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Are Foreigners allowed to serve as Company Commissioners of an Indonesian Company?

3 min read|Last Updated: September 7, 2022|
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Many foreign-owned enterprises have been registered as PT PMA entities in Indonesia. Shareholders, directors, and company commissioners are all required for such businesses.

Directors oversee the company’s day-to-day operations. They are responsible for selecting personnel for senior management roles, communicating corporate events to shareholders, and managing collaborations with other businesses.

The company commissioners are in charge of monitoring, inspecting, and supervising the actions of the corporation. An Indonesian corporation must have at least two shareholders and a total value of at least 10 million rupiah in all of its shares.

Who can be a commissioner?

At least one commissioner is required for all PT PMA firm based in Indonesia. In most cases, the commissioner must be a resident of the area; however, this is not always the case.

If the company decides to have many commissioners, one of them will be named president commissioner, with the responsibility of directing the company’s board of commissioners. In Indonesia, company commissioners also advise directors on business concerns, approve the firm’s annual financial statement, and examine the company’s budget.

Indonesia Incorporation Specialist Eric

Foreigners Serving as Indonesian Company Commissioners

Anyone in a higher position in an Indonesian company must typically be an Indonesian citizen or permanent resident. A foreigner may, however, be allowed to become a shareholder, director, or company commissioner if they follow the rules set forth by the Indonesian government and other regulatory bodies. The government has also laid down the procedures for a foreigner to become a commissioner of an Indonesian corporation.

Foreigners must first obtain a Limited Stay Visa, often known as a VTT, before being considered for the position. Foreigners must also own a specified number of shares before becoming a commissioner or director, according to the most recent legislation. Foreign shareholders who want to serve as a director or company commissioner must have at least one billion rupiah in stock or the equivalent in US dollars.

A residence permit is necessary for all foreign company commissioners of Indonesian corporations. It is required for foreigners who intend to reside and work in the country. The residence permit, in conjunction with the new VTT permit, will allow company commissioners to legally work for and be paid by an Indonesian company, open a local bank account in Indonesia, and stay in the country for longer periods of time without having to contact government departments to extend their visas.

If foreigners with exclusive work positions, such as company commissioners, have resided in Indonesia for at least three years, they may become permanent residents of the nation. However, all of these foreigners do not have to become permanent residents of Indonesia.

Thinking of setting up a company in Indonesia or require visa application services? Reach out to us today for a free consultation!

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FAQs

Who can be a shareholder in Indonesia?2022-01-04T11:38:58+08:00

Any of the following can be a shareholder in a company in Indonesia:

  • An individual;
  • A company;
  • A foundation

Previous regulations required companies in Indonesia to have at least two shareholders. However, with the Omnibus Law, it is now possible to have one shareholder for a small company.

What is the corporate structure in Indonesia2022-01-04T11:50:13+08:00

As stated in Indonesia’s Company Law, the corporate structure of a limited liability company consists of the following:

  • Shareholders
  • Board of Commissioners
  • Board of Directors

Shareholders own the company. Meanwhile, commissioners and directors oversee different areas of the business. We will discuss these roles in further detail below. 

What is a commissioner in a company?2022-01-04T11:38:08+08:00

The role of Board of Commissioners is collectively supervising the management of the Company, providing input concerning policies of the Company’s management created by the Board of Directors. The Board of Commissioners continuously monitors the effectiveness of the Company’s policies. 

What is the role of a commissioner?2022-01-04T11:32:28+08:00

The board of commissioners not only sets policy but is also responsible for its implementation. Commissioners are the chief executives of the county organization. The executive role of a commissioner varies greatly from county to county 

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