Investment License in Industrial Area Only Takes 3 Hours

Investment License in Industrial Area Only Takes 3 Hours

Government, on Tuesday (29/9), announced the Second Phase Policy Package. It is expected that the package will be more effective and easy to implement.

Coordinating Minister for the Economy Darmin Nasution said that this package is not as many as the First Phase Policy Package announced by President Joko Widodo in which it included an amendment of 120 Ministerial Regulations and some Government Regulations.

“So, this policy will be more effective and efficient based on the instruction and the directives of the President as what Pramono Anung has delivered,” the Minister said after being invited by Cabinet Secretary Pramono Anung to deliver the meeting result on investment at the Presidential Office, Jakarta, on Tuesday (29/9) afternoon.

According to Darmin, there are two kinds of the investment license in the Second Phase Policy Package, namely license for the investment in the industrial area and outside industrial area.

In the existing regulation for the investment outside industrial area, Darmin added, it takes 8 days for obtaining a business entities license and 526 days for having 11 licenses to do construction, etc.

“Through the amendment of the September Phase II regulation, the business entities license and the other 11 licenses for the investment in industrial area are not treated as a license anymore but only as a standard or a requirement,” Darmin said.

The Minister explained, for instance, a license for environment. The Government has given the license for environment in the industrial area so that the investment in the area does not required a license anymore. “The license applicant is given quality standards. He/she should meet that standard. Then, the applicant puts a signature as his/her commitment to the standard,” he noted.

Therefore, after a number of licenses are changed into a standard or a requirement, the Minister added, the duration to obtain an investment permit in the industrial area will be faster which is only 3 hours. After that, he/she can start working.

“This means that the Investment Coordinating Board (BKPM) should hire its own notary because it will take a long time if the investors have to go to another notary. So, if BKPM appoints an in-house notary or make a contract with a notary, everything can be processed immediately as long as the investor comes and meets the notary,” Darmin explained.

In addition, he said that in 3 hours, the investor has received the investment license. Beside the investment license, BKPM has also taken care of the company’s name, the deed of incorporation and the validation from Ministry of Law and Human Rights as well as tax identification number (NPWP).

According to the Minister, the regulations needed to implement this policy are a regulation of Head of BKPM to finish the licensing prosess in one day, a Governmental Regulation on the industrial area that has been perfected and being submitted to the President and a regulation of Minister of Finance to harmonize the facilities no later than this Friday. (SLN/RAH/ES) (JS/MMB/YM-Naster/Sy)