Perka BKPM 7 Tahun 2018 - Pedoman & Tata Cara Pengendalian Pelaksanaan PM (English)

Authorized Translation
INVESTMENT COORDINATING BOARD OF
THE REPUBLIC OF INDONESIA
COPY
REGULATION OF THE INVESTMENT COORDINATING BOARD OF
NUMBER 7 OF 2018
CONCERNING
GUIDELINES AND PROCEDURES OF CONTROL ON IMPLEMENTATION OF
INVESTMENTS
BY THE GRACE OF GOD ALMIGHTY
CHAIRMAN OF INVESTMENT COORDINATING BOARD OF
THE REPUBLIC OF INDONESIA,
Considering : a. whereas in order to implement the provisions of
Article 14, Article 15 and Article 28 paragraph (1)
sub-paragraph h of Law Number 25 Of 2007
concerning Investment and to observe Law
Number 23 Of 2014 concerning Regional
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Government as amended several times, Law
Number 9 Of 2015 concerning the Second
Amendment to the Law Number 23 Of 2014
concerning Regional Government has been
stipulated Regulation of the Head of the
Investment Coordinating Board Number 14 Of
2017 concerning Guidelines and Procedures for
Controlling the Implementation of Investment;
b. whereas in order to implement the provisions of
Article 88 of Government Regulation Number 24
of 2018 concerning Electronically Integrated
Business License Services, it is necessary to
prepare Norms, Standards, Procedures and
Criteria for Controlling the Implementation of
Investment;
c. whereas the Regulation of the Investment
Coordinating Board Number 14 Of 2017
concerning Guidelines and Procedures for
Controlling the Implementation of Investment
need to be adjusted to the amendment of laws
and regulations;
d. whereas based on the considerations as referred
to in letter a, letter b, and letter c, it is necessary
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to stipulate Regulation of the Investment
Coordinating Board on Guidelines and Procedures
for Controlling the Implementation of Investment;
In view of : 1. Law Number 25 Of 2007 concerning Investment
(State Gazette of the Republic of Indonesia Year
2007 Number 67, Supplement to the State
Gazette of the Republic of Indonesia Number
4724);
2. Law Number 23 Year 2014 concerning Regional
Government (State Gazette of the Republic of
Indonesia Year 2014 Number 244, Supplement to
the State Gazette of the Republic of Indonesia
Number 5587) as amended several times, most
recently by Law Number 9 Of 2015 on the Second
Amendment to Law Number 23 of 2014 on
Regional Government (State Gazette of the
Republic of Indonesia Year 2015 Number 58,
Supplement to the State Gazette of the Republic
of Indonesia Number 5679);
3. Government Regulation Number 24 of 2018
concerning Electronically Integrated Business
License Services (State Gazette of the Republic of
Indonesia Year 2018 Number 90);
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4. Presidential Regulation Number 90 Of 2007
concerning Investment Coordinating Board as
amended by Presidential Regulation Number
86/2012 concerning Amendment to Presidential
Regulation Number 90 Of 2007 concerning
Investment Coordinating Board (State Gazette of
2012 Number 210);
5. Presidential Regulation Number 97 Of 2014 on the
Implementation of One Stop Integrated Service
(State Gazette Year 2014 Number 221);
6. Presidential Regulation Number 91 Of 2017
concerning Acceleration of Entrepreneurship
(State Gazette of the Republic of Indonesia Year
2017 Number 210);
HAS DECIDED:
To Stipulate : REGULATION OF THE INVESTMENT COORDINATING
BOARD CONCERNING GUIDELINES AND PROCEDURES
OF CONTROLLING IMPLEMENTATION OF INVESTMENT.
CHAPTER I
GENERAL PROVISIONS
Article 1
In these Regulations referring to:
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1. Investment is any form of investment activity,
either by Domestic Investors or Foreign Investors,
to conduct business in the territory of the Republic
of Indonesia.
2. Investor is an individual or business entity
conducting Investment which may be Domestic
Investor and Foreign Investor which hereinafter in
the Regulation of this Agency may also be
referred to as investor.
3. Domestic Investor is an individual of Indonesian
citizen or Indonesian business entity of the
Republic of Indonesia, or region conducting
Investment in the territory of the Republic of
Indonesia.
4. Foreign Investor is an individual foreign citizen,
foreign business entity, and/or foreign
government conducting Investment in the
territory of the Republic of Indonesia.
5. Domestic Investment hereinafter abbreviated as
PMDN is the activity of investment to conduct
business in the territory of the Republic of
Indonesia conducted by Domestic Investor by
using domestic capital.
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6. Foreign Investment hereinafter abbreviated as
PMA is an activity of investment to conduct
business in the territory of the Republic of
Indonesia conducted by Foreign Investors,
whether using foreign capital completely or in
association with Domestic Investor.
7. Investment Coordinating Board hereinafter
abbreviated to as BKPM is a non-ministerial
government institution responsible in the field of
Investment, which is headed by a Head who is
under and directly responsible to the President.
8. Online Single Submission Management and
Organizing Agency, hereinafter referred to as OSS
Institution, is a non-ministerial government
institution that conducts government affairs in the
field of investment coordination, namely BKPM.
9. One Stop Integrated Service, hereinafter
abbreviated as PTSP, is a licensing and non-
licensing activity based on the mandate of a
licensed and non-licensing agency or agency
whose management process begins from the
application stage until the publication of
documents conducted in one place.
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10. PTSP Centers in BKPM are services related to
Investment which is the authority of the
Government held in an integrated manner in a
unified process starting from the stage of
application until the completion of service
products through one door in BKPM.
11. Central Government is the President of the
Republic of Indonesia which holds the power of
government of the Republic of Indonesia which is
assisted by the Vice President and Minister as
referred to in the 1945 Constitution of the
Republic of Indonesia.
12. Regional Government is the administration of
government affairs by the Regional Government
and the regional legislature according to the
principle of autonomy and duty of assistance with
the principle of autonomy as wide as possible in
the system and principles of the Unitary State of
the Republic of Indonesia as referred to in the
1945 Constitution of the Republic of Indonesia.
13. Regional Government is the regional head as an
element of the Regional Government organizing
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the execution of government affairs which is the
authority of the autonomous regions.
14. Department of Investment and One Stop
Integrated Services of Province, hereinafter
referred to as DPMPTSP Province is a regional
instrument as an assistant element of the
governor to carry out government affairs in the
field of Investment and One Stop Integrated
Service which is the authority of the province.
15. Department of Investment and One Stop
Integrated Service of Province, Regency/
Municipality, hereinafter referred to as DPMPTSP
Province, DPMPTSP Regency/Municipality is the
element of assistant regional head for the
implementation of governmental affairs of
province, regency/municipality which performs the
main function of coordination in the field of
Investment in local government of province,
regency/municipality.
16. Free Trade Area and Free Seaport hereinafter
abbreviated as KPBPB shall be an area within the
jurisdiction of the Unitary State of the Republic of
Indonesia separated from the customs area so
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that it is free from imposition of entry duty, value
added tax, sales tax on luxury goods, and excise.
17. Special Economic Zone hereinafter abbreviated to
KEK is a region with certain borders within the
jurisdiction of the Unitary State of the Republic of
Indonesia which is determined to perform
economic functions and obtain certain facilities.
18. Task Force is a task force established to improve
the service, guarding, resolving obstacles,
simplification, and development of online system
in order to accelerate the implementation of
Business License including for micro, small and
medium enterprises after obtaining approval of
the investment.
19. Business License shall mean the registration
provided to the Investor to start and operate the
business and/or activity and shall be granted in
the form of an approval as outlined in the form of
a letter/decision or fulfillment of the terms and/or
commitment.
20. Electronically Integrated Business License or
Online Single Submission hereinafter abbreviated
as OSS is Business License issued by the OSS
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Institution for and on behalf of ministers, heads of
institutions, governors or regents/mayors to
Investors through an integrated electronic system.
21. Electronically Information and Investment License
Service System, hereinafter abbreviated as
SPIPISE, is an electronic system of Licensing and
Non-Licensing services integrated between BKPM
and ministries/non-ministerial government
agencies with licensing and non-licensing
authority, KPBPB Operational Body Board, KEK
Administrator, DPMPTSP Province, DPMPTSP
