One Stop Integrated Services Geothermal Licensing

Transcription

1 invest in BKPM 2016 One Stop Integrated Services Geothermal Licensing INDONESIA INVESTMENT COORDINATING BOARD Hanung Harimba Rachman Director of Investment Planning for Agribusiness and Natural Resources, BKPM 2016 by Indonesia Investment Coordinating Board. All rights reserved

2 One Stop Services at BKPM

3 Improvement of Investment Service All sectors 162 permits are delegated to BKPM Industry, power, oil & gas, tourism at one place One place 22 ministries integrated One-Stop Service (PTSP) at BKPM 90% Regional PTSP formed. 61% regional PTSP implement e-licensing. 3-hour Service Direct Construction One-Stop Integrated Services

4 One Stop Services (OSS) at BKPM:The integration of investment licensing and also consultation services from 22 line ministries/institutions Ministry of Energy & Mineral Resources 42 oil & gas licenses, 9 coal & mineral licenses, and 10 electricity licenses Ministry of Environment & Forestry 35 business licenses Ministry of Industry 6 business licenses Ministry of Agrarian and Spatial/National Land Agency Centralization of issuing land rights licenses for foreign direct investment Ministry of Defense Stationed Liaison Officer for consultation Ministry of Trade 5 licenses Ministry of Agriculture 5 business licenses Ministry of Finance Import duty facility for machineries, goods, materials for production Ministry of Health 9 licenses related pharmaceutical production, medical equipment production Ministry of Tourism 9 licenses related tourism and economy creative sectors Ministry of Communications and Information Technology 5 licenses related post management, telecommunication and broadcasting Ministry of Manpower 3 business licenses and principal licenses Ministry of Public Works & Public Housing 7 business licenses Ministry of Maritime & Fishery 2 business licenses Ministry of Education & Culture 2 business licenses Indonesian National Police 6 business license in safeguarding business Ministry of Transportation 7 business licenses Ministry of Law & Human Rights 1 business licenses Supporting Institutions: Nat l Food & Drugs Control Agency, Nat l Crypto Agency, Nat l Standardization Agency, Electricity Company 4

5 STANDARD of OPERATING PROCEDURE SOP : online business process Investor 5 Adm. Desk 1 4 Online system Signing process Back office TYPE 1 Online submission: 1. Business License IU 2. Business License for expansion IU-PL 3. Business License for merger IU Penggabungan 4. Change of Business license IU-PB 5. Rep. Office KPPA and its changes 6. Rep. Office for Trading Company KP3A and its changes 5

6 STANDARD of OPERATING PROCEDURE SOP : manual business process Getting queue number Investor 1 2 Front Office/Liaison Officer 3 TYPE 2 Manual submission: 1. Importer Identification Number API 2. Rep. Office for Construction Foreign Company BUJKA 3. Ministerial / Institutional Licenses, such as on electricity 6 Adm. Desk 5 4 Signing process Back office Proposal submitted to Liaison Officer Proposal then processed in BKPM back office The license signed by Deputy Chairman for Investment Services 6

7 STANDARD of OPERATING PROCEDURE SOP : manual business process Getting queue number Front Office/Liaison Officer 3 TYPE 3 Manual submission: Ministerial / Institutional Licenses, such as on IUIPHHK for forestry industry, IUPTL for electricity Ministry: technical unit Investor Adm. Desk Signing process 4 Back office Proposal submitted to Liaison Officer The ministry will check technical aspect of the proposal The license signed by Deputy Chairman for Investment Services- BKPM 7

8 Priority Investment Service 3-hour Service Available for investors with minimum (new or expansion project) investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers. Or supplier of the existing manufacturing company with minimum investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers. No requirements for investment in infrastructure sector. 9 documents obtained Certainty to start a business Investment license Certificate of incorporation NPWP / Tax registration TDP / Company registration Certainty to work RPTKA / Employment plan IMTA / Working permit Certainty to import capital goods APIP / Import identification NIK / Customs registration Accurate land Information Letter of land availability BKPM Arrive at One-stop Integrated Service at BKPM directly from the airport. Consult with Director of Investment Service. Submit the required documents & data. Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions. Obtain eight documents & letter of land availability within three hours to start your business. 8

9 Priority Investment Service for Geothermal Power Plant MEMR Regulation No.15 of 2016 Applicable for : Geothermal business license Temporary electricity supply permit How to: Application should be submitted by owner or director 3 hours service is given to company which has fulfilled all administrative and technical requirements Geothermal Business License Temporary Electricity Supply Permit Administrative requirements: 1. Profile of Applicant 2. Tax ID Number (NPWP) 3. Deed of Incorporation 4. Certificate of Company Registration 5. Decision from MEMR regarding Geothermal Working Area (WKP) 6. Proof of Exploration Commitment Deposit Administrative requirements: 1. Applicant Identity 2. Profile of Applicant 3. Tax ID Number (NPWP) Technical requirements: 1. Pre-Feasibility Study 2. Letter of Confirmation as Prospective Entreprises in Electricity Supply 9

