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How to get a business license in Indonesia

Posted 2.04. 2014 by Michal Wasserbauer / Last update on 6.04. 2017

How to get a business license in Indonesia Review by Michal Wasserbauer on 2. 4. 2014 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Licensing issues were established by Presidential Instruction No. 5 Year 1984 date of 11 April 1984 on Guidelines for Implementation and Control Permissions on the line of business. The rules ensure that any business can apply for a license smoothly, legally and in a structured manner.

A business license is required for any business activity by small and medium enterprises as well as  large-scale businesses, including foreign investment companies.  Having a business license identifies your business and its operation as  legitimate and permitted by the appropriate authorities. Business Licenses are issued by the Investment Coordinating Board (BKPM) or Regional Investment Coordinating Board (BKPMD) to a company that was established within the framework of a foreign investment company (PMA). A business License is issued as an operating permit to conduct commercial business activities in the trade of good and services.

Classification of business license for PMA:

  • A company engaged in general trading, goods or other services should have a business license.
  • A company engaged in the manufacturing industry outside of the oil, gas and geothermal sectors should have an  industrial business license.

Business license requirements:

A permanent business license will be given to a PMA if it meets the following requirements:

  • Has been in production
  • Meets the time limit given (3 years)

Application Procedures:

  • A PMA can apply for a permanent license to the Head of BKPM or BKPMD (BKPM region/province). It depends upon the foreign investment license, whether it will issued by the BKPM or the BKPMD. It also depends upon the domicile of the company.
  • The applicant completes and signs the application form for a business license at BKPM office or the BKPMD and attaches the required documents.
  • BKPM or BKPMD officers will check all the files and the eligibility and completeness of the application, and issue a permanent license certificate.

Requirements:

  • Copy of permit approval for investments
  • Copy of Deed of Establishment and its amendments.
  • Copy of company domicile, NPWP and TDP.
  • Copy of contract/rental of business premises and certificate from the owner of the building.
  • Copy of ID card and passport or KITAS for foreigners.
  • Nuisance Act Permit and Location Permit (SITU)
  • List of office equipment and Industrial Equipment
  • Company organizational structure

Based on new regulation form the beginning of 2015 all new foreign companies and foreign companies which till now still donĀ“t have business license needs to have financial audit before they can apply for a permanent business license and also other connected licenses (import license, etc.) which are critical for a lot of companies. This new regulation wants to ensure that all foreign investors realized their an investment plan and not only submitted an investment plan to Investment Coordinating Board (BKPM) just only on paper, which often happened in the past.

 

Time processing and validity:

  • The process for a permanent business license takes 14 working days.
  •  A permanent business license for a PMA is valid for 30 years.

Feel free to contact us for a free quotation on navigating the visa and work permit process in Indonesia.



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5 Responses to “How to get a business license in Indonesia”

  1. Scott Gingerich says:

    Is there a place where I can verify if a business in Indonesia that is on the internet has a business license. I am trying to verify if foxoutboardstore. Com is a legitimate business. I have bought from other businesses from Indonesia in the past, but I would like to confirm if this business is legitimate before I contact them. Any help you can give me would be greatly appreciated.
    God bless.

  2. rachid monzer says:

    dear sir,i have my own company in uae ,we do trading business in smoking accessories,charcoal,and furniture.
    we are planing to get export trading licence in Indonesia.
    we want to know what is the first steps in order to start and submit the requirements.

  3. Dear Rachid,

    thank you very much for your interest. Our consultants will contact you still today and provide you detail overview about trading licence include quotation.

    Thank you

  4. Dear Scott,

    thank you for your comments and sorry for my late respond. Our consultants will contact you to investigate more about your business to provide you adequate advice.

    Thank you

  5. Trang Nguyen says:

    HI, I’d like to know how to set up a local company, What are the document needed it?
    I can’t find it on your website.
    Thanks

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