REGULATION INVESTMENT

 

There are two legal entities that are permitted for foreigners to invest in Indonesia:


(1) a foreign investment limited liability company (in Indonesian: Perseroan Terbatas Penanaman Modal Asing, or, PT PMA), and

(2) a representative office (in Indonesian Kantor Perwakilan Perusahaan Asing, or, KPPA). This section aims to provide you all required information about the establishment of a:

 

• Foreign Investment Company (PT PMA)

• Representative Office (KPPA)

The government limits the minimum value of foreign investment to invest in Indonesia. The minimum limit set out in Perka BKPM 5 Year 2013 concerning on Guidelines and Procedures for Licensing and Nonperizinan Investment.

 

Article 22 paragraph (3) Perka BKPM 5 written in 2013, a total investment of over Rp. 10 billion rupiahs  or the equivalent value denominated in US dollars, excluding land and buildings. Then the value of issued capital equal to the minimum paid up capital Rp 2.5 billion rupiahs or its equivalent value in units of US dollars.

 

Written Similarly, each shareholder to include a minimum capital of Rp10 million or its equivalent value in US dollars. While the percentage share is calculated based on the nominal value of shares.

 

Foreign investors to invest in Indonesia are required in the form of a Limited Liability Company (PT) as the content of Article 21 paragraph (2).

 

Request permission investors through One Stop Services (OSS) field of investment. According to Article 4 paragraph (1) PTSP field of investment made by the government, provincial government and district / city governments.

 

Furthermore, the authority delegated in the form of the assignment, rights, obligations and responsibilities of licensing and nonperizinan. Including its signature to the organizer PTSP in the field of investment.

Namely, the Head of BKPM of technical ministers / heads of government agencies nonkementerian (LPNK). PDPPM head of the governor, the head PDKPM of regents / mayors, heads of ministerial agencies KPBPB exploitation of technical / LPNK. Then the governors and regents / mayors, administrators SEZ of technical secretary / LPNK, governors and regents / mayors.


Foreign Investment Company (PT PMA)

ALLOWED ACTIVITIES  All business activities related to the sector it is engaged in and received approval for from BKPM

BEST OPTION FOR Companies that want to engage in commercial activities in Indonesia. 

FOREIGN OWNERSHIP RESTRICTION Foreign ownership varies between 0% - 100% depending on the Negative Investment List.  

BENEFITS   Operates as an independent limited liability company within the business classification      

DISADVANTAGES         Large capital requirement   

ISSUING WORK PERMITS AND VISAS for Foreigners  All shareholders, directors and commissioners eligible for work permit, unlimited amount of business visa sponsorships, work permits can be issued to foreign experts   

COMPLIANCE      Monthly withholding tax report, quarterly/semi-annual investment report        

TIME TO ESTABLISH       ± 3 Months  

ESTIMATED FEE/ COSTS       USD $10,000    

 

PROCESS ESTABLISHMENT PMA (INVESTMENT FOREIGN)

Establishment PROCESS understanding PMA very simple.

Establishment PMA will get the document:

a. Deed of incorporation

b. Justice SK

c. domicile

d. Tax Registration Certificate

e. TIN (NPWP)

f. Letter of Approval PMA from BKPM

g. TDP

 

PROCESS establishment of FDI (Foreign Direct Investment)

1. Collect documents as in the form that we provide.

2. Establishment PMA Form Filling

a. Selection of FDI capital limit

b. Selection of Classification Field in SP BKPM

3. Location of Business

Place of business in the Jakarta area should be an office area or an IMB with allotment Office

4. Implementation Arrangements PMA

Implementation of the PMA Management we can carry in accordance with the schedule agreed

a. Fast Track

b. Ordinary Strip

Establishment PMA Management Requirements

Identity Card (KTP) the founders (nominee shareholder) for the citizen ID card and passport for foreigners.

TIN Director If the citizen.

Best Investment in Indonesia

by; Edyk