Jakarta Government Simplifies Business Licensing Requirements for Companies

Legal Updates
Jakarta Government Simplifies Business Licensing Requirements for Companies
14 June 2019

In an effort to simplify the bureaucratic process and improve the ease of doing business, the Jakarta provincial government has eliminated the requirement that companies obtain a Certificate of Domicile and Certificate of Business Domicile.

The DKI Jakarta One-Stop Integrated Investment Services (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Pemerintah Provinsi Daerah Khusus Ibukota Jakarta or "DPMPTSP") recently issued Announcement Number 27 of 2019 regarding the Discontinuance of Non-Licensing Services for the Issuance of Certificate of Domicile (Surat Keterangan Domisili Perusahaan or "SKDP") and Certificate of Business Domicile (Surat Keterangan Domisili Usaha or "SKDU").

The announcement confirms that beginning May 2, 2019, companies are no longer required to obtain an SKDP or SKDU. Entrepreneurs can instead now rely on their business licenses issued by the DPMPTSP or other government institutions to validate the information previously contained in the SKDP and SKDU.

Apart from disentangling the complex and lengthy bureaucratic process, this step is seen as helping to fulfill the Jakarta regional government's stated commitment to create a more effective business regulatory regime and help push Indonesia into the top 40 in ease of doing business global rankings.

Actionable government policies such as this help generate optimism that Indonesia is moving in the right direction in terms of accommodating business activities with a leaner bureaucracy and simplified regulatory regime. The regional government of Jakarta has certainly taken a welcome step toward ensuring a more progressive system of governance for Indonesia.

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Ira Andamara Eddymurthy
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