10 Priority Investment Service Direct Construction Investors can directly start their project construction before obtaining construction permits. This service is supported by both Central and Regional Governments. No Requirements No minimum investments or workers is required. Available for selected industrial parks. Construction permits can be obtained in parallel with construction process. Obtain investment licence at One-stop Integrated Service (PTSP) at national or regional level. Survey a land within selected 14 industrial parks (in North Sumatera, Banten, West Java, Central Java, East Java and South Sulawesi). Acquire the land for your industry. Start the construction of your project. No other permits are required. Apply for building construction permit/imb & environmental permit, and other regional licenses in parallel with construction process. 10

11 Improvement of Investment Climate CUSTOMS CLEARENCE Four customs checking status: Red line is for new companies. Physical & document checks before transported from ports. Yellow line Document check before goods transported from ports. Green line Document check after goods transported from ports. Main Partner Priority for companies with proven track record. No checking required. New Facility: Status upgrade from red to green line for new companies under construction Import Facility for Capital Goods Acceleration and certainty in custom clearance process Faster & Certain Capital goods do not require screening. Cutting the processing time from 3-5 days to only 30 minutes. Simple requirements Projects under construction Obliged in reporting quarterly investment activities (LKPM) Recommendation from BKPM 11

12 Geothermal Licensing

13 Law No25/2007 on Investment Presidential Reg. No. 44/2016 on Negative Investment List Chairman BKPM Reg. No.14 & 15/2015 on Investment Licensings 13

14 NEGATIVE INVESTMENT LIST OF ELECTRICITY PRESIDENTIAL REGULATION NUMBER 44 OF 2016 CONCERNING THE LIST OF BUSINESSES CLOSED AND OPENED BUSINESS FIELD WITH THE CONDITIONS IN THE FIELD OF INVESTMENT No. Business fields ISIC Requirements LIST OF BUSINESS FIELDS OPEN TO CONDITIONS 1. Geothermal survey service Foreign capital ownership maximum 95% 2. Geothermal drilling service Foreign capital ownership maximum 95% 3. Geothermal operation and maintenance service Foreign capital ownership maximum 90% 4. Geothermal electricity power plant < 10MW Foreign capital ownership maximum 67% 5. Small scale electricity power plant other than geothermal (1-10 MW) Foreign capital ownership maximum 49% 6. Electricity power plant >10MW Foreign capital ownership maximum 95% (100% if using PPP scheme during consession period) 7. Electricity transmission Foreign capital ownership maximum 95% (100% if using PPP scheme during consession period) 8. Electricity distribution Foreign capital ownership maximum 95% (100% if using PPP scheme during consession period) 9. Consultation in electricity installation Foreign capital ownership maximum 95% 10. Construction and installation of electricity for installation of electricity provision Foreign capital ownership maximum 95% 14 14

15 NEGATIVE INVESTMENT LIST OF ELECTRICITY PRESIDENTIAL REGULATION NUMBER 44 OF 2016 CONCERNING THE LIST OF BUSINESSES CLOSED AND OPENED BUSINESS FIELD WITH THE CONDITIONS IN THE FIELD OF INVESTMENT No. Business fields ISIC Requirements 11. Construction and installation of high / extra high voltage electricity power plant 12. Construction and installation of middle / low voltage electricity power plant LIST OF BUSINESS FIELDS OPEN TO CONDITIONS Foreign capital ownership maximum 49% % domestic 13. Operation and maintenance of electricity power plant Foreign capital ownership maximum 95% 14. Inspection and examination on high / extra high electricity power plant 15. Inspection and examination on low / middle voltage electricity power plant Foreign capital ownership macimum 49% % domestic 15

16 GEOTHERMAL and ELECTRICITY LICENSING DELEGATED TO ONE STOP SERVICES Regulation of the Minister of Energy and Mineral Resources No.35 Year 2014 concerning the Delegation of Authority Providing Business Licensing of Energy and Mineral Resources in the Context of the Implementation of One Stop Services To the Chairman of the Investment Coordinating Board 1) Business licensing for the provision of electric power 2) Operational license 3) Stipulation of business zones EFFECTIVE FROM 19 DECEMBER ) Business licensing for the supporting services for electric power 5) Business licensing for electricity trading across country 6) Business licensing for utilization of electricity network for telecommunication, multimedia, and informatics 7) Assignation of preliminary survey for geothermal 8) Geothermal business licensing 9) Approval for geothermal supporting business 10) Licensing to utilize geothermal explosive warehouse 16

