Attachments required to be submitted with applications :

1. Letter of recommendation from the related country or letter which is issued by the Embassy/ Representative Office of the related country in Indonesia if the applicant is The Government of another country;
2. Copy of valid passport if the applicant is a foreign individual;
3. Copy of Articles of Association of the company in English or its translations in Bahasa from sworn translator if the applicant is a foreign company;
4. Copy of valid Identity Card (KTP) if the applicant is an Indonesian individual;
5. Copy of Articles of Establishment of the company and any amendment (s) and approval from the Minister of Law and Human Rights if the applicant is incorporated under the law of Republic of Indonesia;
6. Copy of Tax Registration Code Number (NPWP) for the applicant, either for Indonesian individual or company which is incorporated under the law of the Republic of Indonesia;
7. This application should be properly and duly signed with sufficient stamp duty by all applicants (if the company is not yet incorporated) or by the company’s Board of Directors (if the company is already incorporated) attached with Power of Attorney with sufficient stamp duty from whom signs and/or submits the application if the applicant is represented by another party (provisions concerning the Power of Attorney is strictly regulated in this regulation (article 63).

Source: BKPM

The Tax Rate For Individual(s)

 The Tax Rate For Corporate(s)

After 100 years exploring oil & gas in Western Indonesia, now it is the time for the government to focus on the Eastern Indonesia.

The upstream oil & gas sector is shifting its paradigm with the tendency of increasing gas production and exploration to Eastern Indonesia. Therefore, the government is asked to issue policies in accordance with the new paradigm.

According to the Deputy of BP Migas, Rudi Rubiandini, currently there is a stagnant oil production, while gas production is increasing. In his notes, gas production is increasing by 3% in the past three years.

“Oil production tends to go down, while gas production is going up. There is a paradigm shift from the oil era to the gas era,” Rudi said in a public discussion on energy and natural resource in Jakarta yesterday.

To anticipate this shift, the government should apply policies compatible with the new paradigm, especially preparing the infrastructure.

Rudi believes acceleration in building a floating storage and regasification unit and a Bulog gas unit is necessary. The Bulog gas would search and store gas reserve for the domestic need. “FSRU should be built. Whether the gas is available or not, we have to build it.”

An energy observer, Kurtubi reminded the same thing. According to him, the government must build domestic gas infrastructure. “Infrastructure development is not limited to the construction of FSRU, but also the expansion of gas distribution pipelines,” Kurtubi said.

Shifting Exploration
The oil & gas paradigm shift also occurred in exploration targets. Previously explorations are dominantly performed in Western Indonesia, in the future it would move to the East. “We have been exploring the West for 100 years, it is time to explore the East,” Rudi added.

The problem is, exploration in the East is considered more difficult and cost more compared to the West because it focuses on deep sea and remote frontier. With the high difficulty, more investment is required. “It is very likely that the government is forced to invite foreign investors,” said Rudi.

Vice President of Indonesian Petroleum Association, Sammy Hamzah, mentioned, oil & gas exploration investment in Eastern Indonesia is estimated to be 10-20 times more expensive compared to exploration in Western part of the country. However, he disagrees if the government relied on foreign investors as the only solution to the issue at hand.

He prefers to strengthen the state-owned oil & gas company PT Pertamina, in dealing with the condition. “Pertamina should no longer taking care of the marginal oil & gas fields, an oil & gas field map should be prepared in the future focusing on the deep sea exploration,” Sammy said.

On the other hand, a member of the Commission VII of the DPR Satya W. Yudha said, the government still needs to create a better oil & gas investment climate due to the limited government budget to develop the oil & gas sector.

“The total realization of foreign and domestic investment in 2010 reached Rp208 trillion, up by around 54.2 percent, compared to that of 2009 which was recorded at only Rp135.2 trillion,” he said at a meeting on Consolidation of Planning and Implementation of Regional Capital Investment (KP3MR) for across Java and Bali and Kalimantan here on Thursday.

He said investment outside Java in 2010 also increased significantly by 33 percent compared to that of the year before.

“That shows there has been distribution in investment and economic growth in Indonesia which has so far been traditionally centered in Java,” he said.

The condition also shows an improvement although Java is still ranked first with regard to investment, he said.

He said it also shows that the government`s efforts in improving investment climate through better service and policy reform have been fruitful.

“The achievement also shows there has been an improvement in investment climate at provincial and district/city levels and in the domestic role in investment activities,” he said.

He said the country`s national economy has also shown meaningful compliance. In the past several years economy could grow around six percent.

