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Foreign Investment guide, Bintan Island 

Step by step procedure

        

To be able to invest their money in Indonesia, first of all, investors should register themselves and establish a legal entity that will run the investment activities. Although there is no difference in providing facilities to Domestic Investment (PMDN-Penanaman Modal Dalam Negeri) and Foreign Investment (PMA-Penanaman Modal Asing), the registration procedures for Domestic Investment are different from those for Foreign Investment.

    

Step 5

 

 Obtaining Investment Facility

 

  
 

 

The Indonesian Government has the policy concerning the granting of fiscal facility to investment activity conducted in Indonesia that the business area is able obtain fiscal facility. Fiscal Facility includes :

1) Facility of import duty on machine import
2) Facility of import duty on goods and materials import
3) Suggestion for obtaining Income Tax (PPh) Facility for a corporation.

For obtaining this fiscal facility, the investor should have a Principle License issued by BKPM obtained at the operational permit arrangement step.

Is Your Business Type Eligible To Obtain Facilities ?

 

 Obtaining Investment Facility

  

 

 

In order to get fiscal facility, investor must possess Investment Approval in Principle issued by BKPM in operating permit administrative stage.

1. Import Identification Number-Producer (API-P)

Import Identification Number-Producer (API-P) is a required permit to import equipment/machinery and materials for own usage in investment production business that is prohibited for sale. API-P is also required by investor in registration procedure to obtain imported capital goods and raw materials facilities.

 

 

Obtaining Import Identification Number-Producer API-P

Relevant Regulation

Procedure

Import Identification Number-Producer (API-P) is obtained by submitting an application to BKPM through the Integrated Service Office (PTSP).

• Law of Investment

• Presidential Regulation No.27 - 2009

• Head of BKPM Regulation No. 12 - 2009

• Ministerial of Trade Decree No. 45/M-DAG/PER/9/2009

Requirement

  1. Copy of Notarial Instrument of Enterprise's Memorandum of Association;

  2. Copy of Certificate of Enterprise's Head Office Domicile issued by local sub-district office;

  3. Copy of Investment Registration;

  4. Copy of Investment Approval in Principle;

  5. Copy Business License issued by BKPM;

  6. Copy of Taxpayer ID Number (NPWP);

  7. Copy of TDP;

  8. Copy of Resident's ID Card or Passport of member of Board of Director;

  9. Copy of IMTA;

  10. Two 3x4 photos with a red background of each member of Board of Director.

Time

5 work days

Fee

-

________________________________________________________________________________________________________________

 

2. Customs Declaration/Permit (SP Pabean)

Customs Declaration is granted as a master list of goods/materials imported by investor that is obtaining customs import facility. Customs Declaration is only issued for investment business which requires specific facility. Customs Declaration acts as reference to acquire exemptions from import duties and income taxes. It is valid for a maximum of 5 years.

Customs Declaration consists of the followings:

1. Customs Declaration of Capital Goods (SP Pabean Barang Modal)

 

Obtaining Customs Declaration of Capital Goods

Relevant Regulation

Procedure

Customs Declaration on Capital Goods is obtained by submitting an application to Directorate for Investment Facility at BKPM and completing all requirements.

• Law of Investment

• Government Regulation No. 62 - 2008

• Head of BKPM Regulation No. 12 - 2009

• Ministry of Finance Regulation No. 176 - 2009

Requirement

  1. Stamped letter of application, signed by director of the enterprise;

  2. Stamped authorization letter/power of attorney in case the director is unable to apply directly;

  3. Copy of enterprise's memorandum of association;

  4. Copy of Investment Approval in Principle/Permit;

  5. Copy of Taxpayer ID Number (NPWP);

  6. Customs ID Number (NIK);

  7. Taxable Businessman Verification Number;

  8. Import Identification Number-Producer (API-P);

  9. List of Goods/Machinery and Softcopy of List of Machinery (based on BKPM investor module);

  10. Brief Description of production process for goods manufacturing industry, or description of business activity for service industry;

  11. Official estimate of production equipment capacity required based on production type stated in Investment Approval in Principle;

  12. Factory ground plan and machinery/equipment layout or building blueprint/detailed drawing;

  13. Technical data or equipment brochures;

  14. Most recent periodical report on Investment Business Activity (LKPM) if the enterprise has been required to submit report.

