Subject to Income Tax in Indonesia

Income tax is imposed to an individual or individuals and entities with regard to their income received or accrued during the tax year. Subject to Tax e.g.: a. 1) Individual; 2) Undivided inheritance as a single unit in lieu of the right of the heirs: Undivided inheritance as a   single unit is subject to the … Continue reading Subject to Income Tax in Indonesia

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Can Foreigners Open Restaurant in Indonesia

Foreigners can open restaurants in Indonesia. However, foreigners must have an Indonesian Partner(s). Based on the negative list regulation (Government Regulation 36/2010) on List of Business that opens/closes for the Foreign Investment, stipulates that the composition of shares of the Foreigner(s) is maximum 51% for restaurant industries. The foreigner(s) and Indonesian partner(s) enter a joint venture … Continue reading Can Foreigners Open Restaurant in Indonesia

Waiving Article 1266 and Article 1267 Indonesia Civil Code

Most of agreements in Indonesia stipulate the waiver of Article 1266 and 1267 Civil Code because in the event of default or non-fulfillment of agreements by one of Parties, then: a. The parties do not have to obtain the Court approval in order to terminate the Agreement. The termination of agreement can be conducted with … Continue reading Waiving Article 1266 and Article 1267 Indonesia Civil Code

The New Draft of Negative List of Investment in Indonesia

I attended briefing meetings of the new draft of Negative List of Investment in Indonesia couple weeks ago. Mr. Gita Wirjawan, the Head of Coordinating Investment Body of Indonesia ("Badan Koordinasi Penanaman Modal or BKPM")  gave insight overview on the said draft. He stated that the new negative list of investment will be issued soon. … Continue reading The New Draft of Negative List of Investment in Indonesia

New Regulation on Import License in Indonesia

Ministry of Trade issued a new regulation on the Import License (Ministry of Trade No.45/M-DAG/PER/9/2009 which came into effect on January 11, 2010. The Company that holds the Limited Import License or APIT-U must conduct adjustment to this regulation within one (1) year after this law came into effect. With APIT-U, the Company can import … Continue reading New Regulation on Import License in Indonesia

NEW BKPM REGULATIONS ON GUIDELINES AND PROCEDURES FOR INVESTMENT APPLICATIONS

The Investment Coordinating Body of Indonesia ("BKPM") issued BKPM Regulation No. 12 of 2009 regarding Guidelines and Procedures Application (December 23, 2009) (“BKPM Reg 12/09”) that replaced the previous BKPM Regulations on the Guidelines and Procedures for Investment Applications under Domestic and Foreign Investments. There are several points to be highlighted amongst others: the application … Continue reading NEW BKPM REGULATIONS ON GUIDELINES AND PROCEDURES FOR INVESTMENT APPLICATIONS

The Obligation of Foreign Investment Company in Indonesia

After the Foreign Investment Company (“PT PMA”) has been approved by Ministry of Laws and Human Rights (“MoLHR”), it means that PT PMA is duly established in Indonesia. PT PMA should take the following obligations. Corporate Housekeeping There are several corporate actions must be conducted by PT PMA. PT PMA must held First Meeting of … Continue reading The Obligation of Foreign Investment Company in Indonesia