charge of industry or the appointed

officials may be granted entry duty facilities on

the import of Goods and Materials as raw

materials for 4 (four) years of production.

(4) The application of entry duty facility on the import

of Goods and Materials as referred to in paragraph

(3) shall be submitted no later than 1 (one) year

- 50 -
 Authorized Translation

since the company is ready to carry out

commercial activities.

(5) Toward the companies applying for import

facilities on Goods and Materials shall be carried

out a direct review to the project site to ensure

that Machinery and equipment are installed in

accordance with the capacity to be submitted.

(6) Ready to carry out commercial activities as

referred to in paragraph (2) and paragraph (4),

evidenced by a letter of company statement with

the format of the letter as contained in Appendix

XVI which is an integral part of this Agency

Regulations.

Article 24

(1) The decision on the granting of entry duty

exemption facility on the import of Goods and

Materials as referred to in Article 23 may be made

a change of decision.

(2) The changes of the decision as referred to in

paragraph (1) shall include:

a. change/replacement of Goods and

Materials;

- 51 -
 Authorized Translation

b. change, replacement of HS Code of Goods

and Materials;

c. change/replacement of technical

specifications of Goods and Materials;

d. changes in the value of Goods and

Materials;

e. change, replacement and/or addition of

unloading port; and/or

f. change, replacement and/or addition of

country of origin.

(3) The change of decision as referred to in paragraph

(2) can only be done in case:

a. Goods and Materials have not yet been

imported, i.e. not getting Reg.No. on PIB;

and

b. Goods and Materials are still within the

period of release.

(4) The change of decision as referred to in paragraph

(2) shall not change the total amount of Goods

and Materials that have been approved.

Article 25

- 52 -
 Authorized Translation

(1) Entry duty facility on the import of Goods and

Materials shall be given at the time of importing

for a maximum of 2 (two) years.

(2) Companies that have not completed their import

within 2 (two) years may be granted an extension

of the import period.

(3) The extension of the import period as referred to

in paragraph (2) may be given 1 (one) time for

the import period of 1 (one) year at the latest

from the date of importing and cannot be

extended.

(4) The Companies using Domestic production

machines with Domestic Content Level of at least

30% (thirty percent) with time of import of Goods

and Materials may be granted an extension of

import period at the latest 4 (four) years from the

date of the decision of granting entry duty facility

on the import of Goods and Materials.

(5) The company as referred to in paragraph (4),

which carries out special imports for Goods and

Materials which are regulated in the provisions of

import regulation based on ministerial regulations

in charge of trade and has not completed its

- 53 -
 Authorized Translation

import within 4 (four) years, may be granted an

extension of the import period 1 (one) time

extension for the import period of 1 (one) year at

the latest since the issuance of the Renewal

Importing Period and cannot be re-extended.

(6) Submission of application for extension of import

period as referred to in paragraph (3) and/or

paragraph (5) shall be submitted no later than 14

(fourteen) Days before the validity period of

granting entry duty facility on import of Goods

and Materials ends.

(7) The granting of extension facility for the period of

time as referred to in paragraph (5) shall take into

account the number of Goods and Materials for

production needs of at least 1 (one) year and pay

attention to the determination of the quota

allocation given by the minister in charge of trade.

(8) In the event that the application for extension of

the period as referred to in paragraph (2) is made

after the expiration of the facility, then the entry

duty on the Goods and Materials which have not

yet been imported may be provided by re-

determination from the date of stipulation and

- 54 -
 Authorized Translation

valid until 1 (one) years minus the period of late

submission.

(9) With respect to the submission as referred to in

paragraph (8), BKPM may clarify in advance to the

Directorate General of Customs and Excise,

Ministry of Finance, and in case of necessary

BKPM may conduct a visit to the project site to

ensure the shortage of imports of Goods and

Materials.

Paragraph 2

Provisions and Procedure for Provision of Import Duty

Exemption on Import of Capital Goods for Construction

or Development of Power Plant Industries for the Public

Interest.

Article 26

Business Entities conducting power plant industries for

public interest which already have NIB and Power Plant

Business License (IUPTL), may apply to obtain entry

duty exemption facility on capital goods import.

Article 27

(1) The provisions concerning the procedures for filing

facilities as referred to in Article 15 paragraph (1)

shall apply mutatis mutandis to the provisions

- 55 -
 Authorized Translation

concerning the procedures for submission of an

application for exemption of entry duty on capital

goods import as referred to in Article 26.

(2) The application as referred to in paragraph (1), for

facilities on capital goods import, shall be signed

on sufficient stamp duty by the Company’s

Management and provided with the company’s

seal, completed by form in accordance with the

format as contained in Appendix XVII which is an

integral part of this Agency Regulations.

(3) The application as referred to in paragraph (1), for

the amendment of facilities for the capital goods

import, accompanied with the clarification on the

reason for the change of the capital goods import

facility, shall be signed on sufficient stamp duty by

the Company’s Management and provided with

the company’s seal, and completed with forms

stated in Appendix XVIII which is an integral part

of this Agency Regulations.

(4) The application as referred to in paragraph (1), for

the extension of the period of entry duty facility

on capital goods import, accompanied by an

clarification on the reason for the completion of

- 56 -
 Authorized Translation

capital goods import, forms according to the

format are stated in Appendix XIX which is an

integral part of this Agency Regulations.

(5) The exemption of entry duty on capital goods

import as referred to in Article 26 may be granted

to a business entity:

a. Limited Liability Company of State Electricity

Company (Persero) (PT PLN (Persero)); or

b. a holder of a Power Plant Business License

(IUPTL).

