The Decree of the Minister of Trade and Industry No. 591/MPP/Kep/10/1999 regarding Procedures for the Issuance of Trading Business Licenses.
THE DECREE OF THE MINISTER OF TRADE AND INDUSTRY ON STANDARD PROCEDURES FOR THE ISSUANCE OF INDUSTRIAL BUSINESS LICENSES (SIUP)
In this decree, what is meant by:
(1) A company performing commercial business activity, must obtain a SIUP.
(2) The SIUP, specified in paragraph (1), consists of:
The Regent or mayor is authorized to issue SIUP.
For free trade area and free harbor, the regent or mayor shall delegate its authority, set forth in Article 3, to the local Free Trade Area and Free Harbor Organizing Agency.
The SIUP is issued based on company's domicile, and is applicable across Indonesia.
SIUP shall be applicable during the company's operation of commercial businesses.
(1) Companies, which perform commercial business activities and have capital and net assets up to two million IDR (IDR 200.000.000,-), excluding land and building for business purpose, must obtain SIUP Kecil.
(2) Companies, which perform commercial business activities and have paid-in capital and net assets between two hundred million IDR (IDR Rp. 200.000.000,-) and five hundred million IDR (IDR 500.000.000,-), excluding land and building for business purpose, must obtain SIUP Menengah.
(3) Companies, which perform commercial business activities and have paid-in capital and net assets in excess of five hundred million IDR (IDR 500.000.000,-), excluding land and building for business purpose, must obtain SIUP Besar.
Companies, which perform change of capital and net assets (either increase or decrease), the change of which is evidenced by a deed of amendment or balance sheet, shall adjust the SIUP in accordance with the provisions of Article 7.
(1) Companies, which are freed from the obligation to obtain SIUP, are:
(2) The companies, specified in paragraph (1), may be given SIUP if it is required by themselves.
Companies, which have obtained SIUP within three (3) months from the date of issuance of the SIUP, shall register themselves in the Company Register, in accordance with Law No. 3/1992 regarding Registration of Companies.
(1) The application for SIUP Kecil, Menengah, or Besar by the companies, set forth in Article 7, shall be furnished to the regent or mayor, in this case, the civil service office responsible for local commercial activities, by completing Model A SP-SIUP Kecil/Menengah/Besar, as contained in the Attachment hereto.
(2) The application specified in paragraph (1), must be signed by the owner/President Director/representative of the company.
(1) The application, specified in Article 11, shall be completed with documents as follows:
(2) If within 15 working days from the date of submission of application for the approval by the Minister of Justice, the application of SIUP, as specified in paragraph (1) a has not obtained the said letter of approval, the applicant shall only complete copy of company Establishment Data and copy of evidence of payment of administration fee for the said approval process issued by the Departement of Justice, which is a requirement for obtaining SIUP.
(3) If the applicant, set forth in paragraph (2), has obtained the said letter of approval, he/she shall furnish a copy of the said letter of approval to the regent/ mayor, not later than 14 working days from the date of issuance of the said letter of approval.
(4) If, the letter of approval of the applicant specified in paragraph (2) is rejected, the application is void.
(5) Companies, specified in paragraph (1), which are not required to obtain SITU, based on the disturbance law shall furnish a certificate issued by the regional government, as set forth in the Minister of Home Affairs and Minister of Trade and Cooperatives Joint Decrees No. 92/1979 and No. 409/KPB/5/1979.
(6) Copy of the documents specified in paragraph (1) shall be completed with the originals for examination purposes, which original copies will be returned to the said companies after accomplishment of such examination.
(1) Companies, which are freed from the obligation to obtain SIUP, as mentioned in Article 9 paragraphs (1). a and b, may be given SIUP if it is required by the said companies, by furnishing an application to the regent/ mayor, in this case the civil service office responsible for local commercial matters, complete with:
(2) Door-to-door traders and street vendors, as specified in Article 9 paragraph (1).c, may be given SIUP if required by themselves, by furnishing copy of ID card and certificate issued by heads of the local sub-districts/villages.
