Resources

  • Incorporation& Compliance
    • Foreign Ownership
      • Foreign entrepreneurs can set up a foreign direct investment company in Indonesia (commonly known as Penanaman Modal Asing, or PMA) either by setting up:
        • A limited liability company which is 100% foreign owned or
        • A limited liability company through a joint venture with Indonesian partners
          • In the case of a joint venture, the Indonesian partner is required to hold at least 5% of the shares while the foreign owner can have 95% shareholding in the company.
        • Additionally, the Indonesian government regulates the fields of business activity that are open to foreign investment. At present there is a list of business fields:
          • Closed to foreign investment
          • Open to foreign investment with certain conditions
          • Open to foreign investment only by way of a joint venture
          • Open to 100% foreign investment
        • Minimum Statutory Requirements
          • Foreigners who wish to incorporate a company in Indonesia must comply with the following requirements: a local registered address; at least 1 director (need not be a local resident); minimum of 2 and maximum of 50 shareholders (natural persons or corporates) and a commissioner. In addition, there is a minimum authorized capital requirement of USD 1.000.000 while the issued and paid-up capital requirement is 25% of the authorized capital.
        • Incorporation Procedure
          • Company incorporation in Indonesia is tedious and time consuming, taking up to 6 to 10 weeks to complete all formalities. The incorporation process involves the following steps:
            • Submit a company incorporation application along with supporting documents to the Capital Investment Coordinating Board (BKPM). Application processing takes around 2 to 5 weeks, upon which the BKPM will issue an in-principle business license valid for 3 years. During this period the foreign entrepreneur must make the necessary investment and begin commercial operations in Indonesia. Execute a Deed of Establishment (AktePendirian) which contains the company’s Articles of Association before a notary. The company is not a limited liability company at this stage. Obtain a Letter of Domicile from the landlord of the office premises and the regional government office (SKDP), which states the address of the company. Register with the tax office for a tax registration number (NPWP) and obtain VAT (an indirect tax of 10% applied to the selling price of goods and services). Submit the executed deed, letter of domicile, tax registration number and bank statement to the Ministry of Law and Human Rights (MOHLR) and receive approval within 4 to 6 weeks. Upon approval the company is considered a limited liability company. Register the approved deed with the Department of Trade (TDP). Obtain other relevant business licenses and permits, if applicable. Open a corporate bank account. Obtain a Business License (IU) from BKPM valid as long as the business viable.
          • Incorporation Time-line
            • In Indonesia it can take anywhere between 4 to 12 weeks to incorporate a company.
          • Annual Filing Requirements
            • In Indonesia, companies must submit annual returns along with audited annual accounts to the Companies Registry. Tax returns along with audited accounts must be filed with the Indonesian tax authority each year.
  • Establishing an Indonesian Limited Liability Company (PT PMA)
    • The common type of presence for a foreign investor who wants to invest and engage in business in Indonesia is by establishing an Indonesian incorporated limited liability company, commonly known as a PMA company
    • A PMA Company must be established in the form of a PT (limited liability company), and as a limited liability company, in line with the Company Law, the PMA Company must have at least 2 (two) founders or shareholders. The decision on whether it will be incorporated as a 100% foreign owned PMA Company or as a JV Company (JV here means cooperation with Indonesian partner) will be based on the business fields the foreign investor will enter, and the above-mentioned Negative List will serve as the guidance for foreign investors in determining their shareholding composition of the PMA Company.
      • Both a 100% foreign owned companies and JV companies must have an approval from BKPM to obtain a principle licence from the BKPM. This principle licence serves as an investment permit that authorises the foreign investor to establish the company 
Once the principle licence has been granted, a deed of establishment (which contains the articles of association of the company) can be drawn up before a notary. Once the deed of establishment has been signed by the founders or shareholders, the PMA company must apply and obtain ancillary licences (i.e., a certificate of company domicile and taxpayer registration number) from the relevant government authorities.
      • The deed of establishment must then be submitted (through the notary) to the MOLHR for approval. Once the deed of establishment has been approved, the PMA company obtains the status of a limited liability company. Next, the PMA company must be registered at the Company Registry Office (at the Ministry of Trade) to obtain a registration certificate. After obtaining the MOLHR’s approval and ancillary licences, the PMA company may open a bank account, and the founders must 
