English

How Long to Set Up a Company in Indonesia

How Long to Set Up a Company in Indonesia

Leave a Comment / English /

By seeing the economic and political climate in Indonesia, many of its regulation is supporting foreign investments. There are many information in the about how long to set up a company in Indonesia that will give you enough to start your business. This article will be likely to discuss the things that investors must do to make a legal company in Indonesia. There are many steps to be prepared for how long to set up a company in Indonesia.  A business entity in the form of small business, middle or big company has to be legal. The Law will protect the company activities as long as the company does the allowed activities. The main characteristics of a legitimate company are there is a separation of owners wealth from the business entity wealth, in which makes the owner only responsible for the company assets. Here are how long to set up a company in Indonesia. How Long to Set Up a Company in Indonesia Here are a few steps that that will affect how long to set up a company in Indonesia : Submission of company name The first thing that will affect how long to set up a company in Indonesia is the submission process of your company name. You’ll have to check if it already used first. This step is significant on how long to set up a company in Indonesia. Your notary registers the submission of the company name through Legal Entity Administration System (Sisminbakum) Kemenkumham. Establishment of Company Establishment Deed This step will also give some impact on how long to set up a company in Indonesia. This deed is done by your notary with the approval of Kemenkumham. This deed contains information about the name of the company, company field, the name of the owners of capital, authorized capital, paid-up capital, company management such as who directors, directors, and commissioners. Establishment Company domicile certificate The registration of this certificate will take sometimes based on where your company is. how long to set up a company in Indonesia will likely to be much affected by this process. To obtain this certificate. You will need the copy of your company establishment deed. There are other requirements that you may discuss with your notary. Application of Taxpayer Identification Number To obtain NPWP, you will need a copy of the company deed and certificate of domicile. Application for registration of NPWP shall be submitted to the Head of Tax Service Office by the domicile of your company. Other requirements required are personal NPWP of Director of PT, photocopy of ID Card of Director (or photocopy of Passport for the foreign citizen, special PT PMA), SKDP, and deed of establishment of PT. The ratification of the Company’s Articles of Association by Kemenkumham This application is submitted to the Minister of Justice and Human Rights for approval of the Company’s Articles of Association (deed of establishment). This document is very important if you are about to establish a company in Indonesia. This step will take sometimes to be approved and affect how long to set up a company in Indonesia. Submission of Trading Business License (SIUP) SIUP is useful for your company so it can run its business activities. Application for registration of SIUP shall be submitted to the Head of Sub-Office of Industry and Trade and Cooperative of Micro Small Medium Enterprises and Trade of related city or regency by the domicile of PT. The process is about a few weeks or might be months. This step will be your consideration on how long to set up a company in Indonesia. How long to set up a company in Indonesia can be about six months depending on how long the step is. Hopefully, this article can give you some depiction of how long to set up a company in Indonesia.

How Long to Set Up a Company in Indonesia Read More »

