THE FOREIGN INVESTMENT OF INDONESIA MATTERS PART 2

The procedures of the foreign company (referred as FC) settlement in Indonesia  must be base on the regulation of the  investment  coordinating board or badan koordinasi penanaman modal Indonesia (referred as BKPM) number 12 year 2009 (effectively valid from January the second ,2013). This regulation enable  two (2) procedures  of  FC  settlement.
a.		The establishment of new FC. The establishment of  new FC explained by  the stages below. These  stages require about 40-50 of working days at maximum.
		1.		The Capital Investment Registration  (referred as CIR) from  BKPM. This is the preliminary approval  from government of Indonesia  to foreign investment in Indonesia then this  CIR  become a basis of notary deed making. It also become the basis of other license or non license investment affairs.
		2.		Notary Deed. /Akta Notaris (referred as akta). Base on akta   the CIR   must be established.
		3.		The Ratification of Legal Entities  from Ministry of Law and Human Right.(Pengesahan Kementerian Hukum dan HAM)
		4.		If the FC requires  facilities of import  and duties  then the  FC must apply for Capital Investment Principle License (referred as CIPL). But if the FC requires no  facilities of import  and duties  then it can continue to the next step.
		5.		The FC Register of domicile /Surat Keterangan Domisili Perusahaan
		6.		The FC Tax Number /Nomor Pokok Wajib Pajak (referred as NPWP)
		7.		The FC Register of  Tax Object /Pengukuhan Pengusaha Kena Pajak ( Referred as PKP)
		8.		The FC Register of The Province  Trade /Industry/Others  Bureau. (Referred as TDP) This type of  register be obtained at the province bureau of (trade/ industry or others ) which correspond to the classification of FC core business.
b		For the Local Company which then altered to Company of Foreign Investment (CFI). The steps are quite the same only for the first step is totally  different  by  applying The Application of  Business Entities Alternation.Hence  the  CFI must change the  status of it by the same steps of new established CFI and for this type of establishment requires 40-50 of working days at maximum.
The next part is mentioning the documents which required to set the new FC or to alter the local company become the CFI.
	1.		Fulfill the form of investment as set in The regulation of   BKPM chief number 12 year 2009.
	2.		If the applicant is the government of foreign country ,the recommendation from the authorized institution of which responsible for investment should be issued  by its embassy or consulate in Indonesia.
	3.		Passport if the applicant is the individual of foreigner.
	4.		ID  card if the applicant is the citizen of  Indonesia.
	5.		The statute of business entities if the applicant is foreign business entities
	6.		If the applicant is local business entities the notary deed and the ratification of notary deed from ministry of law and human right must be submitted.
	7.		Process and flow chart of business.
	8.		The letter of authorization If the application procedures  in BKPM be authorized by the applicant to others ,the letter of authorization  .
	9.		NPWP.
	10.		Share Composition .
If this part serves you inadequate information or you  might need our service  to set the company of foreign investment please contact us at :
New nine dragons consulting
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Referrence : 1   The regulation of   BKPM chief number 12 year 2009.