how to invest and doing business in indonesia
Post on 22-Apr-2015
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Investing in Indonesia ?Expand Successfully
Indonesia as the biggest archipelago and the third largest democracy in the world
Indonesia is showing its’ rightful position as a major destination for your investment
Why Indonesia?
Indonesia is the 4th most populous nation in the world
Demographic advantage of the 251 million people:• Over 50% of the population is under 29 years old• 60% of the population is under the age of 39• Around 52% of the population living in urban areas• Indonesia’s population covers more than 39% of total population
of 10 Southeast Asian countries
Economy of Indonesia
Indonesia is an emerging global powerhouse in Asia
Indonesia is the largest economy in Southeast Asia
Indonesia is a country that contains great economic potential
Indonesia is going to hold general elections this year
2014
Underlying Indonesia’s vibrant economy is political stability
Indonesia is a constitutional democracy
Indonesia is one of the most decentralized
countries in the world
Politic of Indonesia
Natural Resources of Indonesia
How to Investing in Indonesia?
Investment Step by Step
Step 1 : Preparation
Step 2 : Construction
Step 3 : Ready for Production/Operation
Step to establish an Indonesian Legal Entity to conduct investment activities in Indonesia
Step 1 : PreparationPreparation is the step to establish an Indonesian Legal Entity to conduct
investment activities
Principal License
Principal license of investment is a license granted by the Central Government / Provincial Government / Municipality Government as an initial government approval that must be obtained before conducting investment in Indonesia
Deed of Establishment by the Notary
- Deed of establishment is arranged by the notary in Indonesia in order to establish an Indonesian Legal Entity.- In the case of a foreign capital investment, the legal entity shall be in the form of a Limited Liability Company (LLC).
Ratification of Legal Entity
by Minister of Law & Human Rights of the Republic of Indonesia
- The Deed of Establishment is subsequently processed by the Notary in Indonesia to obtain ratification from Minister of Law & Human Rights of the Republic of Indonesia.- After ratification, the Legal Entity shall become a valid Indonesian Legal Entity.
Step 1 : PreparationPreparation is the step to establish an Indonesian Legal Entity to conduct
investment activities
Certificate of Domicile
Certificate of Domicile is used in relation to the Double Taxation Avoidance Agreement (Tax Treaty). Certificate of Domicile is used to prove that a particular taxpayer is a residence of a State who signed Tax Treaty.
Tax Payer Registration
Number
The Tax Registration Number (In Indonesian term is called Nomor Pokok Wajib Pajak or NPWP) is a number issued to Taxpayers by the tax office to identify taxpayers and to assist them in fulfilling their taxation rights and obligations.
Company Registration Certificate
Company Registration certificate or further called as TDP (Tanda Daftar Perusahaan), is a certificate of authorization presented by office company registration to the applicant/company that has been registered.
The procedure includes legal entity establishment also applying licenses of fiscal and non-fiscal facilities granted by government
Step 2 : ConstructionConstruction is the step in preparing facilities, infrastructures and licensing / non-licensing
arrangements for capital investment
API-P
Facility for Import Duty Exemption on
Machinery
Facility for Corporate Income Tax (PPh Badan)
API-P (Producer Importer Identification Number) is an identity number that a Company must have to conduct importation of goods which will be used by the company itself as capital goods, raw materials, auxiliary materials, and or materials to support production process.
Import duty exemption on machinery granted by the government to a company in certain business field.
Facility for Corporate Income Tax (PPh Badan) given by the government could be in the form of Tax Allowance or Tax Holiday.
Regional LicenseOn investment implementation, the company is required to have a regional license in project location issued by the regional government (Province/Municipality/District).
Operation PermitOn investment implementation, the company is required to have Operations Permit, which is a permit on the technical aspects of its business field.
Ready for operation means a condition of completion on facilities / infrastructures in order of business implementation
Step 3 : Ready for Production/OperationReady for Production/Operation is the stage where the company is ready to conduct
production activities or to conduct operational activities
Business License
- Business License is a permit granted by Government / Provincial Government / Municipality Government, which is required to be obtained in order to start production / operational activities to produce goods or services, unless stated by the sector regulations.
- To get Business License, a company submits application of Business License to the institutions that implement One Stop Service according to its authority.
- Having obtain Business License, Trading Companies may submit application of General Importer Identification Number (API-U).
- Companies who use Import Duty Facilities on Machineries may submit the Exemption Import Duty Facilities on Goods and Materials
Indonesia is always the right place to develop your business. That might be the
most exact statement to sum up
You can see Indonesia as a promising investment opportunities which are ripe, from the infrastructure and manufacture in all sectors
Get a free quotation for Investing in Indonesia
info@cekindowww.cekindo.com+62 21 580 6889
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