One recent investment-sector regulation of note, which follows up President Joko Widodo’s Second Economic Policy Package, is Head of Investment Coordinating Board (“BKPM”) Regulation No. 15 of 2015 on the Guidelines and Procedures for Obtaining Investment Licenses and Non-Licenses (“15/2015 Regulation”).
 
This regulation complements last week’s Indonesian Law Digest discussion[1] on principle licenses, which are mandatory licenses for Foreign Direct Investment (“FDI”) and Domestic Direct Investment (“DDI”). These licenses are set out in Head of BKPM Regulation No. 14 of 2015 on the Guidelines and Procedures for Principle Investment Licensing (“14/2015 Regulation”).
 
These two legal instruments have replaced the previous Head of BKPM Regulation No.5 of 2013 on the same matters,[2]which incorporated the core stipulations of the 14/2015 Regulation and the 15/2015 Regulation.
 
The 15/2015 Regulation relates to the business license, a document that needs to be acquired after first securing a principle license for entering the production and operation stage. The regulation also sets out the procedures for establishing a representative office, which is mandatory for FDI entities.