company in Indonesia

Company in Indonesia Which Quick Expand

Leave a Comment / English /

The prosperity of inhabitant of a country can base on the number of companies. The company in Indonesia which already be the great industry, mean have tens of thousand employees. With have a job, someone can fill their requirements. If all of the people can fulfill the criteria, then they are prosperity people. So, any company can develop in a country; it can kick the prosperity of inhabitant. The Sector Of Business in Indonesia As a country with a thousand islands, Indonesia has many business sectors that can be chosen for every businessperson. A company in Indonesia has proved that they can take more revenue in this country. Choose the specific industry have influential in reaching success in business.  The successful company in Indonesia has built in many sectors. If you develop a company in Indonesia, you can choose some  potential segments like: Farms SectorThis industry has big chance to be the great company. Indonesia has the vast area that can be used to build an animal husbandry company. The requirements about livestock domesticated animal also always increase every time. Fishery Sector As a country with significant ocean, the fishery can be developed. If you know how to manage these sectors, your business may be the most excellent company in Indonesia.  You just need the best technic to reach the goal of the fishery. Mining Sector A company in Indonesia that very promising is mining. With exploited the world power source, you can make the significant revenue. But, the licensing of this sector may be very complicated. Transportation Sector This country has a lot of society that needs the convenient transportation. The service of transportation in Indonesia has many deficiencies. A business in this sector with the better facility will be the company in Indonesia which have the contribution to developing the transportation system. Industry Sector The industry can produce every product that needs by humans. Of the product are health and beauty. Every people specific need health and beauty product like medicine and cosmetics. This business is the excellent company in Indonesia which have a massive turnover. Besides the sector above, Indonesia has more segment that can be the best choices for every businessperson. A company in Indonesia also have a lot of kinds of industry to meet human requirements. The Procedure of Building Company In Indonesia Although building a company looks quite simple, but you must through some procedure. This procedure set by the government to collect all data of company in Indonesia. The government can give legal protection to all registered companies. So, register your company is one of the critical steps to build a business. There is some procedure to make your firm build in Indonesia: The first step form build company in Indonesia is to make notary deed of establishment of a group which contains about necessary information of society such as name, address, business line, owner of capital, management of company and commissioner. Make a business domicile certificate obtained from the head of the village office where you set up the business. Creating the taxpayer’s corporate tax number in the tax office using the declaration of domicile. Submit a letter of approval of a company establishment certificate obtained from the legal department and human rights Creating a Trading Business License (SIUP). With this letter, the company can start to begin. Maintain company sign alerts. You can make this documents after you get SIUP. When you have completed the steps above, your company has to start the operation. The company in Indonesia have many kinds of the sector that can build contiguous to complete all of the human requirements. Besides, companies can recruit the labor that makes Indonesian people have a workplace. The existence of expanding groups can kick the citizen prosperity.

Company in Indonesia Which Quick Expand Read More »

how fast to set up a construction company in Indonesia

How Fast To Set Up A Construction Company In Indonesia

Leave a Comment / English /

Establishing a construction business in Indonesia is an excellent choice because infrastructure development in Indonesia becomes one of the leading priority of the government until 2020. Regulated by the recent negative investment list, a construction company can be owned by foreign companies in certain conditions. Knowing how fast to set up a construction company in Indonesia will help on your planning on setting up your construction business. Foreign companies can own only about 67 to 70 percent of the construction company considering whether you are from ASEAN countries or not. How fast to set up a construction company in Indonesia is based on how you plan and estimate your time plan. How fast to set up a construction company in Indonesia also depends on the administration process that you have to get it done for your business to be established legally. Here is some information for helping you to figure how fast to set up a construction company in Indonesia. How fast to set up a construction company in Indonesia Planning As mentioned, the first factor which affects on how fast to set up a construction company in Indonesia is about your plan. You should decide the type of construction business you want to build, whether it is construction works or construction consultation. You can establish your company in the form of PMA company or representative office. If you are a contractor, your business classification can be a civil construction, electrical installation, building construction, or other specialty construction. Finding a local partner Finding a local partner is necessary that it is also will affect how fast to set up a construction company in Indonesia. Foreign individuals or businesses have some restriction in establishing a company in Indonesia, so it is essential to seek for the local partner to develop the company together. How fast to set up a construction company in Indonesia will also depend on your local partner, because if the local partner is working and living in Indonesia, the local partner needs a work permit (KITAS) and tax ID (NPWP). Obtaining Construction Association Membership (KTA) This step will also give some influence to how fast to set up a construction company in Indonesia because it is obligatory for you to obtain construction association membership from various construction association based on your construction business category. Obtaining KTA will impact on how fast to set up a construction company in Indonesia. Here are some membership requirements : If the construction service category is a contractor, the association is Gabungan Perusahaan Kontruksi Indonesia (GAPEKSI). If the construction business category is integrated service (EPC), the association is Gabungan Perusahaan Nasional Rancang Bangun Indonesia (GAPENRI). If the construction service category is construction consultation, the association is Ikatan National Konsultan Indonesia (INKINDO). Obtaining Necessary Certificates How fast to set up a construction company in Indonesia is also based on how long you obtain the necessary certificates about your business. As a construction company, it is mandatory to acquire a business entity certificate (SBU). This document can be obtained from Construction Services Development Institute (LPJKN). If you are an architect or engineer or any other professionals, applying for an expertise certificate of SKA will also affect how fast to set up a construction company in Indonesia. Here are the summaries of the complete steps to acquire documents for helping you on how fast to set up a construction company in Indonesia : SKA or Expertise Certificate KTA or Construction Association Membership SBU or Legal Entity Certificate Applying for business license If you already receive your SBU and other certificates, you can then obtain your business license which is called IUJK or Izin Usaha Jasa Konstruksi.   How fast to set up a construction company in Indonesia can be about four months based on the step you have to do. It will be more efficient if you have some help from an Indonesian business consultant service. Hopefully, this article can provide you enough information.

