Business for PMA in Indonesia has had better opportunities in this recent years with the government pushing for more foreign investments. Various business incentives were introduced, and online platforms were introduced to cater to foreign investment needs. With the introduction of the presidential decree (Perpres Nomor 10 Tahun 2021), there is now more variety of industries available for foreign investors. There seem to be more industries available for foreign investors than those unavailable. Entrepreneurs can check the available industries from the presidential decree (Perpres Nomor 49 Tahun 2021).
For foreign investors, Indonesia can be a lucrative country to expand their business. It has the necessary categories for businesses to expand. For instance, the sheer population, the relatively low labour cost, and the untapped markets. The large population can indicate the number of potential markets. As for the relatively low labour cost, it is most interesting for companies that require a large labour force. On the other hand, the untapped market indicates the available business opportunities.
Business for PMA and Partnerships
There are many numerous industry selections available from the attachments on the presidential decree number 49, 2021. Within those attachments, the first and the second indicates the industries available for full foreign ownership. As for the third attachment, there is a list of industries that needs a special permit. The aforementioned permit is for key strategic industries that the government classifies as either local company ownership or partial capital ownership.
Nonetheless, as the regulation is everchanging, it is always wise to reconfirm the information with a trustable notary. Certain industries may require a foreign investment company to own a maximum of 49% share, while others may not allow any foreign investment. In addition, for those industries that require partial ownership, foreign investors must find a trustable local partner. This can post as another issue.
Unlike the previous years when proxy partners are possible, today the government no longer allows it. In complying with the international anti-money laundry regulation, Indonesia no longer acknowledges proxy partners. All selected partners must be able to present their capital. The government, through the tax department, will be checking the source of capital. The individual will be in trouble if their financial record does not support their ability to pay the required capital.
For foreign entrepreneurs looking to invest in Indonesia, be sure to check this list of industries that require local and partial investments. Industries that are not listed here indicate that it is most likely available for full ownership. However, it is best to consult our internal notary to confirm the information.
Establishing a Company
To establish a company in Indonesia, entrepreneurs must find a trustable provider to assist them. As Indonesia still adopts the Dutch legal system, a notary is essential in company establishment. One of the providers that can assist entrepreneurs well is MESO Serviced and Virtual Office. At MESO, there are available ready-to-use office suite (serviced office) and business address rental (virtual office) that is required for company establishment. Plus, MESO also has an in-house notary team that is available to assist entrepreneurs in company establishment or legal consultation.
For more information, visit www.meso.co.id or contact us via our Live Chat +62812 1315 4189 (Whatsapp).