What is Regulation 24/2018 in Indonesia?
Regulation 24/2018 further mandates that the competent authorities begin the process of reforming business licenses. Reclassification, elimination, combining, changing names, and changing license requirements are all examples of business license reform.
It also lays out the requirements for obtaining a business license. There are 20 business sectors that have licenses that are subject to reform, which includes, among others:
License reforms in areas not covered by Regulation 24/2018 are implemented in accordance with the regulations in place in such sectors. According to Regulation 24/2018, there are 3 types of businesses that require business licenses to operate.
Businesses that do not require infrastructure to undertake business operations
Businesses that require infrastructure but do not yet have it
Businesses that require and have infrastructure to perform business activities are all included
Businesses that require infrastructure but lack it must first apply for a location permit, a water permit, and an environmental license, which are all granted depending on commitment. Licensees can do the following:
Unless any relevant rules or regulations specify otherwise, business licenses in Indonesia are valid until the business no longer conducts business operations.
On the basis of commitment, commercial and operational licenses will be issued. They have to do with the items that will be marketed or procured, as well as the standardisation, certification, and licensing of business activities, as well as the registration of goods and services needed to conduct business. They are valid for the amount of time specified in their validity period.