17 Investment Licensing Process

18 Typical Licensing Flows for Independent Power Producer (IPP) Preconstruction Stage Investor (Foreign/ Domestic) Required If Necessary Ministry of Energy & Mineral Resources IPP Procurement Proces: 1.Open tender for Geothermal PP 2.Direct appointment or beauty contest for: Minihydro, Bioenergy and WTE PPs Decision on the Winning IPP PT. PLN (Persero) IPP Procurement Proces: 1.Open Tender, Direct Selection, Direct Appointment (or Direct Appointment) for: Mine- Mouth & Non-Mine Mouth Coal-Fired, Gas/Machine-Gas PPs 2.B2B Negotiation for other (solar PV, wind, marine energy, etc) PPs Decision on the Winning IPP PPA Signing (60 working days) Indonesia Investment Coordinating Board (One Stop Services) 3-hour Licensing Services**) Tax Allowance or Tax Holiday Facilities (25 or 45 working days) Temporary IUPTL (5 working days) Permanent IUPTL (5 working days) Import Duty Facilities (5 working days) Central Bank 1. IDR payment exception approval 2. Foreign loan planning report) Ministry of Agrarian & Spatial / National Land Agency Technical Review of Land (SPKT) (7 working days) Land Certificate (HGB) (50 workdays) *) Financial Close Regional Government Location Permit (14 workdays) *) (not necessary for land with IPPKH ) Building Construction Permit (IMB) *) (14 working days) Environment License (10 workdays) *) (UKL/UPL or AMDAL, AMDAL LALIN, Nuisance Permit) Certificate of Operation Worthiness (Sertifikat Layak Construction Operasi/SLO) Indonesia Investment Coordinating Board (One Stop Services) Permit to Borrow and Utilize Forest Area (Izin Pinjam Pakai Kawasan Hutan/IPPKH) (52 workdays) (if utilizing production/protected forest area) COD (Commercial Operation Date) Ministry of Transportation Special Terminal Permit (Izin Terminal Khusus) *) (5 days) [if require jetty) Coordinating Ministry of Economic Affairs Foreign Commercial Loan Approval (Pinjaman Komersial /PKLN) [if using fforeign loan] NOTES: IUPTL (Izin Usaha Penyediaan Tenaga Listrik) or Electricity Production License *) can be applied in parallel **) 3-hour Licensing Services for getting: 1. Investment License 2. Certificate of Incorporation 3. NPWP / Tax Registration Number 4. TDP / Company Registration 5. APIP / Import Identification Number 6. NIK / Customs registration Number 7. RPTKA / Foreign Employment Plan 8. IMTA / Foreigner Working Permit Letter of Land Availability

19 Tax Allowance for Geothermal Government Regulation No.9 of 2016 No. Business fields ISIC Business Scope 1. Geothermal utilization Exploration - Exploitation - Utilization of geothermal for electricity 19

20 TAX ALLOWANCE FACILITY: application flow Investor Trilateral Meeting 1. Deputy Chairman for Investment Services, BKPM 2. Technical Ministry 3. Ministry of Finance (DGoT) One Stop Service Clarification process at OSS (BKPM, LO from technical ministry, LO MoF) and Trilateral Meeting (15 working days) Recommendation Letter from BKPM (3 working days) Ministri of Finance Decree regarding approval or rejection of tax allowance application (7 working days) Directorate General of Taxation 20

21 IMPORT FACILITY : capital goods for electricity CRITERIA POWER PLANT : Electricity for public use Exclude transmission, distribution, and supporting services CAPITAL GOODS : Machinery and tools Not applicable for repairment equipment 2 (two) years of importation and could be extended maximum 1 year. PT. PLN ELIGIBLE USER Holder of Electricity Business License (IUPTL) which are: 1. Companies having electricity business area. 2. Companies having PPA with PT PLN. 3. Companies having leasing agreement with PT PLN. 4. Companies having PPA with other company which have electricity business license in certain area. 21

22 IMPORT DUTY FACILITY FOR ELECTRICITY : application flow PT. PLN or company which has electricity business license (IUPTL) Submit IMPORT PLAN to Directorate General of Electricity to be approved and ratified 1 2 Submit import duty facility with approved import plan to One Stop Service 3 Ministry of Energy and Mineral Resources BKPM Issuance of Decree of Import Duty Facility 22

23 Thank You Terima Kasih Indonesia Investment Promotion Centre (IIPC) CONTACT US BADAN KOORDINASI PENANAMAN MODAL (BKPM) Jl. Jend. Gatot Subroto No. 44, Jakarta P.O. Box 3186, Indonesia One Stop Service Contact Center P : BKPM (2576) E : info@bkpm.go.id 23