CREAT THE INVESTMENT CLIMATE FOR ENSURING THE …4ef69f972526a2d0d0ca-179315b2fd10c686c84912f33917884a.r54.cf6... · creat the investment climate for ensuring the oil and gas industry

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CREAT THE INVESTMENT CLIMATE FOR ENSURING THE OIL AND GAS INDUSTRY SUPPORT

BKPM| Jakarta, 14 April 2015

© 2015 by Indonesian Investment Coordinating Board. All rights reserved

Director of Agribusiness Industry Planning and Other Natural Resources

Licensing and Non Licensing in BKPM

One Stop Services

Licensing of Downstream Oil and Gas

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LICENSING AND NON LICENSING in BKPM

Licencing and Non Licencing in BKPM Type of Service

CONSENT PRINCIPLES INVESTMENT ( IP )

Consent of Principle ( new ) Consent of Extension Priciple Consent of Company Merger Principle (Merger) Consent of Change Principle

CONSENT OF BUSINESS (IU)

Consent of Business (New) Consent of Business Expansion Consent of Business Company Merger (Merger) Consent of Business Change

FACILITIES INVESTMENT

Facilities Duty Exemption of Import Engine ( new , development , change , restructuring , modernization , rehabilitation )

Facilities Duty free import of Goods and Materials ( new , development , change ) Proposal for Tax Allowance(TA) Proposal for Tax Holiday (TH) Import Identification Number(API-P dan API-U)

CONSENT OF REPRESENTATIVE OFFICE

Consent of Representative Office Foreign Company (KPPA) Business License of Foreign Trade Representative Company (SIUP3A)


Licencing and Non Licencing in BKPM Principles Basic Investment

Domestic Investment (DCI ) : Minimum value of domestic investment that must be processed using SPIPISE is starting from Rp . 500,000,000

Foreign Direct Investment ( FDI ) : Minimum value of the investment is greater than Rp . 10 billion or it is equivalent in US $ • The Minimum Capital is Rp . 2.500.000.000 , - or it is equivalent in US $ • The minimum equity stake in a company is Rp . 10,000,000 or it is equivalent in US $ • The calculation of the percentage of capital ( shares ) based on the nominal stock not shares. The mechanism of application in the field of services begins with the presentation of the business plan.


The Investment Coordinating Board of the Republic of Indonesia

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Understanding

Permission of the Government , the Local Government ( Provincial / District / City ) which is must have in order to start a business .

EXPANSION PRINCIPLE LICENSE

Industrial businesses Increased production capacity for the same type of product , greater than 30 % of production capacity that

has been authorized and carried out the same location with the implementation of the previous PM . The business sectors in addition to industry

The addition of the field of business activity or increase production capacity implemented either the same

location or a different location with the implementation of the previous PM .

Licencing and Non Licencing in BKPM Principle License Investment (IP)

CHANGE PRINCIPLE LICENSE

Change of plans or realization of investment that has been approved and specified by the Central Government or Local Government . Include provision changes : Changes in the company's capital Change the location of the project Changes in the business field Change of time project completion


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Licencing and Non Licencing in BKPM BUSINESS LICENSES

UNDERSTANDING

Permission of the Government,the Local Government ( Provincial / District / City ) which must be owned companies to begin implementation of production / operations that produce goods or services,unless otherwise provided by regulation sectoral laws .

GENERAL CONDITIONS OF BUSINESS LICENSE

Industrial businesses Conditions at least 80 % of the main engine production activities in the field of

industrial enterprises have been installed at the project site . The business sectors in addition to industry Condition of the company in the field of business be sides industry has prepared all

facilities and infrastructure in order to carry out its business activities .


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Licencing and Non Licencing in BKPM FACILITIES INVESTMENT

UNDERSTANDING

The government provides the facility of duty import on machinery , goods and materials for capital investment , corporate income tax and importer identification number .

