How to Invest in Indonesia – Great investment opportunities in Indonesia make many people decide to invest in our beloved homeland. Improved economic growth, abundant natural resources and good economic stability are among the reasons why certain parties decide to invest in Indonesia. To get a sense of how much profit is made by investing in Indonesia, there are several procedures about how to invest in Indonesia that must be done by the parties who want to invest.
These procedures are the first step that must be done by those who want to invest their capital in Indonesia. On this occasion, we will discuss about the investment procedures that must be done by certain parties who want to invest in Indonesia.
Type of Investment Needed in Indonesia
Investments will be the mainstay of economic growth in 2017, with the government targeting 5.3% economic growth. State expenditure in the draft State Budget of 2017 is allocated for Rp. 2,070.5 trillion or down Rp 12.4 trillion from the state expenditure in 2016. While the export value period January-July 2016 only US $ 79.08 or down 12.02 percent compared to last year.
To that end, through 12 economic policy packages issued by the government will affect the improvement of investment climate in 2017. The priority sectors of investment in 2017 are:
- The communication and information sector is the highest growth target sector, which is 10.6 percent;
- The construction sector is targeted to grow 8.1 percent;
- Agricultural sector pegged to grow 3.9 percent;
- The transportation and warehousing sector is targeted to grow 7.1 percent.
When reflecting on the National Medium Term Development Plan (RPJMN) 2015-2019, the key development challenges associated with investment can be grouped into: (a) governance development to create an effective and efficient bureaucracy; (b) economic growth; (c) acceleration of equitable regional development; and (d) acceleration of marine development.
From the RPJMN 2015-2019 it appears that the main challenge is the development of effective and efficient bureaucracy governance. The challenge of effective and efficient governance is to improve the integrity, accountability, effectiveness and efficiency of the bureaucracy in administering governance, development and public services related to investment as well as to the full implementation of PTSP at the Central, Provincial and District / City levels.
Type of Investment Company
The procedure of investing in Indonesia can be done by two types of companies, local companies and foreign companies. Both types of companies must perform several different procedures.
Differences in how to invest in Indonesia between the two types of companies can be seen from how to prepare a company to invest. The following is a description of the procedures in preparing a company before investing:
- Companies owned by local communities
- The first step is to ask permission from the Indonesian government on the name of the company to be created.
- Ask the notary to approve the establishment of the company.
- Establishment of certificates to which the company will be built.
- Report to the Director General of Taxes to obtain taxpayer identification number.
- To approve the association of companies conducted by the Indonesian government based on the law in Indonesia.
- Companies owned by foreign nationals
- The first thing to do is to get permission from the Ministry of Justice and Human Rights to establish and name the company to be built.
- Legalization of the company built by requesting assistance to the notary.
- Creating a company certificate to find out where the company will be built.
- Identify the taxpayer’s number.
- Comply with all regulations imposed by the Investment Coordinating Board.
- Legalize the company with permission from the Ministry of Justice and Human Rights.
After the procedure in building a company is done, another step that must be done is to do the investment phase. Permission how to invest in Indonesia for 3 hours will be completed by investing directly.
After that, the investment stage is done by making the head licenses and business permits to be carried out by the company being built. After that, complete the company with the manufacture of KPPA and SIUP3A.
The last thing to do is prepare facilities related to investment activities. All of the things described above are procedures that must be met by a company that wants to invest in Indonesia. When all the procedures are met well, the investment activity will go well.
In addition to the procedures, there is an explanation of the rules in making investments. The rules in investing consist of permits to invest, facilities of investment, investment controls, tax breaks and tax holidays.
Investment procedures will be more complete with investment forms, Ministry’s standard operation procedure, arbitral procedures, investment incentive taxation, and the flow of problem solving.
The procedure how to invest in Indonesia that has been described is a procedure applied by the Indonesian government for those who want to invest in our homeland. Hopefully the information can be useful for those who want to know how to invest in Indonesia well.