(6) IUPTL holder as referred to in paragraph (5) letter

b shall include:

a. IUPTL holder having business area;

b. IUPTL holder for power plant businesses

that have Power Purchase Agreement (PPA)

with PT PLN (Persero), stating that all

electricity produced will be purchased by PT

PLN (Persero);

c. IUPTL holders for power plant businesses

that have lease agreements (FLA) with PT

PLN (Persero); or

d. IUPTL holders for power plant businesses

that have electricity sale and purchase

- 57 -
 Authorized Translation

agreements with IUPTL holders owning

business area, with a statement that all

electricity power generated thereof will be

purchased by IUPTL holders owning

business area.

(7) The submission of application as referred to in

paragraph (1) shall be submitted by attaching a

Goods Import Plan (RIB) of Project Requirement

which has been approved and validated by the

Director General of Electricity, Ministry of Energy

and Mineral Resources.

Article 28

(1) The decision on granting of entry duty exemption

facility as referred to in Article 26 may be

amended.

(2) The changes of the decision as referred to in

paragraph (1) shall include:

a. change, replacement and/or addition of

Capital Goods;

b. change, replacement of HS Code of Capital

Goods;

c. changes, replacement of technical

specifications of Capital Goods;

- 58 -
 Authorized Translation

d. change, replacement and/or addition of

revenue port;

e. change, replacement and/or addition of

country of origin;

f. change in value of Capital Goods;

g. change, replacement of Capital Goods unit;

h. change, replacement and/or addition of

details of Capital Goods;

i. change, replacement and/or addition of

project location; and/or

j. change of corporate entity data.

(3) The changes as referred to in paragraph (1) may

only be made in the case of:

a. Machine not yet imported, i.e. not getting

Reg.No. on PIB; and

b. The machine is still within the release

period.

(4) The amendment as referred to in paragraph (1)

shall be submitted by attaching the Import Duty

for Change of Goods (RIBP) of project

requirements approved and validated by the

Director General of Electricity, Ministry of Energy

and Mineral Resources.

- 59 -
 Authorized Translation

Article 29

(1) The period of import of capital goods which can be

given facilities as referred to in Article 26 shall be

given no later than 2 (two) years after the

issuance of the decision on the entry duty

exemption on Capital Goods.

(2) The period of import of capital goods as referred

to in paragraph (1), may extend the period of not

later than 12 (twelve) months after the expiration

of the import realization period with the

stipulation that the company must submit an

application for extension of import realization not

later than 14 (fourteen) days before the expiration

of the decision on the exemption of entry duty.

(3) In the event that the application for extension of

the period as referred to in paragraph (2) shall be

made after the expiration of the facility period, the

entry duty facility on capital goods which have not

yet been imported may be provided through re-

stipulation from the date of stipulation and valid

until 1 (one) year minus the period of late

submission.

- 60 -
 Authorized Translation

(4) With regard to the submission as referred to in

paragraph (3), BKPM may clarify in advance to the

Directorate General of Customs and Excise,

Ministry of Finance and in case of necessary visits

to the project site.

Article 30

(1) The Capital goods that can be granted facilities as

referred to in Article 26 may be carried out

Transfer of capital goods in accordance with the

mechanism set forth in the Regulation of the

Minister of Finance concerning the exemption of

entry duty on capital goods import for the

construction or development of power plant

industries for the public interest and the

implementation regulation.

(2) The transfer of capital goods as referred to in

paragraph (1) shall be made after obtaining a

license from the Director General of Customs and

Excise on behalf of the Minister, based on the

recommendation of the Chairman of BKPM or

appointed officials.

Paragraph 3

- 61 -
 Authorized Translation

Provisions and Procedures for the Exemption or

allowance of Import Duty and/or Exemption of Value

Added Tax on the Import of Goods for Working Contract

and Working agreement on Coal Mining Concession

Article 31

(1) Against the import of goods for the working

contract and the coal mining concession

agreement may be granted exemption or

allowance of entry duty in accordance with the

contract to be owned.

(2) Exemption or allowance of entry duty and/or

value added tax on import of goods for working

contract and working agreement of coal mining

concession, may only be given to contractors

whose contract includes exemption of value added

tax on import of goods for working contract and

working agreement of coal mining exploitation.

(3) Application for exemption or allowance of entry

duty and/or value added tax on import of goods

for working contract and working agreement of

coal mining business as referred to in paragraph

(2) shall be submitted by the owner of Working

- 62 -
 Authorized Translation

Contract and working agreement of coal mining

concession to BKPM.

(4) The provisions concerning the procedure for filing

facilities as referred to in Article 15 paragraph (1)

shall apply mutatis mutandis to the provisions

concerning the procedure of application for

exemption or allowance of entry duty and/or value

added tax on the import of goods for Working

Contract and working agreement of coal mining

concession as referred to in paragraph (2).

(5) The application as referred to in paragraph (3), for

exemption or allowance of entry duty and/or value

added tax, shall be signed on sufficient stamp

duty by the Company’s Management and provided

with the company’s seal, and completed with

facility form on import of capital goods in

accordance with format stated in Appendix XX

which is an integral part of this Agency

Regulations.

(6) The application as referred to in paragraph (3), for

the amendment of the decision on exemption or

allowance of entry duty and/or value added tax on

import of goods, accompanied with the

- 63 -
 Authorized Translation

clarification on the reason for the change of

imported goods facility, signed on sufficient stamp

duty by the Company’s Management and provided

with the company’s seal, and completed with form

as stated in Appendix XXI which is an integral part

of this Agency Regulations.

