Starting and growing your business in Indonesia

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Registering Consulting Company In Indonesia

August 2015 brought several changes to registering a consulting company in Indonesia. While this article is focused on consulting companies, such as management consulting or IT consulting, it applies for most types of service sector companies. For example web portals follow the same procedures.

The objective of BKPM, the authority behind the regulatory changes, is to address the issue that a lot of service sector companies have not been actually meeting the Rp. 10 billion minimum capital requirement. Essentially it means that the loophole of getting around that amount has now been closed. [Continue reading…]

2015 New Work Permit Regulations in Indonesia

2015 has brought several important changes to the regulations concerning work permits (IMTA) and temporary stay permits (KITAS) in Indonesia. The changes have been substantial enough that every company hiring foreign employees should be aware of them. [Continue reading…]

Frequently Asked Questions about Starting a Business in Indonesia

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…]

Acquisition of Company in Indonesia

Are you considering acquiring a company in Indonesia? There are two common scenarios which we are going to cover in this article:

  • Acquiring a locally owned company (100% of shares are owned by Indonesian nationals and/or companies)
  • Acquiring a PT PMA (some or all shares are owned by foreign investors)

[Continue reading…]

Why You Should Get Permanent Business License for Your PT PMA

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…]

Representative Office of Foreign Trade Company (K3PA)

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…]

Setting Up Factory (Manufacturing) In Indonesia

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…]

New Negative Investment List Closes Many Industries but Creates Opportunities For Some

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…]

Using Nominee Shareholders the Safe Way

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.

Indosight also provides a Nominee Company package that allows you to operate a company in Indonesia without having to comply with the capital and ownership requirements. [Continue reading…]

Cosmetic Product Registration In Indonesia

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…]

Company Restructuring in Indonesia

SignIf 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…]

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Indosight is market entry consultancy offering corporate services to foreign companies entering Indonesia.

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