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October 2009 - Corporate & Commercial. Legal Developments by Makarim & Taira S..

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On 23 June 2009, Presidential Regulation No. 27 of 2009 on Integrated One-Stop Services in the Capital Investment Sector (“PR 27”) was issued. PR 27 was enacted to implement Article 26(3) of Law No. 25 of 2007 Regarding Capital Investment (“Law 25”), which requires the issuance of a Presidential Regulation for further implementation of the “one gate policy in investment services”.

The Integrated One-Stop Services ("IOSS") policy in the capital investment sector is intended to provide greater convenience to investors in obtaining services, fiscal facilities and information on capital investment. The IOSS policy intends to accelerate and simplify services and mitigate or omit any licensing or non-licensing services administration fees, and covers the complete process from the application stage to the issuance of documents related to capital investment under one roof. IOSS covers all types of licensing and non-licensing services in the capital investment sector that are required for capital investment activities. 

IOSS will be implemented by the central Government through the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal or "BKPM") and by the regional governments through Provincial Agencies in the Capital Investment sector (Perangkat Daerah Provinsi bidang Penanaman Modal or "PDPPM") and Regency/Municipal Agencies for the Capital Investment sector (Perangkat Daerah Kabupaten/Kota bidang Penanaman Modal or "PDKPM"). 

Under IOSS, applications for licenses and non-licenses in the capital investment sector can be filed manually or online. Investors who file applications electronically will obtain the license or non-license electronically from the Electronic Investment Licensing and Information Services System (Sistem Pelayanan Informasi dan Perizinan Investasi Secara Elektronik "SPIPISE"). 

IOSS must therefore be supported by the availability of: (i) competent and reliable professional human resources; (ii) locations, facilities and infrastructure, and information media; (iii) clear and easy to understand guidelines for its implementation that are accessible to investors; (iv) complaints services (help desk) for Investors; and (v) SPIPISE.

As an online system, SPIPISE is required to integrate the licensing and non-licensing services system between the BKPM and the PDPPM and PDKPM. BKPM must establish and manage SPIPISE for the operation of IOSS comprising: (i) an electronic information system comprising applications for the automation of business licensing and non-licensing services; and (ii) capital investment information, comprising public information and information regarding capital investments.

The Chairman of BKPM must deliver a report on the national implementation of IOSS to the President no later than April of the following year.

Further, PR27 states that the infrastructure required for the operation of IOSS must be provided not later than 12 months commencing from the date of PR27. Meanwhile, the operation of IOSS shall be conducted gradually and must be fully in operation not later than 36 months commencing from the date of PR27. In our experience applications to BKPM are still filed and processed manually.

Monday, October 05, 2009 at 10:49



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