(7) The application as referred to in paragraph (3), for

the extension of the period of exemption or

allowance of entry duty and/or value added tax on

the import of goods, accompanied with the

clarification on the reason for the non-completion

of the realization of imports of goods, signed on

sufficient stamp duty by the Company’s

Management and provided with the company’s

seal, and completed with form in accordance with

the format as contained in Appendix XXII which is

an integral part of this Agency Regulations.

(8) The application as referred to in paragraph (3)

shall be submitted by enclosing the

recommendation of Master list from the Director

General of Mineral and Coal, Ministry of Energy

and Mineral Resources.

Article 32

- 64 -
 Authorized Translation

(1) On the exemption or allowance of entry duty on

the import of goods and/or exemption of value

added tax on the import of goods for the working

contract and the coal mining concession

agreement to contractor whose contract stipulates

the exemption or allowance of entry duty and/or

value added tax the import of goods for the

working contract and the working agreement of

the coal mining concession as referred to in Article

31 may be amended.

(2) The changes of the decision as referred to in

paragraph (1) shall include:

a. change, replacement and/or addition of

goods;

b. change, replacement HS Code of goods;

c. changes, replacement of technical

specifications of goods;

d. change, replacement and/or addition of

unloading port;

e. change, replacement and/or addition of

loading country;

f. changes in the value of goods;

g. change, replacement unit of goods;

- 65 -
 Authorized Translation

h. change, replacement and/or addition of

goods details; and/or

i. change, replacement and/or addition of

project location.

(3) The changes as referred to in paragraph (1) may

only be made in the case of:

a. goods as referred to in paragraph (1), have

not been imported i.e. have not obtained

Reg.No. on PIB; and

b. goods as referred to in paragraph (1), are

still within the period of release.

(4) The changes as referred to in paragraph (1) shall

be submitted by enclosing a letter of

recommendation approved and validated by the

Director General of Mineral and Coal, Ministry of

Energy and Mineral Resources.

Article 33

(1) The period of granting of exemption or allowance

of entry duty and/or value added tax shall refer to

the provisions in the working contract and the coal

mining concession agreement.

(2) The application for facilities as referred to in

paragraph (1) shall be conducted annually,

- 66 -
 Authorized Translation

provided that the period of exemption or

allowance of entry duty and/or value added tax on

import of goods for working contract and coal

mining concession agreement expires on 31

December in the current year.

(3) The period of granting of facilities as referred to in

paragraph (1) may be extended upon

recommendation from the Director General of

Mineral and Coal, Ministry of Energy and Mineral

Resources.

Article 34

(1) Imported goods receiving exemption or allowance

of entry duty and/or value added tax for working

contract and working agreement of coal mining

operation as referred to in Article 31 may be

transferred, re-exported, or demolished.

(2) The imported goods to be transferred, re-exported

or demolished as referred to in paragraph (1)

shall be made in accordance with the mechanism

set forth in the Regulation of the Minister of

Finance concerning the exemption or allowance of

entry duty and/or value added tax on imports of

goods for Working Contract or Working Contract

- 67 -
 Authorized Translation

of coal mining concession and its implementation

regulation.

(3) The application for imported Goods to be carried

out by Transferred, Re-exported or demolished as

referred to in paragraph (2) shall be accompanied

by a letter of recommendation from BKPM, in the

case that the transfer is made after 2 (two) years

up to 5 (five) years as from the date of import

customs notification.

Paragraph 4

Procedures for Submitting a Recommendation on

Transfer/Re-Export/Demolishment Applications

Article 35

(1) Procedures for submission of applications filed by

companies/business entities on the

recommendation of Transfer of Machinery as

referred to in Article 22 paragraph (3),

recommendation on the transfer of capital goods

as referred to in Article 30 paragraph (2),

recommendation of Transfer, Re-Exports, or

demolished as referred to in Article 34 paragraph

(3), namely:

- 68 -
 Authorized Translation

a. the company/business entity submits

documents for application of

recommendation of Transfer /Re-

Exports/Demolished online to BKPM;

b. the application documents as referred to in

letter a will be administratively verified by

the officer;

c. in the event that the application documents

verified by the officer are considered

incomplete and incorrect, then the

application document shall be returned to

the company/business entity;

d. in the case of the application document of

the Company/Business Entity have been

completed and correct, a recommendation

of Transfer/Re-Exports/Demolishment will

be issued within 5 (five) days; and

e. completion of verification until the

application documents are returned to the

company/business entity as referred to in

letter c, shall be made no later than 3

(three) days.

- 69 -
 Authorized Translation

(2) The requirements of the application as referred to

in paragraph (1) are contained in Appendix III

constituting as an inseparable part of this Agency

Regulations.

(3) The application as referred to in paragraph (1) is

for:

a. transfer recommendation for Re-Export of

Facilitated Machinery which has been

imported; and

b. the recommendation for the transfer of Re-

export of capital goods, with an clarification

on the reasons for the transfer and Re-

export of the Machine, is signed on sufficient

stamp duty by the Company’s Management

and provided with the company’s seal, and

completed with the form as contained in

Appendix XXIII which is an integral part of

this Agency Regulations.

(4) The application as referred to in paragraph (1) for

recommendation of Transfer, Re-export or

Demolishment of imported goods obtaining

exemption or allowance of entry duty and/or value

added tax on import of goods, accompanied with

- 70 -
 Authorized Translation

the clarification on the reasons for the transfer, is

signed on sufficient stamp duty by Company’s

Managements and provided with the company’s

seal, and completed with form contained in

Appendix XXIV which is an integral part of this

Agency Regulations.

