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Wednesday, 18 February 2009

Guide to Agricultural Investment and Trade Opportunities in Indonesia (5)


Visa and Immigration Requirements

Tourists and business visitors from Argentina, Australia, Austria, Belgium, Brazil, Brunei, Canada, Chili, Chinese Taipei, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Jordan, Kuwait, Luxembourg, Malaysia, Maldives, Malta, Morocco, Mexico, Monaco, Netherlands, New Zealand, Norway, The Philippines, Saudi Arabia, Singapore, South Korea, Spain, Sweden, Switzerland, Hong Kong, / China, Thailand, Turkey, United Arab Emirate, United Kingdom, United State of America, Venezuela and Yugoslavia do not require visa for a maximum stay of 2 (two) months. In addition, tourists and business visitors from Hong Kong Special Administrative Region (SAR) and the Myanmar do not require visa for a maximum stay only of 2 (two) weeks. However, these visas are not extendable. The granting of free visa to business visitors is limited for the purpose of business investigations or discussions with their business relations. They are not permitted to conclude any business transaction, engage in local employment, and perform any professional or technical service. Visa is still required for visitors from countries which are not mentioned above.

Multiple-Journey Business Visas

Multiple-Journey Business Visa travel visa gives the bearer the right to make several entries to Indonesia within a period of 12 (twelve) months and each stay up 2 (two) months.

For business or tourist travelers of nationalities that have obtained the two months free visa on arrival, multiple-journey business visas are not necessary for stays within those two months.

Limited Stay Visas or Temporary Residents Visas

Limited stay visas are valid for three months to one year and are issued exclusively to experts for the national development and to expatriates who are involved in training or other educational or scientific programs in line with the prevailing government regulations. Direct dependents can also qualify for this type of visa.

Re-entry Permit

Non-citizens with residential status in Indonesia must have valid re-entry permits to re-enter Indonesia.

Environmental Protection

In 1990, the government established the environmental Impact Management Agency (BAPEDAL) and then, since 2002 this Agency merges into the Ministry of Environment which is responsible for the development and implementation of national policies and programs for environmental management particularly as they relate to urban and industrial pollution and hazardous waste management.

The ministry of Environment oversees a decentralized enforcement system (conducting environmental assessment) through the Regional Environment Management Agency (BAPEDALDA) and regional laboratories to ensure efficient monitoring of the implementation of environmental policies.

Business Entrance

Indonesia has been stipulated the new law No.: 25/2007 concerning Investment (in Indonesia), to meet the above Investment law Indonesia Government is preparing the derivates regulations.

For the transition, few fields of business activities are regulated by President Decree No. 96 of 2000 as amended by No. 118 of 2000. There are 11 (eleven) business activities closed for any investment (domestic as well as foreign / PMA) such as cultivation and processing marijuana, collection / utilization of sponges, Industries of harmful chemicals and chemical weapon, which are listed in the attachment-I of the mentioned decrees. There are 8 (eight) business activities and closed for PMA companies such as germ plasma cultivation, concessions for natural forest, which are listed in the attachment-II. In addition, there are 9 (nine) business activities opened on the condition of joint venture between foreign and domestic capital, such as developing and operating of harbor, electricity production, transmission and distribution, as listed in the attachment-III. List of business activities which are opened for investment if fulfilled certain condition of fish in fresh water, industries of pulp made of wood and ethyl alcohol.

The Indonesian Regulatory Environment

The Indonesian Investment Process

The Capital Investment Board (BKPM) has the responsibility to administer and grant investment application. BKPM issues licenses for both domestic (PMDN) and foreign investment (PMA).

Service and / or licensing convenience may be given and renewed in advance simultaneously and may be further renewed upon request of the investors in form of:

a. Hak Guna Usaha (leasehold) may be given for 95 (ninety-five) years and simultaneously renewed in advance for 60 (sixty) years, and it may be further for 35 (thirty-five) years.

b. Hak Guna Bangunan (building rights) may be given for 80 (eighty) years, and simultaneously renewed in advance for 50 (fifty) years, and it may be further renewed for 30 (thirty) years and
c. Hak Pakai (right of use) may be given for 70 (seventy) years, and simultaneously renewed in advance for 45 (forty-five) years, and it may be further renewed for 25 (twenty-five) years.

The government shall provide the same treatment to any investors originating from any countries making investment in Indonesia pursuant to the rules of law. Treatment set forth shall not apply to investor of certain countries that have received privilege by virtue of an agreement with Indonesia.

On-stop integrated service is meant to assist investor in obtaining service convenience, fiscal facility, and information about investment. One-stop integrated service shall be provided by authorized institution or agency. In investment sector that have been delegated or assigned by institution or agency possess the authority to issue licensing or non-licensing in a province or regency/city. Provisions on the method and implementation of such one-stop integrated service set forth shall be governed with presidential regulation.

The approval process today for foreign investors is easier than before 1997.

The professional adviser is highly recommended for any new company wishing to establish.

There are regional BKPM offices, which are located in provinces, known as BKPM also have responsibility for issuing licenses and approvals.

The investment Law (now under processed) eliminates many impediments and red neck investment procedures.

Source: Guide to Agricultural Investment and Trade Opportunities in Indonesia, Ministry of Agriculture, The Republic of Indonesia


Jusuf Kalla said...

Absolutely Amazing!

Agribusiness Investment said...

A nice post on Guide to Agricultural Investment and Trade Opportunities in Indonesia..

biZzaRe KuNiVa said...

I'm very excited when i read this blog. As an expert, what do you think about sustainable agriculture and integrated farming system.
Can we make it happen in Indonesia?
Which one is better?
thank you for ur time..