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Delegation of Authority to Issue Investment Permits in Trade Sector

11 Jan

Minister of Trade Regulation No. 01/M-DAG/PER/1/2012 on Delegating the Authority to Issue Investment Permits to the Head of the Indonesia Investment Coordinating Board Under the One Stop Integrated Services Framework for Investment (“Regulation”) has been issued to implement Article 7 (2) and (3) of Presidential Regulation No. 27 of 2009 on One Stop Integrated Services for Investment (“Perpres 27/2009”). Article 7 (1) of Perpres 27/2009 states that the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) will organize one stop integrated services for investment.

Pursuant to Article 7 (2) of Perpres 27/2009, relevant ministers/heads of state institutions will delegate the authority to issue licenses and other documents (non-licenses) to the Head of BKPM. As stipulated in Article 7 (3) of Perpres 27/2009, the delegation of authority is regulated by a ministerial regulation.

Furthermore, pursuant to Article 1 (2) of the Regulation, authority delegation is the transfer of investment-related affairs from the Minister of Trade to the Head of BKPM. Meanwhile, Article 1 (3) of the Regulation states that one stop integrated service (pelayanan terpadu satu pintu – PTSP) is the handling of license and other document (non-license) requests in one place.

The Minister of Trade, as stipulated in Article 2 (1), delegates the authority to issue investment permits in trade to the Head of BKPM, who may delegate this authority to others (substitution rights). Pursuant to Article 2 (2), the delegated authority to issue licenses includes the authority to issue trade business licenses with foreign capital participation; survey service permits; property broker permits; and foreign trade representative permits. According to Article 7, the procedure for obtaining these licenses will be

regulated by the Head of BKPM. It should be noted that under Article 6, the Minister of Trade is allowed to revoke the delegated authority if BKPM asks the Minister for a full or partial revocation; or if BKPM is unable to exercise the delegated authority.

The Regulation repeals and replaces Minister of Trade Regulation No. 301A/KP/X/77 on Delegating the Authority to Issue Trade-related Investment Business Permits and Limited Trade Permits for Investment to the Head of the Indonesia Investment Coordinating Board.

 

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