Foreign Investment Approval Procedures

Listed below are the necessary steps to follow for investing in Indonesia (100% foreign ownership or through a joint venture with a local partner):

 
  1. Memorandum of Understanding
  2. Joint Venture (JV) Agreement *
  3. Technical Assistance Agreement (if applicable)
  4. Shareholder Agreement (may be part of JV Agreement)
  5. Organizational-Capital Structure
  6. Draft Manpower Plan
  7. Model I/PMA - BKPM
  8. Corrections from BKPM
  9. Revised Model I/PMA - BKPM
  10. SPPP Approval from BKPM
  11. NPWP (Tax Number) Received
  12. Bank Accounts Opened
  13. Articles of Association (AOA)
  14. AOA Submitted by Notary to Minister of Justice
  15. Ministry of Justice Approval (Deed of Establishment)
  16. State Gazette
  17. Application for Manpower Plan (Work Permits) - BKPM, Ministry of Manpower, and Directorate General of Immigration at the Ministry of Justice
  18. Application for Master List of Capital Goods - BKPM
  19. Application for Limited Importer's License (APIT) - BKPM
  20. Nuisance Act Permit from Local Government
  21. Location Permit from Local Government
  22. Building and Land Use Rights from Local Government (HGB)
  23. Six Month Status Reports (LKPM) - BKPM
  24. Commercial Operating License (IUT) - BKPM
  
  * A Joint Venture Agreement is not required if the new company will be 100 percent foreign-owned.  
     

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