Paragraph 5

Issuance of Decision on Import Duty Exemption Facility

Article 36

(1) In the case of applications for granting facilities as

referred to in Article 15 paragraph (2) to

paragraph (10), Article 27 paragraph (2), Article

27 paragraph (3), Article 27 paragraph (4), Article

31 paragraph (5), Article 31 Paragraph (6), and

Article 31 Paragraph (7) are approved, the

Chairman of BKPM or officers appointed on behalf

of the Minister of Finance shall issue a Decree on

the Provision of the Facilities.

(2) The form of a Decision Letter on the granting

facilities of application as referred to in:

a. Article 15 paragraph (2) is contained in

Appendix XXV constituting as an inseparable

part of this Agency Regulations;

- 71 -
 Authorized Translation

b. Article 15 paragraph (3) as contained in

Appendix XXVI constituting as an

inseparable part of this Agency Regulations;

c. Article 15 paragraph (4) as contained in

Appendix XXVII constituting as an

inseparable part of this Agency Regulations;

d. Article 15 paragraph (5) as contained in

Appendix XXVIII constituting as an

inseparable part of this Agency Regulations;

e. Article 15 paragraph (6) as contained in

Appendix XXIX constituting as an

inseparable part of this Agency Regulations;

f. Article 15 paragraph (7) as contained in

Appendix XXX constituting as an inseparable

part of this Agency Regulations;

g. Article 15 paragraph (8) as contained in

Appendix XXXI which is an integral part of

this Agency Regulations;

h. Article 15 paragraph (9) as contained in

Appendix XXXII constituting as an

inseparable part of this Agency Regulations;

- 72 -
 Authorized Translation

i. Article 15 paragraph (10) as contained in

Appendix XXVIII constituting as an

inseparable part of this Agency Regulations;

j. Article 27 paragraph (2) as contained in

Appendix XXXIV which is an integral part of

this Agency Regulations;

k. Article 27 paragraph (3) as contained in

Appendix XXXV constituting as an

inseparable part of this Agency Regulations;

l. Article 27 paragraph (4) as contained in

Appendix XXXVI constituting as an

inseparable part of this Agency Regulations;

m. Article 31 paragraph (5) as contained in

Appendix XXXVII constituting as an

inseparable part of this Agency Regulations;

n. Article 31 paragraph (6) as contained in

Appendix XXXVIII constituting as an

inseparable part of this Agency Regulations;

and

o. Article 31 paragraph (7) as contained in

Appendix XXXIX which is an integral part of

this Agency Regulations.

- 73 -
 Authorized Translation

(3) In the event the application is rejected, the

Chairman of BKPM or the appointed official on

behalf of the Minister of Finance shall make a

Letter of Rejection of Provision of Facilities by

stating the reasons for the rejection.

(4) Form of Letter of Rejection of Provision of Facility

as referred to in paragraph (3) as contained in

Appendix XL constituting as an inseparable part of

this Agency Regulations.

Paragraph 6

Issuance of Recommendation on Transfer/Re-

Exports/Demolishment

Article 37

(1) If the recommendation application as referred to

in Article 35 is approved, a recommendation of

Transfer/Re-Exports/Demolishment shall be

issued.

(2) Form of Recommendation on Transfer/Re-

Exports/Demolishment as referred to in paragraph

(1) to:

a. transfer recommendations for Re-Export on

imported facilities for industrial construction

or development is stated in Appendix XLI

- 74 -
 Authorized Translation

which is an integral part of this Agency

Regulations; and

b. recommendation of Transfer/Re-

Exports/Demolishment of imported goods in

the framework of the working contract and

the working agreement of coal mining

business is stated in Appendix XLII which is

an integral part of this Agency Regulations.

(3) In the event that the application as referred to in

Article 35 is rejected, the Chairman of BKPM or

the appointed official issues a Rejection Letter

stating the reasons for the refusal.

(4) The Form of Rejection Letter as referred to in

paragraph (3) shall be contained in Appendix

XLIII constituting as an inseparable part of this

Agency Regulations.

Part Two

Provisions and Procedures for Application of Corporate

Income Tax Facilities for Investment in Certain Business

Fields and/or in Specific Areas

Article 38

(1) Corporate income tax facility for investment in

certain business fields and/or in certain areas (tax

- 75 -
 Authorized Translation

allowance) may be provided to Taxpayers

conducting Investment, either new Investment or

expansion of existing business on :

a. certain business fields; and/or

b. certain business sectors and certain areas,

as governed by a Government Regulation

governing the income tax facility for

investment in certain business fields and/or

in certain areas.

(2) Application for corporate income tax facilities for

investment in certain business fields and/or in

certain areas (tax allowance) as referred to in

paragraph (1) shall be filed by Taxpayers owning

NIB.

(3) Application for corporate income tax facilities for

investment in certain business fields and/or in

certain areas (tax allowance) as referred to in

paragraph (1) shall be submitted by the Taxpayer

online to BKPM using the application form stated

in the Appendix XLIV constituting as an

inseparable part of this Agency Regulations, by

completing the terms set forth in Appendix III

- 76 -
 Authorized Translation

which is an integral part of this Agency

Regulations.

Article 39

(1) The application as referred to in Article 38

paragraph (3) shall be submitted to the front

officer of PTSP Center in BKPM for checking.

(2) In conducting the check as referred to in

paragraph (1), the front officer of PTSP Center in

BKPM may request further clarification to the

Taxpayer upon the submitted application.

