Business Update: Domicile Letter No Longer Required for Business Establishment in Jakarta

Both local and foreign entrepreneurs looking to start businesses and establishing companies in Jakarta may feel relieved as the procedure of company registration in Jakarta has been made easier than ever before, thanks to the city’s government.

This article elaborates in more details regarding the business update related to company registration in Jakarta.

Company and Business Domicile Letters Shutdown

As the commitment of the government of Jakarta to create a much more favourable business convenience in Jakarta, non-licensing services of Company Domicile (Surat Keterangan Domisili Perusahaan – SKDP) and Business Domicile Letter (Surat Keterangan Domisili Usaha – SKDU) are no longer required.

The simplification of business establishment procedure in Jakarta has been effective since May 2, 2019. The initiative has also been officially announced in Jakarta’s One-Stop Service Center (Pelayanan Satu Pintu Terpadu – PTSP) Announcement Number 27 Year 2019.

Check more updates: OSS System Services Begin to Operate at BKPM

Application of Company and Business Domicile Letters

Both SKDP and SKDU are letters that state the domicile of a person or a business entity. Such domicile letter was required to manage various other legal documents such as SIUP, Company Registration, NPWP (Tax Identification ID), and to manage other trading businesses.

Since its first launch, SKDP was a non-licensing service at Jakarta’s One-Stop Service Center (PTSP). This requirement was seen as a matter that hindered the east of doing business in Jakarta in that the licensing process was deemed complicated.

Advantage of the Company and Business Domicile Letters Shutdown

In exchange for the Company Domicile Letter (SKDP) and Business Domicile Letter (SKDU), business people can now use business licensing documents issued by the city’s Investment Coordinating Board and One-Stop Service Center and/or from other government institutions stipulated in the legislation.

It is certainly good news for entrepreneurs because the current establishment package looks simpler, as detailed below:

• Deed of Establishment by Notary;
• Approval by the Ministry of Law and Human Rights;
• NIB and Business License;
• Location Permit (replacing Domicile Letter);
• NPWP (Tax Identification).

With the shutdown of the SKDP/SKDU services as mentioned above, it is expected that the business process in Jakarta will be much simpler.

Business Licensing Process Has Been Simplified as Well

It is worth knowing that business licensing process has been simplified as well by the government of Indonesia. To speed up the business licensing procedure, Online Single Submission (OSS) system under online business licensing services has been implemented.

Current business owners and investors who are looking to expand their businesses to Indonesia are required to apply for Business Entity Number (Nomor Induk Berusaha – NIB) and other necessary business licenses via the OSS.

How Cekindo Can Help

Get in touch with us today by filling in the form below to know more about what business licenses you need and the process of setting up a company in Jakarta, or other parts of Indonesia, in details. Alternatively, you can visit us in our offices in Jakarta, Bali and Semarang to discuss business incorporation anywhere in Indonesia.