How Fast To Set Up A Construction Company In Indonesia Read More »

company address in Indonesia

Company Address in Indonesia to Improve the Revenue

Leave a Comment / English /

To build a business many things to be prepared. Besides preparing documents for the legality of the company, the most critical thing is certain company address in Indonesia. The location of the business must be which is easy to reach. It will facilitate you in getting raw materials and labor. To acquire strategic company address in Indonesia, you must do some research. You should know the location that is easy to reach and potential to make the place as the founding of your business. Address The Company As The Starting Point Of The Business Establishment At the beginning of the business, the one thing that very important is company address. A clear business location should also be included in documents for business registration., To have a company address in Indonesia you can rent or buy a land. The size of the building is also significant to support your business. You should consider the ease of location access in choosing company address in Indonesia. Because after registration, the possibility of your company will be reviewed by the government. Whether or not a standing business is also usually affected by where the company is established. Therefore you must immediately determine carefully about your company address in Indonesia. The Importance of Company Address in Indonesia Company addresses are usually underestimated. The company address is critical. The strategic office address also adds to the company’s sales value. There is some importance of company address in Indonesia: Enable your business to be found. your company will have difficulty if it is located in a location that is difficult to see Become the hallmark of your company. the hallmark of the place is so important that your company is quickly recognized widely Your company will be easily accessible by the workforce so it will be more attractive Facilitate the delivery of goods if your company is engaged in the production Facilitate the client to come to your company. this will undoubtedly facilitate you when you do cooperation with several clients Your company will have a high selling point. The high selling price will attract investors to provide investment to your company You must set company address in Indonesia as soon as possible so that your company can start operating fast. Also, before you register your company, you must first determine where the company’s location is apparent. Important Points to Choose Company Address in Indonesia Though it does not seem significant, the selection of company addresses is very important. To choose the best location for your business, you must pay attention to some of them are: Choose locations that are easily accessible by public transport. This will make it easier for your company to operate. For choose company address in Indonesia, you also take into account how many locations can be reached easily by client or colleagues It would be great if you find a place close to another company that has been successful and famous because it will allow your company to be found In choosing a company address in Indonesia, you should also consider the condition of the soil structure because Indonesia has an uncertain climate. Avoid locations prone to landslides. Avoid areas prone to congestion that may hinder business activity. A site that is not jammed will allow you to access the company quickly. Preferably in choosing a company address in Indonesia, you also take into account the costs you must spend. whether it will be proportional to the advantages you get You must be full consideration and caution in determining the company address in Indonesia. The right location will make it easier for you to grow your business. However, choosing a wrong place will make your business bankrupt quickly.

Company Address in Indonesia to Improve the Revenue Read More »

