THE MINISTRY OF INDUSTRY HAS ISSUED THE LATEST PROCEDURES

THE MINISTRY OF INDUSTRY HAS ISSUED THE LATEST PROCEDURES FOR INDUSTRIAL LICENSES APPLICATION THROUGH OSS IN PARALLEL WITH SIINAS. THIS NEW REGULATION ALSO APPLIES TO EXISTING INDUSTRIAL LICENSES HOLDERS.

In line with the Government Regulation No. 24 of 2018 on Electronically Integrated Licensing/Online Single Submission (“OSS”) system (“PP 24/2018”), the Ministry of Industry issued Ministry of Industry Regulation No. 15 of 2019 on the Issuance of Industrial Business Licenses and Expansion Permit in the Framework of Online Single Submission dated 29 April 2019 (“Permenperin 15/2019”), which emphasize the use of OSS by business players to apply for Industrial Business Licenses (Izin Usaha Industri/ “IUI”) and Expansion Permit (Izin Perluasan/ “IP”).

Upon the effective date of Permenperin 15/2019, its predecessors, Permenperin 41/M-IND/PER/6/2008 on Guidelines and Procedures for Issuance of IUI, IP and Industrial Registration Sign, along with its amendment, Permenperin No.81/M-IND/PER/10/2014, are both revoked. In addition, with the issuance of Permenperin 15/2019, Permenperin No.122/M-IND/PER/12/2014 on Delegation of Power on the Issuance of Industry Licenses from Ministry of Industry to BKPM will no longer valid.

Pursuant to PP 24/2018 and its implementing regulations, Permenperin 15/2019 regulates that every business player shall obtain Nomor Induk Berusaha (“NIB”) from OSS prior to applying for IUI and IP.

Permenperin 15/2019 introduced the use of Sistem Informasi Industri Nasional (“SIINas”), which is an integrated information system managed and owned by the Ministry of Industry to store national industry data. SIINas is accessible to industrial players such as companies, associations, as well as Industrial Zone managers and related ministries and institutions, as communication portal. Companies must submit their industrial activities, such as production report and requests for Minister recommendations through SIINas. In addition, SIINas also provides information on market opportunities, industrial regulations and information on export-import which are accessible to the users. Since SIINas is integrated with the OSS, every business player who wishes to apply for IUI and IP must firstly have a SIINas account after they obtained the NIB from OSS.

Permenperin 15/2019 stipulates that all companies in the sector of industry or manufacturing in all scales (small, medium, and large industries) and in any location (Industrial Zone or outside), are obliged to obtained IUI to conduct their activities. Once obtained, IUI also applies as storage permit for machine, raw material, and production outputs.

Company shall apply for IUI through OSS, and required commitments include Location Permit and Environment Permit. In parallel, company must also submit necessary documents through SIINas, such as Statement Letter from Ministry of Industry explaining that the industry is located within Industrial Zone, as well as Industry Data. Since SIINas and OSS are integrated, both systems will notify each other if necessary requirements and commitments are approved in their systems prior to the issuance of effective IUI via OSS. Once all commitments are verified both in OSS and SIINas, OSS will then issue the effective IUI.

Permenperin 15/2019 also regulates the amendment to IUI, and to apply such amendment, companies must submit the application through SIINas, which will automatically notify the request to OSS. Companies are required to make amendment application if they want to conduct any alteration related to amount of labor, investment value, addition of industrial activities by 5-digits KBLI, addition or transfer of business location, and with regard to production capacity.

In addition, company with IUI is allowed to apply for IP. This permit shall be applied through OSS with parallel actions through SIINas. Industrial company that wants to do expansion by using natural resources which required environmental impacts analysis are obliged to apply for IP.

With regard to effective IUI and IP as issued by OSS prior to the issuance of Permenperin 15/2019, the licenses are still considered as valid. Ineffective IUI and IP by OSS shall be processed according to Permenperin 15/2019. Meanwhile, IUI and IP obtained prior to the issuance of PP 24/2018 on OSS must be reapplied in parallel through OSS and SIINas by re-uploading the existing IUI and IP as well as required documents commitments.