Indonesian Government Accelerates Pertashop Business Licensing

  • The Minister of Home Affairs, Minister of Public Works and Public Housing, and Minister of Investment/Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) have collectively issued Joint Circular No. 500.2/6581/SJ, 22/SE/M/2023, 19 of 2023 on the Acceleration of Pertashop Business Licensing ("Joint Circular"), which has been in force since 7 December 2023.
  • In terms of said acceleration of Pertashop business licensing, the Joint Circular mandates that regents/mayors should perform various matters, including: 1) Accelerate the issuance of Pertashop licenses that are categorized as low-medium risk; 2) Ensure the issuance of spatial approvals for distribution agencies that are categorized as low-medium risks by only requiring Conformity of Spatial Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang/KKPR), which are issued automatically through the Online Single Submission ("OSS") system; 3) Ensure the issuance of Environmental Approvals for Distributing Institutions with a tank capacities of less than 20 kiloliters; and 4) Ensure that Pertashop outlets utilize Environmental Management Affidavits (Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup/PKPLH), which are issued automatically through the Environmental Document Information System; and so forth.
  • Meanwhile, the following provisions apply to Pertashop outlets that are in the process of securing licenses and/or that have incomplete licenses: 1) Pertashop outlets can continue to operate provided that they secure the required licensing documents by no later than 30 June 2024; 2) Regional governments should accelerate the processes of license issuance for submitted applications by ensuring that licenses are issued within three working days of the required documents being received.
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  • The Minister of Home Affairs, Minister of Public Works and Public Housing, and Minister of Investment/Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) have collectively issued Joint Circular No. 500.2/6581/SJ, 22/SE/M/2023, 19 of 2023 on the Acceleration of Pertashop Business Licensing ("Joint Circular"), which has been in force since 7 December 2023.
  • In terms of said acceleration of Pertashop business licensing, the Joint Circular mandates that regents/mayors should perform various matters, including: 1) Accelerate the issuance of Pertashop licenses that are categorized as low-medium risk; 2) Ensure the issuance of spatial approvals for distribution agencies that are categorized as low-medium risks by only requiring Conformity of Spatial Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang/KKPR), which are issued automatically through the Online Single Submission ("OSS") system; 3) Ensure the issuance of Environmental Approvals for Distributing Institutions with a tank capacities of less than 20 kiloliters; and 4) Ensure that Pertashop outlets utilize Environmental Management Affidavits (Pernyataan Kesanggupan Pengelolaan Lingkungan Hidup/PKPLH), which are issued automatically through the Environmental Document Information System; and so forth.
  • Meanwhile, the following provisions apply to Pertashop outlets that are in the process of securing licenses and/or that have incomplete licenses: 1) Pertashop outlets can continue to operate provided that they secure the required licensing documents by no later than 30 June 2024; 2) Regional governments should accelerate the processes of license issuance for submitted applications by ensuring that licenses are issued within three working days of the required documents being received.
......

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