Setting Up Company in Indonesia
As an archipelago with diverse cultures, Indonesia has tremendous development and investment potential. Its cultural diversity is well known throughout the world, making Indonesia always explore itself to welcome foreign tourists and investors. So that they do not close themselves to citizens who want to invest in Indonesia.
There have been many large companies or PT PMAs that will set up companies in Indonesia because of the potential that Indonesia has.
Is it Difficult to Set Up a PMA company in Indonesia?
Currently, many foreign companies want to invest and even Setting Up companies In Indonesia, but some are worried about the complicated licensing process, so they are worried that it will take a lot of time and money.
This does not need to be an excessive concern, because the Indonesian government has opened opportunities for foreign investors to set up companies in Indonesia with easier requirements, and is assisted by a consulting service company that can help the licensing process to save time and energy. We are BINKA Consulting – sure can help you to setting up company in Indonesia.
5 PMA Companies committed to Set Up in Indonesia
There are five investments from foreign companies that will be Setting up Company In Indonesia, including :
2.Shanghai Electric Group Corp.
There are many more companies that want to sign cooperation agreements and Setting Up companies in Indonesia or invest in Indonesia. Including the global electric car company TESLA, they will invest heavily, namely the construction of an electric car battery factory in Central Java.
Procedure Setting Up Company In Indonesia
Make sure your company has the completeness of a general PT establishment, such as:
- Deed of the establishment of PT
- Decree of the Minister of Law and Human Rights regarding the legal entity PT
- Have a company NPWP
To be able to determine a company in Indonesia, your company must meet the requirements for investment value and capital to obtain an investment permit, namely:
has a net worth of more than Rp. 10 billion excluding land and buildings for business based on the latest report or has annual sales proceeds of more than Rp. 50 billion based on the latest financial statements;
has an investment value greater than IDR 10 billion, excluding land and buildings; has a capital value equal to paid-up capital, at least Rp 2.5 billion.
Regarding the proportion of share ownership, it is calculated based on the nominal value of the shares, and for each shareholder, the share ownership is at least Rp. 10 million.
Requirements To establish a PT PMA in Indonesia
1. Name reservation at the Minister of Law and Human Rights
Every company that wants to Setting Up a company in Indonesia is obliged to register its name first. Registration of a new company name begins by first checking whether the name is still available or not. The name reservation is made through a notary who will make a PT Establishment Deed in the Legal Entity Administration System (SABH) of the Ministry of Law and Human Rights (It usually takes 1 day for company name registration.)
2. Lease agreement for office
After we know the name of the company, whether it is still available or not, of course, you need a location as a place of business as well as a place to register your company location, because this is one of the requirements for establishing a foreign company in Indonesia. Don’t worry, you can rent it. All you have to do is come to a shopping center or office, ask if space is available for your office – and sign a leasing agreement and contract. Usually, this will take about 2-3 days).
3. Deed of Establishment (Deed of Establishment)
Requirements for the purpose of making a deed of the establishment include documents including:
- Photocopy of KTP owned by the company founder at least two people
- Photocopy of KK (family card) of the person in charge, as well as a photo of the person in charge, photocopy of PBB in the last year.
The process of making this Deed will take approximately 2 to 4 days.
4. Approval of the Minister of Law and Human Rights
Decree of the Minister of Law and Human Rights regarding the legalization of the legal entity status of a PT, a copy of the company’s Deed of Establishment and amendments along with the approval from the Minister of Law and Human Rights for the applicant to be an Indonesian business entity, this legalization process can take 3 to 5 days
5. Taxpayer Identification Number (NPWP)
Making the NPWP process can be 3 or up to 5 days, the conditions :
- Photocopy of Passport;
- Photocopy of Temporary Stay Permit Card (KITAS) or Permanent Stay Permit Card (KITAP); and
- Select one of the following documents :
A stamped statement from the taxpayer stating that the business activity or free work is carried out and the place or location of the activity or free work is carried out, or a written or electronic letter from an online application service provider stating that the taxpayer is a business partner for providing online application services.
6. Online Access (OSS) for NIB (Business Registration Number)
Have a Business Identification Number (NIB) and other business licenses that can be submitted using the Online Single Submission (OSS) or BKPM system according to the company’s business sector. NIB is a business actor that is issued by the OSS Institution after the business actor has registered, the process is only 1 day.
What is the procedure for using OSS?
- Create a user-ID
- Log-in to the OSS system using a user ID
- Fill in data to obtain a Business Identification Number (NIB)
What do you need to know before accessing OSS?
