The Ministry of Trade issued the following regulations which came into effect on 22 January 2017:

1. Regulation No. 7/M-DAG/PER/2/2017 on the Issuance of Trade Business License or Surat Izin Surat Perdagangan (“SIUP Regulation”); and
2. Regulation No. 08/M-DAG/PER/2/2017 on Company Registration Certificate or Tanda Daftar Perusahaan (“TDP Regulation”).

The issuance of these two regulations marks the latest move by the Government of Indonesia to increase its ranking in the Ease of Doing Business by the World Bank and support business actors in the trade sector by removing the requirement to re-register SIUPs and simplifying the renewal of TDPs.

Key highlights of the SIUP and TDP Regulations

1. SIUP re-registration removal

A SIUP is a license for a business entity to conduct trade or business activityies, i.e. sell and purchase of goods or services, or any transaction involving ownership transfer over goods or services. Previously, such business entity shall re-register its SIUP every 5 years, but such requirement is now removed by the SIUP Regulation. Hence, once an entity obtains a SIUP, it will remain valid as long as the entity operates in trade activities.

2. TDP renewal simplified

Every business entity that is located and operated in Indonesia shall be registered in the Company Registration Office in order to receive a TDP. These entities may be in the form of a limited liability company, a cooperative, a Commanditaire Vennootschap (“CV”), a firm, an individual and other business entities.The TDP is valid for 5 years and shall be renewed at a minimum of 3 months before the expiration date. This renewal has been simplified in the TDP Regulation which only requires the business actors to submit a notification letter by attaching a copy of the previous TDP either electronically or manually at the relevant TDP Office. The TDP Office will then issue a new TDP within 3 days of submission. In the event that the TDP has not been issued within 3 working days, the previous TDP is deemed applicable and renewed.

Please note that there are no application charges for SIUP and for the renewal of TDP.

In short, this is welcome news for business actors as it could be time-consuming and a hassle to re-register SIUP and renew TDP when there are no changes to the SIUP and TDP.

If you have any questions or require any additional information, please contact Poppy Cut Rahmasuci, Sianti Candra or the ZICO Law Partner you usually deal with.

This alert is for general information only and is not a substitute for legal advice.