subsequently transfer the nominal amount of the shares they subscribe for to this bank account.
    • Management Structure of a PT. PMA
      • There are not regulations which specifically regulate on the nationality of the persons who hold a seat in the management board of a Joint Venture Company.
Under the Company Law, a PT‘s management structure is a two-tier management structure that comprises the Board of Directors (“BOD”) as the executive board and the Board of Commissioners (“BOC”) as the supervisory board. The BOC does not have an executive function or authority, except in the absence of all of the members of the BOD or in the event that all of the members of the BOD have a conflicting interest with that of the company.
      • The BOD is fully responsible for the management of the company in the interests of the company and in accordance with the purposes and objectives of the company. It is the organ that represents the company in and out of court in accordance with the provisions of its articles of association. The BOC is defined as the company’s organ that has the duty to conduct supervision and provide advice to the BOD.
      • Under Presidential Decree No. 75 of 1995 on the Use of Expatriate Manpower (“PD 75”), foreign nationals from any nationality can serve as members of the BOD or BOC in a foreign wholly owned or joint venture or PT. PMA.
    • Post Incorporation Legal Matters and Compliances Issues
      • Beside the above approvals/documents, there are other licenses/approvals/documents required. The licenses/approvals/documents required are among others, as follows:
        • Approvals for tax and custom facilities (which depend on the line of business the PMA 
Company might be granted) on imports of capital goods or raw materials;
        • Producer Importer Identification Number (if the PMA Company will be importing goods 
by itself);
        • Approval of the Foreign Manpower Plan and other related approvals/documents (if the 
PMA Company hires expatriates);
        • Location Permit (if the PMA Company will be acquiring land);
        • Nuisance Permit (if the location and the line of business of the PMA Company will cause 
a nuisance to its surroundings);
        • Building Permit (if the PMA Company is going to erect a building).
      • Please also bear in mind that certain business sectors might require a PMA Company to obtain a business license from the relevant technical ministry having tasks and responsibilities in the business sectors concerned.
    • Representative Office
      • Foreign companies are permitted to establish a representative office in Indonesia. However, unlike a PMA company, a representative office has more restrictions on its activities. A representative office can only perform marketing or promotion activities, market research and review of business opportunities in Indonesia. It cannot engage in any commercial activities or generating revenue in Indonesia.
      • Representative offices are available for foreign companies engaged in certain sectors which include trading, services, oil and gas mining and banking. An exception applies to representative offices of foreign companies engaged in construction services. This type of representative office is allowed to deliver construction services in Indonesia under a joint operation with a local construction company.
    • Branch
      • A branch office is generally not allowed, except for the banking sector.
    • Others
      • Other types of presence for conducting business in Indonesia include a Production Sharing Contract with the Indonesian government. This is common in the oil and gas mining upstream sectors.
A foreign company can also choose an indirect presence by appointing a local company as an agent or as a distributor to market and sell its products in Indonesia.
    • Land Rights
      • Indonesian land legislation does not recognise the concept of freehold land rights. Instead, various rights attached to land are divided into separate elements and areas subject to separate titles. The Basic Agrarian Law recognises several types of land rights:
        • The right of ownership (hakmilik) is an inheritable right that can be held only by Indonesian citizens.
      • For a company, including PMA company, there are three main rights where the differences lie in the rights duration of validity, the nature of utilisation, the opportunities to mortgage and proof of title:
        • Right of exploitation (hakgunausaha). This is a right to cultivate state-owned land for agriculture and plantation purposes. The duration is a maximum of 35 years, extendable for another 25 years.
        • Right of building (hakgunabangunan). This is a right to construct and own buildings. This right can be granted for a maximum of 30 years, extendable for 20 years and may be renewed at the discretion of the local government.
        • Right of Use (HakPakai) Foreign investors who have obtained mining rights from the Minister of Energy and Mineral Resources or the Minister of Forestry have automatically obtained the right to use the land within their concession boundaries for purposes directly connected with the operations of the companies.

