Cost of doing a Business in Indonesia
There are two types of common company in which you can incorporate in Indonesia. They are:
According to the Regulation of the Minister of Trade on Amendment to Regulation of the Minister of Trade No. 36/M-Dag/Per/9/2007, classified Trade Business License into 3 classifications, as follows:
Small Trade Business License
Small Trade Business License must be owned by a trading company whose the net worth (paid up capital) is more than IDR 50,000,000, up to IDR 500.000.000, excluding land and building of business premises.
Medium Trade Business License
Medium Trade Business License must be owned by a trading company whose the net worth (paid up capital) is more than IDR 500.000.000, up to IDR 10.000.000.000, excluding land and building of businessplace.
Large Trade Business License
Large Trade Business License shall be owned by a trading company whose net worth (paid up capital) is more than IDR 10,000,000,000 excluding land and building of business premises.
Do note however that the main requirement to set up a PT company in Indonesia is that it must contain 100% local shareholders. In other words, this simply means that only local Indonesian entities could hold ownership in a PT company in Indonesia.
Nevertheless, there are ways in which foreign investors can still open a PT company in Indonesia.
Unlike setting up a PT company varies in cost depending on the size of the company, a PT PMA company requires a minimum investment of IDR 10 billion in Indonesia. This applies to all business sectors and the amount of minimum investment excluding the value of the land and buildings owned by the company. Besides that, foreigners would be required to pay a capital requirement of at least IDR 2.5 billion (USD 175.000.00) to form a foreign owned PMA company in Indonesia.
Foreign investors are required to comply with the cost of setting up a PT PMA company in Indonesia, however, this can be pretty difficult for many investors as the capital requirement is no doubt expensive. Here in Paul Hype Page, we provide you with the solution to satisfy the large capital requirement to set up a PT PMA company in Indonesia.