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REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA
NUMBER 27 OF 2009

CONCERNING
INTEGRATED ONE-STOP SERVICES IN THE INVESTMENT FIELD

BY THE GRACE OF ALMIGHTY GOD
PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

That to implement provisions in Article 26 paragraph (3) of Law No. 25/2007 concerning Capital Investment, it is necessary to stipulate Presidential Regulation concerning Integrated One-Stop Services in the Investment Field;

In view of:

1. Article 4 paragraph (1) of the 1945 Indonesia Constitution;

2. Law No. 32/2004 concerning Regional Government (Statute Book of the Republic of Indonesia No. 125/2004, Supplement to Statute Book of the Republic of Indonesia No. 4437) as amended the latest by Law No. 12/2008 concerning the Second Amendment to Law No. 32/2004 concerning Regional Government (Statute Book of the Republic of Indonesia No. 59/2008, Supplement to Statute Book of the Republic of Indonesia No. 4844);

3. Law No. 25/2007 concerning Capital Investment (Statute Book of the Republic of Indonesia No. 67/2007, Supplement to Statute Book of the Republic of Indonesia No. 4724);

4. Law No. 11/2008 concerning Information and Electronic Transactions (Statute Book of the Republic of Indonesia No. 58/2008, Supplement to Statute Book of the Republic of Indonesia No. 4843);

5. Law No. 14/2008 concerning Public Information Transparency (Statute Book of the Republic of Indonesia No. 61/2008, Supplement to Statute Book of the Republic of Indonesia No. 4846);

6. Government Regulation No. 38/2007 concerning the Sharing of Administrative Affairs between the Government, Provincial Governments and Regency/Municipal Governments (Statute Book of the Republic of Indonesia No. 82/2007, Supplement to Statute Book of the Republic of Indonesia No. 4737);

7. Government Regulation No. 41/2007 concerning the Organization of Regional Apparatuses (Statute Book of the Republic of Indonesia No. 89/2007, Supplement to Statute Book of the Republic of Indonesia No. 4741);

8. Government Regulation No. 45/2008 concerning Guidance to Provide Investment Incentives and Facilities in Regions (Statute Book of the Republic of Indonesia No. 88/2008, Supplement to Statute Book of the Republic of Indonesia No. 4861);

DECIDES:

To stipulate:

PRESIDENTIAL REGULATION CONCERNING INTEGRATED ONE-STOP SERVICES IN THE INVESTMENT FIELD

CHAPTER I
GENERAL PROVISION

Article 1

In this Presidential Regulation:

1. Investment is all kinds of investment activities, either by foreign or domestic investors, to carry out business activities in the territory of the Republic of Indonesia;

2. Foreign investment is the activity of a foreign investor to make investment to carry out business activities in the territory of the Republic of Indonesia, either by full foreign capital or joint venture with a domestic investor;

3. Investor is an individual or corporate body that makes investment in the form of domestic investment and foreign investment;

4. Integrated one-stop service, hereinafter abbreviated as PTSP, is the activity to provide Licensing and Non-licensing services by obtaining the delegation of authority from the institute or agency having the Licensing and Non-licensing authority, with the process of the management ranging from the filing of applications to the issuance of documents in one place;

5. Licenses are all forms of investment approvals issued by the Government and Regional Governments that have the authority in accordance with the law and regulation;

6. Non-licenses are all forms of service facilities, fiscal facilities, and Investment information in accordance with the law and regulation;

7. Provincial Investment Apparatuses, hereinafter abbreviated as PDPPM, are assistants to the regional head to carry out provincial administration, with the model adjusted to the need of each provincial Government, to carry out main function in coordinating investment at a provincial Government level;

8. Regency/municipal Investment Apparatuses, hereinafter abbreviated as PDKPM, are assistants to the regional head to carry out regency/municipal administration, with the model adjusted to the need of each regency/municipal Government, to carry out main function in coordinating investment at a regency/municipal Government level;

9. The Delegation of Authority is the transfer of tasks, rights, obligations and responsibilities related to licenses and non licenses, including the signing on behalf of the party giving the authority, by:

10. The Transfer of Authority is the transfer of tasks, rights, obligations and responsibilities related to Licenses and Non-licenses, including the signing on behalf of the party receiving the authority, by:

11. Assignment is the transfer of tasks, rights, authority, obligations and responsibilities, including the signing on behalf of the party receiving the authority, and the head of BKPM to regency/municipal Governments to carry out administrative affairs in the Investment field constituting the Government authority based on the substitution rights as laid down in Article 30 paragraph (8) of Law No. 25/2007 concerning Capital Investment, accompanied by clear description;

