FAQs

• What is an investment license and does your company need one?

  These are the investment licenses available in Indonesia:

  • Business License.
  • Expansion License.
  • Investment Registration.

  In Indonesia, every foreign investment company requires an investment license.

• What is a business license (IU), does your company need one and when can your company have one?

  A businesses license, or IU, is a license that a foreign investment company (PMA) must obtain to start its business operation, unless otherwise specified by the applicable laws and regulations. This license is issued by the Indonesian Investment Coordinating Board (BKPM), unless otherwise specified by the applicable laws and regulations.

  If you already have the investment registration, once your company is ready for business based on BKPM requirements, your company is able to apply for a business license, unless otherwise specified by laws and regulations.

  For certain business fields, if:

  • you have formed a PT, with shareholding composition inline with the prevailing laws and regulations;
  • you have a valid taxpayer identification number (NPWP); and
  • you have an office or place of business for your business,

  subject to the following requirements:

  • if it is in the areas of business that do not require any construction activities; or
  • if it is in the areas of business that do not require exemption facilities of import duty on the import of machinery / capital goods,

  you can directly apply for a business license without requiring you to have the investment registration, unless otherwise specified by the applicable laws and regulations.

  You’ll receive a business license within 14 working days upon the authorities receiving your completed documents and information.

  Your business has to conduct its business activity within 1 year after it obtained the business license.

• What is an expansion license, does your company need one and when can your company have one?

  An expansion license, is a license that foreign investment companies (PMA) in the industrial sector must obtain in order to start executing its business expansion, unless otherwise specified by the applicable laws and regulations.

  This license is issued by the Indonesian Investment Coordinating Board (BKPM), unless otherwise specified by the applicable laws and regulations.

  You’ll receive an expansion license within 14 working days upon the authorities receiving your completed documents and information.

• What is an investment registration and does your company need one and when can your company have one?

  An investment registration is a government approval which is the principle license as the basis for issuance of license and provision of investment facility.

  The investment registration is required for investments in certain business activities:

  • in the areas of business that takes time to conduct construction/ construction activities;
  • in the areas of business that can obtain investment facilities in accordance with the applicable laws and regulations;
  • in the areas of business that have the potential to cause pollution to medium or big environment in accordance with the applicable laws and regulations;
  • in the areas of business related to national defense, natural resource management, energy and infrastructure; or
  • in other business fields in accordance with the prevailing provisions of sectoral legislation.

  For certain business field, if:

  • You have formed a PT, which shareholding composition inline with the prevailing laws and regulations;
  • You have a valid taxpayer identification number (NPWP); and
  • You have an office or place of business for your business,

  subject to the following requirements:

  • if it is in the areas of business that do not require any construction activities; or
  • if it is in the areas of business that do not require exemption facilities of import duty on the import of machinery / capital goods,

  you can directly apply for business license without requiring you to have the investment registration, unless otherwise specified by the applicable laws and regulations.

  You’ll receive an investment registration within 14 working days upon the authorities receiving your completed documents and information.

• How much will your registration cost?

  At Plato, we offer a straightforward investment license registration service. For a quote, simply contact us. We'll then provide you with clear step-by-step guidance and the documentation that you're legally required to have, to ensure you're compliant.