Capital Investments in Jakarta

The Governor of Jakarta has issued Regulation No. 53 of 2008 which sets out the regulatory framework for the provision of integrated one window capital investment services. The Regulation has been issued to facilitate the implementation of the provisions contained in Article 5(4) of Governor of Jakarta Regulation No. 112 of 2007.

The Regulation will simplify the bureaucracy with respect to licensing and non-licensing services required for capital investment in Jakarta. It will also allow for the expediting of the process with the removal of unnecessary procedures and stages in the services provision process. Finally, the Regulation also simplifies the conditions and requirements that must be fulfilled in order for licenses or other permits to be granted.

There are eight specific features noted and enumerated in the Regulation. These state that the process must be:

·                transparent;

·                accountable;

·                participative;

·                equal;

·                efficient;

·                effective;

·                balanced between the rights and obligations of the parties; and

·                professional.

This is to be achieved through the application of the following principles:

·                simplicity;

·                clear and certain;

·                specified time frames;

·                legal certainty;

·                easy to access;

·                comfortable facilities;

·                disciplined, polite, and courteous.

Each of these is further enumerated in the Regulation.

The Regulation then sets out in detail the procedure for an application. There are eight steps to the application process with each stage being explicitly covered in the Regulation.

The length of time required to finalize any service provided is set out in the Regulation. Where an application does not require the use of any land then this application will be finalized in a maximum of 10 days. Where an application requires land up to 5,000sqm then the application process will take a maximum of 25 days. Where an application requires the use of more than 5,000sqm of land then the application process will require a maximum of 38 days. If the application is for capital investment in a zone designated as a special zone then the application process will take a mere 3 days from submission to approval.