(3) In case of further clarification to the Taxpayer as

referred to in paragraph (2), it is found that there

is a Taxpayer Investment permit issued by

another authorized institution based on the law

and legislation, the front officer of PTSP Center in

BKPM may request further clarification to the

issuing agency of the Investment permit.

(4) Against further clarification to the Taxpayer as

referred to in paragraph (2), a clarification

document shall be produced which is an

inseparable document of the application submitted

by the Taxpayer.

- 77 -
 Authorized Translation

(5) Based on the documents of further clarification

result as referred to in paragraph (4):

a. the technical ministry shall issue a

statement letter concerning the fulfillment of

quantitative requirements stipulated in the

technical minister's regulation concerning

the implementation of Government

Regulations governing income tax facilities

for Investment in certain business fields

and/or in certain areas; and

b. the taxpayer shall complete other data if

necessary, with a maximum period of 5

(five) days from the date of clarification

received at BKPM.

(6) In the event that the maximum period of 5 (five)

Days as referred to in paragraph (5) is not

fulfilled, the application file shall be returned to

the Taxpayer.

(7) In the event that the application is complete and

correct, BKPM will issue a receipt of the

application using the format as contained in

Appendix XLV which is an integral part of this

Agency Regulations.

- 78 -
 Authorized Translation

Article 40

(1) In the case of the application which is declared as

the complete and correct application as referred to

in Article 39 paragraph (7) and decided to be

followed up, BKPM shall convene a trilateral

meeting by inviting a senior level official (echelon

1) or representative of the Ministry of Finance cq

Director General of Taxes and Expert Staff of the

Minister of Finance and the Ministry of Technical

Affairs in accordance with the business field

submitted in the petition.

(2) A trilateral meeting shall produce a document of

agreement as outlined in the minutes of the

minutes in the format as contained in Appendix

XLVI which is an integral part of this Agency

Regulations, signed by all meeting participants

and contains a decree stating that the Chairman

of BKPM or the appointed official:

a. to approve the application of the Taxpayer

to submit a letter of proposal for the

provision of corporate income tax facilities

for investment in certain business fields

and/or in certain areas (tax allowance) on

- 79 -
 Authorized Translation

the Taxpayer's application to the Minister of

Finance through the Director General of

Taxes; or

b. rejects the Taxpayer's application.

Article 41

(1) In the event that the decision of the trilateral

meeting states that approving the application of

the Taxpayer as referred to in Article 40

paragraph (2) letter a, the Chairman of BKPM or

the appointed official shall issue a letter of

proposal to grant corporate income tax facilities

for investment in certain business fields and/or in

certain areas (tax allowance) to the Minister of

Finance through the Director General of Taxes.

(2) A letter of proposal for the provision of corporate

income tax facilities for investment in certain

business fields and/or in certain areas (tax

allowance) as referred to in paragraph (1)

together with the application as referred to in

Article 38 paragraph (3) and/or documents as

referred to in Article 39 paragraph (5) shall be

sent no later than 3 (three) days since the date of

the convening of the trilateral meeting.

- 80 -
 Authorized Translation

(3) The form of letter of proposal for the provision of

corporate income tax facilities for investment in

certain business fields and/or in certain areas (tax

allowance) as contained in Appendix XLVII

constituting as an inseparable part of this Agency

Regulations.

Article 42

(1) In the event that the decision of the trilateral

meeting declares that rejecting the application of

the Taxpayer as referred to in Article 40

paragraph (2) letter b, the Chairman of BKPM or

the appointed official shall issue rejection letter

within 3 (three) days since the trilateral meeting.

(2) The form of rejection letter as referred to in

paragraph (1) as contained in Appendix XLVIII

constituting as an inseparable part of this Agency

Regulations.

Article 43

(1) In the event of a trilateral meeting as referred to

in Article 40 paragraph (2), there has been no

decision to approve or reject the Taxpayer's

application, BKPM will hold further trilateral

meetings.

- 81 -
 Authorized Translation

(2) Further trilateral meetings as referred to in

paragraph (1) produce an agreement as outlined

in the minutes of reporting by using the format as

contained in Appendix XLVI which is an integral

part of this Agency Regulations, signed by all

meeting participants and contains a decree stating

that the Chairman of BKPM or the appointed

officials:

a. to approve the application of the Taxpayer

and subsequently submit a letter of proposal

for the provision of corporate income tax

facility for investment in certain business

fields and/or in certain areas (tax allowance)

on the Taxpayer's application to the Minister

of Finance through the Director General of

Taxes, Ministry of Finance ; or

b. To reject the Taxpayer's application.

Article 44

(1) The provisions In the event that the decision of

the further trilateral meeting states that approving

the application of the Taxpayer as referred to in

Article 43 paragraph (2) letter a, mutatis

mutandis applies to the provisions of Article 41.

- 82 -
 Authorized Translation

(2) In the event that the decision of the further

trilateral meeting states that rejecting the

application of the Taxpayer as referred to in

Article 43 paragraph (2) letter b, it is mutatis

mutandis applies to the provisions of Article 42.

Article 45

The decision of the trilateral meeting as referred to in

Article 43 paragraph (2) shall be taken no later than 15

(fifteen) Days as from the date of clarification as

referred to in Article 39 paragraph (3) received at

BKPM.

