Get to know more about business processes and the needed paperwork in Indonesia, through the FAQ below. If it seems like you can not find the answer here, we will be happy to answer your questions directly.
Business Visa and Work Permit
How long is the process? How long will my visa be valid?
The business visa in Indonesia is valid for 2 months (single entry) or 1 year (multiple entries) however every 60 days you need to leave Indonesia (this process can be done even in one day). The application process can be fast and entirely done online here on the webpage. Delivering a business visa will take 7 working days. The work visa (KITAS) are valid for 1 year (Director and Commissioner position) or 6 months (all the other positions in the company). The whole process takes 2 months, however, after one month, you can travel to Indonesia where the process will be finalized.
Who will be my visa sponsor in Indonesia? Can it be an individual person?
Regarding business visa and work visa (KITAS), the sponsorship shall be a company which invites you to Indonesia due to a business meeting/ conference/ etc., or company which you work for in Indonesia.
Am I able to obtain the business visa or work visa easily?
Yes, here on the CBC webpage, you can apply and handle the whole application process online and fast.
Is it possible to use the business visa to work in Indonesia?
Business visa is applicable for a foreigner who intends to visit Indonesia due to business meeting purpose (meeting, attending seminars, doing presentation, etc.) while the work visa (KITAS) is applicable for foreigners who intend to work legally and obtain revenue (salary) in Indonesia. Therefore, a business visa is not suitable for working in Indonesia.
What is a shelf company?
Shelf companies are corporate entities that have been established by a company provider, This provider already holds the company until a buyer is found.
What is the difference between a shareholder and a director?
The shareholder is the person who owns the company through a share certificate. Generally, a company can be owned by one or several shareholders. And the director is the person responsible for the management of the company.
Can I open bank account in Indonesia?
Based on the local regulation issued by Indonesian national bank you need to have work visa if you would like to establish a personal bank account in Indonesia and you need to have company in Indonesia if you would like to establish company bank account here. Times to times some banks can make an exemption related to the client’s creditworthiness and history.
Will foreigner be able to become a Director or Commissioner?
As PMA, the foreigner will be able to become the company Director (the foreigner will need work visa) as well as Commissioner (the foreigner does not need a work visa if he does not stay in Indonesia) while in PT Local, the foreigner will be able only to become the company Director. However, Cekindo can suggest you have at least 1 local Director in the company to ensure that you all operations are going smoothly.
Will government check if i have invest IDR 10 Billion?
As PMA, you have to prepare and submit for Investment Activity Report (LKPM) which government will check your investment development. You will be able to fulfil the investment within maximum 5 years or the PMA shall be closed.
When i have to put the money into the bank?
You can establish your company bank account once the company is established. The minimum paid-up capital shall be deposited after the company is established and has own bank account.
Will i able to hold 100% ownership of PMA?
Following Presidential Regulation Number 44 the year 2016, there are some sectors which fully (100%) open, partly (certain percentage) open, or even close for foreign ownership. As an example, the trading company is open for 100% foreign ownership while distributing company only open for 67% foreign ownership and retail company is closed for foreign ownership. You can tell us your detailed business plan then we will analyze it. In case you can not own 100% of your company, you can alternatively use local nominee service which should be performed by a professional consulting company.
What kind of company that most suitable for me?
There are 3 types of company which are common: PMA, PT Local and Rep Office. We can’t confirm which company is the most suitable for you before we understand your business. If you are foreigner, probably the most beneficial for you will be PMA company (limited liability company with foreigner ownership). However, the company share depends on your business field (please clarify in negative investment list) and the main requirement is to invest above IDR 10 billion. If you want to avoid to invest big money, alternatively you can set up PT local. Which is normally suitable just for local citizen however you can use local nominee service to secure your ownership. By this option, you will get as well more flexibility in your business since requirements for local PT are not too strict and you can do in more business files. In addition, if you intend to conduct initial research in Indonesia without any minimum investment then you can set up Rep Office.
I would like to expand business in Indonesia. Should I set up a company?
It would depend on your intention and business field. E.g. If you intend to do product distribution in Indonesia, then you could set up a company or alternatively appoint a reliable local partner to become your distributor in Indonesia. Each alternative has some advantages and disadvantages. If your products request registration in Indonesia than you can register all your products under your own company and keep your business more safe and flexible and cooperate with more distributors in Indonesia however if you appoint some distributor, he will register your products and than you need to consult all activities on the Indonesian market with this distributor first since he will be the official importer and distributor in Indonesia. If you will register a company in Indonesia you will get also a lot of other benefits such as to sponsor your foreign employees under your company, establish a bank account, etc.