Company Registration to Convenience Business in Jakarta

Leave a Comment / English /

Have business idea make the people effort to create them own company. The plans can be on culinary, transportation, infrastructure, market, banking, education, etc.  Many people maybe even hear about companies registration in Jakarta. All of the kinds of companies must be registered. Moreover when the company builds in Jakarta that has more strict regulation than other cities. To follow this rule, you must attempt companies registration in Jakarta. It will help you if you have some problems with running your business. The government will make it easier for you when you seriously to do business registration. The Definition of Companies Registration in Jakarta All of the kind of companies such as limited liability company, the cooperative, firm, individual and other forms of business including the foreign company with head office status, single office, branch office companies and representative of groups must be doing the companies registration in Jakarta. This certification applies to five years. Before three months end of the periods, the company must do a registration extension. Every Company Required to Registered The government regulation requires all of the institutions have companies registration in Jakarta.  The goal is for writing the description from the corporations. This notes will be the source of all interested party. This record is very useful for count number of companies in a region. Companies registration in Jakarta requires to be done by the owner or may be represented by others use a power of attorney. Registering the business does with fill the registration form that set by the registration institution. The Requirements of Business Register To apply for companies registration in Jakarta, you must meet some requirements. This certification must require of all the companies. The elements such as: A letter stating not yet owned business register A notarial deed of establishment of group The legalization letter o the legal entity of the business establishment The tax ID number of the company The business license The statements of domicile of business The permission forms and notes of truth data The resident identity card of the director or person in charge That is just the general requirements, to know the specifics you can contact the institution of companies registration in Jakarta. You also need to cooperate with several parties to meet all requirements. Don’t hesitate to consult with the expert in this field because they will help you to finish all the elements quickly. The Advantages of Registered Business Sets of companies registration in Jakarta have many reasons that can be profitable both for businesses and for the government. For the government, register companies data can use for government purposes like counting the number of companies, employees and also the tax. For the businessperson, recording their business has some advantages like: Can make they convenience in running out the groups. Companies registration in Jakarta also can free the corporations form land evictions suddenly, protesting, and any form of action that threatens the company. The organizations can safely operate and take the focus on business development. Allows the company to get a tender. The tender just gave for the industry with companies registration in Jakarta Have big chance to receive the investment. Ease to establish the corporation for developing the business. The company will ease to gain competitive workforce. These benefits are easily obtained with the simple procedure of registration. So all the companies expected to register as soon as the beginning of the industry. Companies certification in Jakarta can help your business to get the best achievement. Companies registration in Jakarta arranged in such a way to the kind of the company. Without this filing, the company has no legal protection. With the business registration, the government has full responsibility to give the best service for all registered company.

Company Registration to Convenience Business in Jakarta Read More »

General Explanations of Foreign investment law in Indonesia

Leave a Comment / English /

Indonesia considers attracting more foreign investment to the country. The government is targetting to gain foreign investment in the sector of the infrastructure projects. To realize the plan, Indonesian Government has made and issued some new foreign investment law in Indonesia. The foreign investment law in Indonesia obliges the investors to meet its necessities. The government tends to make the regulation of establishing a company in Indonesia easier which is poured on its new rules and regulations. Indonesia follows a civil law system and its form of constitution is a republic. The critical foreign investment law in Indonesia is written in Law No. 5 Years 2007 about investment, Presidential Regulation No. 39 Years 2014 about List of Business Fields, and Regulations of BKPM (Capital Investment Coordinating Board) including Regulation No. 14 and 15 Years 2015. In the foreign investment law in Indonesia, the negative investment law provides the sectors where the investment is closed to foreign investment and industries where there is particular investment restriction for international business. General Explanations of Foreign investment law in Indonesia Restrictions on Foreign Investment and Investment The Closed Business Regulation governs limitations for foreign investment. Example for which foreign investment is open in the foreign investment law in Indonesia : A distribution business is open for foreign investment up to 33 %. An insurance business is open for foreign investment up to 80 %. A construction services business is open for foreign investment up to 67 %. Occupation of Real Estate The government has just issued a regulation that allows foreigners to purchase a property at a specific value depending on its location. In the example, foreign individuals may buy a house in DKI Jakarta with a minimum amount of Rp. 10.000.000.000,-, and the regulation about the value will differ from one to another province. Other than the cost, the individuals are obliged to meet the foreign investment value in Indonesia issued by the Ministry of Agrarians. For investment purpose, foreign investors have to set up a Foreign Investment Company (PMA) under the rules of BKPM. Minimum Capital Requirements The minimum capital for foreign investment listed in the Foreign investment law in Indonesia is diverse from one industry to another. In general, the minimum capital is at least required to be Rp. 2.500.000.000,-. But, some industries have higher capital requirements, in the example : The insurance field has a minimum capital requirement of Rp. 10.000.000.000,-. Commercial Banks have a minimum capital requirement of Rp. 3.000.000.000.000,-. The construction businesses have a minimum capital requirement of RP. 50.000.000.000,-. Exchange Control and Currency Regulations In the foreign investment law in Indonesia, there are no relevant exchange controls, but there are some currency regulations. Bank of Indonesia published Regulation 17/3/PBI/2013 in which demands any non-cash and cash transactions in Indonesia to use the Indonesian Currency with specific exemptions. It is restricted in the foreign investment law in Indonesia to remit Indonesian currency which is rupiah abroad, but there is no restriction to remit profits overseas. Imports There is particular restriction in the foreign investment law in Indonesia about the commercial goods importation, depending on the specific products or goods. In the example, It is required a special license to import sugars to Indonesia. The restriction imposed by the foreign law investment in Indonesia is to protect domestic industries of sugar in Indonesia. The other restrictions in about the import of hazardous waste and shrimp. Import duties in Indonesia which are issued in the foreign investment law in Indonesia is about 0% to 150% on customs value of goods imported. However, the highest rate currently is 40%. Indonesia has its investment law that has to be followed by the investors. Knowing the basic of foreign investment law in Indonesia will be a much of help to invest in Indonesia. Hopefully, the article about foreign investment law in Indonesia above will be helpful and understandable.