Part Three

Terms and Procedures for Application for Corporate

Income Tax Exemption or Deduction Facility (Tax

Holiday)

Article 46

Application for corporate tax holiday facility shall

comply with the provisions stipulated in BKPM regulation

concerning details of business field and type of

production of pioneer industry which can be given

facility of deduction of corporate income tax as well as

guidance and procedures of giving facility of corporate

income tax deduction.

- 83 -
 Authorized Translation

CHAPTER VII

PROVISIONS AND PROCEDURES

GRANTING STAY PERMIT FACILITY TO INVESTOR

Part One

General

Article 47

Immigration facilities in the field of Investment consist

of:

a. recommendation for granting limited stay visa;

b. recommendation for granting of transfer stay

permit status to be a limited stay permit; and

c. recommendation for granting of transfer limited

stay permit status to be permanent stay permit.

Part Two

Recommendation of Granting Limited Stay Visa

Article 48

(1) The recommendation for the granting of limited

stay visas as referred to in Article 47 letter a is a

recommendation of a limited stay visa not for

work for foreigner conducting PMA and as a

condition for obtaining limited stay visas.

(2) Application for recommendation of limited stay

visa as referred to in paragraph (1) shall be

- 84 -
 Authorized Translation

submitted online to BKPM, using application form

as contained in Appendix XLIX which is an integral

part of this Agency Regulations, by completing the

requirements as stated in Appendix III which is an

integral part of these Agency Regulations.

(3) The recommendation for the granting of limited

stay visas as referred to in paragraph (1) shall be

issued no later than 3 (three) days after the

acceptance of a complete and correct application.

(4) The recommendation form of limited stay visa as

referred to in paragraph (1) as contained in

Appendix L constituting as an inseparable part of

this Agency Regulations.

(5) If the application for recommendation of limited

stay visa as referred to in paragraph (2) is

rejected, the Chairman of BKPM or appointed

official shall make a rejection letter no later than 2

(two) days.

(6) The form of Rejection Letter as referred to in

paragraph (5) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

Part Three

- 85 -
 Authorized Translation

Recommendation of Status Transfer

Visit Permit to become a Limited Stay Permit

Article 49

(1) The recommendation of status transfer from the

visit permit to be a limited stay permit as referred

to in Article 47 letter b is a requirement to obtain

the approval of the status of visit permit to be a

limited stay permit.

(2) The application for recommendation of the status

transfer of visit permit to be a limited stay permit

as referred to in paragraph (1) shall be submitted

online to BKPM, using application form stated in

Appendix LI which is an integral part of this

Agency Regulations, by completing the

requirements stated in Appendix III constituting

as an inseparable part of this Agency Regulations.

(3) Recommendation of the status transfer from the

visit permit to be a limited stay permit as referred

to in paragraph (1) shall be issued no later than 3

(three) days since the acceptance of complete and

correct application.

(4) The recommendation form of the status transfer

from visit permit to be a limited stay permit as

- 86 -
 Authorized Translation

referred to in paragraph (1) are as contained in

Appendix LII which is an integral part of this

Agency Regulations.

(5) If the request for recommendation of the status

transfer from visit permit to be a limited stay

permit as referred to in paragraph (2) is rejected,

the Chairman of BKPM or appointed official shall

make a rejection letter no later than 2 (two) days.

(6) The form of rejection letter as referred to in

paragraph (5) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

Part Three

Recommendation of Status Transfer

The Limited Stay Permit becomes a Permanent Stay

Permit

Article 50

(1) The recommendation of the status transfer of a

limited stay permit to be a permanent stay permit

as referred to in Article 42 letter c is a

requirement to obtain an approval of the status

transfer of a limited stay permit to be a

permanent stay permit.

- 87 -
 Authorized Translation

(2) The recommendation of the status transfer of a

limited stay permit to be a permanent stay permit

may be granted to a foreigner who meets the

following criteria:

a. An Investor and serves as a manager of a

company with a share ownership of at least

Rp1,000,000,000.00 (one billion rupiah) or

equivalent to the United States dollar

currencies; or

b. Investor and not as a company manager

with a share ownership of at least

Rp10,000,000,000.00 (ten billion rupiah) or

equivalent to the United States dollar

currencies.

(3) The application for recommendation of the status

transfer from limited stay permit to become

permanent stay permit as referred to in paragraph

(1) shall be filed online to BKPM, using application

form stated in Appendix LII which is an integral

part of this Agency Regulations, by completing the

requirements stated in Appendix III constituting

as an inseparable part of this Agency Regulations.

- 88 -
 Authorized Translation

(4) The recommendation of the status transfer of a

limited stay permit to be a permanent stay permit

as referred to in paragraph (1) shall be issued no

later than 3 (three) days after the acceptance of a

complete and correct application.

(5) The form of recommendation of the status

transfer of limited stay permit to become

permanent stay permit as referred to in paragraph

(1) as contained in Appendix LIV constituting as

an inseparable part of this Agency Regulations.

(6) In the event that the application for

recommendation of the status transfer of limited

stay permit to become permanent stay permit as

referred to in paragraph (3) is rejected, the

Chairman of BKPM or the appointed official make

a rejection letter no later than 2 (two) days.

(7) The form of rejection letter as referred to in

paragraph (5) as contained in Appendix II

constituting as an inseparable part of this Agency

Regulations.

CHAPTER VIII

SUPERVISION FOR THE COMPLIANCE OF BUSINESS

LICENSE COMMITMENTS

- 89 -
 Authorized Translation

Article 51

(1) BKPM shall conduct monitoring and supervision on

the fulfillment of commitments on Business

License issued by the OSS Institution in

accordance with the provisions of laws and

regulations.

