Starting and growing your business in Indonesia

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Halal Certification Registration in Indonesia

Halal industry in Indonesia is booming in recent years, thus companies’ demand in halal certification registration in Indonesia has also changed considerably.

Alongside with the national aim to make Indonesia as the world halal hub, the industry is gaining its popularity day by day and opens up opportunities to halal product producers to expand their target market domestically and internationally.

There are roughly 88% of Indonesia’s 250 million people being Muslim and the nation’s home to about 13% of the world’s Muslims, thus making it a good start for Halal businesses.

 

This article is designed to give companies a guidance for halal certificate registration in Indonesia. The following paragraphs will first concentrate on studying the halal business potential and the practices of halal according to the Halal Assurance System (HAS) criteria.

Continue reading…

Investing in Hydro and Solar Power in Indonesia

Indonesia’s current principal electricity generation capacity is around 53.6 GW/ Gigawatt (53,600 MW) and is currently targeting to have an additional 35 GW (35,000 MW) of capacity over the next five years.

Such massive growth is attracting both local and foreign investors to invest in both traditional and renewable energy production.

In this article, we will guide you  how you can invest in hydro or solar power in Indonesia. Continue reading…

Medical Devices Registration in Indonesia

Indonesia ranks as the 13th most attractive market for commercialising medical devices in the Asia’s Pacific region, and as the emerging market for medical devices, it is highly recommended for foreign investors to enter the market today by using a suitable agent/ distributor to help with their medical devices registration in Indonesia.

For foreign companies deciding to start marketing their medical devices in Indonesia this article will evaluate opportunities for foreign medical devices manufacturers in entering the Indonesian market that compromises regulatory requirements and recommends foreign market entry solutions.

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Opening a Construction Company in Indonesia

Latest changes to the Negative Investment List revised how foreign investors can open a construction company in Indonesia.

There are two ways in opening a construction company in Indonesia – by establishing a limited liability company (PT PMA) or via Foreign Construction Service Representative Office (BUJKA). Continue reading…

Undername Import: Importing Goods to Indonesia without Licenses and Incorporating

Opening an import company in Indonesia can take four to five months or even longer. And having import license is required for even very small shipments.

If you don’t want to wait for that long or cannot / don’t want to meet all the import company requirements there are  good news though – in this article we will tell you about an alternative, legal, method to get your goods to Indonesia without import license or even incorporating your company. Continue reading…

Establishing E-commerce company in Indonesia

Starting an E-commerce company in Indonesia used to be in a legal grey area. Despite the uncertainty, e-commerce has been a very popular industry among both local and foreign companies.

In May 2016, Indonesia finally liberalised portions of the foreign ownership on E-commerce companies under the terms of its agreement with the DNI (Negative Investment List), a list of business sectors that are to be exempted from foreign ownership.

According to the latest DNI, e-commerce companies are allowed to have up to 100% foreign ownership but under certain conditions. Continue reading…

Guide To Finding Office In Jakarta

2016 is great time for finding office in Jakarta since the demand for office space in the Indonesian capital Jakarta has been outpacing demand.

The vacancy rate for Jakarta office market rose from 4.8% in 2014 to 8.4% in June 2015. For grade A office spaces the change has been even more dramatic – it rose from 6.4 percent at the end of 2014 to 17.1 percent by the middle of 2015. (source)

This means that as a potential tenant you have more negotiation power than in the past and with the help of a great agent you can get a very solid deal. Continue reading…

Compliance in Indonesia

There are various regulations that a company must follow in order to ensure that their compliance in Indonesia is done correctly.

The key areas foreign owned businesses must follow in terms of compliance are tax reporting, investment reporting and BPJS programs. Continue reading…

Buying Property In Bali As a Foreigner

Bali is not only known as a comprehensive travel and holiday destination. It has also become an increasingly popular location for investing in property.

However, not all foreigners buy property in Bali safely. It’s common for foreign investors to acquire land using a local nominee which gives the foreigner essentially no protection for its investment.

Continue reading…

Compare Different Legal Entity Formats In Indonesia

Legal entity in IndonesiaWhen 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…

Business opportunities outside of Jakarta and Bali

Business Opportunities outside Jakarta and Bali

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…

Foreign Owned Company Registration In Indonesia

PT-PMA-cartonAll foreign owned companies in Indonesia are classified as PT PMA-s (stands for limited liability company with foreign direct investment). A company is a PMA as long as any of the shares are owned by foreigners.

An exception is representative office where foreign company is exploring business opportunities in Indonesia and is not generating any income from local activities.

Foreign companies that cannot or choose not to meet the foreign ownership requirements can set up a Nominee Company instead.

In this article we will guide you through the process of PT PMA company registration. We have worked with dozens of foreign companies from various industries so everything in this article is based on real world experience. Continue reading…

Indonesian Manpower Law: How To Hire in Indonesia

The Indonesian manpower law is protective of the interests of the workers. Therefore it is important to familiarize yourself with employer obligations according to the law.

In this article, we will explain your legal obligations as an employer in Indonesia. A special section is dedicated to discuss employee termination, which can be complex and even costly for the less prepared employer.

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Minimum capital requirement for setting up PT PMA

Foreign owned companies, called PT PMAs, are required to have a minimum capital of at least Rp. 10 billion (~$US750,000 with current exchange rates). This is Indonesia’s government way to protect local small businesses from foreign competition and limit the foreign investments only to large scale companies.

In the past the enforcement of the law used to be weak and therefore thousands of companies, especially in service sectors, were set up with capital only showed on paper. In 2015 Investment Coordinating Board (BKPM) has decided to tackle the issue and effectively ending the practice of setting up foreign companies with less capital.

The following article is about how the capital needs to be invested and reported.

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Opening A Representative Office in Indonesia

Opening a representative office is the fastest way to get a legal and market presence in Indonesia. It is also easier than setting up a limited liability company. It comes, however, with more limitations.

In this article, I will explain everything you need to know about establishing a representative office in Indonesia, and when you should prefer it over a limited liability company. Continue reading…