Why Should I Own Business License?

Owning business license is mandatory for any business entity in Indonesia.  You have to highlight that your business might be close by government if you do not own business license.

The Regulations

In Indonesia regulation since 2015, every foreign company that is newly established their business in Indonesia must apply for business license. It can be done by providing financial audit in order to be able to apply for permanent business license or other necessary license such as import license. The purpose is Indonesia government want to ensure every foreign investor will realize their investment plan instead of only submit their investment plan to the Investment Coordinating Board (BKPM) on the paper.

These are the characteristics of business license for PMA in Indonesia

  • Business license : for company engaged in general general trading, goods, or other services.

  • Industrial business license: for company engaged in the manufacturing industry outside of oil, gas, and geothermal energy
  • Construction business license : for company engaged in other industries, such as construction

How Are The Procedure And Requirements?


A permanent business license will be given to a PMA Company once it meets the following requirements:

  • Has been in production phase

  • Has exceeded the allotted time (3 years)

ReadBusiness and Import License in Indonesia


  • A PMA Company may apply for a permanent license to the Head of Investment Coordinating Board (BKPM) or Head of Region Investment Coordinating Board (BKPMD). Regarding the issuer, it depends upon the foreign investment license, the business activities, and also the domicile of the company;
  • The applicant should complete and sign the application form for a business license at BKPM or BKPMD office and attach the required documents; and
  • BKPM or BKPMD officers will check all the files and the eligibility and completeness of application, and then issue the permanent license certificate.


  • Permit approval for investments (copy).
  • Deed of establishment and its amendments (copy).
  • Company domicile, NPWP, and TDP (copy).
  • Contract/rental of business premises and certificate from the owner of the building (copy).
  • Copy of ID card and passport of KITAS for foreigners.
  • Nuisance Act Permit and Location Permit (SITU).
  • List of office equipment and industrial equipment, and
  • Company organizational structure.


  • After fulfilling all documentation requirements, the processing time for a business license application takes 14 working days.
  • A business license is generally valid for 30 years.

If you need more information about business license in Indonesia, kindly contact us by sending email to reception@virtualofficeinjakarta.com. You can also leave your comment in form below.


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