“The economic growth in 2011 is predicted to be able to reach seven percent a year. Therefore to attract investment opportunities must be created and existing potentials exploited,” he said.

He said Indonesia`s potentials mainly come from natural resources, such as geothermal energy source which comprise 40 percent of the world`s geothermal source and coal reserves which are huge.

“Our agricultural and mining commodities are also huge such as palm oil whose certified production reached five million tons. The country`s large population is also potentials for consumer companies,” he said.(*)

But five economists surveyed on Friday said growth was narrowly focused, with private consumption the major contributor while investment and exports were still lacklustre.

The government is due to release gross domestic product data for the first quarter on Monday at 0630 GMT.

The survey shows that economic growth hardly picked up since the fourth quarter, which had expanded 4.35 percent from the year earlier.

The growth rate would also be too low to create enough jobs to counter unemployment, which is likely to be a key issue along with the economy in the country’s first direct presidential election on July 5.

However, economists said the shallow growth was likely to prompt the central bank to keep domestic interest rates at historic lows, despite a weaker rupiah, to try to boost economic activity.

That could be a relief to bankers, car dealers and property developers, whose first-quarter financial performances have been among the strongest in recent years because of low rates.

“Several indicators of the real sector’s performance have shown better numbers in the first quarter, such as sales of motorcycles, cars, and cement and electricity consumption,” Citibank economist Anton Gunawan said.

Economists said relative political stability during the quarter had boosted consumer confidence.

The deadly bombings and violent street protests that have hit Indonesia in recent years were largely absent in the quarter and campaigning for April 5 parliamentary elections was peaceful.

The Jakarta stock index reached a historic high of 824.5 points last month due in part to expectations the low rates, currently at 7.32 percent for benchmark central bank paper, would boost corporate profits.

CHRONIC UNEMPLOYMENT

But over the long term, the private consumption that accounts for 70 percent of GDP will not be enough for Indonesia to maintain current growth rates, let alone raise them to at least the six percent needed to deal with the country’s unemployment woes.

GDP growth of 4.1 percent last year created new jobs for just 1.6 million people, compared with 5.2 million who entered the labour market in which 40 million were already either unemployed or underemployed, a finance ministry document showed.

Investment has also been far from encouraging, economists said.

Imports of capital goods dropped 6.2 percent in the year through the first quarter. Foreign investment approvals remained weak during the quarter.

Judging from the expected modest first-quarter performance, Indonesia is likely to post full-year growth of 4.5 percent, an earlier survey showed.

The government has forecast growth of 4.8 percent this year.

The results come from a survey of more than 24,000 people across 24 countries.

They were asked whether innovation was highly valued in their country; whether it was hard for people like them to start a business; whether people who do were highly valued; and whether people with good ideas could usually put them into practice.

Relatively favourable

Taking all the answers together as a single index, Indonesia came out as the most favourable place for entrepreneurs.

Also near the top were the US, Canada and Australia.

All the developed economies surveyed were above the average score, with the exception of Italy, which was far below.

But there were also plenty of developing economies that came out as pro-entrepreneur – India, China and Nigeria were also perceived by their own people as relatively favourable places for new businesses.

In terms of regions, the four countries of East Asia and the Pacific surveyed all received high scores. All the three countries in Sub-Saharan Africa also scored above average.

But other regions were more varied. In Latin America, Mexico and Peru scored relatively highly, but Brazil and Columbia were well below average.

Index derived from the mean scores (on a scale from 1 to 4) of four questions:

• valuation of creativity/innovation in own country

• difficulty to start own business in country

• valuation of people who start own business

• ease of putting ideas into practice

In Western Europe, low scores in Italy and Spain were balanced by perceptions of a more favourable environment for entrepreneurs in Germany, France and the UK.

Surprise results

The poll does not provide evidence on why people took the views they did, and in some respects the results are consistent with widely-held perceptions of the country concerned.

For example, the US has a particularly pro-private sector culture and a smaller state sector than many western European countries. It is seen as a good place for entrepreneurs.

Russia, which received a low score in this poll, is seen internationally as a place where the state is too prone to intervene in economic life.

But there are some surprises. Labour laws in France are relatively tough, yet in this poll the country was seen as a good place for a new business.

Nigeria’s problem with corruption did not stop it doing better than most countries in this survey.

The poll was undertaken for the BBC World Service by the international survey firm Globescan together with the Program on International Policy Attitudes at the University of Maryland

http://www.bbc.co.uk/news/business-13547505