New Provisions on Industrial Business Licenses

The government has issued Government Regulation No. 107 of 2015 on Industrial Business Licenses (“2015 Regulation”), in order to implement Article 108 under Law No. 3 of 2014 on Industrial Affairs, [1] which mandates for further provisions on industrial business licenses. [2] The 2015 Regulation sets out simplified guidelines for the securing of an industrial business license for any parties engaging in industrial activities. Previously, the same matter was regulated under Government Regulation No. 13 of 1995 (“1995 Regulation”).Types of LicenseAll businesses engaging in industrial activities must first secure an industrial business license (izin usaha industri- IUI), in accordance with the size of their business, specifically: [3] (i) IUI for small-scale industry; (ii) IUI for medium-scale industry; and (iii) IUI for large-scale industry.The scale is determined based on the business worker number and/or investment value. [4] Pursuant to Minister of Industry (“Minister”) Regulation No. 11/M-IND/PER/3/2014 on the Restructuring Program for Machines and/or Equipment for Small-Scale Industry and Medium-Scale Industry (“11/2014 Ministerial Regulation”), [5] the investment-value thresholds for  small- or medium-scale industry are as follows: [6]