GETTING INDUSTRIAL FACILITIES EXEMPTION

Companies that already have a business license for the processing of raw materials , raw materials , semi-finished materials and / or finished goods , being goods with higher value

The Service Industry are getting facilities duty exemption ( Primary and Tertiary Sector ) , among others :

Tourism and culture Transportation / Transportation ( for public transport services) Public Health Services mining construction Telecommunications Industry port


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Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS (1)

TERMS OF FACILITIES FOR IMPORTING CAPITAL GOODS

Capital goods must be used for the needs of the industry itself .

Duration import is 2 ( two ) years and it may be extended according to the

timing of the project ( JWPP ) in investment approval .

Companies that have received exemption from duty import based on

other provisions can not use the provisions of this facility .


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Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS(2)

TERMS OF FACILITIES FOR IMPORTING RAW MATERIAL

Raw materials must be used for the needs of the industry itself .

The raw material is given 2 years for the needs production, it can be

extended the deadline of the importation is 1 ( one ) year .

Companies that using the machine / equipment domestic production are

given raw material import facilities for 4 ( four ) years ,

, extendable deadline for the importation is 1 ( one ) year , with the

following provisions:

Import period is 4 ( four ) years , extendable deadline for the importation

is 1 ( one ) year .

Determination of criteria for the company as domestic production engine

users are set by the Ministry of Industry .


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THE FACILITIES OF MACHINERY IMPORT LIMITATION, GOODS AND RAW MATERIALS

Import duty exemption machinery , goods, and material are given if: It has not been produced in the country. Already produced in the country but it does not meet the requirement

specification. Already produced in the country but the amount is insufficient for the

industry necessity.

Licencing and Non Licencing in BKPM FACILITIES IMPORT MACHINE, GOODS, AND MATERIALS(3)


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Licencing and Non Licencing in BKPM FACILITIES OF TAX ALLOWANCE AND TAX HOLIDAY(1)

TAX ALLOWANCE FACILITIES

Reduction of net income is 30% of the total investment that is charged for 6 years .

Depreciation and amortization are accelerated .

The imposition of income tax on dividend is paid to foreign tax subject 10% or a tax treaty rates .

Compensation of losses that are older than 5 years and it is not more than 10 years with certain requirements .

TAX HOLIDAY FACILITIES

Corporate Income Tax exemption may be granted for a maximum period is 10 ( ten ) fiscal years and the shortest is five fiscal years, starting from the beginning of the tax year commercial production .

After the expiration of the exemption provision of Corporate Income Tax , Tax Payer is given the reduction of income tax 50 % from the income tax payable for two (2 ) fiscal year .


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Licencing and Non Licencing in BKPM FACILITIES OF TAX ALLOWANCE AND TAX HOLIDAY (2)

TERMS OF TAX HOLIDAY

New corporate taxpayers with an investment : 1 Trillion

A minimum of 10 % is placed in a national bank

Indonesian legal status per 15 August 2010

Industry pioneers :

- Basic metal industry

- Petroleum refining industry and / or organic basic chemicals derived from

petroleum and natural gas

- Machinery Industry

- The field of industial renewable resources

- Industry of communication equipment


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Licencing and Non Licencing in BKPM IMPORTER IDENTIFICATION NUMBER (API)

UNDERSTANDING

Importer is the individual or business entity that is a legal entity or non-legal entity conducting import .

TYPE OF API

API Manufacturers

Awarded to companies that only import goods for itself , as capital goods , raw materials , auxiliary materials or supporting materials production activities .

API Public

Given to companies who only do the import of certain goods for trading purposes .

Integrated Services (PTSP)


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K/L dan LOCAL GOVERNMENT

LICENSE OF PRINCIPLE

LICENSE OF BUSINESS

Facility duty engine Tax Allowance or Tax

Holiday

Fasilitas bea masuk barang dan bahan

INS

TALL

AT

ION

B

HI

CO

NS

TR

AC

TIO

N

LICENSING BUSINESS / OTHER SUPPORT

BKPM

Importer Identification Number – Manufacturers (API-P)

Angka Pengenal Importir-Umum (API-U)

Businessmen

PR

OD

UC

TIO

N /

C

OM

MER

CIA

L O

PER

ATI

ON

S

Licencing and Non Licencing in BKPM Before PTSP LICENSING PROCESS FLOW


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Licencing and Non Licencing in BKPM After PTSP LICENSING PROCESS FLOW

