The Establishment Foreign Investment Company in Indonesia

The first thing to do for foreign investors to establish companies in Indonesia is to check whether their line business is line with Government Regulations No.111 of 2007 in lieu with Government Regulation No.77 of 2007 regarding the Business Sectors that close and open with requirements for foreign investors. It is so-called the Negative List.

Then, the Foreign Investors shall apply for Initial Investment License to the Indonesia Coordinating Investment Board (“BKPM”). After BKPM approves the application, the Foreign Investors go to the Notary Public to draw up the Deed of Establishment (“DoE”). Then, the Foreign Investment Company (“PT PMA”) shall arrange the Domicile Letter to the Sub-Regency (“Kelurahan”). The next step is applying the Taxpayer ID Number (“NPWP”). The said PT PMA opens the bank account and transfer the capital to that account. The copy of transfer receipt is one of the required documents to apply the Legalization of DoE in Ministry of Laws and Human Rights (“MoLHR”). Further, PT PMA applies the Company Registry (“TDP”) to the Ministry of Trade.

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