1. INVESTMENT LICENSE PROCEDURE (Based Keppres No. 29 Tahun 2004)

There are two types of licences for investment project i,e : Central government permits and Local Government permits. Central government permits are issued by BKPM ( the National Investment Coodinating Board) and local government permits are issued by the Major and it's official in The region of North Sumatera. 

Central government permits :

- Permanent approval letter for Domestic investment ( SPT-PMDN ) 

- Notice of presidential approval for foreign investment ( SPPP-PMA ) 

- Industrial Licences ( IUT ) 

- Approval for facilities 

- Limitied importer Registration Number ( APIT ) 

- Right of land use ( HGB ) for 200 Ha and over 

- Recommendation for foreign personel 


Local government permits :

- Right of land Certificate { HGB } for 5 Ha and under trough the regency/Multicipality office of BPN 

- Right of land certificate { HGB } for 5 Ha and over and undertaking Right Certificate (HGU) by the regional office of National Land Board (BPN) 

- Building permit by the Mayor / Head of the Regency 

- Nuisance permit by the Mayor / Head of the Regency 

- Work permit for foreign personel by the Regional Investment Coodinating Board 

To obtain such permits, Investors should use a special application form, which is available at each office. 

License for Implementation of Investmentof the central Government Level Consists of :

- Approval on (PMA/PMDN) Investment 

- Approval on Customs Facility for capital goods and raw materials/complementary materials 

- Permanent Business Operation License 

- Decision on the Ratiofication for the Plan on the Utillization of Foreign Manpower 

- Limited Importer Identification Number 


License of Investment of the Regional Government Level : 

In the frame work of implementing investment in the Region every PMA/PMDN company shall possess the necessary Regional licenses comprising:

- Principle Approval on Land Clearing 

- License of Land-use Designation 

- Construction Building Permit/Building Use Permit 

- License on Public Nuisance law 

- Recommendation on Environmental Impact Analysis 


To complete the evidence on land title which belongs to the asset of the company, it is also suggested to settle the Land Title/Land Certificate. 

To obtain those Regional Licenses, the application shall be submitted by completing the prescribed form accompanied by the necessary enclosures.
 

 

2. PROCEDURE OF INVESTMENT APPROVAL LETTER OBTAINING

    (Bassed on Keppres No. 29 Tahun 2004)