As someone who has made the choice to have direct investments in Indonesia in 2018, this is crucial for you to learn. Why? Because the previous BKPM regulations regarding the same areas will be repealed once this newest BKPM is in place, andthis could affect your business. Once the relevant subsidiary conducts a corporate action, the new BKPM Reg. 13/2017 requires all parent companies who want to change its status from a PT PMDN into a PT PMA to change the status of its subsidiary into a PT PMA company.
For Venture capital company, In preceding BKPM regulations, venture capital companies were able to hold shares in a PT for a total of 10 years. Now the BKPM Reg. 13/2017 enables venture capital company to hold shares in a PT for a total of 20 years from the date the Minister of Law and Human Rights (MOLHR) approved its share participation in the relevant PT.
For Representative office license (KPPA), On the condition that the applicable renewal application is submitted to the BKPM at least 30 days before its expiration date under the relevant KPPA license, the BKPM Reg. 13/2017 grants unlimited renewal for the KPPA license. Unlike previous BKPM regulations, the KPPA license valid for 3 years with maximum 2 times renewal, in this case, in total the KPPA license can be valid for maximum 5 years, and cannot be extended after 5 years.
For General , Any application sent in before the new BKPM Reg. 13/2017 was put into place will be processed liable to the requirements stated in the BKPM Reg. 13/2017 and any Principal Licenses (IP) issued under the regime of the preceding regulations will stay valid.