Starting and growing your business in Indonesia

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Obtaining Principal License in Indonesia

Principal license is one of the most important licenses a foreign owned company needs to obtain in Indonesia. It’s the initial permission from the Investment Coordinating Board (BKPM) that allows you to invest (but not yet operate) in Indonesia.

BKPM issued new regulation regarding principal license on 29th of September 2015 which changes various aspects of investing in Indonesia. In this article we go over the most important aspects of principal license and add our comments.

[Continue reading…]

Indonesia Investment Climate Survey 2015

In October 2015 we conducted a study among Indosight blog subscribers to understand the opportunities and challenges of investing in Indonesia.

We received responses from 72 companies and while the study may not represent the entirety of foreign investors in Indonesia, it gives a good overview of the current investment climate.  [Continue reading…]

New regulations make investments to Indonesia faster and clearer

Influenced by the report of mass media, some degree of fear about the new regulations concerning establishing a business in Indonesia has been developed. Some of them are justified and should be treated with caution. Just as the new work permit – or the mandatory use of rupiah regulation. However, some restorations do not or not enough receive the attention they deserve. This article focuses on those regulations which actually support the foreign direct investments to Indonesia. [Continue reading…]

Setting Up a Joint Venture in Indonesia

The decision of setting up a joint venture instead of a entirely owned Indonesian entity comes down to many factors in Indonesia. It might be a strategic reason or a requirement from the law. [Continue reading…]

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…]

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