Check your business interest.
Having the desire to invest in Indonesia, especially in Jakarta, investors need to know and comply with special rules made by the Indonesian government regarding line of businesses the investor will establish, namely Negative Investment List.
What is Negative Investment List?
This is a list of business fields that are allowed for investors to invest. The Negative Investment List was aimed to ensure the sustainability of Indonesian economy as well as to provide greater business opportunities to investors.
The provisions for foreign investors if they want to invest in Indonesia are stipulated as follows:
There are also some business fields that can’t be invested by the foreign investors as well as domestic investors such as Alcoholic Beverage Industry (KBLI 11010), Alcoholic Beverage Industry: Wine (KBLI 11020), and Malt Containing Beverage Industry (KBLI 11031).
Click button below for various regulations for investment setup in Indonesia:
Check legal entities you wish to apply.
There are two legal entities for foreign investment in Indonesia:
Foreign Investment Limited Liability Company
If investors have plans to make profits or to do direct selling in Indonesia, the needed type of company to set is a Foreign Investment Limited Liability Company (PMA), which can be done by acquiring an existing Domestic Investment Limited Liability Company (PMDN) and convert it into a PMA or acquiring an existing PMA. Regulations to be known are Presidential Regulation number 10 of 2021 and Presidential Regulation number 49 of 2021.
Generally, the mechanism for establishing a foreign investment limited liability company in Indonesia can be found in the following procedure table:
Foreign Company Representative Office (KPPA)
If investors want to explore business opportunities or provide other managerial support in Indonesia to holding companies abroad, these investors need to establish a Foreign Company Representative Office (KPPA). This office is the local representative of the foreign holding company and should be emphasized that they are strictly prohibited from conducting commercial activities and generating income/profits.
Several information regarding applying for KPPA can be found in the following document:
Check type of workers you are planning to use.
Investors wishing to utilize foreign workers should submit application for ratification of the Planning for the Use of Foreign Workers (RPTKA) through an electronic system managed by the Ministry of Manpower Affairs.
If the ratification of the RPTKA is approved, the Ministry of Manpower Affairs will submit the approval to the OSS Institution (https://oss.go.id). Find more about OSS system in the Operational Procedures section.