Frequently Asked Questions on investing in Indonesia<\/p>\n
How do you set up a new Foreign Direct Investment (FDI) company
\nin Indonesia?<\/p>\n
A Foreign Direct Investment (FDI) company should be incorporated
\nas an Indonesian limited liability company (PT) and domiciled in
\nIndonesia.<\/p>\n
- To invest in Indonesia, an investor should first look at the
\nNegative List of Investment, which contains the business sectors
\nthat are absolutely closed to all investment, closed to only
\nforeign investment, and which are open only under certain
\nconditions.<\/p>\n
- Foreign investment approval will be issued by the Investment
\nCoordinating Board (BKPM) in Jakarta. However, for projects
\nlocated in a Bonded Zones, investors should submit an application
\nto the BKPM through the respective Bonded Zone Authority.<\/p>\n
- To apply for a new investment approval, applicants have to
\ncomplete and submit two copies of the Model I\/PMA form. The
\nproposed company should have at least two shareholders.<\/p>\n
- Following the evaluation process, the chairman of the BKPM will
\nissue the investment approval. Upon the issuance of the
\ninvestment approval, a new company can be established under
\nIndonesian corporate law.<\/p>\n
What is the difference between Investment Approval and a
\nPermanent Business License?<\/p>\n
Investment approval is needed by a company to acquire land and
\nset up a factory, while a Permanent Business License is issued
\nafter a company has begun commercial production activities.<\/p>\n
How do you set up a representative office in Indonesia?<\/p>\n
A representative office (for business activities outside the
\nfinancial sector) must be established with the approval of the
\nchairman of the BKPM.<\/p>\n
- To get approval, applicants have to submit two copies of the
\nModel KPPA form to the BKPM office.<\/p>\n
How can investors find out if a business field is open for
\ninvestment?<\/p>\n
Basically, all business fields are open to investment in the
\nframework of FDI as well as Domestic Investment, except those
\nfields that are closed or regulated, as stipulated in the
\nNegative List of Investment.<\/p>\n
What kind of tax incentives are provided for companies?<\/p>\n
Investments in certain industries and in certain regions will
\nbe granted tax facilities as follows:<\/p>\n
1. Reducing net (taxable) income up to 30 percent (5 percent per
\nannum) of the value of the realized investment
\n2. Accelerated depreciation and amortization
\n3. Loss carried forward facility for period of no more than 10
\nyears
\n4. A 10 percent income tax on dividends, and possibly lower if
\nstipulated in the provisions of an existing tax treaty<\/p>\n
Is it possible for foreigners to have 100 percent ownership of
\na company?<\/p>\n
Basically a new company can be established with 100 percent
\nforeign ownership. However, the company should have at least two
\nshareholders who are either foreign individuals or companies.<\/p>\n
Q: How long will it take to finish an investment approval?<\/p>\n
The entire process will take a maximum of 10 working days from
\nthe time the completed application letter and its attachments are
\nsubmitted.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/frequently-asked-questions-on-investing-in-indonesia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}