On 26 April 2019 the head of the Jakarta Capital Investment Agency and One Stop Integrated Services announced that it would cease issuing Company Domicile Letters (Surat Keterangan Domisili Perusahaan or SKDP) and Business Domicile Letters (Surat Keterangan Domisili Usaha or SKDU) for businesses domiciled in Jakarta. This took effect on 2 May 2019.
SKDPs and SKDUs are letters outlining the domicile of an individual or entity, which businesses use to obtain legal documents such as trade licenses, tax identification numbers and to open bank accounts.
In place of these letters, companies may use their business license documents issued by the Head of Jakarta Capital Investment Agency and One Stop Integrated Services and/or other government institutions instead.
Not long before doing away with SKDPs and SKDUs, the Indonesian government introduced a public service mall, a unique one-stop shop where business permits and other official documents can be processed.
This is one of many efforts of the government of Jakarta to simplify the complex bureaucratic process of starting a business and establishing a company in Jakarta. The aim of this is to help push Indonesia into the top 40 rankings for ease of doing business.
As the re-elected President Joko Widodo continues his vision to simplify Indonesia's complex bureaucracy with new policies, supported by stable economy, it is hoped that Indonesia will come to be one of the world's top investment destinations.
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