The registration process in Indonesia can be pretty complicated to many foreign entrepreneurs. One of the main concerns would be the Cost of doing business in Indonesia. Here at Paul Hype Page, we will provide you will all necessary information in regards to the cost of incorporating a company in Indonesia.

Business Cost

Indonesia is one of Asia’s economic success stories, with the reforms of the reformasi period having laid strong foundations for protracted growth. This attracts many foreign entrepreneurs’ interest on investing in the country. That being said, the ultimate question that arose as to what is the actual cost of doing business in Indonesia. Before that, we should first understand that there are a few steps to set up a Limited Liability Company or Perseroan Terbatas Penanaman Modal Asing (PT PMA).

Steps to Set up a Limited Liability Company in Indonesia

  • You must first identify as to what business field you plan to invest in or set up a business in. by doing so, you would be required to refer to the Negative Investment List to identify as to how much shareholders can a foreign entity hold in relation to the company shareholdings to comply with the Indonesian regulation.
  • The next step you would need to comply is that you would need to establish at least 1 director, 1 commissioner and 2 shareholders in the said company. Do note however that the directors and commissioner can also be a shareholder.
  • Next, you would need to provide the following required documents. These documents are as such:

No. of required documents:

  1. Power of Attorney for submission documents sign by each shareholder (prepare by us)
  2. Shareholder documents
  3. Rental agreement between the company and building management
  4. Original building domicile/statement from the building management
  5. Building and land tax receipt (PBB) including the payment approval of current year
  6. IMB or certificate of ownership if the building is owned
  7. Statement for lease and use space office (if any)
  8. Office photos (minimum 3 photos: reception, signage of the company & office room with activity in it)
  9. Statement of domicile issued by the company and must be acknowledged by the building management
  10. Company letterhead and copy/sample design for company stamp

No. Shareholder Documents (Foreign Company)

  1. Copy of Article of Association and its amendment should be in English or Bahasa
  2. Business registration certificate
  3. Board of Directors structure

No. Personal documents for each director and commissioner

  1. For foreigner: colour copy passport with validity minimum 18 months and 4 blank pages
  2. For local: ID card (KTP and Taxpayer Identity Number (NPWP)
  3. Family card (KK)
  4. Indonesia visa stamp (if any)
  5. Residence of hotel or apartment domicile letter for the director
  6. Recent photo passport size with red background for each BoD (edited photo is unacceptable)
  • The minimum investment in Indonesia to start a PT PMA company is IDR 10 billion (USD 750,000.00) or equivalent to the exchange rate. Unlike incorporating a Local PT company in Indonesia which varies accordingly to the size of the business as per Regulation 40 of Year 2007, you will need to inject the minimum amount of IDR 10 billion in your PT PMA company excluding the value of the land and buildings by the company. Other than that, you would also be required to pay a capital requirement of at least IDR 2.5 billion (USD 175,000.00) in your PT PMA company.

Click here to have a further understanding on how to Register a Foreign Owned PMA Company as a Foreigner 

Want to Start business in Singapore
Want to Start business in Singapore