BKPM regulation states that initial investment plan for establishing a PT PMA has to be a minimum of IDR 10 Billion. There is no minimum investment required for establishing a Foreign Representative Office.

A minimum of 2 shareholders is required, where one of them has to own more than 50% of the shares.

It is the same as local PT. Board of Directors.

No, a Foreign Representative Office can only run in Indonesia for 3 years, which then can be extended twice for a one-year period. Should there be an extension, the purpose of establishment has to be changed accordingly.

Both are types of representative office in Indonesia, KPPA is general representative office, while SIUP3A is for trading representative office. You can find a more comprehensive understanding

PT PMA can sponsor unlimited number of foreigners in the company. Foreign Representative Office, on the other hand, limits the sponsorship of foreigners only for the Chief of Representative Office and Assistant to Chief of Representative Office.

Permanent Business License (IUT) is a license that is mandatory for PT PMA in order to run a business in Indonesia.

LKPM is business activity report that has to be submitted by the PT PMA to the government. 4 times each year before permanent business license, and twice a year after permanent business license.

The Permanent Business License lasts for as long as the company is still operating. Unless determined otherwise by the respective sectorial body.

The company should apply for the license right before they start operating. Usually when the company is 80% ready for operation.

Individuals or corporation are subject to three types of tax compliance. Personal income tax, corporate tax, and also tax on rental of land and building.

KITAS is the Temporary Stay Resident Card that any foreigner has to obtain in order to stay in Indonesia.

For any type of documents that is not made in Indonesia, it has to be legalized by the Indonesian Embassy in order for the document to be valid to use in Indonesia. This is commonly mandatory for BKPM applications.

Materai is Indonesian Stamp Duty, any signature that is signed upon a Materai is deemed eligible and authentic.

Both are import license issued by BKPM. API-U is General Import License, used to import finished goods into the country. API-P is Manufacturing Import License, used to import unfinished goods into the country.

Depends on your position, BOD positions can have a working permit for up to 12 months. Any other position can have a working permit for up to 6 months.

Very important. Your license can be revoke and will have difficulties with legal matters of your company.

Depends on your company’s business sector. You can check out The Negative Investment List to see how much percentage it can be foreign owned.

It is 100% foreign ownership, but if you are to start a project you will need a local partner.

A non-Indonesian can only be a commissioner of a PT PMA, not a local PT.

For PT PMA, the name of the company must consist of at least 3 words (can be Indonesian or English). Each word must consist of at least 3 letters.

For Foreign Representative Office, the company name will adapt to the Mother Company

A sponsored Business Visa only allows a foreigner to stay in Indonesia for up to 60 days. The activity is only limited to attending meetings and conferences.

To work legally in the country, the foreigner will have to obtain KITAS.

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Contact us for further information about our professional services.

We first contacted Global Expandia following the recommendation from another multinational and we are very happy with the outcome. They have provided us great information and knowledge of the market, the steps to establish a PMA, hiring new employees and beyond that, they have provided us confidence that we are in good hands.

Luis Baselga
General Manager International, SIMON HOLDING

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