Advokat | Hukum Perdata | KBLI | Konsultasi Tatap Muka | Legalisasi | NIB OSS | Non Litigasi | NPWP | Perdata | Perseroan Terbatas | SIUP/TDUP | Usaha Dagang
Investing in Indonesia: Foreign Ownership
Company Registration in Indonesia
oleh: Assyifa Umaiya Umar
Establishing a company is the first step to expanding business operations into Indonesia. There are many options business owners can opt for, but the most common types are a Foreign-Owned Company (PT PMA) or Representative Office. Each has its benefits, and one may be better suited for you based on your business expansion objectives.
To establish a foreign direct investment company in Indonesia you must:
- First decide what business sector you are going to invest based on Klasifikasi Baku Lapangan Usaha Indonesia “KBLI” (Indonesian Classification for Business Sector).
- Then, you must check whether the business sector is open with requirements or closed for foreign direct investment based on the Presidential Regulation No. 44 Year 2016 about “DNI” (Negative Investment List). If the business sector which you are interested in is not regulated, and no other restrictions from related technical ministries, then it means the business sector is open for foreign direct investment with a maximum foreign ownership of 100%. The legal entity of the FDI Company should be a Limited Liability Company or Ltd. Perseroan Terbatas or PT.
To make it easy, this summarised highly profitable sectors that can be explored by foreign investors, along with their foreign ownership allowance:
- Business sectors allowing 100% foreign ownership à e-commerce businesses (min. investment: IDR 100 billion), bars, cafes, restaurants, hospital services, hospital management and consultancy, raw materials manufacturing for pharmaceuticals, and distribution affiliated with production, among others.
- Business sectors allowing max. 67% foreign ownership à medical equipment testing institutions, internet service providers, call centers, airport activity services, and distribution and warehousing, among others.
- Business sectors allowing max. 49% foreign ownership à e-commerce business (investment below IDR 100 billion), land transportation, passenger land transportation, and medical equipment supplier, among others.
WAYS TO INVEST IN INDONESIA
Foreign-Owned Company (PT PMA) | Local Company (PT) | Representative Office (RO) | |
A. NATURE |
|
|
|
B. STRUCTURE |
|
|
|
C. CAPITALISATION |
|
Minimum paid-up capital for Local PT as follows:
|
|
D. BENEFITS |
|
|
|