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.
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…]
Opening a bank account is one of the steps every foreign company and most foreign nationals in Indonesia have to go through. In this article we break down the steps for both cases and also show how you can use Indosight’s help to get the account opened without much effort or time from your side. [Continue reading…]
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…]
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…]
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 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…]
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…]
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)
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…]
Indonesia will have over 100 million internet users in 2015, growing 22% compared to the previous year (Markplus Insights, 2014). Driven by such massive numbers, more and more businesses and investors are looking at starting an ecommerce business in Indonesia. [Continue reading…]
Business visa is a visa for foreign nationals that wish to conduct business activities or study the market in Indonesia. [Continue reading…]
Other than the growing economy, rich natural resources and huge domestic market, one of the main reasons foreign nationals decide to move to Indonesia is getting romantically involved with an Indonesian partner. [Continue reading…]
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…]