Overview

In order to halt the slide of the Indonesian rupiah against the US dollar and to boost the country’s sluggish economy, the government officially announced its Second Economic Policy Package (“Second Policy Package”) on 29 September 2015. Through this new policy package, the government is aiming to stimulate and accelerate the growth of industry, finance, and export activities across Indonesia. This is to be achieved through the deregulation of certain business sectors, with the ultimate goal of easing the flow of investment and exports in the country.

The announcement of this Second Policy Package was followed by the Head of the Investment Coordinating Board (“BKPM”) issuing Regulation No. 14 of 2015 on the Guidelines and Procedures for Principle Investment Licensing (“14/2015 Regulation”). The 14/2015 Regulation sets out the procedures to be followed regarding prospective Foreign Direct Investment (“FDI”) or Domestic Direct Investment (“DDI”) in order to secure a Principle Investment License (“Principle License”). This license is a core requirement for those looking to start businesses in Indonesia.