Regency/Municipality, and PTSP Implementing
Agency in the Field of Investment.
22. Business Registration Number hereinafter
abbreviated as BRN shall be the identity of the
Investor issued by the OSS Institution after the
Investor has been registered.
23. Electronic documents are any electronic
information created, forwarded, transmitted,
received, or stored in the form of analog, digital,
electromagnetic, optical, or the like, which may be
retrieved, displayed and/or heard through a
computer or electronic system, including but not
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limited to writing, sound, images, maps, designs,
photographs or the like, letters, signs, numbers,
access codes, symbols or perforations that have
sense or meaning or are understandable to those
who are able to understand them.
24. Electronic Signature is a signature consisting of
Electronic Information embedded, associated or
related with other Electronic Information used as
a verification and authentication tool.
25. Day is the day of work as determined by the
Central Government.
26. Investment Facilities shall be any form of fiscal
and non-fiscal incentives as well as ease of
investment services, in accordance with the
provisions of laws and regulations.
27. Representative Office of Foreign Company,
hereinafter abbreviated as KPPA, is an office led
by an Indonesian citizen or a foreign national
appointed by a foreign company or a foreign joint-
venture overseas as its representative in
Indonesia.
28. Representative Office of Foreign Trading Company
hereinafter abbreviated as KP3A is an office
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headed by an individual Indonesian citizen or a
foreign national appointed by a foreign trading
company or a foreign joint-venture overseas as its
representative in Indonesia.
29. Representative Office of Foreign Construction
Services Business Enterprise hereinafter referred
to as BUJKA Representative Office is a business
entity established by law and domiciled in a
foreign country, having a representative office in
Indonesia, and equalized with a Limited Liability
Company entity engaged in construction services
business.
30. Representative Office of Oil and Gas Subsector,
hereinafter referred to as KPA Migas, is an office
led by an individual Indonesian citizen or a foreign
national appointed by a foreign company or a
foreign joint-venture overseas as its
representative in Indonesia in the oil and natural
gas subsector.
31. Corporate Leader is a board of directors which is
incorporated in the articles of association or
amendment thereof who have been approved by
the Minister of Law and Human Rights for a legal
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entity of a Limited Liability Company or in
accordance with the provisions of the law and
regulation for non-legal entity of a Limited Liability
Company.
32. Right of Access is a right granted to Investors who
already have a user identity and access code to
administer permissions and facilities within the
network (online).
33. Company Folder is a means of storing corporate
documents in digital form provided in the system
at BKPM.
34. Industrial Estate is an area where concentration of
processing industry activities is completed with
infrastructure, facilities and other supporting
facilities provided and managed by industrial
estate companies.
35. Control is an activity of Monitoring, Guidance and
Supervision of Investors who have obtained
Investment Permit for the implementation of
Investment in accordance with the provisions of
law and legislation.
36. Monitoring is an activity undertaken to collect,
evaluate and present data on developments on
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the realization of Investment and representative
offices.
37. Guidance is an activity undertaken to provide
guidance/socialization of the implementation
provisions of Investment and facilitate the
settlement of problems in the context of
implementation of investment activities.
38. Supervision is an effort or activity undertaken to
examine the progress of the implementation of
Investment, prevent and/or reduce the occurrence
of irregularities against the provisions of the
implementation of Investment, including the use
of Investment Facilities.
39. Deconcentration is the delegation of authority
from the Government to the governor.
40. Project is a business activity undertaken by an
Investor who has obtained Business License.
41. Subsequent Investment Activity Report
abbreviated LKPM is a report on the progress of
realization of Investment and the problems faced
by Investors that must be made and submitted
periodically.
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42. Minutes of Investigation hereinafter referred to as
Minutes of Investigation are the result of the
inspection conducted directly to the field on the
implementation of investment activities.
43. Ministries/Non-Technical Government Institutions,
hereinafter referred to as Technical Institutions,
are governmental instruments dealing with certain
affairs or performing certain tasks within the
government under the 1945 Constitution or other
laws and regulations.
44. Restrictions are administrative measures to
restrict business operations.
45. Freezing is an administrative action resulting in
temporary suspension of business activities
and/or Investment Facilities.
46. Revocation is an administrative measure which
resulted in the revocation of the Business License
and/or Investment Facility.
47. Closure is an administrative action to terminate
the activities of KPPA, KPA Migas, and Branch
Offices licensed by PTSP Center in BKPM.
CHAPTER II
PURPOSE AND OBJECTIVES
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Article 2
Guidelines and Procedures for Controlling the
Implementation of Investment as governed by these
Regulations is intended as guidance for the apparatus of
BKPM, DPMPTSP Province, DPMPTSP
Regency/Municipality, KEK Administrator, KPBPB
Management Board, and Investors and other public
communities.
Article 3
The Guidelines and Procedures for Controlling the
Implementation of Investment aims to realize the
standardization and information on the implementation
of the control of Investment in BKPM, DPMPTSP
Province, DPMPTSP Regency/Municipality, KEK
Administrator, KPBPB Management Board and Investors
and other public communities.
CHAPTER III
SCOPE
Article 4
The scope of the control of Investment implementation
covers the following activities:
a. Monitoring;
b. Supervising; and
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c. Controlling
CHAPTER IV
AUTHORITY OF CONTROL OF INVESTMENT
IMPLEMENTATION
Article 5
(1) The Authority to Control the Implementation of
Investment is carried out by:
a. The Central Government carried out by
BKPM through the Deputy of the
Implementation Control of Investment for
the business activities that are under the
authority of the Central Government,
namely:
1. Investment whose scope is across the
province;
2. Investment related to non-renewable
natural resources with high risk of
environmental damage;
3. Investment in industry which is a high
priority on a national scale;
4. Investments in industrial fields that
process and produce toxic and
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hazardous materials (B3) and types of
strategic high technology industries;
5. Investment related to the unifying
function and link between the regions
or scope across provinces; 6.
Investment related to the
implementation of national defense
and security strategy;
7. PMA and Investors using foreign
capital derived from the government
of another country, based on
agreements made by the government
and other governmental officers; and
8. Other Investment Fields which
become the affairs of the Central
Government in accordance with the
provisions of laws and regulations;
b. In the provincial government shall be
conducted by the DPMPTSP Province on the
business activities that are under the
authority of the provincial government,
namely:
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1. Investment in the scope of activities
across Regency/Municipality; and
2. Investment which become the
authority of the Provincial Government
in accordance with the provisions of
laws and regulations;
c. Local Government of Regency/Municipality
shall be carried out by DPMPTSP of
Regency/Municipality for business activities
which become the authority of Local
Government of Regency/Municipality, that is
the scope of activity in Regency/
Municipality;
d. Free Trade Zone and Free Ports entity for
business activities located in the area of
KPBPB; and
e. Administrator of Special Economic Zone for
business activities located in KEK region.
(2) PMA and Investors using foreign capital as
referred to in paragraph (1) letter a number 7
shall include:
a. PMA conducted by the government of
another country;
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b. PMA conducted by foreign nationals or
foreign business entities;
c. Investors using foreign capital from other
governments, based on agreements made
by the Indonesian Government and other
governments.
(3) In the case of licensing of Investment issued by
PTSP Center in BKPM but currently has become
the authority of the Regional Government of the
province or the Regional Government of the
Regency/Municipality or the agency of KPBPB or
the KEK Administrator, the implementation of the
