Trade Minister Enggartiasto Lukita, center, has dropped the requirement for businesses to renew their Trade Business Licenses, or SIUP, every five years and has simplified the process of renewing company registration certificates known as TDP. (Antara Photo/Puspa Perwitasari)
Trade Ministry Eases Company Registration, Drops the Requirement of Business License Renewal
BY :TABITA DIELA
FEBRUARY 23, 2017
Jakarta. The Ministry of Trade has dropped the requirement for businesses to renew their Trade Business Licenses, or SIUP, every five years and has simplified the process of renewing company registration certificates known as TDP.
"Businesses which have SIUPs will no longer need to reapply, because the SIUP will be valid as long as the company is running its business in the trading sector," Trade Minister Enggartiasto Lukita said in a statement on Thursday (23/02).
Enggartiasto announced the change last week.
SIUP contains details about the company's activities and the persons in charge of it. The license will now be based on the ministry's newly released amendment of the 2007 law.
Enggar also said that applications for new licenses or their replacement will now be free of charge.
Companies still need to renew their TDP certificates every five years, but it will be done automatically, unless the ministry issues a new regulation.
Businesses have been complaining about the time-consuming process of license renewal and Rosan P. Roeslani, the Indonesian Chambers of Commerce and Industry chairman, seemed enthusiastic about the change.
"That's a very positive thing. Why should we renew the TDP and SIUP in the first place, anyway?" he said.
Indonesia currently ranks 91 among 190 countries in the World Bank's 2017 "Doing Business" report, 15 places up from the previous year.
President Joko "Jokowi" Widodo seeks the country's rank to rise to 40 in the next few years.