(3) Copy of ID card, as set forth in paragraphs (1) and (2) shall be completed with the originals for examination purposes, and will be returned to the applicant after accomplishment of such examination.
(1) Not later than 5 working days from the date of receipt of Model A SP-SIUP specified in Article 11, which document is completed by those specified in Article 12, the regent/mayor shall issue SIUP using Model B Form, under the following conditions:
(2) If the application and the documents specified in Articles 11, 12, and 13 have not been completed, the regent/mayor shall, not later than 5 working days from the date of receipt of the Model-A SP-SIUP, postpone the issuance of SIUP by notice in writing to the applicant by mentioning the reasons thereof.
(3) The applicant, as specified in paragraph (2), shall revise and/or complete the requirements not later than 5 working days from the date of receipt of the Letter of Postponement of Issuance of SIUP.
(4) If the said application is not able to meet the requirements within the length of time specified in paragraph (3), the regent/mayor shall reject the said application.
(5) The applicant, whose application is rejected, may file another new application.
(1) Holders of SIUP, which will open branch/representative offices, shall report in writing to the regent/mayor at the domicile of the said branch/representative offices, with a copy furnished to the civil service office responsible for commercial matters.
(2) The report, specified in paragraph (1), shall be completed with the following documents:
(3) Not later than 5 working days after receipt of the said report and documents specified in paragraphs (1) and (2), the regent/mayor within the domicile of the branch/ representative office of the company, which records/ registers the said branch/representative office in the Report regarding the Opening of Branch/Representative Office and puts signature and seal on the copy of SIUP of the central company as an evidence certifying that the said SIUP is also applicable for the branch/representative office.
(1) The regent or mayor shall appoint Head of the Civil Service Office or unit, which is responsible for commercial matters in their working territory, as an officer authorized to issue SIUP.
(2) If the said authorized officer is absent for 5 consecutive days, the relevant officer shall appoint an officer of a rank below, to act for and on behalf of the previous officer to issue SIUP.
(3) The regent or mayor may rule the mechanism standard of service with regard to the issuance of SIUP within their own working territory, with reference to the provisions of this decree.
(1) If the companies that have obtained SIUP make corporate amendments, they shall file an application for amendment of SIUP to the regent or mayor authorized to issue the SIUP, not later than 3 months from the date of amendment.
(2) If the companies having obtained SIUP make amendment, as long as the amendment is with regard to capital and net assets, it is decided as follows:
(3) The amendment specified in paragraph (1) shall be subject to completion of Model-A Form SP-SIUP Kecil/ Menengah/Besar.
(4) Not later than 5 working days from the receipt of the application set forth in paragraph (3), the regent or mayor shall issue a SIUP using Model B Form, as contained in the Attachment to this decree.
(5) Corporate amendments, other than those specified in Article 15, shalI be reported to the regent or mayor authorized to issue SIUP without changing or amending the previous.
(6) Within 5 working days from the date of receipt of the amendment report specified in paragraph (5), the regent or mayor shall issue a Letter of Approval of SIUP Amendment using Model G Form, which is an inseparable part of the SIUP.
(1) If the SIUP is lost, damaged, or unreadable, the relevant company shall file an application for a substitute SIUP in writing to the regent or mayor, who is authorized to issue the said SIUP.
(2) The application for a lost or damaged SIUP, as mentioned in paragraph (1), shall be filed in accordance to the following conditions:
(3) Not later than 5 working days from the date of receipt of the letter of application for a substitute SIUP, as mentioned in paragraph (2), the regent or mayor shall issue a SIUP using Model B Form.
(1) Holders of SIUP Kecil with amount of capital or net asset below IDR fifty million (IDR 50.000.000,-), excluding land and building for business purpose, shall be freed from the duty of submitting reports.
(2) Companies, which have obtained SIUP Kecll, as mentioned in Article 7 paragraph (1), with a paid-in capital and net asset in excess of fifty million IDR (IDR 50.000.000), excluding land and building for business purpose, shall furnish a report regarding their business activities to the regent or mayor, once a year, not later than January 31 of the following year.