Investment Control shall be carried out by the
DPMPTSP Province/Municipality, KPBPB
Operational Body, or KEK Administrator in
accordance with its authority.
(4) In certain cases, BKPM may directly control the
implementation of Investment which is the
authority of the Provincial Government,
Regency/Municipality Government, KPBPB or KEK
Administrator Agency and deliver the results to
the DPMPTSP Province, DPMPTSP
Regency/Municipality, KPBPB Operational Body or
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KEK Administrator shall be in accordance with its
authority.
(5) In some cases, DPMPTSP Province can directly
control the implementation of Investment which is
the authority of the Regional Government of the
Regency/Municipality, KPBPB or KEK Administrator
Agency and deliver the results to the DPMPTSP of
the Regency/Municipality, KPBPB or KEK
Administrator in accordance with their authority.
(6) In certain cases, DPMPTSP of Province and
DPMPTSP Regency/Municipality can directly
control the implementation of Investment which is
the authority of BKPM and submit the results to
BKPM.
(7) In certain cases, DPMPTSP Regency/Municipality
can directly control the implementation of
Investment which is the authority of the DPMPTSP
Province and submit the results to the DPMPTSP
Province.
(8) Certain things as referred to in paragraph (4)
through paragraph (7) include:
a. the request of the authorized Technical
Agency;
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b. the request for assistance from the
Provincial Government, the
Regency/Municipality Government, KPBPB or
KEK Administrator;
c. there is public complaints;
d. a complaint from the Investor; or
e. the occurrence of environmental pollution
and/or other matters that may endanger
public safety and/or disrupt the national
economy as well as the regional economy.
CHAPTER V
RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES OF
INVESTORS
Article 6
Every Investor shall be entitled to obtain:
a. certainty of rights, law and protection;
b. open information about the business sector to
run;
c. right of service; and
d. various forms of amenity facilities in accordance
with the provisions of law and legislation.
Article 7
Every Investor is obliged to:
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a. apply the principles of good corporate
governance;
b. carry out corporate social responsibility;
c. submit LKPM;
d. respect the cultural traditions of the communities
surrounding the location of business activities of
Investment;
e. improve the competence of Indonesian citizens
through job training in accordance with the
provisions of law and legislation;
f. organize training and transfer technology to
Indonesian citizens in accordance with the laws
and regulations of the companies employing
foreign workers;
g. gradually allocate funds for the recovery of sites
that meet environmental feasibility standards for
companies that seek non-renewable natural
resources, whose implementation is in accordance
with the provisions of laws and regulations; and
h. comply with all laws and regulations.
Article 8
Every Investor is responsible to:
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a. guarantee the availability of capital originating
from sources that do not conflict with the
provisions of laws and regulations;
b. bear and complete all obligations and losses if the
Investor terminates or abandons its business
activities;
c. create a healthy competitive business climate and
preventing monopolistic practices;
d. preserve the environment; and
e. create safety, health, comfort, and welfare of
workers.
CHAPTER VI
IMPLEMENTATION OF CONTROL OF INVESTMENT
Part One
Monitoring
Article 9
(1) The monitoring activities as referred to in Article 4
letter a shall be conducted to determine the
progress of Investment realization and the
problems faced by the Investor through the
collection, verification and evaluation of:
a. LKPM delivered by Investor;
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b. report on the realization of imports and/or
fiscal facilities delivered by the Investor;
c. report on the activities of representative
offices by KPPA, KP3A, BUJKA and KPA
Migas; and
d. report of other business activities required
in accordance with the regulations of the
relevant Technical Institutions.
(2) The monitoring activities as referred to in
paragraph (1) shall be implemented by BKPM,
DPMPTSP Province, DPMPTSP
KEK Administrator in accordance with their
authorities.
(3) Monitoring Activities shall be conducted on
Investment since obtaining Business License.
(4) BKPM, DPMPTSP Province, DPMPTSP
Regency/Municipality shall monitor all realization
of Investment both its Business Licenses are
issued through OSS System, PTSP Center in
Regency/Municipality or other Technical
Institutions both central and regional.
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(5) The Chairman of BKPM may provide mandate for
the implementation of Monitoring activities which
are the authority of the Central Government to
the governor through Deconcentration.
(6) The mandate as referred to in paragraph (5) shall
be regulated in the Investment Coordinating
Board Regulation.
Article 10
(1) The obligation to submit LKPM as referred to in
Article 7 letter c shall be conducted online and
periodically through SPIPISE for every business
activity undertaken by the Investor.
(2) Investor as referred to in paragraph (1)
conducting business activity for every business
field and/or location with investment value more
than Rp500.000.000,00 (five hundred million
rupiah) must submit LKPM.
(3) Investor conducting business activities for each
business and/or location with investment value up
to Rp500,000,000.00 (five hundred million
rupiah), submits a report of business activities in
accordance with the regulations of the authorized
technical institution.
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(4) The submission of LKPM shall refer to the data
and/or changes in the data of Business License
including changes to data as contained in the OSS
system in accordance with the current period.
(5) The submission of LKPM as referred to in
paragraph (2) shall be submitted with the
following provisions:
a. Investor must submit LKPM every 3 (three)
months (quarterly) with the format as
contained in Appendix I which is an integral
part of this Agency Regulations.
b. The reporting period of LKPM as referred to
in letter (a) shall be regulated as follows:
1. The first quarter report shall be
submitted no later than the 10th of
April of the relevant year;
2. The Second Quarterly Report shall be
July of the year in concerned;
3. The third quarter report shall be
October of the year; and
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4. The Forth Quarterly report shall be
January of the following year.
(6) The Investor as referred to in paragraph (2) has
the obligation to submit the first LKPM for the
implementation of Investment activities in the
corresponding period after the date of issuance of
Business License.
Article 11
The format of LKPM as referred to in Article 10
paragraph (5) letter a consists of:
a. LKPM for non-commercial business activities; and
b. LKPM for commercial business activities.
Article 12
LKPM as referred to in Article 11 letter b shall be
submitted by Investors who have declared ready to
produce/operate commercially online through SPIPISE
with the format as contained in Appendix II constituting
as an inseparable part of this Agency Regulations.
Article 13
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KEK Administrator shall verify and evaluate online
at PTSP Center in BKPM against data of
Investment realization as mentioned in LKPM on
Business License in accordance with their
respective authority as referred to in Article 5.
(2) In the case of verification and evaluation of data
as referred to in paragraph (1), BKPM, DPMPTSP
Province, DPMPTSP Regency/Municipality, KPBPB
Operational Body or KEK Administrator may
request explanation from the company or request
improvement of LKPM.
(3) In the event that an Investor performs an
improvement on LKPM as referred to in paragraph
(2), the repairs must be submitted online twice at
most, with any maximum improvement of 2 (two)
Days in the same reporting period.
(4) In the event that an Investor does not revise
LKPM as referred to in paragraph (2) and
paragraph (3), the Investor shall be deemed not
to submit the LKPM.
(5) The results of verification and evaluation of data
on Investment realization as specified in approved
LKPM are stored online through SPIPISE.
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(6) BKPM compiles data on the realization of National
Investment based on LKPM recording data online
as referred to in paragraph (5).
(7) The compilation result as referred to in paragraph
shall be submitted to the public at the latest:
a. the 30th April of the year in concerned for
the first quarter report;
b. the 31st of July of the year in concerned for
the second quarter report;
c. the 31st of October of that year for the third
quarter report; and
d. the 31st of January of the following year for
the fourth quarter report.
Article 14
(1) KPPA shall report its activities every 6 (six)
months to BKPM in the format as contained in
Appendix III which is an integral part of this
Agency Regulations, with the following reporting
period:
a. The first semester report is submitted no
later than the 10th of July of the year; and