(2) In the case of monitoring and supervision results

as referred to in paragraph (1) indicate

discrepancies or irregularities, BKPM shall take

action in accordance with the provisions of laws

and regulations.

(3) The action as referred to in paragraph (2) may

be:

a. warning;

b. temporary suspension of business activities;

c. imposition of administrative penalties;

and/or

d. revocation of Business License, in

accordance with the provisions of law and

legislation.

(4) The action as referred to in paragraph (3) shall be

conducted through the OSS system by BKPM.

- 90 -
 Authorized Translation

(5) The implementation of action as referred to in

paragraph (3) shall be further stipulated in the

BKPM Regulation concerning the instruction on the

implementation of the Business License in the

OSS system.

CHAPTER IX

PRIORITY SERVICES

Part One

General

Article 52

(1) Priority Service is the acceleration of Business

License granted to PMA and PMDN companies

whose licenses fulfill the following requirements:

a. investment value of at least

Rp100,000,000,000.00 (one hundred billion

rupiah); or

b. Indonesian employment recruitment of at

least 1,000 (one thousand) persons.

(2) The requirements as referred to in paragraph (1)

are exempted for:

a. certain industries, regions or places that

obtain free trade facilities in the home

country (inland free trade arrangement), in

- 91 -
 Authorized Translation

accordance with the rules stipulated by the

minister in charge of industry;

b. companies in certain industrial businesses

that are part of the supply chain, with the

requirement of delivering a statement or a

memorandum of understanding as a

supplier of the user of the product to be

produced;

c. a company that follows a tax amnesty

program, with the requirement to attach a

tax assessment certificate issued by the

Minister of Finance or an officer appointed

on the name of the Minister of Finance; and

d. infrastructure projects and/or national

strategic projects established in the law and

legislation;

(3) For tax amnesty program on a new project may

also be granted to an individual, with the

requirement to attach a tax assessment certificate

issued by the Minister of Finance or an officer

appointed on behalf of the Minister of Finance.

(4) The tax amnesty program for an expansion

project may also be granted to an individual

- 92 -
 Authorized Translation

possessing individual business of a PMDN as

referred to in paragraph (3) with the requirement

to attach a tax assessment certificate issued by

the Minister of Finance or an officer appointed on

the name of the Minister of Finance.

(5) The application for granting priority service as

referred to in paragraph (1) shall be submitted

directly by the Company’s Management to the

PTSP Center in BKPM completed by the

requirements in accordance with the laws and

regulations.

Part Two

Terms and Procedures for Priority Services related to

the Infrastructure in the Energy and Mineral Resources

Sectors

Article 53

(1) Priority services related to infrastructure in the

energy and mineral resources sector shall be

granted to applicants for business licenses

authorized by the ministers who are responsible

for energy and mineral resources.

(2) Priority services related to infrastructure in the

energy and mineral resources sector as referred

- 93 -
 Authorized Translation

to in paragraph (1) shall be the downstream

temporary permit for oil and natural gas

consisting of:

a. temporary storage permits for natural

oil/fuel/processing results/liquid petroleum

gas (LPG)/composed natural gas

(CNG)/liquid natural gas (LNG) storage;

b. temporary Business License for petroleum

processing with refinery capacity above

20,000 (twenty thousand) barrels of oil per

day/temporary operating license for natural

gas processing/processing business licenses

while processing; and

c. temporary business license of

commercial/general trading of

petroleum/fuel oil (BBM)/processed

products.

Article 54

(1) The application for priority services related to

infrastructure in the energy and mineral resources

sector as referred to in Article 53 shall be

submitted directly by the Company’s Management

- 94 -
 Authorized Translation

to PTSP Center in BKPM completed with

administrative and technical requirements.

(2) Application for priority service delivery as referred

to in paragraph (1), using priority service

application form with administrative requirements

as contained in Appendix LV which is an integral

part of this Agency Regulations.

(3) The fulfillment of administrative requirements and

technical requirements as referred to in paragraph

(1) in the form of written statement/commitment

shall be fulfilled independently from the applicant

with the form as contained in Appendix LVI

constituting as an inseparable part of this Agency

Regulations with the term of settlement of the

regulated commitment in ministerial regulations

on energy and mineral resources.

(4) Priority services related to infrastructure in the

energy and mineral resources sector as referred

to in paragraph (1) shall be issued by PTSP Center

in BKPM.

(5) The form of permit as referred to in paragraph (6)

as contained in Appendix LVII which is an integral

part of this Agency Regulations.

- 95 -
 Authorized Translation

CHAPTER X

MISCELLANEOUS

Part One

Application Notification

Article 55

(1) Applications made online through SPIPISE that

have been verified and there is still lack of data

will be automatically sent via electronic mail to the

applicant and detailed records of verification

results can be seen in the application system

online through SPIPISE.

(2) The Application made online and there is still a

lack of data, the officer at BKPM will immediately

make a return of the application along with a

detailed record of the verification results.

(3) In the event that the notification as referred to in

paragraph (1) and the returned application as

referred to in paragraph (2) has been made at

most 3 (three) times on different Days and the

application is still unacceptable, the officer at

BKPM may request attendance of the Company’s

Management and the power of application to

- 96 -
 Authorized Translation

provide explanation directly with the provisions

cannot be represented.

(4) In case the application made online through

SPIPISE is declared complete and correct, the

notification shall be sent automatically by

electronic mail to the applicant.

(5) If the application submitted online is declared

complete and correct, the PTSP Center at BKPM

shall issue a receipt of the application.

