On June 21, 2018, the Government of the Republic of Indonesia issued Government Regulation No. 24 of 2018 on Electronically-Integrated Business Licensing Services (“GR 24/18”). GR 24/18 supports the government’s program on investment acceleration as regulated on Presidential Regulation No. 91 of 2017 on Acceleration of Doing Business (“PR 91/17”) which has caused confusion in business activities all this time.
The issuance of GR 24/18 is expected to respond to the complaints raised by business actors on obstacles to obtaining a business license i.e. time consuming and complicated procedures.
In response to business continuity and a conducive investment climate, on September 22nd, 2017, the President of the Republic of Indonesia signed Presidential Regulation No.91 of 2017 on Acceleration of Doing Business (“PR 91/17”). The issuance of PR 91/17 was followed by the issuance of its Government Regulation No. 24 of 2018 on Electronically-Integrated Business Licensing Services (“GR 24/18”). GR 24/18 governs the licensing reform through the issuance of Online Single Submission (“OSS”) system. Such regulations are issued to attract investors to invest in Indonesia.
In contrast to domestic investors, foreign investors are only allowed to do business activities in Indonesia through the establishment of a foreign limited liability company (“PMA”).