PT PMA is a Foreign-Owned Limited Liability company. The establishment of PT PMA depends on the business activity. There are certain business sectors that are still closed for PT PMA and only allowed for PT Local. Make sure that the desired business activities are open for PT PMA and in accordance with Indonesian Negative Investment List (DNI) regulations. The maximum percentage of foreign ownership allowed are vary for each sectors.
To find out which business sectors are open or closed to foreign investment, you might need to check Presidential Regulation of The Republic of Indonesia No. 44/2016 regarding Negative Investment List (DNI), there are lists for :
Open Business Fields
Closed Business Fields
Business Fields that are Open with or Under Conditions to Investments (either reserved for SMEs and Partnership or partially foreigned-owned)
There is also a restriction of expatriate to hold a position in the company as Human Resources or Personnel based on Presidential Regulation of the Republic of Indonesia No. 20 of 2018.
The foreigners can buy a property in Indonesia under their PT PMA’s name
No restriction of PT PMA to operate business in Indonesia
Import duty exemption or reduction depends on the products
Easier to get the Business License
Possible to get 100% business ownership based on the business sectors
Allow foreigners to get the work and stay permit (KITAS and KITAP) under their legal entity in Indonesia
- Minimum investment should be above IDR 10.000.000.000,- (ten billion Indonesian Rupiah) or equivalent to current exchange rate. It doesn’t include the value of land and buildings owned by the company
- Minimum paid up capital should be IDR 2.500.000.000,- (two and a half billion Indonesia Rupiah)
- Should be owned by minimum 2 parties, either individual or corporate
- All banking transactions such as capital injection, administration of loans, payment of capital equipment, material, etc.) of PT PMA has to be transacted through bank account in Indonesia
Company Dissolution and Acquisition
PT PMA and PT Local can be dissoluted once company assets and debts between the shareholders are resolved. The dissolvement needs to pass through some process from General Meeting of Shareholders (RUPS) preparation, liquidation, until dissolution or acquisition deed. Contact us for more information.
Incorporation in Other Countries
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Indoservice was established in 2015 and helps clients who want to expand or establish a business in Indonesia. We have been providing services to several local and multinational companies.