As in other countries, there are quite a few pitfalls when buying land or starting your own company. Over the last few years, we received a lot of requests for help from clients and companies when facing problems. These are the questions that are most frequently asked. Is your question not in this FAQ? Don’t hesitate to contact us.

In general, PMA stands for Foreign Direct Investment while PMDN stands for Domestic Direct Investment. From the perspective of the meaning, in short, PMA is an investment activity to conduct business in the territory of the Republic of Indonesia carried out by foreign investors, both those who use foreign capital wholly or in joint ventures with domestic investors. Then, PMDN is an investment activity to conduct business in the Republic of Indonesia, carried out by domestic investors using domestic capital. Basically, subjects in domestic investors are Indonesian citizens (WNI), Indonesian business entities, the Government of Indonesia, or regions that make investments in the territory of Indonesia. Meanwhile, foreign investors are foreign citizens, foreign business entities, and/or foreign governments making investments in the territory of the Republic of Indonesia. Please visit the link here to find more detail about PT PMDN and PT PMA: Company Registration in Indonesia
With the new regulations and system changes, the process of establishing a company, both PT PMDN or PT PMA, does not take a long time. It takes at least 10-15 working days after the complete document requirements are fulfilled.
Generally, the set-up company process is divided into 2 stages. Where the first stage is the establishment stage. At this stage, you will process your company's basic documents and permits, such as: deed of establishment, legalization document, Company NPWP (Taxpayer ID Card), Business Identification Number, Company Bank Account Opening, and other documents according to your sector and business field. Furthermore, the second stage is the operational stage. At this stage, before and/or during your company's operations, you are required to fulfill the company's obligations. Such as, payment of related taxes, fulfilling operational permits, reporting LKPM (Investment Activity Report), BPJS Employment and Health Registration, and other obligations according to the sector and business field. Please check here for more detail information: Company Registration in Indonesia
BPJS stands for Social Security Administering Board, which is a special institution tasked with administering health and employment insurance for the public, civil servants, and private employees. BPJS has 2 types, namely: BPJS Healthcare and BPJS Employment. Where every registered company that has employees is required to register its employees in the BPJS program, both BPJS Healthcare and BPJS Employment.
LKPM stands for Investment Activity Report. It is a report on the progress of investment realization and problems faced by business actors that must be prepared and submitted periodically.
Yes, you do. When you do the establishment of a company, a correspondence address is fundamental. It is needed because later all correspondence documents from the government or related agencies will be sent to your company's office/correspondence address. In addition, a company is required to have a domicile which is one of the requirements for making a deed of establishment.
Do you have a location in mind where you plan to establish your company in general? For example, are you planning to do it in Bali, such as in Kuta, Ubud, Sanur or Jimbaran area? We have several specific place references that may help you determine the location of your company office. Just please let us know.
At the stage of the company establishment process, you are not required to come to Indonesia. Although it is no required to come, you may visit Indonesia with the visa which the service we can assist you to have it. Please check it here: Immigration Permit
Some process in the establishment company can be carried out by giving your power of attorney to one of our team whom handles the process of establishing your company. Our team is experienced enough in their field therefore the necessary matters will be prepared and informed to you.
The process of establishing PMA in Indonesia is quite simple. The process begins with selecting the type of business you want to do and determining the location of the business you plan to do. After that, we as your consultant may guide you in obtaining the PMA establishment documents such as deed and the legalization along with the basic permits that should be owned.
When starting a PMA in Indonesia, there are several licenses required. We will assist you by providing a summary of the relevant license in relation to your type of business. There are basic permits such as business registration permits and others. Please do not hesitate to contact us.
According to Law No. 25 of 2007 concerning Investment, a shareholder can be in a form of:
a. Indonesian individual
b. Indonesia corporation/business entity
c. Foreigner individual
d. Foreign corporation/business entity
A PMA in Indonesia should have at least two shareholders. Those can be both individuals and corporate shareholders. Therefore, one person cannot own 100% of the shares, at least one other party owns 1% of the shares.
