ANNOUNCED AS TEMPORARYNo
FDI: Treatment and operations, nes
The amendment simplifies the company registration renewal procedure - which in Indonesia is required every five years - by allowing companies to submit the renewal also electronically and scraps the renewal fees. Whereas these steps per se do not affect foreign entities differently compared to local ones, the renewal fees for foreign companies were previously up to ten times higher - ca. 100 USD compared to 10 USD for certain legal entities (see art.23 of the original regulation 37/M-DAG/PER/9/2007). Hence, the amendment scraps a previously existing distortion for foreign companies in Indonesia.
Furthermore, according to the preamble of the regulation, the renewal was scrapped "in order to support the ease of doing business for companies in the field of trade" (own translation).
The amendment came into force on 22 February 2017.
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