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Foreign Investment Company Establishment in Indonesia

June 27, 2023 1:43 am published by astuti

To establish a foreign investment company is a first step to a huge milestone in doing business in Indonesia. They are at least two types of legal entities that can be choose by foreign investor to establish their business presence in Indonesia. There are a foreign investment company (“PT PMA”) or representative office.
Here some steps to be taken for the establishment a newly foreign investment company.

  1. Determine Business Activities: Identify the type of business activities you plan to undertake in Indonesia and ensure they comply with the regulations specified in the Negative Investment List (DNI). The DNI outlines sectors that are open, restricted, or closed to foreign investment.
  2. Find a Local Partner (if required): In certain sectors, having a local partner or shareholder is mandatory. If your chosen sector requires it, find a suitable local partner or company to fulfill the ownership requirements.
  3. Capital Requirements: Ensure that you fulfill the minimum capital requirements based on the business activities and sector in which you operate.
  4. Choose a Company Name: Select a unique name for your company, ensuring it complies with the regulations for company names in Indonesia.
  5. Prepare Deed of Establishment: the Deed of Establishment (Akta Pendirian) and Articles of Association (Anggaran Dasar) based on your business structure and ownership arrangements.
  6. Obtain Approval from Ministry of Law and Human Rights: Submit the Deed of Establishment and Articles of Association to the Ministry of Law and Human Rights for approval and to obtain a legal entity status.
  7. Register with Online Single Submission – Risk Based Approach System (“OSS-RBA”): Register your company through the OSS RBA system, which integrates various business licenses and permits. This step will provide you with a Business Identification Number (NIB) and fulfill other licensing requirements.
  8. Fulfill Additional Legal Obligations: Comply with other legal obligations, such as registering with the Social Security Administration Agency (BPJS) for employee benefits, obtaining necessary sector-specific licenses, and fulfilling any other industry-specific requirements.
  9. It’s important to note that the specific requirements and procedures may vary based on the type of business, sector, and the latest regulations. Engaging professional services and consulting with local experts or authorities, such as the BKPM, will ensure you have accurate and up-to-date information tailored to your specific circumstances.

Lex Mundus Indonesia will be happy to assist you in the establishment of new foreign investment company in Indonesia. Please contact us through Whatsapp in this page or email to [email protected]

Why Lex Mundus

Lex Mundus has been active in this Industry for more than 12 years and has showed a leading role in company establishment and strategic corporate market-entry services in Indonesia. Through our deep understanding on Indonesian regulatory system and business culture, and our close relationship with various Indonesian government officials, we would be able to offer you cost-efficient and highly effective services in Indonesia.

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