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b. The second semester report is submitted no
later than the 10th of January of the
following year.
(2) KP3A shall submit its activity report every 6 (six)
months to BKPM with format as contained in
Appendix IV which is an integral part of this
Agency Regulations, with the following report
period:
following year.
(3) BUJKA Representative Office shall submit annual
activity report to BKPM and Ministry of Public
Works and Public Housing no later than the 10th
of January of the following year in the format as
contained in Appendix V which is an integral part
of this Agency Regulations.
(4) KPA Migas shall submit its activity report every 6
(six) months to BKPM in the format as contained
in Appendix VI which is an integral part of this
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Agency Regulations, with the following reporting
period:
following year.
(5) The submission of reports as referred to in
paragraphs (1) through paragraph (4) shall be
submitted to BKPM online through SPIPISE.
Article 15
(1) Investors who have received exemption facilities
of entry duty on machinery and/or goods shall be
obliged to convey reports of realization of imports
to BKPM no later than 7 (seven) days after
receiving Letter of Approval of Goods Release
(SPPB) from the Directorate General of Customs
and Excise, with the format as contained in
Appendix VII which is an integral part of this
Agency Regulations.
(2) The submission of import realization report, as
referred to in paragraph (1), shall be done online
through SPIPISE.
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Article 16
(1) BKPM shall make a report:
a. cumulative realization of Investment
nationally every 3 (three) months and
submitted to the President and related
Technical Agency; and
b. recapitulation of the realization of import of
machinery and/or Goods and Materials
obtaining the entry duty exemption facility
from BKPM every 6 (six) months to the
Minister of Finance through the Fiscal Policy
Office, in the format as contained in
Appendix VIII constituting as an inseparable
(2) The DPMPTSP Province shall prepare a cumulative
report on the implementation of Investment in the
provincial territory every 3 (three) months and
shall be submitted to the governor with a copy to
BKPM.
(3) DPMPTSP Regency/Municipality shall prepare
cumulative report on the implementation of
Investment in the Regency/Municipality every 3
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(three) months and shall be submitted to the
regent/mayor with copies to the governor.
(4) KPBPB Operational Body and Administrators of
KEK shall prepare cumulative reports on the
implementation of Investment in KPBPB and KEK
areas every 3 (three) months and submitted to
BKPM with copies to the governor.
(5) The cumulative report as referred to in paragraph
(1) a, paragraph (2), paragraph (3) and
paragraph (4) shall be submitted with at least the
following:
a. reporting period;
b. realization of PMA and PMDN investments in
the reporting period;
c. number of projects and realization of
investment based on project location,
business sector and country for PMA; and
d. number of projects and realization of
investment based on project location,
business sector for PMDN.
Article 17
To improve the Company's compliance with obligations
and responsibilities as referred to in Article 7 and Article
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8, BKPM, DPMPTSP Province, DPMPTSP
Regency/Municipality, KPBPB Operational Body, and KEK
Administrator may award the Best Investor in
accordance with their authority.
Part Two
Development
Article 18
(1) Development Activities as referred to in Article 4
letter b shall be executed by BKPM, DPMPTSP
Operational Body or KEK Administrator to the
regional apparatus and Investor.
(2) Development activities carried out by BKPM as
referred to in paragraph (1) to the regional
apparatus shall be conducted by the Deputy Unit
of Investment Cooperation with norms, standards,
procedures and criteria set out in the Investment
Coordinating Board Regulation.
(3) The Guidance Activities as referred to in
paragraph (1) conducted on Investor shall be
executed through:
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a. socialization guidance, workshops, technical
guidance, or investment dialogue on the
implementation of Investment Regularly;
b. giving consultation on controlling the
implementation of Investment in accordance
with the provisions of laws and regulations;
c. facilitation of problem solving faced by
Investor;
d. facilitation of acceleration of investment
project realization in the form of ease effort
for Investor; or
e. escorting the acceleration of the national
strategic projects realization that already
have licenses.
(4) The implementation of Guidance activities as
referred to in paragraph (3) may be conducted in
a coordinated with the related parties.
(5) In the event that an Investor requests Guidance
concerning the issue of the implementation of
Investment activities, BKPM, DPMPTSP Province,
DPMPTSP Regency/Municipality, KPBPB
Operational Body or KEK Administrator may carry
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out Development activities as referred to in
paragraph (3) letter c.
(6) In the case of facilitation of problem solving faced
by the Investor as referred to in paragraph (3)
letter c, in relation to the issue of dispute among
shareholders not reaching the settlement
agreement, BKPM may block the Right of Access.
(7) The opening of the blocking of access rights as
referred to in paragraph (6) may be made after
the shareholders reach a settlement agreement on
the matter.
(8) The blocking and/or opening of access rights as
referred to in paragraph (6) and paragraph (7)
may be made on the proposal of:
a. the disputed parties;
b. Technical Institution, DPMPTSP Province,
and/or KEK Administrator Agency.
Article 19
(1) Application for Development as referred to in
Article 18 paragraph (5), Investor may submit
through LKPM and/or letter addressed to
Chairman of BKPM or Deputy of Controlling
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Implementation of Investment, Head of DPMPTSP
Province, Head of DPMPTSP Regency/Municipality,
Head of KPBPB Operational Body, or KEK
Administrator in accordance with its authority.
(2) Based on the application for guidance as referred
to in paragraph (1), BKPM, DPMPTSP Province,
Operational Body or KEK Administrator in
accordance with its authority to facilitate the
settlement of Investment problem through stages
of:
a. identification and verification of problems;
b. coordination no facilitation of problem-
solving with relevant technical institutions,
relevant local technical agencies, and/or
other related parties;
c. in the case of facilitation of resolving
obstacles to Business License, coordination
with the National Task Force, Task Force of
Technical Institution, Provincial Task Force,
the relevant Regency/Municipality Task
Force; and
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d. report on the delivery of facilitation results
to the parties in concerned.
(3) The results of facilitation as referred to in
paragraph (2) letter b and letter c shall be set
forth in the minutes, with the format as contained
in Appendix IX constituting as an inseparable part
Regency/Municipality, KPBPB Operational Body, or
KEK Administrator monitor and evaluate the
progress of facilitation of problem solving.
Part Three
Supervision
Article 20
Supervision Activities as referred to in Article 4 letter c
shall be conducted on business and/or activity as a
follow up of:
a. evaluation of the implementation of Investment;
b. granting exemption from entry duty of machinery
and/or goods and materials;
c. requests from other units in BKPM and/or related
technical agencies;
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d. any indication or preliminary evidence of
deviations from the provisions of the
implementation of Investment or non-fulfillment
of obligations and responsibilities as referred to in
Article 7 and Article 8;
e. proposal of Business Licenses Revocation filed to
BKPM by DPMPTSP Province, DPMPTSP
Regency/Municipality for the Project which is the
authority of the Central Government;
f. proposal of Business Licenses Revocation filed to
the DPMPTSP Province by the DPMPTSP
Regency/Municipality for Project which is the
authority of the Provincial Government; or
g. the process of imposition and withdrawal of
sanctions.
Article 21
(1) Supervision Activities shall be carried out by the
KEK Administrator in a coordinated manner and
may be accompanied by the Technical Institution
and/or related institution.
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(2) Supervision, as referred to in Article 20 letter a,
may be implemented by BKPM, DPMPTSP
accordance with their authority.
(3) The supervision, as referred to in Article letters b
and c, shall be carried out by BKPM and may be
accompanied by the DPMPTSP Province and/or
DPMPTSP Regency/Municipality.
(4) Supervision as referred to in Article 20 letters d
and g shall be carried out by BKPM, DPMPTSP
accordance with their authority and may be
accompanied by relevant Government Agencies
and authorities.
(5) The supervision as referred to in Article letter e
may be executed by BKPM and accompanied by
DPMPTSP Province, DPMPTSP Regency/
Municipality.
(6) Supervision as referred to in Article 20 letter f,