12. Liaison officer is an official of the ministry/LPND, provincial Government, or regency/municipal Government appointed to help settle license-and non-license-related problems, and give information, facilitation, and privileges in the Investment field constituting the authority of the Technical Minister/head of LPND, governor or Regent/Mayor, with clear description of tasks, rights, authority, obligations and responsibilities;

13. Central Government, hereinafter referred to as the Government, is the president of the Republic of Indonesia holding the administrative power of the Republic of Indonesia as laid down in the 1945 Constitution;

14. Regional Government is a governor, Regent or Mayor and regional apparatuses constituting an element of regional Government;

15. Investment Coordinating Board, hereinafter abbreviated as BKPM, is an LPND responsible for the investment sector, led by a head responsible directly to the President;

16. Electronic information and investment licensing service system, hereinafter abbreviated as SPIPISE, is an integrated Licensing and Non-licensing service system between BKPM and the ministry/LPND having Licensing and Non-licensing authority, PDPPM and PDKPM;

CHAPTER II
PRINCIPLES, AIM AND SCOPE

Article 2

The provision of PTSP in the Investment field is based on principles of:

Article 3

PTSP in the Investment field is aimed at assisting investors in getting access to services, fiscal facilities, and information on investment, by speeding up and simplifying services and reducing or abolishing Licensing and Non-licensing fees.

Article 4

The scope of PTSP in the Investment field covers services for all kinds of Licenses and Non-licenses in the Investment field needed to make investment.

CHAPTER III
YARDSTICKS OF PTSP IN THE INVESTMENT FIELD

Article 5

(1) The provision of PTSP in the Investment field shall result in primary quality services measured by such indicators as speed, accuracy, simplicity, transparency, and legal certainty.

(2) PTSP in the Investment field shall be supported by the availability of:

(3) BKPM shall evaluate PTSP in the Investment field in regions based on the yardsticks as intended in paragraph (1) and paragraph (2).

(4) BKPM shall set qualifications for PTSP in the Investment field in regions based on the results of evaluation as intended in paragraph (3).

CHAPTER IV
THE PROVISION OF PTSP IN THE INVESTMENT FIELD

Part One
General

Article 6

PTSP in the Investment field shall be provided by the Government and Regional Governments.

Part Two
The Provision of PTSP in the Investment Field by the Government

Article 7

(1) The provision of PTSP in the Investment field by the Government is done by BKPM.

(2) In providing PTSP in the Investment field as intended in paragraph (1):

(3) The Delegation or Transfer of Authority as intended in paragraph (2) a shall be stipulated by the Regulation of Technical Minister/Head of LPND.

(4) The transfer of Authority as intended in paragraph (2) a may include the granting of substitution rights to the Head of BKPM.

(5) The Head of BKPM shall issue recommendations to ministers/Head of LPND to get Licensing and Non-licensing authority that is not delegated by the Law.

(6) The appointment of liaison officers as intended in paragraph (2) b shall be decided by Technical Ministers/Head o LPND, Governors, or Regents/Mayors.

Article 8

(1) The Government affairs in the Investment field constituting the Government authority as intended in Article 7 paragraph (2) a shall consist of:

(2) Foreign Investment and Investors using foreign capital as intended in paragraph (1) b 5) shall cover:

(3) Technical Ministers/Head of LPND having Licensing and Non-licensing authority constituting the Government affairs in the Investment field, shall draw up and decide the business lines of investment as intended in paragraph (1) b 1), 2), 3), 4) and 6).

(4) The Head of BKPM shall coordinate with the ministers/heads of agencies concerned in making an inventory of agreements signed by the Government and the Governments of other countries in the Investment field as intended in paragraph (1) b 5).

Article 9

(1) Technical ministers/Head of LPND having Licensing and Non-licensing authority constituting the Government affairs in the Investment field shall decide the types of Licenses and Non-licenses in providing PTSP in the Investment field.

(2) The procedure of each type of Licenses and Non-licenses as intended in paragraph (1) shall be stipulated by the Technical Ministers/Head of LPND having the authority in the form of technical guidance covering:

(3) The procedure of issuing Licenses and Non-licenses as intended in paragraph (2) shall give a priority to simplification without reducing safety, security, health, and protection of the environment from investment activities, by referring to the standard set by the authorized institutes/agencies.

(4) In stipulating the types and procedure of Licenses and Non-licenses as intended in paragraph (1) and paragraph (2), the Technical Ministers/Head of LPND shall coordinate with the relevant institutes/agencies.

