Malaysia Hotline: +603- 2141 8908
In order to carry out business
activities in Indonesia, the company is required to be incorporated as a
limited liability company in Indonesia. This process is handled by BKPM for
business areas that do not require a special license. Certain business areas
require a foreign company to establish a local partner and are allowed up to a
certain percentage of ownership depending on the sector.
PMA - Penanaman Modal Asing
A 100% or majority foreign owned
company is called a PMA and is obtained through the Indonesia Investment
Coordinating Board (BKPM). The advantages of this type of company are that it
gives the foreign investor full control over the direction of the company and
reduces the risk in finding a suitable local partner. Non-equity partnerships
can still be established with local Indonesian companies for business services
such as marketing.
Investment licenses are granted
for 30 years and theoretically require that after 15 years of operation, a 5%
minimum share is divested to domestic ownership for companies engaged in
natural resource extraction such as mining. PMAs are under the form of a limited
liability company Perseroan Terbatas or PT.
New foreign investors are
entitled to the incentives of an exemption of tax on capital goods imports that
are needed for production for 2 years (BKPM Law No.12/2009) and streamlined
access to land in Special Economic Zones. A tax holiday of 5 years is under
discussion by the Ministry of Finance in business sectors such as renewable
energy and manufacturing which add value to primary products.
Representative Office
For most business areas,
companies can set up a representative office in Indonesia. Based on Ministry of
Trade Regulation No.10/2006, the company cannot engage directly in sales and is
rather for marketing, buying and distribution purposes. Representative office
set up is through application to BKPM for companies wishing to engage in areas
of business under BKPM’s juristiction and regional representative offices.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my