Business

A Guide to Setting Up a Business in Indonesia

Indonesia is one of the economic tigers of Southeast Asia, and if you are thinking of expanding your business by entering the Indonesian market, there is much to consider. As a developing country, Indonesia is a very attractive market for many quality retailers who are looking to expand their market into Southeast Asia, while some foreign businesses are looking to carry out further market research, but do not ready to trade at this point.

Expert Legal Assistance

The laws regarding company registration in Indonesia are very complex and without the assistance of a local legal expert, this would be very difficult to do. There are three ways in which you can formulate a business in Indonesia, which are as follows:

  • Representative Office (KPPA) – This type of business licence is ideal for a company that wishes to carry out extensive market research in Indonesia, and this is a non-trading entity. You can have one resident business manager and there are no minimum capital share requirements.
  • Local Company (PT) – This is the preferred option for the majority of foreign businesses, which also supports business visas and allows you to trade while operating under local laws. Indeed, you are not restricted in your business activities, and by talking to an established law firm in Indonesia, you can find out all the requirements and confirm that a local company is the best option.
  • Foreign Company (PT  PMA) – This offers the investor limited liability and the company can be 100% foreign owned. You must invest a minimum of 10 billion Rupiah as capital, while there are certain restrictions on business activity, plus you must comply with local laws. Here are a few tips for starting your own business, which is a must-read for any novice entrepreneur.

Free Video Consultation

Due to the inability to travel during the Covid-19 pandemic, a local law firm would be happy to offer you a free 30-minute video call, during which time the expert would listen to your wishes and recommend a solution. If, for example, you already have a few questions about setting up a company in Indonesia, you should write them down and ask during the free consultation, which will help you gain a better understanding of what is involved.

One Month Process

Whichever of the 3 options you prefer, on average the process takes about one month, and with a local law firm handling the application process, that leaves you free to draw up your business plan, which can be implemented when the company registration is complete. The law firm would also be able to help you regarding business services you might need, such as hiring local employees, leasing office space, while also helping you obtain the correct visa. Here is some government information about setting up a company in Indonesia, which is relevant.

Once you have joined forces with a leading local lawyer, everything will be taken care of, and all you have to do is follow instructions and prepare the necessary documents required for the registration.

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