Part Three
The Provision of PTSP in the Investment Field by Regional Governments

Article 10

The provision of PTSP in the Investment field by regional Governments shall be done by provincial governments and regency/municipal governments.

Article 11

(1) The provision of PTSP in the Investment field by provincial governments shall be done by PDPPM.

(2) In providing PTSP in the Investment field as intended in paragraph (1), Governors shall give the delegation of authority to issue Licenses and Non-licenses in the Investment field constituting the provincial government affairs to the heads of PDPPM.

(3) The provincial government affairs as intended in paragraph (2) shall cover:

Article 12

(1) The provision of PTPS in the Investment field by regency/municipal Governments shall be done by PDKPM.

(2) In providing PTSP in the Investment field as intended in paragraph (1), Regents/Mayors shall give the delegation of authority to issue Licenses and Non-licenses in the Investment field constituting the regency/municipal Government affairs to heads of PDKPM.

(3) The regency/municipal Government affairs as intended in paragraph (2) shall cover:

Article 13

(1) In providing PTSP in the Investment field by the regional Governments as intended in Article 11 paragraph (3) b and Article 12 paragraph (3) b, the Head of BKPM, based on the substitution rights as intended in Article 7 paragraph (4), can give the transfer of authority to governors or to regency/municipal Governments as assignment.

(2) The transfer of authority to governors or the granting of assignment to regency/municipal Governments as intended in paragraph (1) shall be based on the qualifications of PTSP in the Investment field as intended in Article 5 paragraph (4).

(3) The transfer of authority to governors or the granting of assignment to regency/municipal Governments as intended in paragraph (1) shall be stipulated by a regulation of the Head of BKPM.

CHAPTER V
THE PROCEDURE OF PROVIDING PTSP IN THIE INVESTMENT FIELD

Article 14

(1) Applications for Licenses and Non-licenses in the Investment field shall be filed to BKPM, PDPMM or PDKPM according to their respective authority.

(2) The applications as intended in paragraph (1) can be filed manually or electronically through SPIPISE.

Article 15

(1) The procedure of providing PTSP in the Investment field referred to in this Chapter is to be stipulated by a Regulation of the Head of BKPM.

(2) Regional Governments shall draw up the procedures of providing PTSP in the Investment field based on the Regulation of the Head of BKPM as intended in paragraph (1).

CHAPTER VI
THE DEVELOPMENT OF PTSP IN THE INVESTMENT FIELD

Article 16

(1) The head of BKPM shall develop PTSP in the Investment field at PDPPM and PDKPM based on the qualifications of PTPS as intended in Article 5 paragraph (4).

(2) If in the development of PTSP as intended in paragraph (1), PDPPM are not yet able to provide Licensing and Non-licensing services in the Investment field originating from the transfer of authority as intended in Article 13 paragraph (1), the head of BKPM according to his/her authority or with prior consent from the Technical Ministers/Head of LPND having Licensing and Non-licensing authority in the Investment field, shall for the time being provide the Licensing and Non-licensing services,

(3) If in the development of PTSP as intended in paragraph (1), PDKPM are not yet able to provide Licensing and Non-licensing services in the Investment field originating from the assignment as intended in Article 13 paragraph (1), the head of BKPM according to his/her authority or with prior consent from the Technical Ministers/LPDN heads having Licensing and Non-licensing authority in the Investment field, shall for the time being delegate the authority to the heads of PDPPM, to provide the Licensing and Non-licensing services.

(4) PDPPM and PDKPM will be declared unable to provide Licensing and Non-licensing services in the Investment field, if they have not yet met the yardsticks as intended in Article 5 paragraph (1) and paragraph (2).

(5) The provision of Licensing and Non-licensing services by the head of BKPM as intended in paragraph (2) and paragraph (3) shall be returned to the heads of PDPPM and the heads of PDKPM after the head of BKPM has conducted the development of PTSP and the yardsticks of PTSP in the Investment field as intended in Article 5 paragraph (1) and paragraph (2) have been met.

(6) The procedure of developing the provision of PTSP in the Investment field as intended in paragraph (1), paragraph (2), paragraph (3), paragraph (4), and paragraph (5) is to be stipulated by a Regulation of the Head of BKPM.

Article 17

(1) The provincial Government affairs in the Investment field as intended in Article 11 paragraph (3) a and the regency/municipal Government affairs in the Investment field as intended in Article 12 paragraph (3) a, shall for the time being be executed by the Government, if the regional Governments are still unable to execute the regional Government affairs in the Investment field after receiving training on the development of PTSR

(2) The temporary execution of provincial Government affairs by the Government as intended in paragraph (1) may be transferred to the head of BKPM.

