Sunteți pe pagina 1din 3

Overview about foreign investment in Indonesia Company Registration in Indonesia

Indonesia is a member of G20 country, which represents major economies in the world. With a population of nearly 250 million people, Indonesia becomes the 4th largest population in the world. These promising conditions place Indonesia as a very attractive market for investment from a round the world. Government regulations in Indonesia could be classified as a high bureaucracy. In relation with foreign investment, it is regulated and monitored by government institution named BKPM (Badan Koordinasi Penanaman Modal or Indonesia Investment Coordinating Board). All legal arrangements include company registration, business license, and other licenses shall be conducted through BKPM.

Foreigners intending to establish a business in Indonesia should be aware of few points in the following: 1. What type of legal entity; a foreign direct investment company or representative office? 2. What line of business your legal entity will be engaged in; is it open to foreign investment? If yes, what is the percentage of ownership that is open to foreign participation? 3. Regulatory framework; minimum capital, organization structure, tax regulations, Indonesian staff, activity reports, and more.

Foreign Direct Investment Company (PT. PMA) Foreign investor is only allowed to establish a company in Indonesia in the form of Limited Liability Company Foreign Direct Investment, which is called as PT. PMA (PerseroanTerbatas Penanaman Modal Asing). For the first step, it is important to verify the business field according to the Negative Investment List (DNI) issued by BKPM to confirm if the business field is open for foreign investment, close for foreign investment, or open with requirements. The most recent DNI was issued in 2010 could be downloaded here The laws governing PT. PMA establishment according to the Indonesian laws that are UU No. 25 / 2007 of Capital Investment as well as UU No. 40 / 2007 of Limited Liability Company. The characteristics of PT. PMA are in the following:

Foreign ownership up to 100% (according to business field) Minimum 2 shareholders Minimum 1 Director and 1 Commissioner Minimum investment plan is USD 1,200,000; with minimum paid-in capital for 25% which is equal to USD 300,000 Require business license and other licenses according to the business activities

The process of PT. PMA registration will take around 2.5 months. Although it requires sometimes, PT. PMA enables the company to perform the overall business activities in Indonesia.

How to establish a business in Indonesia? Setting up a business in Indonesia shall be conducted correctly and carefully. Considering the changes in regulations and bureaucracy in Indonesia, it is crucial to engage a professional assistance which understand about the local regulations and culture in Indonesia. Cekindo Your Business Partner in Indonesia is a market entry consulting firm providing one-stop services for foreign companies and entrepreneurs from various industries to enter Indonesian market. Our dynamic multinational team based in Jakarta to understand the local market and utilize our extensive network to support your business and operation in Indonesia. Cekindo will assist you in setting up your business in Indonesia, supporting your daily operations and administrations, and representing your company in Indonesia. It is important to start your business with the right partner, thus you can focus on your main business to grow in Indonesia. Feel free to contact us for further information and get a free quotation for Company Registration in Indonesia. --- ---