To establish a business in Indonesia, you have a range of options depending on your need. The common type of presence for a foreign investor who wants to invest and engage in business in Indonesia is by establishing an Indonesian incorporated limited liability company, commonly known as a PT-PMA company.
If you are to sell products or services without the need for your own presence in Indonesia, you could choose to appoint an Agent or Distributor. Alternatively, you could set up a Representative Office. However, the foreign companies can establish foreign representative offices that generally conduct market research and correspondence regarding foreign companies’ business.
Not all types of business are open for foreign investors.Presidential Regulation No.36/2010 has been issued to stipulate the lines of business open and closed to foreign investors (Negative List of Investment/ NLI). Under the NLI, foreign investors can identify business areas closed for foreign investment, business areas which can be fully owned by a foreign investor or those which require joint venture with a domestic investor.
Some foreign investors at the early stage of entering the Indonesia market choose Representative Office, then later after the business starts to grow they will apply for a Foreign Direct Investment Company (FDI) status to set up Indonesian PT PMA Company.
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Set up a new company in Indonesia
Foreign investors must set up a Limited Liability Company (PT PMA) in Indonesia to provides services or sell goods within Indonesia.
A PMA company is a limited liability company established under Law No 40 of 2007 on Limited Liability Companies (Company Law). A PMA company may be a joint venture company established by a foreign investor and an Indonesian partner or (where 100% foreign shareholding is permitted) a wholly foreign-owned company.
Set up Foreign Representative Office
A Representative Office allows you a legal presence in Indonesia, but it is not allowed to undertake business transactions or receive sales payments in Indonesia.
Representative Offices are set up primarily for marketing, market research, or as buying or selling agents. Most businesses quickly find the Representative Offices very limiting. It's often more time and cost effective to form an Indonesian company right from the start.
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Andhyka CONSULTING provide one stop services to help foreign investors to do business activities and set up a new PT-PMA Company or Foreign Representative Office in Indonesia, Business License and non License for Investment, visa and working permits for expatriate including certification and registration for construction services, supplier and other supporting services to the oil and gas industry.
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Company Formation Services
If you want to establish a business in Indonesia, we can offer a service to set up a new company in the form of Limited Liability Company, commonly called PT-PMA. Our consultants will provide instructions to be able to conduct business from start to finish.
Foreign Representative Office
Andhyka CONSULTING can help you to do business and explore markets in Indonesia without having to set up a company in Indonesia by opening a Representative Office. Representative office set up primarily for marketing, or as buying or selling agents.
Business License Services
Our full range of business license services is designed to reduce the time, effort and expense involved with researching, preparing, and filing your applications, as well as renewing and managing your license and permit in Indonesia.
Visa and Working Permit Services
We assist you to get your visa and work permits for foreigners wishing to work in Indonesia. Our comprehensive range of immigration services cover every aspect of immigration for both corporate & individual clients.
Certification & Registration Services for Construction and Suppliers
We offer a wide range of certification and registration services for the construction company, suppliers and other supporting services to the oil and gas industry in Indonesia. We help you minimize Risk go tenders.
Business Support Services
We build partnerships with the Public Accountants, Notaries, Tax Consultants, and other professionals to support your efforts. Our services include: Translation Services, Tax & Accounting Services, Environmental Consulting Services (EIA/AMDAL) & Web Design.
Construction in Indonesia - Opportunities and Challenges for Foreign Company
There are many opportunities for foreign construction companies to participate and be directly involved in the development of construction projects in Indonesia by opening a construction company or representative offices of foreign construction companies.