(3) The procedures of development and temporary execution by the Government as intended in paragraph (1) are laid down in this Presidential Regulation on the development of regional governments.

CHAPTER VII
THE ADVISORY TEAM OF PTSP IN THE INVESTMENT FIELD

Article 18

(1) The Government shall form an advisory team of PTSP in the Investment field.

(2) The advisory team of PTSP in the Investment field shall be assigned to:

(3) The chairman of the advisory team of PTSP in the Investment field shall be the Coordinating Minister responsible for the Economic Affair, with the Minister responsible for domestic administration as Deputy Chairman concurrently executive Chairman.

(4) The tasks, function, and lineup of the advisory team of PTSP in the Investment field are to be stipulated by the coordinating Minister responsible for Economic Affairs.

CHAPTER VIII
ELECTRONIC INFORMATION AND INVESTMENT LICENCING SERVICE SYSTEM

Article 19

The provision of PTSP in the Investment field is supported by SPIPISE.

Article 20

(1) Investors filing electronic applications for Licenses and Non-licenses as intended in Article 14 paragraph (2) will receive electronic Licenses and Non-licenses through SPIPISE.

(2) Licenses and non-licenses in the form of electronic documents as intended in paragraph (1) constitute evidence of legal instruments in accordance with the law on information and electronic transactions.

Article 21

(1) BKPM shall build and manage SPIPISE as intended in Article 19, consisting of:

(2) The system as intended in paragraph (1) a covers the application of automated business process to Licensing and Non-licensing services.

(3) The information as intended in paragraph (1) b consists of:

(4) The information as intended in paragraph (3) b can only be given to:

Article 22

In managing SPIPISE, BKPM is put under obligation to:

Article 23

(1) Technical ministries/LPND having licensing and non- licensing authority constituting the Government affairs in the Investment field shall open access to their investment information systems and integrate them with SPIPISE in stages.

(2) Technical ministries/LPND having licensing and non licensing authority constituting the Government affairs in the Investment field that have not given the delegation of authority or the transfer of authority to BKPM, shall:

(3) Technical ministries/LPND having licensing and non licensing authority constituting the Government affairs in the Investment field shall convey and open access to Licensing and Non-licensing information related to investment, covering types, technical terms, mechanism, fees and SLA as well as information on investment potentials to BKPM.

(4) PDPPM and PDKPM providing PTSP in the Investment field shall use reference data standards set by SPIPISE as well as convey and open access to Licensing and Non-licensing information related to investment, covering types, technical terms, mechanism, fees and SLA as well as information on regional investment potentials to BKPM.

(5) Technical ministries/LPND, PDPPM, and PDKPM shall provide supporting instruments for data processing, networks and interconnection with SPIPISE in their respective offices.

(6) To receive applications for Licenses and Non-licenses in the Investment field as intended in Article 14, PDPPM and PDKPM shall use the application system of automated business process for Licensing and Non-licensing services through SPIPISE.

Article 24

(1) Ministries/LPND, PDPPM, and PDKPM have the right to access SPIPISE.

(2) The ministries/LPND, PDPPM, and PDKPM as intended in paragraph (1) are responsible for the security of the access right.

(3) The ministers/LPND, PDPPM, and PDKPM as intended in paragraph (1) are responsible for data and information sent to BKPM through SPIPISE.

Article 25

(1) Ministries/LPND, PDPPM, and PDKPM using SPIPISE shall provide audit trails for all activities in SPIPISE.

(2) The audit trails as intended in paragraph (1) shall be used to know and verify the truth of electronic transaction process through SPIPISE.

(3) BKPM, ministries/LPND, PDPPM, and PDKPM shall use audit trails in SPIPISE as a basis for trace in case of different data and information.

Article 26

All expenses arising from the operation of SPIPISE shall be borne by:

Article 27

Further provisions on the operation of SPIPISE as intended in this Chapter are to be laid down in a Regulation of the Head of BKPM.

CHAPTER IX
FINANCING

Article 28

(1) Expenses incurred by BKPM to provide PTSP in the Investment field shall be borne by the State Budget.

(2) Expenses incurred by PDPPM and PDKPM to provide PTSP in the Investment field shall be borne by their respective regional budget.

Article 29

All state revenues arising from licensing and non licensing services constituting the Government affairs in the Investment field and the Government authority shall be transferred to ministries/LPND in accordance with the law on non-tax state revenues.

