If your business field is open to foreigners, you can set up a foreign-owned company (PT PMA) in Indonesia as a foreigner. Find out more about the restrictions and eligibility of Positive Investment List.

PT (Perseroan Terbatas) is the Indonesian term for a limited liability company.

Limited liability company with foreign direct investment ranging from 1-100%.

Limited liability company with 100% local/domestic direct investment.

CV (Commanditer Vennootschap) is a proprietary business entity that houses several individuals who run a business.

No.

According to Law No. 25/2007 on Investment, foreign investors must establish a PT PMA company to make direct investments and conduct commercial and business activities in Indonesia.
A PT PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations.
As for RO, its purposes include conducting market feasibility studies and liaison activities.
Consult with us if you need more info.

The minimum paid-up capital should be deposited once the company completes its establishment process after receiving the Article of Association and Deed of Establishment.

Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner.

To provide accurate pricing information for our company registration service, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For detailed information, please contact our consultants.

• PT: limited liability company (shareholders are not legally liable for company liabilities).
• CV: a proprietary company where liability falls on the shareholders.

Two shareholders.

Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information. They must approve significant matters through general meetings of shareholders with specified quorums, including:

• Amending articles of association
• Changing share capital
• Appointing or dismissing directors and commissioners
• Approving major transactions, dividends, and financial statements
• Company reorganization

Yes, if it is a PMA.

Yes.

No.

Take responsibility and make every decision for the company.

Supervise and monitor the directors’ work to ensure every activity is completed and the decisions are coherent with the Shareholders’ goals.

No.

Yes.

Yes.

No.

The investment requirement for PMA companies in Indonesia varies based on their classification under the Indonesia Industrial Standard Classification (KBLI). Generally, a minimum investment of IDR 10,000,000,000 (ten billion Indonesian Rupiah), excluding investment in land and buildings, is needed to conduct one business activity in one location.

Yes, the government will check IDR 10,000,000,000, the minimum paid-up capital. Fulfilling this requirement is a must.

• Small: IDR 50 million – 500 million.
• Medium: IDR 501 million – 10 billion.
• Large: more than IDR 10 billion.

There is no maximum requirement; however, we recommend having 2-3 Directors and appointing a President Director for a small company.

Yes.

A low-cost set of services that facilitate remote work while maintaining a business address to present to customers.

A regular physical office where you can sit and work.

A term for Representative Office.

No, Representative Offices must be situated in the provincial capital, e.g., Jakarta, Bandung, Surabaya, Denpasar, etc.

None.

Yes.

No, KPPA is strictly prohibited from doing so.

KPPA license does not have a validity period, meaning it is valid as long as the KPPA operates.

No.

2-3 Weeks.

2-3 Weeks.

OSS, or Online Single Submission, is a business licensing system integrated electronically with all ministries and state agencies.

IU or Izin Usaha is the business permit.

SIUP, or Surat Izin Usaha Perdagangan, is the operational license for businesses involved in retail and trading.

TUDP, or Tanda Daftar Usaha Pariwisata, is the operational license for tourism-related businesses, such as restaurants, hotels, and bars.

IUI, or Izin Usaha Industri, is the operational license for manufacturing companies.

NIB or Nomor Induk Berusaha is the business identity number.

Yes.

One day.

No. This could be shown in the form of a balance sheet.

No, bank account setup is done once the company has been incorporated.

No.

Yes.

Klasifikasi Baku Lapangan Usaha Indonesia or the Indonesian Business Classification Number.

No, we will help you with the process.

There is no maximum requirement. However, you must show an investment plan of IDR 10 billion for each KBLI registered in the OSS system.

Any changes in the Deed of Incorporation will result in a deed amendment and an update to the OSS system.

0.5% of annual revenue for the first three years, 22% of annual profit afterward.

Only if your company generates more than IDR 4.8 billion in revenue annually.

Laporan Kegiatan Penanaman Modal or the Quarterly Investment Activity Report.

Yes.

IDR 1 billion.

No, but he/she is eligible for the Work Permit KITAS.

KITAS is the Indonesian stay permit.

No, you cannot. A business visa can only be used for business purposes, such as attending business meetings, seminars, exhibitions, or training.
To work in Indonesia, you must apply for a work permit and a limited (KITAS) or permanent (KITAP) stay permit.

Of course. Your ITAS can be extended for up to five years.

