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Important Things to Know about Fee for Setting PT. PMA in Indonesia

Fee for setting PT. PMA in Indonesia – The establishment of an enterprise in Indonesia is generally done through investment from foreigners and is dedicated to the specific requirements of the establishment of the company. Foreign Invetations by Law no. 25 Year 2007 on Investment, defined as investment activities conducted by foreign investors to run business in Indonesia (including the establishment of the company). Therefore we need to know how much fee for setting PT. PMA in Indonesia.

Such investment from foreigners may be made using foreign capital reach to 100% (subject to some limitations) or part of domestic capital. Foreign investors may be foreign nationals, foreign companies or foreign government agencies.

Then the question arises how the rules of procedural law and requirements of establishment of PT. PMA in Indonesia for foreign investors who want to invest their capital in Indonesia, including how much fee for setting PT. PMA in Indonesia.

Article 5, point (2) of the Investment Law provides that, unless otherwise provided, foreign investors may execute investment from foreigners in Indonesia by building foreign investment companies under Law no. 40 Year 2007 regarding Limited Liability Company and its implementation regulation.

Foreign investment companies are also known as PT Penanaman Modal Asing, which is often known as “PT PMA”. Investment of foreigners in Indonesia in the form of PT PMA can be executed by having some shares at the time of development of the company or purchase of shares in company that has been established either PT or PT PMA.

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Below are some rules that foreign investors who will invest in Indonesia (establishment of PT PMA) should consider:

  1. List of Negative Investment as regulated in Presidential Regulation no. 39 of 2014 on the Closed Business Fields and Opened Business Fields List with Investment Requirements (“Negative List of Investments”), which regulates one of them concerning a list of lines of business open to foreign investors, where such business is aimed to certain limitations.
  2. The Standard Classification of Insdonesian Business Field shall be governed by the Head of the Central Bureau of Statistics’ Regulation no. 57 of 2009 on Classification of Business Sector Classification. It is important for some investors from foreign countries to check if the establishment of their PMA in Indonesia is aimed to limitations based on the Negative List of Investment.
  3. Rules and methodology for permitting and non-authorizing of outside capital interest in Indonesia might be administered by the directions of the leader of the Indonesian Investment Coordinating Board, No. 5 of 2013 which has been amended by Investment Coordinating Board Regulation no. 12 of 2013 on the Guidelines and Procedure of Licensing and Non-Licensing of Investment, this manage incorporates all standards.
  4. Techniques and criteria identified with the type of Indonesia’s PT PMA, required by the Investment Coordinating Board, before PT PMA can begin its exercises, it is important to meet every one of the necessities put forward in this run the show.
  5. Restricted Company Law directs general prerequisites of constrained risk organizations and applies to PT PMA. This law controls the necessities for the foundation of PMA which isn’t managed in the Regulation of the Head of the Investment Coordinating Board.
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The required allow/foundation archives for outside financial specialists for the foundation of PT PMA in Indonesia are as per the following:

  1. Important Permit from Investment Coordinating Board;
  2. Legal official Deed of PT PMA from Notary;
  3. Ecclesiastical Decree on sanctioning of status of legitimate element of PT PMA from Minister of Law and Human Rights;
  4. Home from neighborhood government;
  5. Citizen Tax Number and depiction of Taxable Entrepreneur from the expense office;
  6. Business License from Investment Coordinating Board;
  7. Organization Registration License from the office for coordinated authorizing administrations
  8. Mandatory work reports and welfare reports from sub-branches of the Ministry of Manpower.

Please note the fee for setting PT. PMA in Indonesia according to Investment Coordinating Board amounting to Rp 10,000,000,000, – (ten billion rupiah) which is at least 25% (twenty five percent) of the authorized capital or Rp 2,500,000,000.00 (two billion five hundred million rupiah) must be placed and paid up.

Of course establishing local companies and PT PMA will require different costs and also undergo different procedures. But actually the requirements needed to establish a company is not too different. For example, requires a photocopy of the identity of the owner of the company, a copy of the taxpayer’s principal number, certificate of domicile, disturbance permit or HO, etc.

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The most striking difference is when to establish PT. PMA, the owner of the company must submit a statute to the trade minister. After the articles of association of PT. PMA obtained approval from the Minister, then PT. The PMA may start to take care of the licenses related to the business of PT. PMA referred to in the Investment Coordinating Board. Among others:

  1. Import duty facility for machines
  2. Import tax facility
  3. Recommendation for Income Tax Exemption facility
  4. Importer Identification Number – Manufacturer
  5. Importer Identification Number – General
  6. Foreign Workers’ Use Plans
  7. Recommended visa visa to work
  8. Permit to hire foreign workers

Thus, the outline of the establishment of PT. PMA up to PT. The PMA can start its business activities, including the fee for setting PT. PMA in Indonesia. Hopefully the article is useful for you.

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