CHAPTER X
REPORTING

Article 30

(1) The Head of BKPM shall convey a yearly report on the provision of PTSP in the Investment field nationwide to the President, with copies addressed to the Technical Ministers/Head of LPND engaged in the development of the Government affairs in the Investment field/sector no later than April in the ensuing year.

(2) To submit the report as intended in paragraph (1) the heads of PDPPM and the heads of PDKPM shall send data and information to the head of BKPM on the provision of PTSP in the Investment field in each region at cannot be obtained through SPIPISE no later than 2 (two) months before the report reaches the President as intended in paragraph (1).

(3) If interconnection with SPIPISE has not been built, the heads of PDPPM and the heads of PDKPM shall convey periodic reports on investment developments to the head of BKPM with copies addressed to the Technical Minister/Head of LPND developing Government affairs in the investment field.

(4) Further provisions on the reports as intended in paragraph (1), paragraph (2), and paragraph (3) are to be laid down in a regulation of the head of BKPM.

CHAPTER XI
COORDINATION IN THE PROVISION OF PTSP

Article 31

To coordinate the provision of PTSR, BKPM shall cooperate with technical ministries/LPND, PDPPM, and PDKPM.

Article 32

(1) PDPPM and PDKPM shall be regional apparatuses mainly tasked with coordinating the Investment field in provincial Governments and regency/municipal Governments.

(2) The main task as intended in paragraph (1) shall consist of PTSP in the Investment field as intended in Article 11 paragraph (1) and Article 12 paragraph (1) and other tasks as follows:

(3) The formation, tasks, function and work mechanism of PDPPM and PDKPM as regional apparatuses as intended in paragraph (1) are to be laid down in regional regulations.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 33

When this Presidential Regulation begins to take effect:

(1) Regulation of the Technical Minister/Head of LPND on the transfer of authority to issue licenses and non licenses in the Investment field to the Head of BKPM before the stipulation of this Presidential Regulation, shall remain valid provided that they constitute Government affairs and have not been adjusted to this Presidential Regulation.

(2) Applications for Investment and other applications related to investment that have already been filed to BKPM, the relevant minister/Head of LPND having licensing and non licensing authority constituting Government affairs in the Investment field, PDPPM and PDKPM providing PTSP in the Investment field, and have not secured Government approval, shall be adjusted to this Presidential Regulation.

Article 34

(1) Licenses and non licenses that have been obtained from the Government before this Presidential Regulation comes into effect, shall remain valid until the expiry of the licenses and non licenses and can be extended according to the law and regulation.

(2) Investors that have secured licenses and non licenses as intended in paragraph (1) and need further licenses and non licenses shall file their applications to BKPM, PDPPM or PDKPM according to their respective authority.

CHAPTER XIII
CLOSING

Article 35

When this Presidential Regulation comes into effect:

Article 36

(1) Regulation of the Technical Minister/Head of LPND on the delegation of authority or the transfer of authority to issue licenses and non licenses as intended in Article 7 paragraph (3) to the head of BKPM before the stipulation of this Presidential Regulation, shall be adjusted to this Presidential Regulation no later than 6 (six) months after this Presidential Regulation comes into effect.

(2) The delegation of authority or the transfer of authority to issue licenses and non licenses as intended in Article 7 paragraph (3) the Technical Minister/Head of LPND has not issued to the head of BKPM when this Presidential Regulation is stipulated, shall be done no later than 24 (twenty-four) months after this Presidential Regulation begins to take effect.

(3) Regulations needed to provide PTSP in the Investment field as intended in Article 8 paragraph (3) and paragraph (4), Article 9 paragraph (1) and paragraph (2), Article 11 paragraph (2), Article 12 paragraph (2), Article 15 paragraph (1), Article 16 paragraph (6), Article 18 paragraph (4), Article 30 paragraph (4), and Article 32 paragraph (3) shall be stipulated no later than 12 (twelve) months after this Presidential Regulation begins to take effect.

(4) Supporting instruments needed to provide PTSP in the Investment field as intended in Article 5 paragraphs (2) a, b, c and d shall be made available no later than 12 (twelve) months after this Presidential Regulation begins to take effect.

(5) The provision of PTSP supported by SPIPISE as intended in Chapter VIII shall be introduced gradually according to capacity and introduced fully no later than 36 (thirty-six) months after this Presidential Regulation begins to take effect.

Article 37

This Presidential Regulation shall come into force as from the date of stipulation.

Stipulated in Jakarta
on June 23, 2009
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
signed,
DR. H. SUSILO BAMBANG YUDHOYONO