how to invest and doing business in indonesia

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Investing in Indonesia ? Expand Successfully

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How to investing and doing business in Indonesia? According to your need, there are few options to establish a legal presence in Indonesia. The procedure will be done through the Indonesian Investment Coordination Board (BKPM) in the form of Limited Liability Company – Foreign Direct Investment (PT PMA) or Representative Office. 1. Limited Liability Company – Foreign Direct Investment (PT PMA) Limited Liability Company – Foreign Direct Investment (PT PMA) is the only form of company allowed for foreign investment. The first arrangement is to verify your business area in the Negative Investment List (DNI) to confirm if your business area is allowed for foreign investment, closed for foreign investment, or open with requirements. Download the complete negative list here. 2. Representative Office Representative Office is established mostly for marketing purpose, selling or buying agents, and market research. However, the main limitation of Representative Office is that you are not allowed to conduct direct sales and generate revenue. Thus, several foreign investors establish Representative Office to promote the company and start to grow the market before establish a Limited Liability Company. Feel free to contact us for further information and get a free quotation for Investing in Indonesia. Cekindo Menara BCA Grand Indonesia 50th fl, JL. MH. Thamrin No. 1, Jakarta Pusat 10310 - Indonesia Tel: +6221-5806889 Fax: +6221-5806893 Email: [email protected] www.cekindo.com

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Page 1: How to Invest and Doing Business in Indonesia

Investing in Indonesia ?Expand Successfully

Page 2: How to Invest and Doing Business in Indonesia

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?

Page 3: How to Invest and Doing Business in 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

Page 4: How to Invest and Doing Business in Indonesia

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

Page 5: How to Invest and Doing Business in Indonesia
Page 6: How to Invest and Doing Business in Indonesia

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

Page 7: How to Invest and Doing Business in Indonesia

Natural Resources of Indonesia

Page 8: How to Invest and Doing Business in Indonesia

How to Investing in Indonesia?

Page 9: How to Invest and Doing Business in Indonesia

Investment Step by Step

Step 1 : Preparation

Step 2 : Construction

Step 3 : Ready for Production/Operation

Page 10: How to Invest and Doing Business in Indonesia

Step to establish an Indonesian Legal Entity to conduct investment activities in Indonesia

Page 11: How to Invest and Doing Business 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.

Page 12: How to Invest and Doing Business in Indonesia

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.

Page 13: How to Invest and Doing Business in Indonesia

The procedure includes legal entity establishment also applying licenses of fiscal and non-fiscal facilities granted by government

Page 14: How to Invest and Doing Business in Indonesia

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.

Page 15: How to Invest and Doing Business in Indonesia

Ready for operation means a condition of completion on facilities / infrastructures in order of business implementation

Page 16: How to Invest and Doing Business in Indonesia

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

Page 17: How to Invest and Doing Business in Indonesia

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

Page 18: How to Invest and Doing Business in Indonesia

Get a free quotation for Investing in Indonesia

[email protected]+62 21 580 6889