Investor

Desk BKPM

Desk K/L

Desk K/L

1. reception Document

2. consultation

K/L

K/L

Back Office

K/L

K/L

Desk K/L

Desk K/L

Online K/L

Front Office

Licensing processing

Online K/L

Online SPIPISE* BKPM

Monitoring Online

* SPIPISE : Sistem Pelayanan Informasi dan Perizinan Investasi Secara Elektronik / Licensing Information Service System and Electronic Investment

PTSP center in BKPM

Hyper Sistem Online KL.ppt

Hyper Sistem Online KL.ppt

Hyper 11 perizinan.ppt


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TIMELINE OF WORK PTSP CENTER

Launching of the online licensing

BKPM

December 2014

January 2015

2016

Launching of PTSP

Center (26 Jan)

Regional PTSP 24 Provinces - 120 Regency / City ( Feb- December)

Regional PTSP 34 provinces 561 districts /

cities

PTSP PURPOSE CENTER : The achievement of the licensing process is fast, simple , transparent and integrated. PTSP CONCEPT CENTER : • Investors come to BKPM as organizers PTSP licensing center to take care of the

investment , no longer need to drive around the Ministry / Agency • Investors can monitor the process of licensing online • Investors get certainty about deadlines licensing

Test PTSP Center (15

Jan)

socialization PTSP Center ( Jan -

March)

Acceleration and Simplification of Licensing ( Feb-

April)

February- December


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FOCUS ARES PTSP PTSP CENTER

Source: BKPM, data per 27 January 2015 KPBPB: Kawasan Perdagangan Bebas dan Pelabuhan Bebas / Free Trade Zone and Free Port KEK: Kawasan Ekonomi Khusus / Special Economic Zones Legal : Perpres 97/2014

NO REGIONAL TOTAL

IMPLEMENTATION PTSP

NOMENCLATURE BPM-PTSP

IMPLEMENTATIONSPIPISE DELEGATION

ALREADY FORMED

BUSINESS INVESTMENT FOR PTSP HAS FORMED

FORMED NOT YET DONE NOT YET EXIST NOT YET DONE NOT YET MERGER SEPERATE

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

1 PROVINCE 34 34 0 3 31 33 1 34 0 27 7

2 DISTRICT 416 362 54 3 413 236 180 351 9 226 136

3 CITY 98 97 1 1 97 70 28 99 0 54 43

4 KPBPB 5 4 1 0 5 4 1 4 0 0 4

5 KEK 8 1 7 0 8 1 7 1 0 0 1

TOTAL 561 498 63 7 554 344 217 489 9 307 191

Focus development PTSP Regional : • 63 areas that have not yet established PTSP • 217 that have not implemented SPIPISE • 191 areas that still separate the affairs of investment with PTSP

The Investment Coordinating Board of the Republic of Indonesia 20

ALREADY ONLINE IN CENTRAL PTSP

• SPIPISE : Sistem Pelayanan Informasi dan Perijinan Investasi Secara Elektronik. / Licensing Information Service System and Electronic Investments .

• Advatages of SPIPISE :