General Explanations of Foreign investment law in Indonesia Read More »

company address in Indonesia

A Guide For Foreign Investment Company In Indonesia

Leave a Comment / English /

Indonesia offers vast opportunities to the foreign investment company in indonesia to invest their money. Its abundance of natural resources and strategic access to the global mobility due to its location in the major sea lanes gives foreign investment company in indonesia a great opportunity. Indonesia is ranked as the fourth country for the most population in the world. It has an annual growth rate of 5,78 % with its GDP at $ 867.500.000,- in 2013. Currently, Indonesia is ranked number 17 in the world’s largest economy. Indonesian Government also supports foreign investment company in indonesia by issuing policies and regulations that will make the investment license process simpler. Indonesia aims to be the top ten global economies in 2025. To achieve the goal, Indonesia focuses on developing its eight essential programs which are agriculture, industrial, energy, mining, tourism, telecommunication, marine, and strategic areas development. Following this issue, Indonesian Government is encouraging foreign investment company in indonesia to invest in these fields. Here is a field guide for investors to invest in Indonesia. Challenges for Foreign investment company in indonesia Corruption Corruption is a significant obstacle to the development of Indonesia. This matter is also one of the most significant problems for the foreign investment company in indonesia. Transparency in Indonesia is scored at 32 out of 100 in which the scales are from 0 as highly corrupt to 100 as very clean, even though the scale has increased steadily in recent years. Bureaucracy Many international investors consider administration in Indonesia as barriers to invest their money. The critical source of this issue is thought to be caused by disharmony between regulations in the central government and the regional level. The autonomy policy for the local government has led to generating regional regulations in which are not always consistent with the central law. Insufficient Infrastructure This matter is also considered as a barrier for the foreign investment company in indonesia to invest their money, especially if the investors want to invest in the eastern and middle part of Indonesia. Besides that, the insufficiencies in the sector of infrastructure offer challenging opportunities for the foreign investors. Indonesian Legal System The other critical challenges for the international investors are the characteristic of the Legal System in Indonesia. Finding conflicting laws from different authorities in Indonesia is not uncommon, and it causes an unclear regulation in which is applicable. There is also no reliable central sources to obtain a comprehensive law and regulations. Court proceedings in Indonesia are cumbersome and take a long time and process, and the judges also have a high level of discretion in deciding the matters. Common Key Forms of Foreign investment company in Indonesia Direct Investment Direct foreign investment in Indonesia is governed by Law No. 25 Years 2007 about investment and its implementing policies (the Investment Law). In the direct investment form, the foreign investment company in indonesia is investing capital in an existing or a new company to set up a business or business presence in Indonesia. The investors also participate in the management of the company they invested. When a foreign investment company in indonesia performs a direct investment, it registered as a PMA Company regarding with Law No. 40 Years 2007 about Limited Liability Companies. Indirect Investment Indirect investment or also known as portfolio investment is a form of investment where the investors invest their money throug the purchase of securities at the capital markets, such as debt, equity, or combination of both. Foreign investment company in indonesia as the investor is less participated in the management of the company they invested. This form of foreign investment is not regulated in the Investment Law. This form of foreign investment company in indonesia comes to Indonesia through stock exchange of the country in which is regulated by the OJK. Foreign investment company in indonesia is one of benefitable form of investment for Indonesia’s company. A simple guide about foreign investment company in indonesia will help to give a broad knowledge about it. Hopefully, this article can add more understanding about this type of investment.

