There are three legal entity types for foreing companies in Indonesia – limited liability company (PT PMA), general representative office (KPPA) and representative office of foreign trade company (K3PA).
In this article we go over the key aspects of representative office of foreign trade company – what is it and when to choose that as your legal entity type. [Continue reading...]
In order to set up factory in Indonesia a company has to go through three stages – (1) company incorporation, (2) construction and (3) permanent business license.
What many investors are not fully aware of is that Indonesian government favors manufacturing investments and offers several incentives for companies doing so. [Continue reading...]
News sites have preemptively published stories about the upcoming new negative investment list for some time. After the release of the actual new negative investment list (DNI) we can now finally put an end to rumors and look what it means for the foreign investors.
Let’s look closer the President Regulation no. 39 Year 2014, issued on 23rd April 2014 alias the new negative investment list. You can download the file here . [Continue reading...]
Many industries in Indonesia are closed or with limited allowed foreign ownership. In the past we’ve been regularly warning investors against nominee arrangements as an unsafe practice.
However, there is a safe alternative to nominee arrangements which we are going to introduce in this article. This option allows you to run your business that is in the negative investment list without breaking the law. [Continue reading...]
In Indonesia almost everyone is an entrepreneur in some scale. Because of that MLM companies have done very well in Indonesia. And many more are looking to enter the market.
But many of them are doing it the wrong way – without the correct license – and the government is investigating it harder than ever before. [Continue reading...]
Every cosmetic product imported to Indonesia must first get approval from BPOM (Indonesian Agency for Drug And Food Control). Just like in any other country, right?
There’s just one thing… BPOM considered every variation of a product a separate item. So if you’d want to import a lipstick brand that has brown, red and orange color, you would have to register it as three separate products. [Continue reading...]
When you get contacted by 5-10 foreign investors every day about starting a business in Indonesia, you’ll quickly see that most of the questions start repeating. Most probably somebody already had exactly the same question that you are having.
That’s why we’ve decided to put together this guide of frequently asked questions about start a business. We’ll briefly answer those questions and provide links to more detailed resources. [Continue reading...]
After the lengthy incorporation process you might expect that you’ve managed to beat the bureaucracy and your company is finally set to conquer the Indonesian market. But there is one license every business still needs to acquire – permanent business license.
Let’s look more closely what is it and why you will want to get it as soon as possible. [Continue reading...]
If you’ve talked with Indosight consultants, which you probably have, you’ve heard us saying things like “be clear about your location, business activities, shareholders etc. from the beginning”.
There’s a good reason for that. Making changes in your company activities, location or shareholders all require a considerable amount of time and legal paperwork.
However, most likely at some point you will reach a point when company restructuring is required. This article will guide you through the most common changes and what you need to know about them as a business leader. [Continue reading...]
If you are planning to start a company in Indonesia and hire a lot of foreign nationals as employees you might want to think again. In fact, the number of work permits issued has been declining in recent years and reached only 68,957 in 2013.
Indonesian government is very concerned about how many foreigner nationals work in Indonesia and that the ones who do are adding a value that local employees couldn’t. [Continue reading...]
The capital district of Jakarta and the paradise island of Bali are in the spotlight when it comes to doing business in Indonesia. About two thirds of all expats live in these two areas. But Indonesia is changing. The Government’s ‘Masterplan’ for 2025 determines growth centers across the archipelago. We want to have a closer look. [Continue reading...]
Most foreign owned companies in Indonesia have the same corporate structure – shareholders, commissioners and directors.
In this article we’ll explain who can fill which role and what are their rights and responsibilities. If you look for information about changing people in those roles, we have another article about company restructuring.
When you conduct business in Indonesia there are various options for setting up a legal entity. Most common is to register a limited liability company (PT PMA) but there are also alternatives in case your capital is limited or you can handle transactions via a foreign entity. [Continue reading...]
Living cost is an important factor many first time founders consider before opening a company. Especially in the beginning your own living expenses might be one of the biggest cost for your company.
So I decided to look into data provided by Numbeo.com and compare them with my own experience. Result is this guide that should give a pretty accurate picture of how much money an average expat can expect to spend in Jakarta. [Continue reading...]
Meet Edo Frese. If you are interested in Indonesia then you have probably come across publications managed and partly owned by him: Jakarta Expat, Bali Expat and recently Golf Indonesia. If you visit Indonesia, you have likely tried sweets from a bakery run by him called Aaltje Bakery.
We interviewed Edo in Jakarta to know more about his personal experiences with Indonesia and doing business here, as well as how he sees the country’s future. [Continue reading...]