- Provisions regarding the list of closed business fields and open business fields with conditions in the investment sector (negative investment list)
- AMDAL compulsory business criteria based on Minister of Environment and Forestry Regulation Number 5 of 2012.
7. Business Registration Number (TDP)
Customs Access Company Registration Certificate (TDP), if the business actor will carry out export and/or import activities, the processing time is 1 day.
8. Import Identification Number & Custom Access
Import Identification Number (API), if a business actor will carry out import activities, the processing time is 1 day:
- NIB is the identity of a business actor issued by the OSS Institution after the business actor has registered. NIB also acts as Company Registration Certificate (TDP)
- Import Identification Number (API), if the business actor will carry out import activities
- Customs Access, if the business actor will carry out export and/or import activities.
9. Health and Security Registration System (BPJS)
After the registration of the Business Entity is complete, the next process is the registration of BPJS Health recipient employees online via e-DABU (the BPJS Kesehatan Company application) and the time for the management is tentative.
10. Publication in Supplement to the State Gazette (BNRI)
If a Decree of the Minister of Law and Human Rights has been issued regarding the legalization of the status of a PT legal entity, then the announcement in the Supplement to the State Gazette of the Republic of Indonesia will be carried out within 14 (fourteen) days from the date the Ministerial Decree regarding the legalization of the Company’s legal entity status is issued.
11. Registration at the Ministry of Manpower (Mandatory report on Law No. 7/1981)
The Ministry of Manpower has launched an online compulsory labor report which can be accessed through the https://wajiblapor.kemnaker.go.id/ page. Mandatory labor reports are regulated in Law No.7 of 1981 concerning Obligatory Labor Reporting in Companies.
12. Register for the Workers’ Social Security (Jamsostek) and HealthCare Security (BPJS) Programs
Requirements for Participants in the BPJS for Manpower and Health: (the duration of the management is tentative)
- Photocopy and original SIUP (Trading Business License)
- Photocopy and original of the Company’s NPWP
- Photocopy and original of the Company’s Trade Deed
- Photocopy of KTP (Identity Card) of each employee,
- Photocopy of KK (Family Card) of employees/workers to be registered,
- 1 sheet of a color photo of employee/worker, size 2 × 3.
Those are the procedures or requirements if you want to open a company in Indonesia, if you want everything to be completed on time, the legality is clear, and does not take a lot of time and money, please contact us, we are ready to help you.
We always provide solutions for you!
Right now, you may be completely new to Indonesia, but are very interested and interested in exploiting the enormous market potential with cheap labor and abundant raw materials in Indonesia. You want to start a company in Indonesia immediately, but the things above are quite confusing. How not, you need time to survey the rental business premises. You also need to know the strategic office location with reasonable rental prices, as well as various other knick-knacks. Of course, beforehand you need to come and arrive in Indonesia before starting all these processes, at a cost that is also not small.
So, why not give us all the confusing problems above, Binka Consulting? We are a consulting company that is always focused on serving the needs of those of you who want to set up a company in Indonesia. Of course what we do will save you a lot of money and time, and save you a lot of trouble due to things you don’t know about, or the complicated procedures for setting up a company in Indonesia.
What benefits will you get if you use our services?
Besides benefiting you, we also have a guarantee of success in helping you to set up a company in Indonesia. You just have to contact us and tell us your needs. Wait a few days then your company management process is complete. You just have to come to start your company and manage your own management. It’s easy, practical, cost-effective, and fast. There is no easier way out than what we offer you to set up a company in Indonesia.
We are BINKA Consulting. We are experienced and professional to help many foreign companies set up companies in Indonesia. BINKA Consulting will assist you in obtaining a valid 100% Approval from the Foreign Investment and the Establishment of a Private Limited Company (PT) including work and residence permits for foreigners in Indonesia. We aim to ensure minimum costs and maximum efficiency are provided for all of our clients.
Even when you read this article and ask your colleagues who have established a company in Indonesia, they will mention our name. Of course, because our clients are spread in almost all regions of Indonesia. There are already hundreds who have founded companies in Indonesia. We are a trusted company with the number one reputation for establishing foreign company services in Indonesia.
Don’t delay anymore, contact us immediately, and start setting up your company in Indonesia. We are ready to help you whenever you need to setting up company in Indonesia.
If you have any queries about your project, feel free to contact us on the below information !! We will get back soon within 24 hours to you !! Start your business in Indonesia – otherwise let us help to setting up company in Indonesia.
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