A Guide For Foreign Investment Company In Indonesia Read More »

Company registration Indonesia

Business Registration for The Greatest Companies

Leave a Comment / English /

Build an industry is not an easy matter. Company registration Indonesia require every businessperson have the excellent preparation to face this register. Is not an easy thing to have your company registered. You need some documents and through the lengthy procedure. But, it’s all for your convenience in doing business. Every business person want they have the long lasting business. Company registration Indonesia can be parameter whether or not to run some business. The record for your companies is essential. It will help you to face some problems like evictions, denial, and other classical issues in the future. This registration is to list of all the companies in Indonesia. The institution is also responsible for maintaining the sustainability of the industry. Determine the Type of Company Before you go further in the building company, you must determine what type of your business. In generally there four kinds of an organization such as limited liability company, comanditaire venootschap, individual and firm. The sort of group is base on the number of founders and the amount of capital.If at the beginning you choose the type of individual business because of the limited money. One day you can become a big company like a limited liability company. All kinds of companies can also do the company registration Indonesia. The Preparation of Business Establishment As the new building of the company, you must have some preparation. You must think carefully about company structure, what field do you engage, and how much capital is needed. Besides, you prepare the labor and calculate how a decent salary for them. The most important that you have to make company registration Indonesia. Without industry registration, your business may not run like your expectation. Because what happens tomorrow may not be predictable. Build The Responsible Company To be an orderly company, you must prepare the company registration Indonesia from the beginning. As you know, to be the great company is not only how to develop your business but also have responsibility. Not just that, but the industry even must think about payroll employees, business cooperation, and investment. For all the convenience, you must allow company registration Indonesia at the first time you begin your business. Pioneered A Strong Company Company registration Indonesia helps every business to be a stable company. The Registered industry will be more resilient to the problem. When the beginning of developing a business, you don’t know what will happen in the future. Sometimes the issue is very complicated and can not be resolved by the company. Registered industry can make Company registration Indonesia be a shield of a problem that threatens your company’s existence. It is inconceivable that the society you set up with hard work should collapse with just a few licensing issues. The Preparation Documents to Company Registration Indonesia Applying for a registration indeed, need some documents. To do company registration Indonesia, you also must prepare some data. The file that you add must complete easing the procedure. If this is the first time for you to company registration Indonesia, you can ask some biro to help you. It will be no longer process to launch your company. The primary document that you must prepare is deed f incorporation. If you have finished this papers, the next step will be more easy to do. Building a company is not an easy case. Besides dealing with company registration Indonesia, the business almost thing about the development and cooperation. It will be the tricky thing if you do not have more capital at the beginning. Companies also have some employees that need to be paid. Handling the company registration Indonesia will take a long time if you don’t have well concepts and prepare for your business.

Business Registration for The Greatest Companies Read More »

China Investment in Indonesia for Build Better Country

Leave a Comment / English /

The opportunities for the foreign country to take the investment in Indonesia is wide open. China investment in Indonesia is the top 5 prominent investor. The other states that include the top five are Singapore, Japan, America, and South Korea. As development country, Indonesia is the country that makes the foreign interesting to take some investment. China is one of the nations that have the best management. The most excellent China to carry out the country bring progress in all of the sector.  It makes China investment in Indonesia and the other state have high values. China investment in Indonesia in Various Sector Indonesia has many problems to arrange the country. With a lot of sectors that must develop, Indonesia can’t do this job alone. This nation needs some better technology that may be used to make the significant change. China investment in Indonesia has come to many sectors such as transportation, construction, mining, real estate, until the employees.  There is some China investment in Indonesia: The National Power Capacity Power is be the crucial things for the country China investment in Indonesia also give some technology to increase power capacity. The electric steam power plant sometimes has problems with farmer, fisherman, and peoples who get the impact of its existence. China makes coal electric steam power plant that builds in some region in Indonesia with decrease terrible effects to the environment. This China investment in Indonesia can support the companies. Palm oil Industry One of the China investment in Indonesia is in the industry sector. The China company have been build in Palm oil in Indonesia. This company called Julong Group. With 3 million ton production capacity for a year and have US$ 2 billion revenue this industry can hold out in Indonesia. This sector can be following by local industry to have the same business. The Development of Suramadu Bridge The example of  China investment in Indonesia is in infrastructure sector is the development of Suramadu Bridge. This bridge is the greatest and the longest bridge in Asia. The building of this deck is to connect Java and Madura Island. This bridge also is the destination of a tour in Surabaya. Need seven years to finish this bridge. The Created of Barrage Indonesia has a vast region that must take a hand. Build exact infrastructure be the essential thing that the government must do. The crucial infrastructure to give irrigation to agriculture is a barrage. China investment in Indonesia supports the capital from building this barrage. One of the torrents that make is Jatigede Barrage in Sumedang, East Java. Better Transportation The never-ending problem in Indonesia is about transportation. This sector always has a lousy review of the many people. To have better transportation China investment in Indonesia have participate. It’s because China is the country with most significant population but have the excellent transportation system. Hopefully, with this investment, Indonesia can build the best transformation system to solve the problematic. The investment can support companies to reach the top of success. China investment in Indonesia has proof that it can make better infrastructure. Not only the groups but the country also need some investment in technology, infrastructure, industry, etc. It must be done to make the inhabitants have prosperity. Besides, the beautiful country can make the citizens comfortable to stay. As the developing country, Indonesia can’t reject investment from the other state that has better technology. Like China investment in Indonesia, the other investor from many nations are welcome. The best investment can build the better country.

