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How a Foreigner can Run an Indonesian Company without Having to be in Indonesia

Home » Blog » How a Foreigner can Run an Indonesian Company without Having to be in Indonesia

In recent years, an increasing number of international enterprises have looked into starting a business in Indonesia.

Foreign investors who are thinking of starting a business in Indonesia quickly discover that this tropical country is actually one of the best countries in Southeast Asia to expand their businesses and make important connections.

Blessed with rich natural resources, population and strategic location, the nation presents abundant business opportunities for both locals and foreigners.

For foreign investors to run a successful business in Indonesia, a legal entity known as foreign-owned company, or PT PMA must be established.

Alternatively, foreigners can opt for representative offices or Special Purpose Vehicle (SPV). SPV or representative offices are sometimes better options for foreigners if they need to overcome the restrictions of setting up a PT PMA in Indonesia and want to run a business from abroad.

Cekindo will elaborate these two options in this article and what their benefits are.

Why Invest in Indonesia

Indonesia has been known as one of the ideal places for starting a business and its positive reputation is unquestionable.

The Indonesian GDP (Gross Domestic Product) was recorded at a favorable and consistent rate.

Furthermore, the huge population in Indonesia ensures prospective foreign investors that once they make a market entry, they will have a massive customer base, allowing them to gain significant profits.

In addition, the people of Indonesia have higher purchasing power thanks to the country’s growing economy and prosperity, granting people to have more disposable income to purchase more products or services.

These advantages are the reasons so many foreigners are flocking into the country for the purpose of starting a business in Indonesia.

Foreigners Running Companies in Indonesia from Overseas

Although Indonesia is a wonderful country to live or work, some foreign investors may not want to reside in Indonesia because of their overseas businesses or family.

Good news is, it is possible for them to run an Indonesian company without leaving their home country.

Let’s take a look at the available options.

Special Purpose Vehicle Arrangements

One of the methods is to arrange professional non-executive directors, commissioners, and shareholders.

By using a Special Purpose Vehicle arrangement, a foreigner can stay in their home country while letting these pointed local partners operate their business in Indonesia.

Special Purpose Vehicle can be appointed rather quickly without all the hassles you have to encounter when setting up a PT PMA. Furthermore, you can tap into more restricted industries that are listed under the Negative Investment List.

However, foreign owners who consider this option will have to visit the company in Indonesia on a scheduled basis to ensure that they do not neglect their duties.

You need to seek a reliable Special Purpose Vehicle arrangement company as well to make sure that these arrangements are done properly and your rights as an owner are protected.

Representative Office

The second solution for operating a company in Indonesia from abroad is by setting up a representative office.

There are three main types of representative office in Indonesia: foreign general representative office, foreign trade representative office and foreign construction representative office.

A representative office comes with a lot of benefits:

  • No minimum paid-up capital
  • You can open a bank account in Indonesia
  • It is legal to hire local and foreign staff
  • You are allowed to apply for KITAS for foreign executives

Cekindo Offers Both Special Purpose Vehicle and Representative Office Services

Representative offices or Special Purpose Vehicle arrangements offer foreign entrepreneurs the opportunity to expand their businesses in Indonesia.

With the Special Purpose Vehicle and representative office services provided by Cekindo, you will be able to promote your services or products directly to Indonesian market and boost your business back in your country.

Cekindo helps you take care of the entire process of starting a business in Indonesia through Special Purpose Vehicle or representative office service – so that you can move quickly and gain presence in this one of the world’s fastest-growing economies.

With our deep knowledge about the Indonesian market and diverse industries, we understand the specific needs of your business and guide you all the way with strategic solutions.

We’re dedicated to helping you grow your business. Purchase the service(s) you are looking for now.

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