New Investment Regulation
The Investment Coordinating Board (“BKPM”), through its BKPM Regulation No. 12 of 2013 regarding The Amendment of New Investment Procedures No. 5 of 2013 has made some amendments on investment licensing and other procedures on the foreign and domestic direct investment companies.
Some significant amendments of the new investment procedures are as follows:
- A Venture Capital Firm can now become an investor in Capital Investment Companies under the consequence of being treated as a form of national investment. The capital investments by Venture Capital Firms are temporary for maximum period of 10 years. However, this situation can be extended to 5 more years if it is in accordance with the governing rules.
- All companies in need for principle license must present their business activities before the authorized officials. This principle license might be revoked through observation by government officials.
- The Submission of principal license for more than 1 (one) business field other than industrial field is no longer need to be done simultaneously.
- The business activities mentioned on the principal license must be done within 3 years after the issuance of Expansion Principle License and now can be extended. If the business activity is still not done after the extension, the government officials might commit field observation.
- The Import duty facility for machines meant for restructuration/modernization/rehabilitation might be extended in accordance with the Principle License. If there is a change of technical specification, the extension might be submitted twice within the time period. Meanwhile, the letter of application for change of technical specification must cum with Bill of Lading or Airways Bill, Packing List, Invoice, Contract, and Technical Description.