All land rights should be registered at the Land Register at the National Land Agency (BadanPertanahan National – BPN).

 

VISA FREE SHORT VISIT FOR TOURIST

According to the Presidential Regulation No. 69 Year 2015 on Visa Free Short-Visit, the following countries do not require a visa to enter Indonesia for a short visit of up to 30 (thirty) days:

No. Country No. Country No. Country
1 Albania 57 Grenada 113 Paraguay
2 Algeria 58 Guatemala 114 Peru
3 Andorra 59 Guyana 115 Philippines
4 Angola 60 Haiti 116 Poland
5 Antigua and Barbuda 61 Honduras 117 Portugal
6 Argentina 62 Hong Kong SAR 118 Puerto Rico
7 Armenia 63 Hungary 119 Qatar
8 Australia 64 Iceland 120 Romania
9 Austria 65 India 121 Russia
10 Azerbaijan 66 Ireland 122 Rwanda
11 Bahamas 67 Italy 123 Samoa
12 Bahrain 68 Jamaica 124 San Marino
13 Bangladesh 69 Japan 125 Sao Tome and Principe
14 Barbados 70 Jordan 126 Saudi Arabia
15 Belarus 71 Kazakhstan 127 Senegal
16 Belgium 72 Kenya 128 Serbia
17 Belize 73 Kiribati 129 Seychelles
18 Benin 74 Kuwait 130 Singapore
19 Bhutan 75 Kyrgyzstan 131 Slovakia
20 Bolivia 76 Laos 132 Slovenia
21 Bosnia and Herzegovina 77 Latvia 133 Solomon Island
22 Botswana 78 Lebanon 134 South Africa
23 Brazil 79 Lesotho 135 South Korea
24 Brunei 80 Liechtenstein 136 Spain
25 Bulgaria 81 Lithuania 137 Sri Lanka
26 Burkina Faso 82 Luxembourg 138 St Kitts and Nevis
27 Burundi 83 Macau SAR 139 St Lucia
28 Cambodia 84 Macedonia 140 St Vincent & Grenadines
29 Canada 85 Madagascar 141 Suriname
30 Cape Verde 86 Malawi 142 Swaziland
31 Chad 87 Malaysia 143 Sweden
32 Chile 88 Maldives 144 Switzerland
33 China 89 Mali 145 Taiwan
34 Commonwealth of Dominica 90 Malta 146 Tajikistan
35 Comoros 91 Marshall Islands 147 Tanzania
36 Costa Rica 92 Mauritania 148 Thailand
37 Cote D’Ivoire 93 Mauritius 149 Timor-Leste
38 Croatia 94 Mexico 150 Togo
39 Cuba 95 Moldova 151 Tonga
40 Cyprus 96 Monaco 152 Trinidad & Tobago
41 Czech Republic 97 Mongolia 153 Tunisia
42 Denmark 98 Morocco 154 Turkey
43 Dominican Republic 99 Mozambique 155 Turkmenistan
44 Ecuador 100 Myanmar 156 Tuvalu
45 Egypt 101 Namibia 157 Uganda
46 El Salvador 102 Nauru 158 Ukraine
47 Estonia 103 Nepal 159 United Arab Emirates
48 Fiji 104 Netherlands 160 United Kingdom
49 Finland 105 New Zealand 161 Uruguay
50 France 106 Nicaragua 162 USA
51 Gabon 107 Norway 163 Uzbekistan
52 Gambia 108 Oman 164 Vanuatu
53 Georgia 109 Palau 165 Vatican City
54 Germany 110 Palestine 166 Venezuela
55 Ghana 111 Panama 167 Vietnam
56 Greece 112 Papua New Guinea 168 Zambia
169 Zimbabwe

 

  • Please note that this visa waiver scheme is non-extendable and cannot be converted into other visa types.
  • Visa on Arrival
    • Nationals of the following countries are eligible to apply for a paid and extendable Visa on Arrival upon arrival at designated Airports/Seaports in Indonesia.

 

VISA ON ARRIVAL

Nationals of the following countries can apply for their Transit (7 days maximum stay) and/or Tourist visa upon arrival at the following Airports/Seaports in Indonesia for a maximum visit of 30 days:

No. Country No. Country No. Country
1 Algeria 24 Greece 47 Poland
2 Andorra 25 Hungary 48 Portugal
3 Argentina 26 Iceland 49 Qatar
4 Armenia 27 India 50 Republic of Korea
5 Austria 28 Ireland 51 Romania
6 Australia 29 Italy 52 Russia
7 Bahrain 30 Japan 53 Saudi Arabia
8 Belarus 31 Kuwait 54 Seychelles
9 Belgium 32 Latvia 55 Slovakia
10 Brazil 33 Libya 56 Slovenia
11 Bulgaria 34 Liechtenstein 57 South Africa
12 Canada 35 Lithuania 58 Spain
13 China 36 Luxemburg 59 Suriname
14 Croatia 37 Maldives 60 Sweden
15 Cyprus 38 Malta 61 Switzerland
16 Czech Republic 39 Mexico 62 Taiwan
17 Denmark 40 Monaco 63 Timor-Leste
18 Egypt 41 Norway 64 Tunisia
19 Estonia 42 Netherlands 65 Turkey
20 Fiji 43 New Zealand 66 United Arab Emirates
21 Finland 44 Oman 67 United Kingdom
22 France 45 Panama 68 United States of America
23 Germany 46 Papua New Guinea