implemented by DPMPTSP Province and
accompanied by DPMPTSP Regency/Municipality.
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(7) In conducting Supervision, BKPM, DPMPTSP
Operational Body or KEK Administrator may
cooperate with profession having certificate of
expertise in Supervision field in accordance with
required field.
Article 22
(1) The Supervision Activity as referred to in Article
20 shall be executed by sending notification letter
no later than 3 (three) Days prior to the date of
implementation of Supervision to the company, by
using the format as contained in Appendix X
constituting as an inseparable part of this Agency
Regulations.
(2) Supervision activities as referred to in Article 20
shall be executed by sending notification letters
no later than 3 (three) days prior to the date of
execution of Supervision to the DPMPTSP
Operational Body, KEK Administrator and/or
Technical Institution at the location Supervision
activities, by using the format as contained in
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Appendix XI which is an integral part of this
Agency Regulations.
KEK Administrator in every Supervision shall
appoint Supervisory officers in writing in the
assignment letter, in the format as contained in
Appendix XII constituting as an inseparable part
of this Agency Regulations; and signed:
a. BKPM by the relevant Regional Director in
the Deputy Unit of Controlling
Implementation of Investment;
b. DPMPTSP Province by the Head of DPMPTSP
Province;
c. DPMPTSP Regency/Municipality by the Head
of DPMPTSP Regency/Municipality;
d. KPBPB Operational Body by the Head of
KPBPB's Enterprise; or
e. KEK by KEK Administrator.
(4) In the event that the Management/Principal does
not respond, Supervision is still carried out by
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Agency.
(5) In the event that the supervision is conducted due
to indication or initial evidence of deviation on the
implementation of Investment as referred to in
Article 20 letter d, the Supervision shall be
conducted without prior notification to the
Management/Principal of the Company.
Article 23
KEK Administrator shall be entitled to an
explanation and information and/or request the
necessary supporting data related to the company
subject to the Supervision.
(2) The company as referred to in paragraph (1) shall
provide explanation and information and/or
provide complete and correct supporting data.
Article 24
(1) The results of inspection to the location of the
Project within the framework of the Supervision
shall be set forth in the Minutes of Investigation
signed by the Supervisory Officer from BKPM,
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Municipality, KPBPB Operational Body, and/or KEK
Administrator with the relevant Technical
Institution and Corporate Leaders/Responsible at
the Project site.
(2) Minutes of Investigation as referred to in
paragraph (1) shall be made in the form as stated
in Appendix XIII which is an integral part of this
Agency Regulations.
(3) In the event that the Management/Principal of the
Company at the Project site refuses to sign the
Minutes of Investigation, the Supervisory Officer
from BKPM, DPMPTSP Province, DPMPTSP
KEK Administrator shall make the report of the
rejection event, in the format as contained in
Appendix XIV signed by the Management/Principal
of the Company.
(4) Minutes of Investigation that is not signed by the
Management/Principal as referred to in paragraph
(3) is declared valid.
CHAPTER VII
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ADMINISTRATIVE ACTION IN THE FRAMEWORK OF
CONTROL IMPLEMENTATION OF INVESTMENT
Part One
General
Article 25
(1) Administrative action for controlling the
implementation of Investment whose licenses are
not issued through the OSS system in the form of:
a. revocation of licenses based on the request
of Investor;
b. revocation of licenses based on court
decisions that have permanent legal force;
c. closure of KPPA and KPA Migas based on the
request;
d. closing Branch Offices whose Business
License is issued by PTSP Center in BKPM,
based on the application; and
e. imposition of sanctions.
(2) The administrative measures for the control of the
implementation of Investment whose licenses are
not issued through the OSS system based on their
authority are exercised by:
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a. Chairman of BKPM on behalf of the
Technical Minister or Deputy of Investment
Implementation Control for the Chairman of
BKPM on behalf of the relevant Technical
Ministers in accordance with the license
mandated to BKPM;
b. Deputy for Controlling Implementation of
Investment on behalf of Chairman of BKPM;
c. Head of DPMPTSP Province;
d. Head of DPMPTSP Regency/Municipality;
e. Head of KPBPB Operational Body;
f. KEK Administrator; or
g. Related technical agencies.
(3) The administrative measures as referred to in
paragraph (1) shall be signed by the official in
accordance with their authority by:
a. electronically signatures; or
b. manually signatures.
(4) The revocation or closure as referred to in
paragraph (1) shall be made to the valid
investment permit.
Part Two
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Revocation of Investment Permit Based on the
Company's Application Not Through OSS
Article 26
KEK Administrator shall revoke the license in
accordance with their authority, based on the
request of Investor to:
a. revocation due to the liquidation of the
company (liquidation); or
b. revocation that does not include the
liquidation of the company (liquidation).
(2) In the event that the application for Revocation is
made by a PMA company with only 1 (one) Permit
of Investment and still interested in conducting
business in Indonesia, the company must firstly
obtain Business License attached in the Request
for Revocation.
(3) In the event that the application for Revocation is
done by a PMA company that has only 1 (one)
Permit of Investment and does not attach a new
Business License as referred to in paragraph (2),
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the request for revocation must be accompanied
by the liquidation of the company (liquidation).
(4) Revocation of Investment shall be issued in the
form of a Decision Letter, with the format as
contained in Appendix XV constituting as an
inseparable part of this Agency Regulations or in
accordance with the nomenclature, format and
stipulation established by the relevant Technical
Institution.
Article 27
(1) Application for the revocation of permit for
Investment as referred to in Article 26 paragraph
(1) shall be filed online through SPIPISE, with the
requirements of data already furnished in the
Company Folder as follows:
a. the identity of the board of directors or the
person appointed as the liquidator by
signing the application letter;
b. power of attorney without substitution rights
and sufficient stamp duty, in the format as
contained in Appendix XVI which is an
integral part of this Agency Regulations,
together with the recording of the identity of
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the attorney in fact, in the event that the
handling of the application is not done
directly by the board of directors or the
person appointed as the liquidator;
c. the decision of the General Meeting of
Shareholders or the statement of the
shareholders stating the approval of the
request for the revocation of the licenses of
the Investment or the dissolution of the
company;
d. recording of company dissolution from the
Ministry of Law and Human Rights, in the
event of dissolution or liquidation;
e. Investment permit to be revoked;
f. LKPM of the last period that has been
approved for all projects in the case of an
Investor having more than 1 (one) project;
g. TIN of the company that have been
validated in accordance with the provisions
of law and legislation; and
h. deed of establishment of the company and
its amendment accompanied by the
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legalization and/or acceptance of notification
from the Ministry of Law and Human Rights.
(2) Revocation of Investment permit is issued no later
than 3 (three) Days after the file is declared
complete and correct.
(3) In the case of Decision Letter of Investment
License Revocation shall be issued for liquidation,
as referred to in paragraph (1) letter a,
Revocation Letter shall be followed by closing
Access Right in BKPM.
Part Three
Revocation of Investment Permit Based on the Court's
Decision
Article 28
KEK Administrator shall revoke in accordance with
their authority based on decision of court having
permanent legal force.
(2) In the case of a court decision as referred to in
paragraph (1) to decide on the revocation of
licensing on a foreign investment company that
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has only 1 (one) License, the company must be
liquidated.
paragraph (1) to decide on the revocation of
licensing at an Investment company which has
more than 1 (one) permit, Revocation shall be
processed without liquidation.
paragraph (1) to decide on the revocation on one
(1) of the Project in 1 (one) permit, it is followed
up through a License change.
(5) License revocation shall be issued no later than 21
(twenty one) days after the date of court decision
with permanent legal force.
(6) License revocation of Investment shall be issued
in the form of a Decision Letter, as the format as
