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GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
NO. 13/1995

ON
INDUSTRIAL LICENCES

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Elucidation

Considering :

that in order to create a better business climate in the industrial sector, it is deemed necessary to improve provisions on industrial licences.

In view of:

• 1. Article 5 paragraph (2) of the 1945 Constitution;
• 2. Law No. 5/1984 on the industry (Statute Book of 1984 No.22, Supplement to Statute Book No.3274);
• 3. Law No. 24/1992 on the spatial layout (Statute Book of 1992 No. 115, Supplement to Statute Book No. 3501);
• 4. Government Regulation No. 17/1986 on Authority of Regulating, Fostering and Developing the Industry (Statute Book of 1986 No. 23, Supplement to Statute Book No. 3330).

DECIDES:

To stipulate :

THE GOVERNMENT REGULATION ON INDUSTRIAL LICENCES:

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this Government Regulation as :

• 1. Industries, groups of industries, types of industries, industrial business fields and industrial companies shall be as meant in Article 1 of Law No. 5/1984;
• 2. Expansion of industrial companies, hereinafter referred to as expansion, shall be the addition of production capacity exceeding the permissible production capacity;
• 3. The Minister shall be the Minister of industry or other ministers authorized to regulate, promote and develop industries as meant in Government Regulation No.17/1986.

CHAPTER II
INDUSTRIAL LICENCES

Article 2

(1) The establishment of industrial companies must obtain industrial licences.

(2) The industrial companies as meant in paragraph (1) may be in the form of individual companies, partnership companies or legal entities based in Indonesia.

Article 3

(1) Certain types of industries in groups of small-scale industries shall be exempted from the obligation to obtain industrial licences.

(2) Certain types of industries as meant in paragraph (1) must be registered.

(3) Certain types of industries as meant in paragraph (2) shall be granted Industrial Registration Certificates which can function as licences.

(4) The Minister shall determine certain types of industries as meant in paragraph (1) after holding consultations with the relevant minister.

Article 4

(1) To obtain industrial licences, principle approval is needed.

(2) Industrial licences shall be granted to industrial companies that have already fulfilled all provisions in the law in force and have already built plants and production facilities.

(3) Industrial licences can be directly granted at the time applications for such licences are filed, if industrial companies fulfil the following provisions :

• a. The industrial companies are located in industrial estates that have already had licences; or
• b. The types and commodities whose production process does not destroy or endanger the environment and does not use natural resources excessively.

(4) The Minister shall determine the types and commodities as meant in paragraph (2) letter b.

Article 5

(1) Industrial companies must obtain expansion licences to conduct expansion exceeding 30% of the permissible production capacity.

(2) To obtain expansion licences the industrial companies as meant in Article 4 paragraph (2) must submit industrial expansion plans and meet environmental requirements.

(3) To obtain expansion licences the industrial companies as meant in Article 4 paragraph (3) must submit industrial expansion plans.

Article 6

Industrial licences shall be valid as long as relevant industrial companies operate.

Article 7

(1) Industrial licences shall be granted to industrial companies whose industrial activities take place in land designated for industries.

(2) Industrial companies that will be established outside land designated for industries on account of the location of the source of raw material shall be excluded from provision as meant in paragraph (1).

Article 8

The Minister shall stipulate further procedures for granting industrial licences and expansion licences.

Article 9

The Minister shall issue industrial licences and expansion licences and can delegate authority to issue such licences.

CHAPTER III
REVOCATION

Article 10

Industrial licences may be revoked if:

• 1. Industrial companies conduct expansion without expansion licences.
• 2. Industrial companies relocate their industries without approval in writing from the Minister.
• 3. Industrial companies cause environmental damage and pollution exceeding the threshold of environmental quality standard.
• 4. Industrial companies carry out industrial activities in violation of provisions stipulated in their industrial licences.
• 5. Industrial companies do not provide industrial information or deliberately provide false industrial information.

CHAPTER IV
OTHER PROVISIONS

Article 11

Industrial licences issued on the basis of this Government Regulation also shall be valid for storage space in the vicinity of industrial companies used for keeping equipment, supplies, raw material and auxiliary goods for the industrial activities of the industrial companies.

Article 12

(1) Principle approval issued before the enforcement of this Government Regulation shall remain valid and can be used to obtain industrial licences on the basis of this Government Regulation.

(2) Permanent licences issued before the enforcement of this Government Regulation shall function as industrial licences based on this Government Regulation.

(3) Expansion licences issued before the enforcement of this Government Regulation shall remain valid.

(4) Small Scale Industry's Registration Certificates (STPIK) issued before the enforcement of this Government Regulation shall function as Industrial Registration Certificates (TDI) based on this Government Regulation.

CHAPTER V
CLOSING PROVISIONS

Article 13

(1) With the stipulation of this Government Regulation, the Government Regulation No.13/1987 on industrial licences (Statute Book of 1987 No.21, Supplement to Statute Book No.3352) shall be declared null and void.

(2) With the enforcement of this Government Regulation, all regulations relating to industrial licences shall remain valid so long as they do not contradict this Government Regulation and are not yet replaced on the basis of this Government Regulation.

Article 14

This Government Regulation shall come into force as from the date of stipulation. For public cognizance, this Government Regulation shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.

Promulgated in Jakarta
On May 23, 1995
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd.
SOEHARTO

Stipulated in Jakarta
On May 23, 1995
THE MINISTER/STATE SECRETARY
sgd.
MOERDIONO

Elucidation
On
The Government Regulation No.13/1995
Concerning Industrial Licences