Company registration in Indonesia can be started by choosing the classic Foreign Owned Company in Indonesia (PT PMA) with your 100% ownership of the Indonesian branch, or your Indonesian company needs to be partially, or completely owned by a local entity (Indonesian company, or individual) depends on a document called Negative Investment List issued by BKPM. The document divides business fields into fully closed to foreign investment, fully open to foreign investment and conditionally open to foreign investment.
How much share you can have for your company in Indonesia? Check below!
Comparison Between PT PMA and Local PT
Foreign-Owned Company in Indonesia (PT PMA)
Best choice for business activities with:
- Possible foreign ownership is up to 100%.
Overview:
- If your business activity doesn’t belong in the “fully closed to foreign investment” group, you can set up Foreign Owned Company in Indonesia (PT PMA). Nevertheless, given the high financial demands of the Foreign Owned Company in Indonesia, it is questionable, whether you should set-up PT PMA if you can’t have the majority share in the company.
- You have greater control over the company (especially if you own 51% of shares, or more) than in the case of Local Nominee Company in Indonesia.
- There is no need for locals to own 100% of your company.
- Financially demanding. The investment needs are listed below.
Set-up time:
- 1 – 1.5 months.
Investment needs:
- The minimum investment plan is IDR 10,000,000,000 (equal to USD 800,000), with minimum paid-up capital IDR 2,500,000,000 (equal to USD 200,000).
Cekindo fee:
- USD 2,500 fee (valid for Jakarta area).
- The fee excludes bank account opening and office space
Local Nominee Company in Indonesia (PT)
Best choice for business activities with:
- Possible foreign ownership of less than 50%.
Overview:
- Local Nominee Company in Indonesia gives you lower control over your business entity in Indonesia, but it is also less financially demanding
- On the paper, the company needs to be owned and operated by locals. The minimum are 2 Indonesian Shareholders (corporate or individual), 1 Indonesian Director, and 1 Indonesian Commissioner.
- If you don’t have access to any trustworthy Indonesian representatives, Cekindo can provide you Indonesian local shareholder, director, or commissioner nominee, with notarized nominee agreement to protect your ownership in the Local Nominee Company in Indonesia.
- The registration process is easier and faster than in the case of Foreign Owned Company in Indonesia
Set-up time:
- 1 – 1.5 months.
Investment needs:
- Small : IDR 50,000,000 – 500,000,000
- Medium : IDR 500,000,001 – 10,000,000,000
- Large : above IDR 10,000,000,001
Cekindo fee:
- USD 1,500 fee (valid for Jakarta area).
- Excluding the Local nominee service, the nominee agreement, bank account opening, office space and other additional services