contained in Appendix XV constituting as an
inseparable part of this Agency Regulations or in
accordance with the nomenclature, format and
provisions established by the relevant Technical
Institutions.
Part Four
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Closing Representative Office and Company’s Branch
Offices Based on the Application
Article 29
(1) BKPM conducts Closure of KPPA and KPA Migas
based on the application;
(2) Closure Application as referred to in paragraph (1)
shall be filed by:
a. Head of KPPA; or
b. Head of KPA Migas.
(3) KP3A and Representative Office of BUJKA submit
Closure application through OSS system.
(4) Application for Closure of KPPA and KPA Migas
shall be submitted online through SPIPISE, with
the data requirements already furnished in the
Company Folder:
a. Representative Office permit;
b. IMTA of the Head of Representative Office of
Foreign Citizenship or ID Card of the Head
of Representative Office of Indonesian
Citizenship;
c. passports of the Company's Board of
Directors in the country of origin;
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d. TIN of Representative Office that has been
validated;
e. a statement on the sufficient stamp duty
from the Head of Representative Office or
Board of Directors of the Company in the
country of origin stating that it has no
accounts payable with the other party;
f. warrant or statement from the Company's
Board of Directors in the country of origin
concerning the closure of the Representative
Office; and
g. the last reports of Representative Office.
(5) The Deputy of Controlling Implementation of
Investment on behalf of the Chairman of BKPM
shall issue a Closing Letter of KPPA and KPA
Migas, with the format as contained in Appendix
XVII constituting as an inseparable part of this
Agency Regulations.
(6) The issuance of Closure Letter of KPPA and KPA
Migas shall be made no later than 3 (three) Days
after the file is declared complete and correct.
Article 30
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(1) BKPM undertakes the Closing of Branch Offices of
the Company whose its parent company business
license is issued by BKPM, based on the
application.
(2) The Closing Application as referred to in
paragraph (1) shall be filed by the Board of
Directors of the Company establishing the Branch
Office.
(3) Application for closure of a company's Branch
Office as referred to in paragraph (1) shall be
submitted to BKPM in accordance with its
authority online through SPIPISE, with the
requirements of data already furnished in the
Company Folder:
a. license for opening branch office;
b. certificate of domicile of the company's
branch office;
c. deed of incorporation and its amendment;
d. ID Card of the Head of Branch Office;
e. TIN of Branch Office that has been validated
in accordance with the provisions of law and
legislation; and
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f. Power of Attorney without substitution rights
and sufficient stamp duty for the application
of a petition not directly done by the Board
of Directors, with the format as contained in
Appendix XVI constituting as an inseparable
part of this Agency Regulations, together
with its identity.
(4) The Deputy for Controlling of Investment on
behalf of the Chairman of BKPM shall issue a
Closing Letter of a Branch Office in accordance
with its authority, with the format as contained in
Appendix XVIII constituting as an inseparable part
(5) Issuance of Closure Letter of Branch Office shall
be made no later than 3 (three) Days after the file
is declared complete and correct.
Part Five
Imposition of Sanctions
Article 31
Regency/Municipality, KPBPB Operational Body, KEK
Administrator, or relevant Technical Institution in
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accordance with its authority, impose administrative
sanctions to Investor who:
a. does not fulfill one of the obligations as referred to
in Article 7;
b. does not fulfill any of the responsibilities as
referred to in Article 8;
c. commit a particular and urgent violation of the
occurrence of environmental damage and/or
endanger the safety of communities impacting
cross-regional or cross-border regions; and/or
d. meet the criteria for imposition of sanctions
arranged by the relevant Technical Agency.
Article 32
(1) Administrative sanctions, as referred to in Article
31, shall be effected by:
a. written or online warning;
b. restrictions on business activities;
c. freezing of business activities and/or
Investment Facilities; or
d. revocation of business activities and/or
licensing of Investment and/or Investment
Facilities.
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(2) For administrative sanctions, as referred to in
paragraph (1) a, b, and c, BKPM may block the
Access Rights.
(3) The opening of the blocking of Access Rights as
referred to in paragraph (2) may be made after
the Investor has provided a written response and
follow-up on the administrative sanctions as
referred to in paragraph (1) a, b, and c;
(4) The blocking and/or opening of access rights as
referred to in paragraph (2) and paragraph (3)
may be made on the proposal of the Technical
Institution, DPMPTSP Province, and/or DPMPTSP
Regency/Municipality;
(5) Administrative sanctions, as referred to in
paragraph (1) letter b, letter c, and d, may be
imposed directly in the event of a particular and
urgent violation as referred to in Article 31 letter
c.
(6) For the imposition of administrative sanctions,
KEK Administrator, may request other agencies in
the Central Government or Local Government to
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provide information and support data, as well as
legal considerations for violations committed by
the Investor
Article 33
(1) Administrative sanctions in the form of warning
letters, as referred to in Article 32 paragraph (1)
letter a shall be imposed on Investor for 3 (three)
times consecutively, at a maximum grace period
of 30 (thirty) calendar days since the anniversary
date was issued.
(2) The warning letters as referred to in paragraph
(1) shall be issued by the Regional Director within
the Deputy Unit for the Implementation of
Investment, the Head of DPMPTSP Province, the
Head of DPMPTSP Regency/Municipality, the Head
of KPBPB Operational Body or KEK Administrator
based on their authority and may be submitted in
online.
(3) The form of warning letters as referred to in
paragraph (1), with the format as contained in
Appendix XIX constituting as an inseparable part
Article 34
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(1) Administrative sanctions in the form of warning
letters as referred to in Article 32 paragraph (1)
letter a shall be applied to the first and last
Investor may be imposed in the following cases:
a. do not submit LKPM in accordance with the
provisions of the implementation of
Investment for 3 (three) reporting periods
respectively; and/or
b. there is a report from the authorized
Technical Agency and/or the relevant
institution concerning the violation of the
laws and regulations.
(2) The Investor shall respond in writing and follow-
up on the administrative sanctions as referred to
in paragraph (1), within 30 (thirty) calendar days
as of the date of issuance.
(3) Investor may subject to administrative sanctions
as referred to in paragraph (1) but fails to provide
written responses and follow-up within 30 (thirty)
calendar days, the authorized Officials may
directly impose administrative sanction in the
form of Revocation of Investment permit and/or
Investment Facility.
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(4) The form of the first and last warning letter, as
referred to in paragraph (1), shall be in the format
as contained in Appendix XX which is an integral
Article 35
(1) Administrative sanctions in the form of business
activity restrictions as referred to in Article 32
paragraph (1) letter b may be imposed if the
Investor fails to provide a written response and
follow-up within 30 (thirty) calendar days since
the issuance of the third warning letter.
(2) The limitation of business activities, as referred to
in paragraph (1), may be in the form of:
a. Limitation of business activities in one or
more locations for Investors who have
Projects in several locations; and/or
b. Production capacity limitation;
(3) The letter form of restrictions on business
activities as referred to in paragraph (1) shall be
in the format as contained in Appendix XXI
constituting as an inseparable part of this Agency
Regulations.
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(4) In the event that the Investor has fulfilled the
obligations and improvements on the imposition of
administrative sanctions as referred to in
paragraph (1), the Investor may apply for the
revocation of business restrictions at BKPM,
DPMPTSP Province, DPMPTSP
KEK Administrator issuing the letter Restricting
business activities using a letter, with the format
as contained in Appendix XXII constituting as an
inseparable part of this Agency Regulations.
(5) Upon request for revocation of the restrictions on
business activities as referred to in paragraph (4),
if necessary BKPM, DPMPTSP Province, DPMPTSP
Regency/Municipality, KPBPB Agency, or KEK
Administrator no later than 7 (seven) Days, set
forth in the Minutes of Investigation, with the
format as contained in Appendix XIII which is an
integral part of this Agency Regulations.
(6) Upon the request to revoke restrictions on
