BKPM to Take Over Downstream Oil and Gas Licensing

Morgan Lewis summarizes the recent delegation of authority by the Minister of Energy to the Indonesian Investment Coordinating Board (aka BKPM) in issuing certain licenses for oil and gas activities. The move is widely expected to fast-track and simplify licensing of investments through the "Single Window for Investments" program.

Special Economic Zones in Indonesia

To attract investment, Indonesia has established a new location based concession called a Special Economic Zone (Kawasan Ekonomi Khusus or "KEK" in Bahasa Indonesia). Comprehensive fiscal and investment incentive facilities are available to investors in a KEK. Tax facilities offered under a KEK include holidays or special treatment for Income Tax, Value Added Tax, Luxury-goods Sales Tax, import duties, and excise facilities. Simplified regulatory and administrative procedures are another advantage. A PDF download by PwC Indonesia is here.