March 5, 2020

Step by Step Creating A Business
in Indonesia 2020

The Indonesian Government just made business-friendly policies to enhance Indonesia’s Economic and Investment Climate. The new policies seem to support foreign investors and companies to create a business in Indonesia easily and safely. There are 3 types of legal entities in Indonesia which are foreign-owned company (PT PMA), local-owned company (PT), representative office (RO). For those who are foreign investors, you can choose the PMA types to create a business in Indonesia, and here is the step by step to get prepared on it:

Company Structure

To get started, you should have the right company structure that includes at least directors and commissioners. Both can be foreigners. 

Approval Company Name

Let’s think about the company name. Recommended doing research a name that suits your business before you register your company. But you should remember that if you register as a PMA in Indonesia, your company name only can be approved if it contains 3 words.

Principle License

To have a principle license, you should send an application and your own investment plan. Your investment realizations should above IDR 10,000,000,000. The Indonesian Investment Coordinating Board (BKPM) team will review and revise your investment plan. As an approval, the BKPM will issue your principle license as your temporary license permit.

Article of Association

Right after you’ve got your principle license, you are now granted to create your PMA by organizing an Article of Association using notary services.

Legal Entity

To legalize the article of association done, the Indonesian Ministry of Law and Human Rights should give approval, and you automatically get a legal entity.

Certificate of Domicile

The certificate of Domicile is required to show your company or business location. You can get this document from your office building landlord and from the Sub District.

Getting NPWP

Your company should have a Taxpayer Registration Number which is usually called NPWP in Indonesia, as well as a letter of registered tax.

Company’s Identity Number

A PMA should have a company identity number. You can obtain it from the Provincial Government after registering your company officially in the area.

If you are planning to build PMA, want to invest in Bali, or need a land to build an office in Bali, we have a list of Bali land for sale, managed by our land division team, Mirah Commercial. We also have a legal team that is able to help you create a business in Indonesia, especially in Bali, from scratch. 

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