• Having a tracking system with clear SOP

• Easy , investors can access from anywhere by online

• Safe , secure enterprise data confidentiality

• Review SOP pada Februari 2015

11 Licenses in BKPM have been online since December 15, 2014

No Type of license SOP

1 The new License Principle 3 working days

2 Extension license principle 3 working days

3 License Change princile 5 working days

4 Business License change 5 working days

5 Licensing representative offices of foreign companies

5 working days

6 Business License 7 working days

7 Business License extension 7 working days

8 Business license merger 7 working days

9 Facilities for exemption duty import of machinery

7 working days

10 Facilities for exemption duty import of materials and goods

7 working days

11 License principle incorporation 10 working days


22 MINISTRY / AGENCIES INVOLVED in PTSP CENTER

Kem. Agraria, Tata Ruang, dan BPN 1 kelompok izin

Kementerian ESDM 10 kelompok izin

Kementerian Perindustrian 11 kelompok izin

Kementerian Pertanian 5 kelompok izin

Kementerian Perdagangan 7 kelompok izin

Kementerian Keuangan 2 kelompok izin

Kementerian Perhubungan 7 kelompok izin

Kementerian Hukum dan HAM 1 kelompok izin

Kem. Lingkungan Hidup dan Kehutanan 35 kelompok izin

Kementerian Kesehatan 9 kelompok izin

Kementerian Pariwisata 19 kelompok izin

Kementerian Komunikasi & Informatika 14 kelompok izin

Kementerian Ketenagakerjaan 5 kelompok izin

Kementerian PU dan Perumahan Rakyat 7 kelompok izin

KEPOLISIAN RI 1 kelompok izin

Kementerian Kelautan dan Perikanan 1 kelompok izin

Kementerian Pendidikan & Kebudayaan 1 kelompok izin

Kementerian Pertahanan 1 kelompok izin

BPOM 1 kelompok izin

BSN 1 kelompok izin

LEMSANEG

PT. PLN Persero

Total from 150 licenses were served in the PTSP Center , 118 licenses delegated to BKPM and 32 licenses were not delegated but served in the PTSP Center .


READINESS PTSP CENTER

PTSP Center is ready to serve all areas of business investment license , unless the upstream oil and gas and banking sectors

Total of 77 liaison (liaison officer- LO ) from 22 Ministries / Institutions are ready to serve investors

The LO served in the front office and back office : 1. LO front office tasks : accept the licensing application and consultation on investors 2. LO back office tasks : perform processing permits

PTSP has a contact center 0807-100-2576 ( BKPM ) . Information services provided include :

1. General information 2. Services , licensing and regulation 3. Service desk online system BKPM 4. Information related technical ministries 5. Complaints

Kemenaker

Kemenhut dan LH

PTSP REG/CITY

Investor

1. Izin Prinsip/IUPL Sementara

2. APIP (Inatrade) 3. Fasilitas Bea

Masuk (DBC)* 4. NIK (DBC)* 5. IUPTL

6. Izin Operasi 7. Penetapan

Wilayah Usaha 8. Penugasan Survei

Panas Bumi 9. Izin Panas Bumi

1. Rencana Penggunaan Tenaga Kerja Asing (RPTKA)

2. Izin Mempekerjakan Tenaga Kerja Asing (IMTA)

PLN

1. RUPTL 2. Pengadaan

(Lelang, Pemilihan langsung, Penunjukan

langsung) 3. PPA/PJBL 4. Financing Date

1. Surat Jaminan Kelayakan Usaha (SJKU)

1. IPPKH 2. AMDAL

1. Pertimbangan Teknis

2. Pengadaan tanah (tahap

pelaksanaan) 3. Sertifikasi

Kemenhub

Kemenko Ekon

Perizinan Daerah

1. Izin Terminal Khusus

2. Izin Navigasi

1. Persetujuan Pinjaman Komersial Luar Negeri (PKLN)

Kem PU Pera

1. Izin Bendungan 2. Izin konstruksi

* Online oleh investor

Kemenkeu

KESDM

BPN

1. Komisioning 2. Pemeriksaan, pengujian, dan

penerbitan SLO

1. IMB (Kab/Kota) 6. Izin Penggunaan Genset 2. Izin Lingkungan 7. Izin Penangkal Petir 3. Izin Lokasi (Kab/Kota) 8. TDP 4. Izin Penggunaan Boiler 9. Izin Kesehatan dan Keselamatan Kerja 5. Izin Penggunaan Lif

Perizinan Daerah

* Jika lokasi lintas kabupaten/kota diperlukan Izin Lokasi tingkat Provinsi PTSP PROVINCE*

PTSP CENTER

Service Integration License of Electricity in PTSP

Documents

CREAT THE INVESTMENT CLIMATE FOR ENSURING THE …4ef69f972526a2d0d0ca-179315b2fd10c686c84912f33917884a.r54.cf6... · creat the investment climate for ensuring the oil and gas industry