Pak bisa minta toling infonya lebih lanjut tentang bagaimana saya bisa membuka usaha di Indonesia, apakah ada agent/notaris yang bisa membantu saya set-up perusahaan ini
This is a very informative blog. Thank you for posting this on the web. We are currently discussing opening up a business entity in Indonesia; however, we are both foreigners. We do have Indonesian business partners in mind.
We are also trying to see if we create a PMA, what the average cost is for administration fees. As foreigners we think the PMA would benefit us in regards to obtaining a KITAS. However, do you feel a PT would be more beneficial and less costly?
to answer your questions, whether form of PT (limited liability company) is more beneficial and less costly, the Law No.25 years 2007 on Investment (Investment Law) clearly stated that the form of PMA in Indonesia shall be in the form of PT (limited liability company). as quote below:
Article 1 Paragraph 3 Investment Law:
“Foreign investment” means an investing activity to do business in the territory of the state of the
Republic of Indonesia that is carried out by a foreign investor both by use of all of foreign
capital and by engagement in a joint venture with a domestic investor.
Article 5 Paragraph 2 stated
“Foreign investments must be in the form of a limited liability company under Indonesian law,
and domiciled within the territory of the state of the Republic of Indonesia, unless provided
otherwise by law.”
for administration fee you can contact the agent of your legal consultant.
Which is better for a foreign company to set up? PT or PMA? If PMA, can it participate for national bidding of projects? Such as government training programs?
its depends on the capital came from, PMA for foreign investment and PT for national investment. for PMA you also should check the negative list of investment (President Regulation Number 36 of 2010) whether there is any restriction or not for foreign investment running its business on national bidding projects that you intend to bid.
I’m just informally assisting a foreign company that wants to provide training programs to the government so they wanted to know if a PMA would be treated differently and, as such, a PT would be more relevant.
Thanks so much for your immediate reply and that this is really a good site.
in the event the foreign company directly running the business (job training), they should established a PMA, since PT may only established by individual or Indonesian legal entity. however you may also aware of provision regulated under President Regulation No.36 of 2010, which is stated that Job Training business sector (Class Business Sectors No. 85499 (KBLI)), is limited for foreign investment, foreign investment may only hold up to 49% of PMA’s shares or you may arrange a nominee.
I think PMA will not treated differently, except for the license and foreign capital restriction.
its bidding project non profit or profit oriented?, if its non profit you may also established a foundation or other alternative
1. It’s for profit, providing various skills development training programs that can be applied in local industries and government ministries.
2. The principal company is based in Australia and the owner is married to an Australian-Indonesian, so expanding here is good for the country’s investments.
3. I think ownership isn’t much of an issue for them except whether a PMA will be discriminated in terms of bidding for projects or that PT carries more flexibility.
4. Capital investment also isn’t an issue but rather which license could be expedited faster.
I decided to assist them informally because I thought that this would be good for the country not only in terms of investments, taxation, and job generation, but also providing skill sets to help the people be equipped in time for the ASEAN integration.
If you would know of any agency or person (s) that can help process their requirements, please let me know.
in regards with point 3 above, I just read a government regulation on government procurement of goods and services. several provisions under the regulation stated that services procurement in the government department for foreign parties (including PMA) are limited for certain project.
I can assist you to preparing the legal opinion and the establishment.
Indonesia Investment Law 
Pendekar212
August 17, 2011 at 6:44 pm
You can contact me at : +62813-8125-2143
Ita
November 6, 2011 at 4:09 am
Pak bisa minta toling infonya lebih lanjut tentang bagaimana saya bisa membuka usaha di Indonesia, apakah ada agent/notaris yang bisa membantu saya set-up perusahaan ini
Terimakasih
ita.kars@gmail.com
Pendekar212
November 7, 2011 at 2:54 am
Terima kasih Ibu Ita, jawaban pertanyaan Ibu sudah saya kirimkan ke email Ibu
Sofyan
December 22, 2011 at 4:47 am
Greetings, Pak Pendeka212.