Part Two

Power of Attorney in the Application

Article 56

(1) The application for licensing as referred to in

Article 4 paragraph (2) letter f, filed by and

constituting as the Central Government authority,

shall be submitted online through SPIPISE by one

of the prospective shareholders or other

authorized parties.

(2) The application for licensing as referred to in

Article 4 paragraph (2) submitted after the status

of an Indonesian legal entity shall be conducted

by the Head of Company or other party authorized

by the BKPM.

- 97 -
 Authorized Translation

(3) The other party authorized as referred to in

paragraph (1) and paragraph (2) must have a

power of attorney and have the competence and

ability to provide complete and accurate

information and be responsible for all submitted

information.

Article 57

(1) The power of attorney as referred to in Article 56

paragraph (3) shall use the format/form of power

of attorney as stipulated in the Agency

Regulations is completed with stamp duty,

company’s seal, recording of identity of the

Authorizer and the Attorney in fact.

(2) The form of power of attorney for the application

shall be stated in Appendix LVIII constituting as

an inseparable part of this Agency Regulations.

Part Three

Signatures

Article 58

(1) The Decision Letter of Licensing and/or

Investment Facilities shall be signed by the official

in accordance with their authority by:

a. electronic signatures; or

- 98 -
 Authorized Translation

b. wet signature.

(2) Electronic signatures as referred to in paragraph

(1) letter a shall have the same legal force as the

documents issued by the relevant official in the

form of a wet signature.

Article 59

The issuance of Licensing and Investment Facilities as

referred to in Article 4 paragraph (2) shall be signed by

the Chairman of BKPM or Senior High-Level Officer in

BKPM on the name of the Chairman of BKPM or Senior

High Officials Officer in charge of Investment Services

on behalf of the Chairman of BKPM.

Part Four

Numbering License and Investment Facility

Article 60

(1) Numbering on License and Investment Facility as

referred to in Article 4 paragraph (2), processed

online and issued by PTSP Center in BKPM shall

follow the provisions of BKPM regulations related

to electronic documentary code.

(2) Online Company numbering is automatically

provided through SPIPISE.

- 99 -
 Authorized Translation

Part Five

Copies

Article 61

PTSP Center at BKPM in issuing licenses and the

decisions to deliver facilities shall be accompanied by a

copy to:

1. ministries/non-ministerial government agencies of

supervisory sectors in accordance with the

applicant's business field;

2. The Director General of Taxes of the Ministry of

Finance;

3. DPMPTSP Province and DPMPTSP

Regency/Municipality in accordance with the

project location of the applicant; and/or

4. related agencies.

Part Six

Document Original Assurance

Article 62

Prospective shareholders, Company’s Management

and/or Licensing applicants, must understand the

statement contained in the Licensing and Investment

Facility application form, which states, warrants and is

responsible for:

- 100 -
 Authorized Translation

a. authenticity of all submitted documents;

b. the suitability of all records/photocopies of data

submitted with the original document; and

c. authenticity of all signatures contained in the

application.

Part Seven

LKPM

Article 63

The Companies that have obtained the licenses as

referred to in Article 4 shall submit LKPM as regulated in

the laws and regulations.

Part Eight

Sanctions

Article 64

(1) The Chairman of the Company and/or the

attorney of the applicant providing false

information and/or proxy may not conduct the

Licensing and Investment Facility in BKPM for at

least 1 (one) year and shall be publicly

announced.

(2) The Chairman of the Company and/or the

attorney of the Licensing and Investment Facility

who provide proven information and/or false data

- 101 -
 Authorized Translation

in the application submitted to BKPM shall subject

to criminal sanctions in accordance with the

provisions of the law.

CHAPTER XI

TRANSITIONAL PROVISIONS

Article 65

The Companies that has already a principle

license/investment registration/investment permit may

apply for permits and Investment Facilities without

mentioning NIB no later than 6 (six) months since

Government Regulation Number 24 Of 2018 on

Electronically Integrated Business License Service is

enacted.

CHAPTER XII

CONCLUDING PROVISIONS

Article 66

At the time these Regulations come into force, the

Regulation of the Investment Coordinating Board

Number 13 of 2017 concerning Guidelines and

Procedures for Licensing and Investment Facilities

(State Gazette of the Republic of Indonesia Year 2017

Number 1767) is revoked and declared null and void.

- 102 -
 Authorized Translation

Article 67

These Regulations shall come into force on the date of

promulgation.

For public cognizance, these Regulation shall be

promulgated by placing it in the State Gazette of the

Republic of Indonesia.

Stipulated in Jakarta

on 19 July 2018

CHAIRMAN OF INVESTMENT

COORDINATING BOARD OF THE REPUBLIC

OF INDONESIA,

Signed.

THOMAS TRIKASIH LEMBONG

Enacted in Jakarta on 20 July 2018

DIRECTOR GENERAL OF

LAW AND LEGISLATION

MINISTRY OF LAW AND HUMAN RIGHTS OF

THE REPUBLIC OF INDONESIA

Signed.

WIDODO EKATJAHJANA

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 934

- 103 -
 Authorized Translation

The copy is in accordance with the original

Chief Secretariat of BKPM

Head of Legislation Bureau,

Public Relations, and Management Administration

Signed & stamped

Arista Puspasari

AFFIDAVIT
This is to certify that have translated the foregoing from Indonesian to English, that
is true and complete, and I am competent in both languages.
Jakarta, 31st July 2018

- 104 -
Drs. Sularno Popomaruto
Sworn Translator by virtue SK.Gub.KDKI Jkt.No.1715/2000