  1. What will be your business activity?
    We need to know your business activities plan because it is related to the business activity classification in Indonesia. We call it the ISIC Code.
  2. Who will be the shareholders in the company?
    In Indonesia, each company must have at least two shareholders. Those can be both individuals and corporate shareholders or a combination of them. It means also at least having 1 Director and 1 Commissioner. The duty of the director is to lead the company, meanwhile, the duty of the commissioner is the observer and give advice to the director. The information about this please find at: Company Registration in Indonesia
  3. Company Domicile
    The Company Office needs a domicile address, either it will be separated from the Project Location or not. Need to be noted, the location of the Company can be different from the Project Location or it can be the same. What is meant by The Company office is your legal entity and the Project Location is for the business activity that will be held. May you do not have it yet, we can help you to find the domicile address but we need to make sure your business activity first.
  4. Proposed Company Name
    Register the name of your company, you can provide more than one name, and each name minimum contains 3 words.
ISIC Code / KBLI stands for Standard Classification of Indonesian Business Fields. It is the official classification code for classifying the types of business fields of companies in Indonesia.
No, besides starting a PMA or Foreign Direct Investment in Indonesia we can also help you with administrative services and tax returns as well the stay permits. We offer a broad range of services. It is also possible to hire us for specific tasks that is related to your business. In contrast with other juridical business consultancies, we want to maintain a long-lasting relationship with our clients in which quality is our main priority.
Yes, we do. We may assist you to manage your business. Together with you, we decide which tasks are going to be our responsibility and what you can expect from us. Our employees check everything regularly and update you per e-mail or by letter.
Foreigners can own land in Indonesia with the type of certificate of Hak Pakai/Right to Use and Hak Guna Bangunan/Right to Build. However, in order to have it, the foreigners should have certain permits in Indonesia. Contact us to find out more about this.
Yes, we do. We can assist you to check and due diligence for the property you would like to bu. From checking related documents to visiting to the location of the land and providing advice and legal opinions, we can help you.
ITR Spatial Information or commonly also known as Advice Planning is a piece of land of a certain size that can be used as land for plantations or housing. The data have a geographical description that allows you to search for information that describes the ownership to the value of real property in a region. Advice Planning (ITR) is a land with boundaries defined under unique ownership of certain real property rights.
There are several purposes of regional spatial planning, namely: Realizing integrated development within the district or city. Realizing the harmony of the development of the city district area with the surrounding area. Ensure the realization of quality district or city spatial planning.
Limited Stay Permit is a stay permit granted to a Foreigner who enters the Indonesian Territory with a limited Stay Visa or a Foreigner who is granted a status transfer from a Visit Stay Permit.
  1. Application form;
  2. Letter of guarantee from the Guarantor, except for Foreigners who are legally married to Indonesian citizens;
  3. A valid national passport along with its photocopy.
KITAS is generally valid for one year, except for Investor KITAS which is valid for 2 years. All types of KITAS can be extended.
The process for making an Investor KITAS takes approximately 15 working days after all the required documents complete.
Representative Office or Foreign Company Representative Office (KPPA) is an office headed by one or more individual foreign nationals or Indonesian citizens appointed by a foreign company or a combination of foreign companies abroad as representatives in Indonesia.
PT PMA was established with the aim of doing business in Indonesia, while KPPA is not. This refers to the prohibition of KPPA from carrying out commercial activities in Indonesia which is regulated in the Decree of the Head of BKPM No. 22 of 2001. The existence of KPPA is precisely aimed at managing the interests of its affiliated companies and to prepare for the establishment or development of PT PMA's own business.
Another difference between KPPA and PT PMA can be seen through the capital for their establishment. For the establishment of KPPA, the minimum capital is not determined. As for the establishment of PT PMA, the total investment value is at least Rp. 10 billion excluding land and buildings.
Yes, Indo-ned Consultancy can manage the ship buying and selling process. The process of buying and selling ships is carried out at the notary, while the transfer of names (name of the owner of the ship or the name of the ship itself) is carried out at the Kesyahbandaran office where the ship is registered.

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