Indonesia is a country with a rapidly growing economy and a potential consumer market. In addition, Indonesia is also an attractive destination for foreign investors. However, to realize investment opportunities, understanding and complying with investment registration certificate procedures is a prerequisite. This process, which is managed by the Indonesian Investment Coordinating Agency (BKPM), requires investors to carefully prepare documents, comply with legal regulations, and take the necessary registration steps. Viet An Law will provide an overview of the main steps in the procedures for licensing foreign investment in Indonesia, helping investors have the best preparation for their investment journey through the article below.
To establish a PT PMA (Foreign Investment Limited Liability Company) in Indonesia, businesses need to meet the following requirements:
- Number of shareholders: At least 2 shareholders, of which 1 foreigner and 1 local person are required.
- Shareholder Information:
- Indonesian shareholders: Need to provide Identity Card (KTP) and Personal Tax Identification Number (NPWP).
- Foreign shareholders: Need to provide a valid passport. Passports need to be notarized and consular legalized
- For shareholders who are companies in Indonesia: It is necessary to provide a copy of the Company’s Charter, Written Approval from the Code of Law and Human Rights, Certificate of Head Office Address, Tax Identification Number and other relevant licenses.
- For shareholders who are foreign companies: It is necessary to submit a copy of the Charter in English or a notarized Indonesian translation.
- Information of the Board of Directors and the Supervisory Board:
- For Indonesian member information: It is necessary to provide Identity Card (KTP), Personal Tax Identification Number (NPWP), email address and phone number.
- For foreign member information: A valid Passport, email address, and phone number are required.
- Office lease contract to prove the address of the head office
Procedures for registering a PT PMA in the process of applying investment registration certificate in Indonesia
PT PMA registration is the legal procedure for establishing a 100% foreign-owned limited liability company (PT PMA) in Indonesia. PT PMA, which stands for Perseroan Terbatas Penanaman Modal Asing, means “Foreign Direct Investment Limited Liability Company”.
Foreign investors can choose to set up a new company or acquire existing local businesses through PT PMA registration.
Foreign investors should note that when registering for a PT PMA, they need to meet specific criteria, including minimum charter capital, industry regulations, and compliance with restrictions on foreign capital ownership rates.
Legal documents of investors:
- For individual investors:
- Translated and consular legalized copy of passport (for foreigners).
- Copy of identity card (for Indonesians).
- Judicial record (if any).
- For institutional investors:
- Business registration certificate or equivalent documents.
- The company’s charter.
- Audited financial statements (if any).
- Power of attorney for the legal representative.
Investment project dossier:
- Investment plan:
- Detailed description of the investment project.
- Market analysis and business strategy.
- Financial planning and profit forecasting.
- Employer plan.
- Environmental impact assessment (if necessary).
- Information about the enterprise to be established:
- Business name.
- Head office address.
- Business lines.
- Investment capital.
- Organizational structure.
- Documents related to the business location:
- Location lease contract or land use right certificate.
- Construction permit (if needed).
Guidance on submitting dossiers of application for investment registration certificate
There are two forms you can apply directly at the agency or through the OSS (Online Single Submission) system:
- OSS is an integrated system that allows investors to apply for a business license online.
- Through OSS, investors can:
- Sign up for an account.
- Submit an application for a Business Identification Number (NIB).
- Obtain the necessary business licenses.
- Track the progress of processing dossiers.
- Benefits of applying through the OSS system:
- Save time and costs for investors and businesses.
- Minimize direct contact with government agencies.
- Increase transparency and minimize negative issues when applying.
