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How to start Business in Indonesia

How to start Business in Indonesia

Old Oct 7th 2013, 9:04 pm
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Default How to start Business in Indonesia

Hello there i am an expat document services i just want to share what permit that you need to do your business in Indonesia.

For Foreign Direct Investment Company (PT.PMA), the permits will be:
• Company’s Registration Letter in BKPM
• Deed of Company Establishment from Notary
• Domicile Certification Letter from head of county & sub-district
• Tax Payer Registration Number (NPWP) from tax office
• Legalization of Deed of Establishment from the Department of Law & Human Rights of RI
• Company Registration Certificate (TDP)
• Confirmation Number of Taxed-Businessman/PKP
• The Principal Permit from BKPM, specifically for company that needs facility from the Government to obtain the facility of custom free for imported goods for its capital up to 0%. (if needed).



For Representative office, the permits will be:
• Approval letter from the Investment Coordinating Board/BKPM
• Company’s Deed of establishment from Notary.
• Company domicile certification letter from County & Sub-district.
• Company tax payer registration number/ NPWP from Tax office.
• Company Registration number / TDP from the Ministry of trade.
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Old Oct 8th 2013, 2:25 pm
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Default Re: How to start Business in Indonesia

Hi Rechter. That's good information. Sure that will be helpful for any folks thinking to set up in business there. Have you been in Indonesia long?
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Old Oct 9th 2013, 1:24 am
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Default Re: How to start Business in Indonesia

yes 25 years i have been here
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Old Oct 9th 2013, 1:56 pm
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Default Re: How to start Business in Indonesia

That's a long time. I guess you must like it then
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Old Dec 14th 2013, 5:54 pm
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Default Re: How to start Business in Indonesia

Hello Rechtor,
Thanks for info. Many sources, state different requirments....lol. I believe what I hear from experienced expats more-
I am new to this, but was given info that one also needed bank letters, with minimal amounts of State requested funds for the business investment , a letter also for medical insurance. Another source stated a letter of a place of domicile, rented for a minimum of one year.
Yet, another source seemed to indicate that different areas of Indo may have different requirments, so that a ``local`` kitas might not be suitable in another region, say Kalimantan, and that there was a ``gold`` national Kitas where you can start a business anywhere in Indo. The expensive one. Any comments? G
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Old Jan 20th 2014, 8:52 pm
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Default Re: How to start Business in Indonesia

Would be quite interested in setting up in Indonesia, thanks for the info
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Old Jan 21st 2014, 10:33 am
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Default Re: How to start Business in Indonesia

thanks for sharing
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Old Jan 21st 2014, 11:14 am
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Default Re: How to start Business in Indonesia

Before members fall over themselves by rechter's post it should be noted that this is his profession. see http://www.cv-insus.com/

If he is just helping members understand the system and he isn't blatantly using this thread for advertising.....I'll also wax lyrical over his information.
Very often business in Indonesia needs an agent in the Province the PT PMA does its business.
There are many agents in RI that can can get visas/company formations etc.
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Old Jan 21st 2014, 7:38 pm
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Default Re: How to start Business in Indonesia

Originally Posted by gerronimo View Post
Hello Rechtor,
Thanks for info. Many sources, state different requirments....lol. I believe what I hear from experienced expats more-
I am new to this, but was given info that one also needed bank letters, with minimal amounts of State requested funds for the business investment , a letter also for medical insurance. Another source stated a letter of a place of domicile, rented for a minimum of one year.
Yet, another source seemed to indicate that different areas of Indo may have different requirments, so that a ``local`` kitas might not be suitable in another region, say Kalimantan, and that there was a ``gold`` national Kitas where you can start a business anywhere in Indo. The expensive one. Any comments? G
1. the paid up capital is 300.000 us$ this is 25% of the minimum capital that allowed by indonesia government, based on law of indonesia investment board of course. And i think this is just in case that the government make sure the investors from abroad can doing business in indonesia with that paid up capital so the investors look a like indeed to doing business in indonesia.

2. for renting a space for your company it can done minimum 6 months just for the process of legallisation the other permit. out of that if you want move your company to other place in indonesia, just change of the company permit.

3. about kitas ? i think there are nothing to worry about it, because every immigration office in indonesia they are working based on directorate general of immigration. So there is nothing "big difference" or anything to worried about it.

cheers,
if there is anything to ask, just posted here.
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Old Jan 21st 2014, 7:43 pm
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Default Re: How to start Business in Indonesia

Originally Posted by Davita View Post
Before members fall over themselves by rechter's post it should be noted that this is his profession. see http://www.cv-insus.com/

If he is just helping members understand the system and he isn't blatantly using this thread for advertising.....I'll also wax lyrical over his information.
Very often business in Indonesia needs an agent in the Province the PT PMA does its business.
There are many agents in RI that can can get visas/company formations etc.
thanks, davita i will not advertise to this forum, because i have knew the purpose of this section. and yes that is my profession, so i think i can share my knowledge about it. Just in case that some expat would like to doing business in indonesia and they know the rules in indonesia.

