Indonesia has always been a promising country for business investments. With its abundant natural resources and a large market, the country has attracted many investors from all over the world. However, investing in Indonesia is not as easy as it seems. There are many regulations and procedures that investors need to comply with before they can invest in the country. One of these regulations is the establishment of a Lembaga Penanaman Modal or Investment Coordinating Board.
What is Lembaga Penanaman Modal?
Lembaga Penanaman Modal or Investment Coordinating Board is a government agency that is responsible for coordinating and facilitating investment in Indonesia. It was established in 1967 under the Presidential Regulation No. 5/1967. The main function of Lembaga Penanaman Modal is to provide information, assistance, and guidance to investors who want to invest in Indonesia.
Why is Lembaga Penanaman Modal important?
Lembaga Penanaman Modal is important because it helps investors understand the investment climate in Indonesia. The agency provides investors with information on the legal and regulatory framework, investment opportunities, and incentives. It also helps investors navigate the bureaucratic processes that are involved in setting up a business in Indonesia.
Moreover, Lembaga Penanaman Modal acts as a one-stop-shop for investors who want to invest in Indonesia. The agency provides investors with a wide range of services, such as the issuance of investment permits, registration of businesses, and facilitation of land acquisition.
What are the functions of Lembaga Penanaman Modal?
Lembaga Penanaman Modal has several functions that are aimed at facilitating investment in Indonesia. These functions include:
1. Investment Promotion
Lembaga Penanaman Modal promotes investment in Indonesia by providing investors with information on investment opportunities, incentives, and regulations. The agency also participates in international investment forums and trade exhibitions to attract foreign investors to Indonesia.
2. Investment Facilitation
Lembaga Penanaman Modal facilitates investment in Indonesia by providing investors with a one-stop-shop for all their investment needs. The agency helps investors obtain investment permits, register their businesses, and facilitate land acquisition.
3. Investment Monitoring
Lembaga Penanaman Modal monitors and evaluates the implementation of investment projects in Indonesia. The agency ensures that investors comply with the regulations and laws that are related to their investments. It also provides investors with feedback on the performance of their investments.
4. Investment Protection
Lembaga Penanaman Modal protects the interests of investors in Indonesia. The agency provides investors with legal assistance and protection against expropriation, nationalization, and other forms of government interference.
How to Register a Business in Indonesia with Lembaga Penanaman Modal?
The process of registering a business in Indonesia with Lembaga Penanaman Modal is relatively straightforward. The following are the steps that investors need to follow:
Step 1: Obtain a Business Identification Number (Nomor Induk Berusaha or NIB)
To obtain a Business Identification Number (NIB), investors need to register their business with the Online Single Submission (OSS) system. The OSS system is an online platform that allows investors to obtain all necessary licenses and permits to start a business in Indonesia.
Step 2: Obtain an Investment Registration Certificate (Surat Keterangan Terdaftar or SKT)
After obtaining the Business Identification Number (NIB), investors need to apply for an Investment Registration Certificate (SKT) from Lembaga Penanaman Modal. The SKT is a document that confirms the registration of an investment project with the agency.
Step 3: Obtain a Company Registration Certificate (Tanda Daftar Perusahaan or TDP)
After obtaining the Investment Registration Certificate (SKT), investors need to apply for a Company Registration Certificate (TDP) from the local government. The TDP is a document that confirms the registration of a company with the local government.
Conclusion
Lembaga Penanaman Modal or Investment Coordinating Board is an important agency that investors need to be aware of when investing in Indonesia. The agency provides investors with information, assistance, and guidance on investment in Indonesia. It also facilitates investment, monitors investment projects, and protects the interests of investors. By understanding the role of Lembaga Penanaman Modal, investors can navigate the process of investing in Indonesia with ease.
