Izin Usaha Tetap/Permanent Establishment

Any investment company should have permanent establishment license (IUT) to started their operation activity in Indonesia. Usually the investment company willing to invest in Indonesia will apply for the approval of BKPM. The first approval given is a tentative approval for the respective company to start their business in Indonesia. The approval letter will null and void if within 3 (three) years for the new project and 2 (two) years for the expand project since the date of approval is issued have no realisation project either in the form of actual activity or administrative or any physical activities.

if the company have ready to start permanent establishment than the company will apply for IUT. To apply for IUT, some required documents are needed namely:

1. Deed of Establishment legalized by Minister of Law and Human Rights and its amendment
2. Copy of Right over the land or land lease agreement
3. Copy of Building License or Building Lease Agreement
4. Copy of Hinder Ordonantie (HO) or License of Disturbance Law
5. Copy of Environmental Anal sis (AMDAL) (if required)
6. Copy of Foreign Capital Investment Approval and its amendments
7. Power of Attorney
8. Specific license or proof for specific business line

The application for IUT submitted to BKPM with 2 (two) copies. The IUT will be issued by BKPM at the latest 7 (seven) days after the complete application submitted. The IUT will valid until 30 years since the production is started