Permanent Business License (IUT)

Permanent Business License (IUT)

Permanent or Permanent Business License or Ijin Usaha Tetap (IUT) is a document that must be owned by a foreign-owned company (PT PMA) to be able to operate its business in Indonesia.

Permanent Business Permit is a business license issued by the Investment Coordinating Board (BPKM) or Regional Investment Coordinating Board (BPKMD). This permit is closely related to a company in the form of a PT that will deal with Foreign Direct Investment and Domestic Investment (Local PT).

IUT is given as an operational permit to carry out commercial business activities in the field of Trade in Goods / Services or in the Industrial sector as an implementation of the Permit for Foreign Investment Investment (PMA) / Domestic Investment (PMDN) obtained previously by an investment company.

However, newly established companies will receive a Principle Permit first during the establishment process. You can only register for IUT after the company is established and complies with all regulations. The process that must be passed includes fulfilling the investment plan.

The business license issued by BKPM will be adjusted to the business sector run by the company. For the tourism business sector, the business license is called the Tanda Daftar Usaha Pariwisata (TDUP), the trade business field is called the Surat Ijin Usaha Perdagangan (SIUP), and the other is in accordance with their respective business fields.

To apply for IUT the company must have a location and environmental permit as well as a building permit (Ijin Mendirikan Bangunan atau IMB). After these licenses have been obtained, the company can apply for a Permanent Business License (Ijin Usaha Tetap atau IUT).

The government requires each company to have a Permanent Business License (IUT) to conduct business operations in Indonesia. Indo-Ned Consultancy has helped many of our clients who do business in Indonesia in making a Permanent Business License (IUT). We always follow every update of regulations from the Government in Indonesia, because we work with all relevant departments such as the Badan Koordinasi Penanaman Modal or BKPM (Investment Coordinating Board). Our experience in helping our clients makes us work faster and precisely in meeting the needs of our clients. 

When you want to set up company in Indonesia and start doing business in indonesia, you need to understand about IUT (Permanent Business License) and the regulations in Indonesia.


The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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