Company Incorporation in Jakarta is a frequent theme that foreign business searches for when expanding their business to Indonesia. According to the World Bank, the inbound foreign direct investment in Indonesia during 2019 is USD 24.9 billion, which is a rather steep hike from 2018’s USD 18.9 billion. Considering the pandemic in 2020, the minister of investment coordinator (BKPM) is positive that the second quarter of 2021 showcases investment growth. They believe that this growth is mainly thanks to the enactment of Presidential Decree Number 5 of 2021.
BKPM also states that the increase in investments during 2021 contributes to the large number of job absorption amounting to 311.922 workers. In addition, their data also points to the increase in both Foreign Direct Investment and Domestic Direct Investment in the second quarter of 2021. Outside of the Java island, the number of investments realized is 51%. This massive increase signals that the Government’s active promotion of foreign investments in Indonesia is working. Within that 51%, BKPM notes that most investors are in the industrial sector.
Furthermore, out of the 51%, 52.4% of the number is of foreign investments. The rise of foreign investments in the country may play a large part in driving the Indonesian economy upwards. BKPM also states that the top industries around Jakarta and West Java are Housing, Industrial Estate and Office Building sectors. To participate in this growing business opportunity, a foreign company must first start with company incorporation in Jakarta. Without a legally established company, businesses cannot operate in the country.
Company Incorporation in Jakarta
Company Incorporation in Jakarta is now a much simpler process for foreign companies to go through. The most important step is to find a trustable and reliable service provider to ensure that the establishment process is smooth. Without professional handlings, many things could go awry. For instance, there is a risk of fraudulent documents. Uncertified documents will lead to a loss of money and the inability to process a business permit. Therefore, foreign companies looking to find a professional and trustable service can rely on MESO Serviced and Virtual Office to assist them.
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After discussing with the service provider the process and documents to prepare, foreign companies must prepare the documents. Also, a foreign company must prepare the capital for business setup. In Indonesia, the amount is USD 1,000,000. Once the company decree is ready, the foreign company must open a local bank account and store the capital money there. Then they will have to submit the proof of capital to get the business permit.
In conjunction with the company incorporation in Jakarta, foreign companies must also have a legitimate business address. It is highly recommendable to have a place in a registered business address. For professional foreign companies with smaller team members, a serviced office is a perfect choice. Through renting a serviced office, the foreign company does not need to invest in fixed assets like furniture, partitions, internet cablings, etc. They also will get a receptionist service to handle front desk matters like mail and call handlings. Furthermore, a cleaning team and an office manager is also there to ensure all the office facilities are in tiptop condition and ready to use. All of those benefits are included within the serviced office they rent.
KBLI Codes
It is also important for foreign companies to select five different KBLI codes before incorporating their business. The KBLI codes function as a guideline that shows the classification of industries companies can participate in. After choosing those five codes, they will have to submit them to the legal service to check their availability. In certain industries, foreign companies are unable to invest or have full ownership of the business.
Furthermore, some industries will require foreign companies to collaborate with local micro-companies. The function of this regulation is not only to increase micro companies’ engagement in the domestic market. But the collaboration also functions as a means to introduce local goods to foreign investments. With this setup, the government will be able to kill two birds in one stone. It is also in the interest of the Indonesian government to promote micro business growth alongside foreign investment.
For more information on Company Incorporation in Jakarta, Serviced Office, or KBLI Codes, visit www.meso.co.id or send us a text on +62812-1315-4189 (Whatsapp).
