BKPM Regulation 6 of 2018 Regulates Integration With The OSS System

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July 10, 2018
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BPKM OSS integration

BKPM regulates the integration with OSS in Regulation No. 6 of 2018

BPKM OSS integrationThe Investment Body (BKPM) has has issued Regulation No. 6 of 2018 on Guidelines and Procedures for Investment Licensing and Facilities (Regulation 6/2018), which regulates the implementation of Regulation No. 24 of 2018 on the Electronically Integrated Business Licensing Service (Regulation 24/2018), which regulates the Online Single Submission (OSS) system (see our previous column on OSS). Regulation 6/2018 revokes and repeals BKPM Regulation 13/2017. In this column we will discuss the integration between BKPM and OSS based on Regulation 6/2018.

Investment licenses Which Are Not Managed by OSS 

Investment licenses of companies active in the below sectors cannot be processed by OSS. The applications will be processed by BKPM.

  1. Energy and mineral resources (Electricity sector, oil-and-gas sector and mineral and coal sector)
  2. Public works and public housing
  3. Duty and taxation facilities
  4. General investment, which include licenses for the establishment of KPPA, licenses for the establishment of branch offices for certain business sectors, recommendations for the provision of limited-stay visas to shareholders and recommendations for status amendment from limited-stay permits (ITAS) to permanent-stay permits (ITAP).

Investment licenses under BKPM

Before companies can apply their business licenses at BKPM, they are required to obtain a Business Identity Number (Nomor Induk Berusaha-NIB)  at OSS. Only after the company has obtained an NIB, it can apply for their investment / business licenses at BKPM. The NIB not only serves as identification number of a company, but it serves also as replacement for the Company Registration Certificate (TDP), Import Identification Number (API) and Customs Identification Number (NIK), which will lead to faster processing times of companies. The requirement to obtain a NIB requirement will not immediately come into for, but will become mandatory 6 months after the enactment of Regulation No. 24/2018, i.e. 21 December 2018.

Provisions and Investment value of foreign capital

The minimum authorized share capital requirement for companies which investment licenses are issued by BKPM  remains IDR 10 billion (excluded lands and buildings) and the minimum paid-up share capital is remains IDR 2.5 billion, in line with now obsolete BKPM Regulation 13/2017.

Supervisory Authority of BPKM

Foreign investment companies (PT PMA) are required to submit an Investment Activity Report (LKPM). BKPM monitors the fulfillment of commitments on business licenses issued by the OSS Institution. In case of violations or irregularities, BKPM is entitled to give the following sactions to companies:

  1. warning letter;
  2. temporary suspension of business activities;
  3. administrative fines; and / or
  4. revocation of business license.





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