Malaysia Hotline: +603- 2141 8908
In
order to carry out business activities in Indonesia, the company is required to
be incorporated as a limited liability company in Indonesia.
Certain
business areas require a foreign company to establish a local partner and are
allowed up to a certain percentage of ownership depending on the sector. The
specifics of this are covered in the Negative Investment List.
When
choosing which business type to operate under, investors also need to think
about whether using a local partner would be more effective in penetrating the
local market. For example, selling a product that requires a direct customer
distribution channel may benefit from the local knowledge and connections of an
Indonesian partner.
PMA - Penanaman Modal Asing
A
100% or majority foreign owned company is called a PMA and is obtained through
the Indonesia Investment Coordinating Board (BKPM). The advantages of this type
of company are that it gives the foreign investor full control over the
direction of the company and reduces the risk in finding a suitable local
partner. Non-equity partnerships can still be established with local Indonesian
companies for business services such as marketing.
Investment
licenses are granted for 30 years and theoretically require that after 15 years
of operation, a 5% minimum share is divested to domestic ownership for
companies engaged in natural resource extraction such as mining. PMAs are under
the form of a limited liability company Perseroan Terbatas or PT.
Representative Office
For
most business areas, companies can set up a representative office in Indonesia.
Based on Ministry of Trade Regulation No.10/2006, the company cannot engage
directly in sales and is rather for marketing, buying and distribution
purposes. Representative office set up is through application to BKPM for
companies wishing to engage in areas of business under BKPM’s jurisdiction and
regional representative offices.
Tannet Malaysia is an international company provide one stop business solution to those who would like to expand their business to oversea. Not only Indonesia, we provide Vietnam, Taiwan, England, Delware and other countries company incorporation included offshore bank account arrangement as well.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my