As anyone who has set up a business in Indonesia will know, setting up a business in this country is no easy feat! It is expensive, tricky and extremely time consuming.
However, on the 2nd May 2019 a new announcement was made by the local government of Jakarta to simplify the process by removing the requirement to provide the SKDP (Domicile letter).
So, what is the SKDP/Domicile letter and how does this effect the process?
The SKDP/Domicile letter is a formal document from the PTSP (Local Government) that acknowledges the company’s address is registered and includes the address and district of domicile.
In the past to set up a PT, PMA or a Representative office, this document was a mandatory requirement and could take between 1 and 2 weeks to be processed.
By subtracting this from the establishment process, it significantly cuts down the complete service time to approximately 2 weeks!
There are four points in the announcement from the government as listed below:
1. “SKDP and SKDU are a kind of non-licensing service to the capital investment office and PTSP DKI Jakarta province which has added to the procedure of licensing which inhibit process of set up company.
2. As proof of the commitment from the Government DKI Jakarta in order to create a ease of company business in DKI Jakarta, then as of May 2, 2019 PTSP DKI Jakarta has closed non licensing services SKDP and SKDU as simplification of the procedure of starting a business requirement.
3. As a substitute for SKDP and SKDU for administrative purposes, company can use business licensing documents issued by the Capital Investment office and PTSP of DKI Jakarta and/or from other government institutions governed by the Regulation Legislation.
4. The closure of the non-licensing service SKDP and SKDU began to be applied on May 2, 2019”
Do you still need to get the domicile letter?
As this is a new process and things may change, it would be advisable to still apply for the domicile letter, however this will not be required to establish the company and is something you can do once the company has been established.
As for business licensing such as SIUP and TDUP, the domicile is no longer needed.
Is this news applicable across Indonesia?
Currently, this is only applicable to Jakarta, but it may roll out to other parts of Indonesia if successful.
Can I open a bank account without the domicile letter?
In practice, the SKDP will still be issued by PTSP because of the requirements for banking compliance, namely the opening of the company account. Therefore, currently you will still require this formal document to open a bank, although – please note, banks requirements may vary.
The mandatory steps and requirements as of 2nd May 2019
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Comparison |
New Regulation |
Old Regulation |
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Company’s Establishment Stage
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General Company Documents
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Time Frame |
2 Weeks |
4 Weeks
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Company’s Document Renewal |
n/a |
SKDP/ Domicile Letter |
Want to know more about the Company Establishment Process? Then check out our useful guides below by clicking the links:
Company Establishment in Indonesia – Your questions answered
How to revise your Company Documents in Indonesia
How to set up a business in Indonesia
Registering a Trademark in Indonesia – How to protect your business
Need a Visa that compliments your new business requirements? Then check out this article about the most popular Visa for new business owners!
The investor KITAS – Everything You Need To Know!
If you have any questions or need assistance with your company establishment, then feel free to contact us for a free consultation. T: +62 21 300 297 27 E: [email protected] or come and visit us in our office in Bellagio Mall Mega Kuningan, the only walk in Company Establishment Agency in Jakarta!
About Mega: Mega Rizkiani is a graduate of Law from the prestigious Diponegoro University in Indonesia. She has many years’ experience setting up businesses and has helped hundreds of people turn their dreams into a reality.
She has exceptional knowledge about the industry and has helped independent as well as multinational companies, expand into South East Asia’s most promising market.
Her exceptional attention to detail combined with her attentive nature have helped ensure she is one of the most sought-after Company Establishment Experts within Indonesia.
Whether you are looking to set up a local company, an international company or a representative office in Indonesia, Mega is the most reliable expert in the city.
In addition to Company Establishment, she can also help review and draft agreements, draft company regulations, register trademarks, set up business licenses, revise company documents as well as offer legal consultations.
Mega joined LetsMoveIndonesia in 2018 and has since helped overhaul the working practices in the industry allowing LetsMoveIndonesia become the trendsetters in the market.