business activities as referred to in paragraph (4),
Deputy for Controlling Implementation of
Investment on behalf of the Chairman of BKPM,
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Head of DPMPTSP Province, Head of DPMPTSP
Regency/Municipality, Head of KPBPB Operational
Body or KEK Administrator in accordance with
their authorities to issue revocation Letter of the
restriction of business activities shall not exceed 3
(three) days after the inspection as referred to in
paragraph (5).
(7) The form of withdrawal letter of the restrictions
on business activities as referred to in paragraph
(5) are stated in Appendix XXIII constituting as an
Article 36
(1) Administrative sanctions in the form of Freezing
business activities and/or Investment Facilities as
referred to in Article 32 paragraph (1) letter c
shall be imposed if the Investor fails to provide a
written response and follow-up within period of 30
(thirty) calendar days as from the issuance letter
of Restriction on business activities.
(2) The freezing of business activities and/or
Investment Facilities as referred to in paragraph
(1) may be in the form of:
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a. suspension of some activities at the location
of the Project/place of business;
b. temporary suspension of some business
sectors for Investor having several business
fields;
c. freezing of Investment Facility provided to
Investor; and/or
d. failure to grant permit application and
Investment Facility.
(3) The form of freezing letter of business activities
and/or Investment Facilities, with the format as
contained in Appendix XXIV constituting as an
(4) In the event that an Investor has fulfilled his
obligations and improvements on the imposition of
administrative sanctions as referred to in
paragraph (1), the Investor may apply for the
revocation of freezing of business activities and/or
Investment Facilities to BKPM, DPMPTSP Province,
DPMPTSP Regency/Municipality, KPBPB or KEK
Administrator Agency issuing Letter of Freezing of
Business activity and/or Investment Facilities
using letter form, with the format as contained in
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Appendix XXV constituting as an inseparable part
(5) Upon request for the revocation of freezing
business activity and/or Investment Facilities as
referred to in paragraph (4), if necessary BKPM,
Municipality, KPBPB Operational Body or KEK
Administrator no later than 7 (seven) conduct
examination at the project site as outlined in the
Minutes of Investigation, with the format as
contained in Appendix XIII which is an integral
Agency shall issue a letter of withdrawal of
business activity and/or Investment Facility no
later than 3 (three) days after inspection as
referred to in paragraph (5).
(7) DPMPTSP Province, DPMPTSP Regency/
Municipality, KPBPB Operational Body, or KEK
Administrator, notify in writing to BKPM, prior to
freezing business activities on Investor receiving
Investment Facility issued by BKPM.
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(8) Investors subject to administrative sanctions as
referred to in paragraph (1) but fail to respond in
writing and follow-up within 30 (thirty) calendar
days, the authorized Officials may immediately
impose administrative sanctions in the form of
Revocation of Business License for Investment
and/or Investment Facility.
(9) The form of revocation letter for freezing of
business activities and/or Investment facilities, as
referred to in paragraph (6), with the format as
contained in Appendix XXVI constituting as an
Article 37
(1) The administrative sanction in the form of
Revocation as referred to in Article 32 Paragraph
(1) Sub-Paragraph d may be imposed on an
Investor, based on:
a. proposals from BKPM, DPMPTSP Province,
Operational Body, or KEK Administrator;
b. proposals from the relevant Technical
Agency; or
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c. evaluation of the work unit performing the
Implementation of Control function of
Investment.
(2) The revocation as referred to in paragraph (1)
shall be done by BKPM, DPMPTSP Province,
accordance with its authority by issuing the
Decision Letter of Revocation.
(3) DPMPTSP Province, DPMPTSP Regency/
Municipality, KPBPB Operational Body, or KEK
Administrator, shall notify in writing to BKPM prior
to revocation of Investor receiving Investment
Facility issued by BKPM.
(4) The revocation letter as referred to in paragraph
(2) shall be issued in the form of a decision letter,
in the format as contained in Appendix XV which
is an integral part of this Agency Regulations.
(5) Revocation based on the proposal of the relevant
Technical Agency as referred to in paragraph (1)
letter b shall be issued in accordance with the
nomenclature, format, and stipulation established
by the relevant Technical Institution.
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Article 38
(1) Proposal of License revocation of Investment
and/or Investment Facilities as referred to in
Article 37 paragraph (1) letter a and letter b shall
be filed with completeness in the form of a letter
of proposal to revoke the license of Investment
and/or Investment Facility signed by the
authorized official of the proposing agency, based
on the format as contained in Appendix XXVII
which is an integral part of this Agency
Regulations.
(2) License revocation of Investment and/or
Investment Facilities shall be issued no later than
5 (five) Days after the file is declared complete
and correct.
Article 39
Revocation of licensing for Investment and/or
Investment Facilities as referred to in Article 37
paragraph (1) letter c, completed by Minutes of
Investigation and/or supporting documents as contained
in the database system at BKPM.
CHAPTER VIII
COSTS
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Article 40
(1) Investor shall not be charged in controlling
activities of Investment conducted by BKPM,
Municipality, KPBPB Operational Body or KEK
Administrator.
(2) The costs required by BKPM officers and officials
of the relevant Technical Institution for the
controlling activities of Investment are charged to
the State Revenue and Expenditure Budget.
(3) Costs required by DPMPTSP Province or DPMPTSP
Regency/Municipality and officials of relevant
agencies in the region for the activities of
controlling the implementation of Investment is
charged to the Regional Revenue and Expenditure
Budget respectively.
(4) The cost required by KPBPB or KEK Administrator
Agency for controlling activities of Investment is
charged to Budget of KPBPB or KEK Administrator.
CHAPTER IX
TRANSITIONAL PROVISIONS
Article 41
(1) Submission:
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a. reports of representative offices, as referred
to in Article 14;
b. report on the realization of imports based on
exemption of entry duty, as referred to in
Article 15;
c. application for revocation of the permit for
Investment, as referred to in Article 26;
d. application for closure of representative
office, as referred to in Article 29; and
e. applications for closure of branch offices, as
referred to in Article 30, shall be made in
stages through SPIPISE.
(2) The submission of reports, applications for
revocation and closure applications online through
SPIPISE as referred to in paragraph (1) shall be
submitted to BKPM no later than 2 June 2019.
(3) Submission of reports, applications for revocation
and closure applications online as referred to in
paragraph (1) letter b and letter c, to the
DPMPTSP Province, KPBPB Operational Body, and
KEK Administrator shall be started no later than 2
January 2019.
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(4) In the event that reporting, revocation and closing
as referred to in paragraphs (2) and (3) have not
been allowed yet, the reporting, revocation and
closure shall be conducted outside the network
(online).
(5) In the case of execution of online revocation as
referred to in paragraph (4), use the revocation
form, with the format as contained in Appendix
XXVIII which is an integral part of this Agency
Regulations.
(6) In case of online closure as referred to in
paragraph (4), use the closing form, with the
format as contained in Appendix XXIX constituting
as an inseparable part of this Agency Regulations.
Article 42
(1) The implementation as referred to in Article 41
paragraph (1) letter c in DPMPTSP
Regency/Municipality is gradually adjusted to the
capability of supporting facilities and
infrastructures in their respective regions.
(2) In the event that facilities and infrastructure are
not supported, as referred to in paragraph (1), the
- 71 -
submission of reports and applications for
revocation shall be conducted online.
CHAPTER X
CONCLUDING PROVISIONS
Article 43
At the time this Regulation comes into force, the
Regulation of the Investment Coordinating Board
Number 14 of 2017 concerning Guidelines and
Procedures for Controlling the Implementation of
Investment (State Gazette of the Republic of Indonesia
Year 2017 Number 1768) shall be revoked and declared
null and void.
Article 44
This Regulation shall come into force on the date of
promulgation.
For public cognizance, this Regulation shall be
promulgated by placing it in the State Gazette of the
Republic of Indonesia.
Stipulated in Jakarta
on 19 July 2018
- 72 -
CHAIRMAN OF INVESTMENT
COORDINATING BOARD OF THE
REPUBLIC OF INDONESIA,
Signed
THOMAS TRIKASIH LEMBONG
Enacted in Jakarta on 20 July 2018

