As a foreign owned limited liability company (PT PMA) you would have to:
Until this year, companies could just have an investment plan on paper and Investment Coordinating Board (BKPM) would rarely reject it.
Since March 2015, massive number of (especially service sector) company applications have been rejected. The key reason – BKPM is not convinced that those companies would actually invest all that money in Indonesia.
BKPM knows that foreign owned companies have been faking their investment plans and are now very cautious of whether the investment will actually take place or not.
Every foreign owned company is required to get a permanent business license within the time they were given with the initial investment approval. Without that license, company is unable to get additional licenses and permits such as import license which is critical for a lot of companies.
Since this year in order to receive the permanent business license companies must have audited financial reports that prove that the investment was made.
So unless you actually realized the Investment Plan of US$1 million you won’t be able to get permanent business license.
Solutions for service sector companies in Indonesia
Since many service sector companies are not ready to invest 10 billion Rupiah within a year but still want to earn revenue in Indonesia, Indosight has prepared a specialized service for the companies in the service sector. This service includes:
|Foreign owned company (PT PMA)||Nominee Company|
|Legal entity type||PT (foreign owned)||PT (locally owned)|
|Legal owner in Articles of Association||You||Indosight based on loan agreement with you|
|Minimum capital||US$1 million||600 million IDR (~US$50,000). Less if you don’t wish to employ any foreigners nor be a director.|
|Maximum foreign ownership||0-100% depending on your business classification||No limitation|
|Hire foreign experts||Yes||Yes|
|Change shareholders whenever required||Yes||Yes|
|Control over finances||Director of the company||Director of the company (which can be you)|