Procedure for Starting a Business with FDI
In starting business with Foreign Direct Investment (FDI), at first investors should define the right line of business field to be pursued by adding the Indonesian Standard Classification of Business Fields (KBLI) to the Company Deed ratified by the Ministry of Law and Human Rights. Furthermore, investors are required to register an account into the Online Single Submission (OSS) system to obtain a Business Identification Number (NIB). The next step, the investors fill in the data on the business field and details of the project (investment plan) that will be pursued.
For FDI, the single-purpose KBLI provisions applied, meaning that PMA must focus on conducting business activities in one type of business group and apply the provisions for capital value and investment plans above IDR 10 billion for 1 KBLI with 1 location excluding land and building values. This is in accordance with the provisions of the Business Sector complied with Presidential Regulation Number 10 of 2021 concerning the Capital Investment Business Sector which has been amended by Presidential Regulation Number 49 of 2021.
For details see https://oss.go.id/informasi/bupm?tab=bup&sub_tab=tax-holiday&page=1
Investment Licensing
The business licensing process could be obtained through the Online Single Submission Risk Based Approach (OSS-RBA), which is the implementation of Law Number 11 of 2020 concerning Job Creation. Based on Government Regulation Number 5 of 2021, there are 1,702 business activities comprising 1,349 Indonesian Standard Classifications of Business Fields (KBLI) which have been implemented in the Risk-Based OSS System.
Types of Business Licensing issued through OSS-RBA are categorized based on the level of the risk, as follows:
1. Low Risk, obtaining NIB as a business license is considered sufficient
2. Medium Risk, obtaining NIB + Standard Certificate as a business license
3. High Risk, obtaining NIB + Permit as business license
3 HOURS ONLINE SINGLE SUBMISSION
Conditions:
1. Minimum investment value of IDR 100 billion and/or employ a minimum of 1,000 Indonesian workers.
2. Proposed directly by prospective shareholders.
3. Conditions may be excluded, if they meet the following criteria:
a. Certain industries, areas that have free trade facilities in domestic regions.
b. The company is part of production chain.
c. The company participates in Tax Amnesty.
d. National Strategic Project.
e. Proposed directly by prospective shareholders.
3 Hour OSS Licensing Process Flow:
Step 1:
1. Visit the central PTSP directly from the airport.
2. Consult with the director of service.
3. Submit the required documents.
Step 2:
Waiting in the lounge while the Investment Priority Officer coordinates with the Ministries/Agencies involved in the Central PTSP.
Step 3:
Get OSS licensing products & information within 3 hours
