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  • Regulation of Head of Investment Coordinating Board (BKPM) Number 14 Year 2017
Newsletter:

Regulation of Head of Investment Coordinating Board (BKPM) Number 14 Year 2017

30 January 2018

The Guidelines and Procedures for Investment Implementation Control set out in this regulation are inteded to be applied as norms, standards, procedures and criteria in the implementation fo investment implementation control by BKPM, Single Window Integrated Investment Service Office (DPMPTSTP) at the Provincial and Regency/City levels, Free Trade Zone and Free Port Management Boards (KPBPB) and Special Economic Zone (KEK) Administrators throughout Indonesia in accordance with their repespective authority, which include monitoring, development and supervision activities.

What’s new?

  1. Introducing monthly reporting obligation checklist commitment fulfilment that issued by BKPM. Companies shall report the development of their commitment through the monthly checklist form until they start construction phase.
  2. Introducing LKPM reporting obligation for business licenses obtained without the need to first obtain investment registrations once the company has started their production/operation phase which stated in SPIPISE.
  3. Limitation to correct submitted LKPMs report. Correction can only be conducted twice and be made at the latest two working days within the same reporting period.
  4. Foreign Representative Offices (KPPA) are now obliged to report their activities every six months to BKPM at the latest on 10 July and 10 January.

Sanctions?

Administrative sanction in the form of first and final warning, if:

  1. Not submitting LKPMs three consecutive reporting period;
  2. Failing to comply with the prevailing laws and regulations based on reports from the relevant government body.

The investors are given 30 days from the date of the issuance of the warning letter to defend themselves and conduct rectifications. Otherwise, BKPM will impose the administrative sanction directly in the form of revocation of investment license and/or investment activities.

Effective date:

This regulation has come into effect as of December 11, 2017. Furthermore, it will be applicable for BKPM as of January 2, 2018 and for Provincial and Regency/City by no later than July 2, 2018, by revoking regulation of the Head of Investment Coordination Board No. 17 Year 2015.

 

For more information on how BDO Indonesia can help you in planning and navigate these major changes, please contact our experts:

corsec.helpdesk@bdo.co.id