This is a very informative blog. Thank you for posting this on the web. We are currently discussing opening up a business entity in Indonesia; however, we are both foreigners. We do have Indonesian business partners in mind.
We are also trying to see if we create a PMA, what the average cost is for administration fees. As foreigners we think the PMA would benefit us in regards to obtaining a KITAS. However, do you feel a PT would be more beneficial and less costly?
Would you be able to email me with more info?
Again, thank you for this informative website.
Kind regards,
Sofyan
Pendekar212
January 10, 2012 at 8:03 am
Dear Mr. Sofyan,
Thank you for visited my blog,
to answer your questions, whether form of PT (limited liability company) is more beneficial and less costly, the Law No.25 years 2007 on Investment (Investment Law) clearly stated that the form of PMA in Indonesia shall be in the form of PT (limited liability company). as quote below:
Article 1 Paragraph 3 Investment Law:
“Foreign investment” means an investing activity to do business in the territory of the state of the
Republic of Indonesia that is carried out by a foreign investor both by use of all of foreign
capital and by engagement in a joint venture with a domestic investor.
Article 5 Paragraph 2 stated
“Foreign investments must be in the form of a limited liability company under Indonesian law,
and domiciled within the territory of the state of the Republic of Indonesia, unless provided
otherwise by law.”
for administration fee you can contact the agent of your legal consultant.
kinds regards
asmartrock
February 4, 2013 at 7:09 am
Which is better for a foreign company to set up? PT or PMA? If PMA, can it participate for national bidding of projects? Such as government training programs?
Thank you.
Pendekar212
February 5, 2013 at 3:54 am
its depends on the capital came from, PMA for foreign investment and PT for national investment. for PMA you also should check the negative list of investment (President Regulation Number 36 of 2010) whether there is any restriction or not for foreign investment running its business on national bidding projects that you intend to bid.
asmartrock
February 5, 2013 at 3:58 am
I’m just informally assisting a foreign company that wants to provide training programs to the government so they wanted to know if a PMA would be treated differently and, as such, a PT would be more relevant.
Thanks so much for your immediate reply and that this is really a good site.
Pendekar212
February 5, 2013 at 5:11 am
Thank u Pak Asmartrock,
in the event the foreign company directly running the business (job training), they should established a PMA, since PT may only established by individual or Indonesian legal entity. however you may also aware of provision regulated under President Regulation No.36 of 2010, which is stated that Job Training business sector (Class Business Sectors No. 85499 (KBLI)), is limited for foreign investment, foreign investment may only hold up to 49% of PMA’s shares or you may arrange a nominee.
I think PMA will not treated differently, except for the license and foreign capital restriction.
its bidding project non profit or profit oriented?, if its non profit you may also established a foundation or other alternative
asmartrock
February 5, 2013 at 5:38 am
Thank you Pendekar212.
1. It’s for profit, providing various skills development training programs that can be applied in local industries and government ministries.
2. The principal company is based in Australia and the owner is married to an Australian-Indonesian, so expanding here is good for the country’s investments.
3. I think ownership isn’t much of an issue for them except whether a PMA will be discriminated in terms of bidding for projects or that PT carries more flexibility.
4. Capital investment also isn’t an issue but rather which license could be expedited faster.
I decided to assist them informally because I thought that this would be good for the country not only in terms of investments, taxation, and job generation, but also providing skill sets to help the people be equipped in time for the ASEAN integration.
If you would know of any agency or person (s) that can help process their requirements, please let me know.
Again, thanks!
Pendekar212
February 5, 2013 at 6:27 am
Pak Asmartrock,
in regards with point 3 above, I just read a government regulation on government procurement of goods and services. several provisions under the regulation stated that services procurement in the government department for foreign parties (including PMA) are limited for certain project.
I can assist you to preparing the legal opinion and the establishment.
you can send me an email to coro_pendekar212@yahoo.com.
best regards
Pendekar212
February 5, 2013 at 7:07 am
asmartrock
February 5, 2013 at 8:42 am
Great! Thanks!