DIRECTOR GENERAL OF
LAW AND LEGISLATION
MINISTRY OF LAW AND HUMAN RIGHTS OF
Signed
WIDODO EKATJAHJANA
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 935
The copy is in accordance with the original

Chief Secretariat of BKPM
Head of Legislation Bureau,
Public Relations, and Corporate Administration
Signed & stamped
Ariestu Puspasari
AFFIDAVIT
This is to certify that have translated the foregoing from Indonesian to English, that
is true and complete, and I am competent in both languages.
Jakarta, 31st July 2018
- 73 -
Drs. Sularno Popomaruto
Sworn Translator by virtue SK.Gub.KDKI Jkt.No.1715/2000

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Authorized Translation

INVESTMENT COORDINATING BOARD OF

THE REPUBLIC OF INDONESIA

REGULATION OF THE INVESTMENT COORDINATING BOARD OF

THE REPUBLIC OF INDONESIA

GUIDELINES AND PROCEDURES OF CONTROL ON IMPLEMENTATION OF

BY THE GRACE OF GOD ALMIGHTY

CHAIRMAN OF INVESTMENT COORDINATING BOARD OF

THE REPUBLIC OF INDONESIA,

Considering : a. whereas in order to implement the provisions of

Article 14, Article 15 and Article 28 paragraph (1)

sub-paragraph h of Law Number 25 Of 2007

concerning Investment and to observe Law

Number 23 Of 2014 concerning Regional

Government as amended several times, Law

Number 9 Of 2015 concerning the Second

Amendment to the Law Number 23 Of 2014

concerning Regional Government has been

stipulated Regulation of the Head of the

Investment Coordinating Board Number 14 Of

2017 concerning Guidelines and Procedures for

Controlling the Implementation of Investment;

b. whereas in order to implement the provisions of

Article 88 of Government Regulation Number 24

of 2018 concerning Electronically Integrated

Business License Services, it is necessary to

prepare Norms, Standards, Procedures and

Criteria for Controlling the Implementation of

c. whereas the Regulation of the Investment

Coordinating Board Number 14 Of 2017

concerning Guidelines and Procedures for

Controlling the Implementation of Investment

need to be adjusted to the amendment of laws

d. whereas based on the considerations as referred

to in letter a, letter b, and letter c, it is necessary

to stipulate Regulation of the Investment

Coordinating Board on Guidelines and Procedures

for Controlling the Implementation of Investment;

In view of : 1. Law Number 25 Of 2007 concerning Investment

(State Gazette of the Republic of Indonesia Year

2007 Number 67, Supplement to the State

Gazette of the Republic of Indonesia Number

2. Law Number 23 Year 2014 concerning Regional

Government (State Gazette of the Republic of

Indonesia Year 2014 Number 244, Supplement to

the State Gazette of the Republic of Indonesia

Number 5587) as amended several times, most

recently by Law Number 9 Of 2015 on the Second

Amendment to Law Number 23 of 2014 on

Regional Government (State Gazette of the

Republic of Indonesia Year 2015 Number 58,

Supplement to the State Gazette of the Republic

of Indonesia Number 5679);

3. Government Regulation Number 24 of 2018

concerning Electronically Integrated Business

License Services (State Gazette of the Republic of

Indonesia Year 2018 Number 90);

4. Presidential Regulation Number 90 Of 2007

concerning Investment Coordinating Board as

amended by Presidential Regulation Number

86/2012 concerning Amendment to Presidential

Regulation Number 90 Of 2007 concerning

Investment Coordinating Board (State Gazette of

Perka BKPM 7 Tahun 2018 - Pedoman & Tata Cara Pengendalian Pelaksanaan PM (English)

Perka BKPM 7 Tahun 2018 - Pedoman & Tata Cara Pengendalian Pelaksanaan PM (English)