China Investment in Indonesia for Build Better Country Read More »

About Foreign Direct Investment In Indonesia

Leave a Comment / English /

Foreign Direct Investment (FDI) is a business investment that is made by an individual or a company from one country in another country, in the form of whether acquiring business assets or establishing business activities in the country they invest. Foreign direct investment in Indonesia is about controlling or owning interests in a foreign company. Foreign direct investment in Indonesia is different from portfolio investments. In portfolio investments is a form of investment where an investor only purchase equities from a foreign-based company. The growth of foreign direct investment in Indonesia in the earliest quarter of 2017 was recorded at 0,9 % growth year-to-year to Rp. 97.000.000.000,-, compared with the previous quarter in which is 2,1 % of growth pace. The declining of the growth of foreign direct investment in Indonesia might be caused by the ethnic and religious tensions that surround Jakarta Regional Election in 2017. This article will help you to understand more about Foreign direct investment in Indonesia. What You Need To Know About Foreign direct investment in Indonesia Investors’ Plan There are two ways for the investors to establish a business presence in the form of foreign direct investment in Indonesia that is either by establishing a branch company in the form of limited liability foreign company or PT PMA or by establishing a Representative Office in Indonesia. PT PMA is a fully-developed legal company in which has a full range of business and commercial activities as governed by the rules and regulations in Indonesia. A representative office is one of the forms of a foreign company in Indonesia in which is a licensed office established by a foreign-owned company in Indonesia, but it has no legal status and also has some limitation in its activities. Minimum Amount of Investment The requirement of foreign direct investment in Indonesia according to with Indonesia’s investment regulations are : The total of the foreign direct investment in Indonesia must be more than Rp. 10.000.000.00,- or in the equivalent USD, consisting loans and equities but excluding buildings and lands. Paid up capital of the investment is obliged to be equal to the subscribed capital in which of at least Rp. 2.500.000,- or in the equivalent USD. Interest participation of each shareholder in foreign direct investment in Indonesia must be Rp. 10.000.000,- at least or in the equivalent USD and the interest percentage should be calculated based on the value of shares nominal. Investors Shares Ownership in a PMA company The Negative Investment List (DNI) in which is adopted in foreign direct investment in Indonesia contains a businesses list which is either opened for foreign investment with some requirements and closed for closed for foreign investment. Foreign direct investment in Indonesia in the form of PT PMA gives the right for the international company to hold the shareholding from 49% to 90%. Not listed types of business in the DNI are stated as 100% open for the foreign investment in general. Minimum Shareholders of a PMA company Foreign direct investment in Indonesia in which is regulated by the Indonesian Law Company requires a limited liability company to have shareholders at least two. It can be an individual or a legal entity. For the foreign direct investment in Indonesia that is 100% open, the foreign investors need to find a second shareholder to hold interests in the PMA company. The second shareholder can be their affiliated party. Shareholders have the rights to own shares with some preferential rights. Foreign investment contributes a considerable amount of income for Indonesia’s economy. Hopefully, some necessary information about foreign direct investment in Indonesia in the article above can be some help for you to understand more about foreign investment.

About Foreign Direct Investment In Indonesia Read More »

Scroll to Top