To be eligible, you must have a minimum of IDR 10 billion in authorized capital, IDR 10 billion in paid-up capital, and IDR 1 billion in personal shares.

You will need to be at least 55 years of age and will not work to earn income in Indonesia. Consultation on further requirements is necessary.

Red background photo, passport copy, latest diploma, minimum 5-year work experience, and insurance.

An Indonesia Family KITAS/ITAS is issued to family members. They can be a spouse and/or children under 18 years of age. It is illegal to work in Indonesia with a family of KITAS/ITAS. To work legally, a Work ITAS is required.

To provide accurate pricing information for our visa and immigration consultation services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For pricing details, please talk to our consultants.

This is the type of KITAS you’ll get if you own shares in a company and hold a position as a Director or commissioner.

1 year for C313 and 2 years for C314. Both are extendable.

3-4 weeks for C313 & C314; 6-8 weeks for C312.

Thirty months for the 2-year Investor KITAS and 18 months for the 1-year Investor KITAS.

Thirty months for the 2-year Investor KITAS and 18 months for the 1-year Investor KITAS.

No.

It is the type of KITAS you’ll get if you work for a company established in Indonesia.

No, you can only work for the company that sponsors your KITAS.

NPWP, BPJS Health and Social Welfare.

Tax identification number.

Employee’s health & social welfare.

No, you are only allowed to work based on the location stated in your KITAS.

The Dependent KITAS (C317).

Marriage or civil union certificatean d your child’s birth certificate.

No.

Only your spouse and your children under the age of 17.

No, parents are not considered dependents.

Yes, submitting monthly and annual tax reports is mandatory even if your company does not have any business activities, thus zero taxes.

You will receive an administrative penalty for delaying or not filing the tax report correctly and promptly. To avoid this, it is best to hire a local third party, such as InCorp Indonesia, to handle your taxation matters in Indonesia.

Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee share a certain percentage. The other obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us for information on your specific field.

The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information can be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia.

To provide accurate pricing information for our finance, accounting, and tax services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For pricing details, please talk to our experts.

Before you can distribute your products in Indonesia, you will have to register your product with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). Only an Indonesian legal entity can register the product.
If you decide to distribute your product via a local distributor, they will register the product under their entity in Indonesia and become the product license holder. InCorp Indonesia can act as your local distributor and register the product under its name.

Yes and no. It is very important to choose a reliable distributor, as they will register the product under their company and become the product license holder and import license holder. It is difficult to change the local distributor if you are not satisfied with the cooperation.

You can transfer the license if your local distributor agrees to change the product license holder.

You must register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months.

The Indonesian Halal bodies recognize some of the international halal certifications. Nevertheless, since there might be differences in the standards each certification body uses, halal certification in Indonesia still needs to be processed.

Yes, if they are halal. Law no. 33 of 2014 states that all halal products distributed in Indonesia that are not halal certified will be considered as non-halal since October 2019. Further information can be found in Halal Certificate Registration InCorp Indonesia.

To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please contact our consultants.

• Minimum salary of IDR 3.9 million for the Jakarta region
• 12-day annual leave (minimum)
• BPJS coverage
• Holiday allowance

As your HR outsourcing provider, InCorp Indonesia signs a standard employment agreement with an outsourced employee. We then coordinate with your company to take care of the employee’s payroll and pay the salary.

• Employee income tax article 21
• VAT on both service invoice and salary invoice
• 2% recovery tax on salary invoice

As a professional executive search agent, InCorp Indonesia helps promote job vacancies, screen, and shortlist applicants, conduct pre-interviews, and arrange final interviews with applicants. This can also be topped up with an employee background check.

According to Indonesia’s Manpower Law, employers can hire Indonesian talents on a temporary or permanent contract.

In addition to the agreed-upon salary, employers also typically offer some other compensations such as overtime pay, paid annual leave, festive holiday leave, and insurance.

• Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates.
• Increase the competence of the workers by giving or encouraging job training.
• Follow the termination procedures (Terminating an employee in Indonesia can be long, tedious, and expensive)
• Observe the working hours, holidays, and overtime regulations
• Give mandatory employee benefits, including social security and health insurance
• Withhold only the right amount of income tax on behalf of the employees
• Follow the wages and other benefits outlined by the law
• Process the work permits for foreign employees

To provide you with accurate pricing information for our HR outsourcing services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, please contact our consultants.