Frequent question: Can foreigners own a business in Indonesia?

Foreigners can either set up a limited liability company which is 100% foreign owned or a limited liability company through a joint venture with Indonesian partners.

Can I run a business in Indonesia?

It is because some industries in Indonesia are strictly closed or partially closed for foreign investment. For the sectors or industries that are partially closed for foreigners, you still can run your business or PMA in Indonesia with the existence or co-partnership with Indonesian citizens.

Can I buy a business in Indonesia?

To legally run a business in indonesia as a foreigner, you need to set up a PT PMA. … Registering a PT PMA provides companies with foreign investors with the same rights and responsibilities as a local company in Indonesia.

How can I start a small business in Indonesia?

The following documents must be submitted to BKPM to start a foreign company PT PMA in Indonesia:

  1. Principle license and business license.
  2. Domicile letter.
  3. Deed of establishment.
  4. Approval of Business Registration Number (NIB)
  5. Tax identification number (NPWP)
  6. Taxable entrepreneur confirmation (PKP)
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How much does it cost to start a business in Indonesia?

Indonesia company set up costs in Year 1 amount to US$4,250 and annual company costs in Year 2 and thereafter amount to US$2,300. The average total fees per Indonesia company formation engagement amounts to US$19,440 includes company set up, company secretary, Government registrations and corporate bank account.

Can foreigners invest in Indonesia?

For foreign investment, the investment must be in the form of a Limited Liability Company (PT) in Indonesia. … The minimum investment value and paid-up capital for foreign investment companies is Rp10 billion excluding land and buildings.

Is it easy to do business Indonesia?

Indonesia is not the easiest place to start an enterprise or, generally, to conduct business. This is reflected by the World Bank’s Doing Business 2018 index in which the country ranks 72nd.

Why you should invest in Indonesia?

Indonesia is your investment destination. Abundant natural resources, a young and technically trained work force and a large and growing domestic market, combined with an improving investment climate and a higher global profile, are just a few of Indonesia’s salient strengths.

How do foreigners do business?

Foreign citizens or companies can make investments in shares or debentures of an Indian company, through either the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment.

Can you open a business in Bali?

Bali is a tropical paradise, but the government still wants paperwork. You’ll need to acquire a KITAS visa for long-term residency, open a bank account and then set up your business legally. You can either own 100% of the company yourself or work with a business partner in Indonesia.

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What business is profitable in Indonesia?

What Were Indonesia’s Most Profitable Listed Companies in 2015?

Company Sector Net Profit 2015 (in IDR trillion)
Bank Mandiri Banking 21.15
Bank Central Asia Banking 18.04
Astra International Automotive 15.61
HM Sampoerna Tobacco 10.36

Is Indonesia a good place to do business?

According to The World Bank Group’s Ease of Doing Business ranking, Indonesia ranks 73 in the world to do business, ahead of the Philippines (rank 124), below China (46) and Malaysia (15). The country is on an upwards trend for ease of doing business, ranking 128 in 2013 and 91 in 2017.

What is the best business to start in Indonesia?

Top 4 Business Opportunities in Indonesia for Foreigners in 2021

  1. Travel Agency. With over 17,000 islands in Indonesia, the country offers diverse landscapes and purposes to augment global visitors’ traveling experience. …
  2. Manufacturing. …
  3. Construction. …
  4. E-Commerce.

How do I start a factory in Indonesia?

In order to set up factory in Indonesia a company has to go through three stages – (1) company incorporation, (2) construction and (3) permanent business license.

Can a foreigner open a restaurant in Bali?

For foreigners, there are two common types of legal entity available in Bali for restaurant business: a local company (PT) and a foreign-owned company (PT PMA). … Fortunately, under the current Negative Investment List (NIL), foreigners are allowed to have 100% ownership of the PT PMA in the restaurant sector.

How do I set up a PMA in Indonesia?

Establish a PMA Company in Indonesia: The Procedure

  1. Step 1 – Approval of Company Name. …
  2. Step 2 – Deed of Incorporation. …
  3. Step 3 – Approval of Legal Entity. …
  4. Step 4 – Registration of Tax ID (NPWP) …
  5. Step 5 – Domicile Letter. …
  6. Step 6 – Application of NIB. …
  7. Step 7 – Application of Other Licenses.
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