 

  • There are two types of Visa on Arrival: a Transit visa for a maximum stay of 7 days and a Tourist visa for a maximum visit of 30 days, which may be extended for a 1 (one) time for a period of 30 (thirty) days when you are already in Indonesia.
  • Business Visa
    • This visa is given by the Indonesian Embassy to applicants visiting Indonesia for normal business activities (including attending a conference/seminar) which do not involve taking up employment or receiving any payments whilst in Indonesia.
    • Type of entries :
      • Single Entry :
        • Maximum length of stay is 60 days
        • Extensions can be applied for and obtained in Indonesia from the Immigration Authorities
      • Multiple Entries :
        • Issued upon authorization of the Immigration Office in Indonesia.
      • Please Note: It is suggested that the applicant’s counterpart in Indonesia should apply locally on his/her behalf.
      • Based on a written approval from the Immigration Authority, the applicant will then apply for the issuance of visa by submitting the required documents.
      • Valid for up to 12 (twelve) months.
      • Applicant’s business sponsor in Indonesia needs to apply locally or his/her behalf.
      • Applies for business purposes only.
      • Validity of visa will be three months from the date of issue.
        • NOTE: This is the period by which you will have to use the visa to enter Indonesia before it expires, as shown in the Expiry Date. The visa itself will be valid for 60 days (for single entry) from the date of arrival.
      • Social/Cultural Visit Visa
        • This visa is issued by the Indonesian Embassy to applicants who are going to Indonesia for a social/cultural visit, such as visiting relatives/friends; social organizations; exchange visits between educational institutions and attending study and training programme in Indonesia.
        • Type of entry : Single Entry
        • Maximum length of stay is 60 days.
        • Extensions can be applied for and obtained in Indonesia from the Immigration Authorities.
        • Approval from the Immigration Office in Indonesia is needed for applicants who wish to stay longer than 60 days which must be applied for by the applicant’s sponsor/relative/friends who reside/based in Indonesia. Visa will only be issued by the Embassy after receiving the authorization/approval from the Immigration office in Indonesia.
        • A person granted a student, research or training visa is not permitted to take up employment, and may not remain in Indonesia for any purpose other than that for which the visa was granted.
        • Multiple entries need special permit from the Immigration Office in Indonesia.
        • Validity of visa will be three months from the date of issue. NOTE: This is the period by which you will have to use the visa to enter Indonesia before it expires, as shown in the Expiry Date. The visa itself will be valid for 60 days (for single entry) from the date of arrival
      • Permanent Residence Permit (KITAP)
        • KITAS Visa holders can apply for a KITAP Visa or permanent residence visa after five years. It is valid for a total of 25 years, and every five years it has to be re-validated.
        • Only a retired person does not need a KITAS Visa to apply for a KITAP Visa.
        • Local immigration offices determine how each KITAP Visa is granted. A person should contact their local immigration office for specific information.
        • The visa conversion is initiated with a formal letter to immigration requesting a conversion at the same time as a KITAS Visa is renewed.
        • Usually, the following holders of a KITAS Visa are eligible for a KITAP Visa:
          • Foreign spouse of a foreigner with a KITAP Visa
          • Foreign spouse of an Indonesian husband or wife
          • Legitimate child with a foreign passport who wishes to join an Indonesian parent
          • Legitimate foreign child under 18, unmarried, wishing to join a foreign father or mother who has a KITAP Visa
          • Investors
          • Foreign expert in a rare area of expertise
          • Foreign manager of a company operating in Indonesia
          • Foreign church official with religious duties in Indonesia
          • Retired foreigner
        • KITAP Visa holders can add their names to the Family Identity Card or Kartu Keluarga(KK), which is an official family card registered with the Indonesian government. The KK is very important for the application of inheritance laws because it verifies:
          • Property owned by a family
          • Blood relatives
        • Indonesian Citizenship
          • A foreign citizen can apply to become an Indonesian citizen with the following requirements:
            • being the age of 18 years or older, or being married
            • when applying, having resided in Indonesian for a minimum of 5 consecutive years or 10 non consecutive years
            • physically and mentally healthy
            • can speak the Indonesian language and acknowledge Pancasila and Undang-Undang Dasar Negara Republik Indonesia Tahun 1945
            • never convicted of a crime for which the punishment is imprisonment for one year or more
            • if having Indonesian citizenship will not give the person dual citizenship
            • employed or have fixed income
            • pay the citizenship fee