Time

7 work days

Fee

-

_____________________________________________________________________________________________________________

 

2. Customs Declaration of Goods & Materials (SP Pabean Barang & Bahan)

 

Obtaining Customs Declaration of Goods & Materials

Relevant Regulation

Procedure

Customs Declaration of Capital Goods is obtained after submitting an application to Directorate for Investment Facility at BKPM and completing all requirements.

• Law of Investment

• Government Regulation No. 62 - 2008

• Head of BKPM Regulation No. 12 - 2009

• Ministry of Finance Regulation No. 176 - 2009

Requirement

  1. Stamped letter of application, signed by director of the enterprise;

  2. Stamped authorization letter/power of attorney in case the director is unable to apply directly;

  3. Copy of enterprise's memorandum of association;

  4. Copy of Investment Approval in Principle/Permit;

  5. Copy of Taxpayer ID Number (NPWP);

  6. Customs ID Number (NIK);

  7. Taxable Businessman Verification Number;

  8. Import Identification Number-Producer (API-P);

  9. List of Goods/Machinery and Softcopy of List of Machinery (based on BKPM investor module);

  10. Brief Description of production process for goods manufacturing industry, or description of business activity for service industry;

  11. Official estimate of production equipment capacity required based on production type stated in Investment Approval in Principle;

  12. Factory ground plan and machinery/equipment layout or building blueprint/detailed drawing;

  13. Technical data or equipment brochures;

  14. Most recent periodical report on Investment Business Activity (LKPM) if the enterprise has been required to submit report;

  15. Copy of Imported Goods Notification (PIB) for imported equipment/machinery approved by Directorate a General of Customs;

  16. Copy of Approval Letter for Facility/Import Duty Exemptions (SP Pabean) and Business License.

Time

7 work days

Fee

-

____________________________________________________________________________________________________________

 

 

3. Certificate of Added Value Tax Exemption (SKB PPN)

Certificate of Added Value Tax Exemption (SKB PPN) is imposed on goods/materials imported by investor. It is included in Import Duty Exemption (SP Pabean) Master List which has been obtained by investor.

 

 

Obtaining Certificate of Added Value Tax Exemption (SKB PPN)

Relevant Regulation

Prosedur

Obtaining Certificate of Added Value Tax Exemption (SKB PPN) is initiated by submitting a letter of application of Added Value Tax Exempt in conjunction with Import Duty Exemption (SP Pabean) to Directorate for Investment Facility at BKPM. It is then forwarded to Tax Service Office where goods will be removed to get the Certificate of Added Value Tax Exemption (SKB PPN) for imported goods.

• Law of Investment

• Government Regulation No. 62 - 2008

• Head of BKPM Regulation No. 12 - 2009

• Ministry of Finance Regulation No. 176 - 2009

Persyaratan

  1. Copy of enterprise's memorandum of association;

  2. Copy of Investment Approval in Principle/Permit;

  3. Copy of Taxpayer ID Number (NPWP);

  4. Customs ID Number (NIK);

  5. Import Identification Number-Producer (API-P);

  6. Master List of Goods approved by Customs.

Waktu

7 work days (concur with Customs Declaration)

Biaya

-

__________________________________________________________________________________________________________

 

 

4. Certificate of Approval of Income Tax Facility (SP Fasilitas PPh)

Certificate of Approval of Income Tax Facility (SP Fasilitas PPh) is an approval of income tax deduction for taxable goods/materials required for investment business activity. Income tax deduction facility is bestowed to goods/materials stated in master list submitted by investor. Income tax is deducted to 2,5% from the initial income tax tariff of 7,5%. There are five (5) categories of income tax deduction available.

 

Obtaining Certificate of Approval of Income Tax Facility (SP Fasilitas PPh)

Relevant Regulation

Procedure

Application for Certificate of Approval of Income Tax Facility (SP Fasilitas PPh) may be submitted to Directorate for Investment Facility at BKPM and completing all requirements.

• Law of Investment

• Government Regulation No. 62 - 2008

• Head of BKPM Regulation No. 12 - 2009

Requirement

  1. Copy of enterprise's memorandum of association;

  2. Copy of Investment Approval in Principle/Permit;

  3. Copy of Taxpayer ID Number (NPWP);

  4. Customs ID Number (NIK);

  5. Import Identification Number-Producer (API-P);

  6. Master List of Goods approved by Customs.

Time

10 work days

Fee

-

_______________________________________________________________________________________________________

 

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