5 Jan 2018
INDONESIA: Incorporation Process for FDI-Backed Businesses Cut to 24 Hours
Overseas-backed limited companies can now be established in just 24 hours under the country’s newly-adopted Investment Registration (Pendaftaran Investasi or PI) system. This supersedes the Principle License (Izin Prinsip or IP) system, under which it took a minimum of three days to set up an FDI-backed limited company.
In an additional move, certain overseas-invested enterprises – notably those that do not need to construct dedicated facilities – will be entitled to skip the PI requirement entirely and, instead, apply directly for a Business Licence (Izin Usaha or IU). Typically, securing an IU is the mandatory second stage of establishing an overseas-invested business, with such licences normally only granted to PI holders.
Overall, the changes are in line with Presidential Regulation No. 91 of 2017 with regard to The Acceleration of Business Implementation, which was announced back in August 2017 as part of the country’s 16th Economic Policy Package (EPP).
For further details see: INDONESIA: New Economic Policy Package Set to Streamline Investment Procedures.