New Provision on Industrial-Zone Business Permits

The Minister of Industry (“Minister”) has issued Regulation 39/M-IND/PER/6/2016 on Procedures for Granting Industrial-Zone Business Permits and Industrial-Zone Expansion Permits (“2016 Regulation”).In a nutshell, the 2016 Regulation redefines the procedures which have to be followed in order to secure: 1) Principal Licenses, 2) Industrial-Zone Business Permits, and 3) Industrial-Zone Expansion Business Permits from the Minister, or relevant governor or regent/mayor (collectively referred to “Authorities”) by companies which are intending to either develop new or expand their already existing industrial zones (“Developers”). [1] Previously, similar provisions were set out under Ministry Regulation No. 05/M-IND/PER/2/2014 (“2014 Regulation”). [2] Securing a Principle LicenseDevelopers are required to first secure a Principal License before they can apply for an Industrial-Zone Business Permit (Izin Usaha Kawasan Industri –“IUKI”), the possession of which by Developers is mandatory before they can commence any activity in the industrial zone in question. [3] In order to secure a Principle License, Developers must first submit an application (using the PMK – 1 form provided in the Appendix) to the Head of the One-Stop Service (Pelayanan Terpadu Satu Pintu – “PTSP)facilityat the BKPM head office or at an office at the provincial/city/district levels, enclosing the following documents: [4]