RUPM Penanaman Modal is a government program that aims to attract investments into Indonesia. The program provides various benefits to investors, including tax incentives, simplified procedures, and easier access to licenses and permits. In this article, we will provide a detailed overview of the RUPM Penanaman Modal program, its benefits, and how to participate in it.
What is RUPM Penanaman Modal?
RUPM Penanaman Modal, also known as the Investment Coordinating Board of Indonesia or BKPM, is a government agency responsible for promoting investment in Indonesia. The agency was established in 1967 and has been instrumental in attracting foreign investments into the country. The RUPM Penanaman Modal program was introduced in 2007 to provide a more streamlined and efficient process for investors to invest in Indonesia.
Benefits of RUPM Penanaman Modal
Participating in the RUPM Penanaman Modal program provides various benefits to investors. Some of the benefits include:
- Tax incentives: Investors are eligible for tax incentives based on the type and size of their investment.
- Simplified procedures: The program provides a simplified process for obtaining licenses and permits required to invest in Indonesia.
- Easier access to land: Investors can lease state-owned land for up to 30 years and extend it for another 20 years.
- Investment facilitation: The BKPM provides investment facilitation services to investors by connecting them with potential partners and suppliers.
How to Participate in RUPM Penanaman Modal
Participating in the RUPM Penanaman Modal program is relatively easy. The following are the steps to participate in the program:
- Submit an investment proposal to the BKPM: Investors must submit an investment proposal to the BKPM, outlining the details of their investment.
- Obtain necessary licenses and permits: Investors must obtain the necessary licenses and permits required to invest in Indonesia.
- Register with the BKPM: After obtaining all the necessary licenses and permits, investors must register with the BKPM.
- Receive approval: The BKPM will review the investment proposal and approve it if it meets the requirements.
Types of Investments Eligible for RUPM Penanaman Modal
There are various types of investments that are eligible for the RUPM Penanaman Modal program. Some of the eligible investments include:
- Manufacturing: Investments in the manufacturing sector are eligible for the program.
- Tourism: Investments in the tourism sector, including hotels and resorts, are eligible for the program.
- Infrastructure: Investments in infrastructure, such as roads and ports, are eligible for the program.
- Agriculture: Investments in the agriculture sector, including plantations and fisheries, are eligible for the program.
RUPM Penanaman Modal Requirements
To participate in the RUPM Penanaman Modal program, investors must meet certain requirements. Some of the requirements include:
- Investment size: The minimum investment size for the program is IDR 10 billion (~USD 700,000).
- Job creation: Investors must create a certain number of jobs based on the sector they are investing in.
- Foreign ownership: Foreign investors must comply with the foreign ownership restrictions in Indonesia.
- Environmental impact assessment: Investors must conduct an environmental impact assessment if their investment has significant environmental impact.
Conclusion
RUPM Penanaman Modal is an excellent program for investors looking to invest in Indonesia. The program provides various benefits, including tax incentives, simplified procedures, and easier access to licenses and permits. To participate in the program, investors must meet certain requirements and follow the necessary steps. We hope this article has provided valuable insights into the RUPM Penanaman Modal program and its benefits.