(3) The companies, which have obtained SIUP Menengah or SIUP Besar, as specified in Article 7 paragraphs (2) and (3), shall furnish a report regarding their business activities to the regent or mayor, twice a year.
(4) The submission of the said report mentioned in paragraph (3), shall be done in accordance with the schedule as follows:
(5) The report specified in paragraphs (2) and (3) shall be submitted using Model C-Form.
Companies, which have obtained SIUP, shall provide data/information regarding their business activities if required by the Minister or the appointed officer(s) or authorized officer issuing SIUP, at any time.
(1) A company that has not been operating commercial business activity for 6 consecutive months or closes the company, shall report to the regent or mayor in writing, in accordance with its SIUP by citing the reasons of closing the company and shall return the original SIUP.
(2) The regent or mayor issuing the SIUP of the closed company, as specified in paragraph (1), shall issue an order regarding Closing of Company, using Model H Form.
The permit issued for companies performing commercial business activities, which have specialized areas, such as service, multi level marketing, sale of alcoholic beverages and the modern market, shall be ruled separately.
Companies that have obtained SIUP are prohibited from performing commodity future trading, except if the said companies have met the requirements set up in order to perform such activity, in accordance with applicable laws and regulations.
(1) The regent or mayor shall furnish a report regarding recapitulation of data regarding issuance, freezing, revoking of SIUP, closing of companies, and information concerning commercial business activities within their own working territory to the Director General for Domestic Trading, with a copy furnished to the local governor.
(2) The report specified in paragraph (1) shall be furnished twice a year consistent with the following schedule:
(1) Companies shall be given written warnings if they:
(2) The written warnings specified in paragraph (1) shall be provided 3 consecutive times at a maximum, with a 1-month interval, by the officer authorized to issue SIUP, using Model D Form.
(1) The SIUP shall be frozen if the companies:
(2) During the freezing period, the relevant company shall be prohibited from performing commercial business activities.
(3) The freezing period, as specified in paragraphs (1). a and b shall be valid for 6 months from the date of the order regarding such freeze.
(4) The freezing period, as set forth in paragraph (1). c shall be valid up to the date of issuance of an executorial court order.
(5) Freezing of SIUP shall be done by an officer or other party authorized to issue SIUP using Model E Form.
(6) A SIUP, which has been frozen, may be re-validated in case the company:
(1) SIUP may be revoked if:
(2) Revocation of SIUP shall be done by the officer authorized to issue SIUP using Model F Form.
(1) The company, which SIUP has been revoked, may file an objection to the regent or mayor, not later than 30 working days from the date of revocation of the said SIUP.
(2) The officer, as specified in paragraph (1) may, not later than 30 working days from the date of receipt of application regarding the objection, receive or reject the said application in writing, complete with the reasons thereof.
(3) If the application for objection is received, the revoked SIUP shall be re-issued.
Violations against the provisions of Article 2 paragraph (1), Article 10, Article 23, and Article 26 paragraph (1).b shall be subject to criminal punishment, in accordance with applicable laws.
(1) Expenses arising from the issuance of SIUP for each category of commercial business, shall be designated in accordance with the provisions of the Minister of Trade and Industry Decree No. 227/MPP/Kep/7/1997 regarding Perfection of Minister of Trade and Cooperatives Decree No. 04/Kp/1/1980 concerning Business Classifications, Security Deposit, and Company Administration Expenses.
(2) The regional government of a regency/mayoralty may collect expenses for the administration of SIUP. The said expenses are used for the administration of forms.
Companies that file an application for obtaining SIUP, which is still in process, prior to the issuance of this decree, shall file a new application for a new SIUP to the regent or mayor, in accordance with the provisions of this decree.
This decree comes into full force as of the date of stipulation.
For public cognizance, it orders the announcement of this decree by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on October 5, 2001
THE MINISTER OF TRADE AND INDUSTRY,
sgd
RINI M.S. SOEWANDI