but, it is better if there are someone can doing business with me to, hehehe....
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Old Jan 22nd 2014, 9:15 am
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Default Re: How to start Business in Indonesia

Originally Posted by rechter View Post
thanks, davita i will not advertise to this forum, because i have knew the purpose of this section. and yes that is my profession, so i think i can share my knowledge about it. Just in case that some expat would like to doing business in indonesia and they know the rules in indonesia.

but, it is better if there are someone can doing business with me to, hehehe....
I think that's fair and I thank you for your stuff; I've actually been looking at doing business in Indonesia for some time now, it is a large and emerging market... compared to where I am used to working (Middle East and Malaysia/Singapore) it is truly massive and somewhat overwhelming!
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Old Jan 22nd 2014, 9:53 am
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Default Re: How to start Business in Indonesia

For clarity...here is a list of reasons a KITAS can be issued in the Republic of Indonesia.....and a preview of the requirement to get a work permit IMTA........you will see why rechter, or someone similar, is needed.

ITAS = (Temporary Stay Permit). This is the immigration status/permit by itself. It is materialized by the stamp in your passport that the immigration offices stamps into your passport every year.
KITAS =(Temporary Stay Permit Card). This is the yellow card that Imigrasi will give you after the ITAS has been granted.

KITAS can be issued for a variety of reasons:
• for foreign investors (PMA owner)
• for foreign experts - most of the expats have this kind of KITAS. They theoretically have skills that Indonesians don't have.
• for foreign researchers who come for research, usually with an agreement of an Indonesian university
• for dependant foreign spouse/kids, sponsored by a foreigner, holder of a KITAS himself/herself or being an Indonesian citizen
• for religious clerics (foreign priests/imam, etc.)
• for retired foreign citizens
• for former Indonesian citizens, returning to Indonesia in the framework of repatriation to get back their citizenship

If a company wants to employ foreigners, the company must submit an Expatriate Placement Plan to the Manpower Department if the employing company is a domestic company; or to the BKPM (Investment Coordinating Board) if the company is a foreign investment company. In foreign investment/PMA companies, work permits for senior positions (such as Director held by foreigners are for three years and can be renewed just before expiration. (Note: Director's positions held by foreigners is only applicable for foreign investment/PMA companies).

Small Indonesian companies incorporated as a CV are not allowed to hire expats. So-called "medium companies" are only allowed to hire two expats. In larger companies there is no limitation to the number of expats hired, as long as the ratio of 1 expat : 1 local expert as a counterpart is followed.

To summarize:
•The IMTA is issued through the Department of Manpower and must be approved through several ministries.
•It is issued by the government to/through a sponsoring company for an individual.
•Work Permits are only issued to companies that require a specific position to be reserved for an expatriate when there is currently not an Indonesian qualified to fill that same position.
•IMTA may be issued for short-term periods and up to a maximum of a 12-month period.

Companies employing foreigners are charged $100/month per expatriate employee to offset the costs of training Indonesian nationals. This tax is administered through the Manpower Ministry. Proof of payment of the Skill & Development Fund fee to the BNI '46 bank for one year in advance, amounting to US $1,200 (non refundable), is needed before a Work Permit can be approved.
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Old Jan 22nd 2014, 9:37 pm
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Default Re: How to start Business in Indonesia

Agree Davita, no matter where you go it's always something of a minefield getting all the bits of paper in order. It's just finding someone reputable to help you through it that's an issue for me most of the time.
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Old Jan 23rd 2014, 3:00 pm
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Default Re: How to start Business in Indonesia

Well Cpt_Jack...rechter may be your contact.
Investing in Indonesia is not easy and if you are not an Indonesian speaker...can be difficult and WILL be frustrating.
The potential is incredible, I agree, but I suggest waiting till the elections are over to see which way the wind will blow for the future.
This happens on 9 April for the Government and in July for the new President, as the current one cannot stand again.
I intend to comment on these events on this forum....so please stay tuned!

btw does your nic have meaning. I was an aviator before retirement and we had a fellow we called Capt. JollyJack...he is no longer alive but...any connection?
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Old Jan 23rd 2014, 3:15 pm
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Default Re: How to start Business in Indonesia

Yes, I'll give him a buzz for sure, no harm in trying. I do speak 'Bahasa' to some extent but, as you know, with all the dialects it's pretty hit and miss if someone understands your or not!

And right, I am sitting it out for now for the reasons you suggested. Malaysia went a bit wonky after the last election and the market is contracting in some sectors... we've also had massive inflation issues and general stagnation due to mismanagement by the current gov which will probably blow up sometime soon. I'll be reading your future threads with interest

As for the name... haha, well, no connection to him but it is aviation connected. I used to be in the Air Cadets at one of their VGS's and wore my RAF issue greatcoat as I couldn't stand the cold on the airfield. Around that time the Dr Who character Captain Jack Harkness came about... so the name stuck
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