Jun 15, 2015
Indonesian Legal Digest - Investment Law - Establishment of a PMA Company
The Establishment of a Foreign Investment Company (“PMA Company”) in Indonesia: What You Need To Know
Background
A PMA Company is an Indonesian company that can be owned (wholly or partially) by foreigners.
The Negative List of Investment
The first step to take in the establishment of a PMA Company is to check whether the line of business of the PMA Company is closed to foreign investors. Any line of business in Indonesia is open to foreign investors so long as they are not closed /restricted by the negative list of investment.
The Authority
The primary Indonesian government authority supervising foreign investment is the Indonesian Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”). The establishment of a PMA Company requires approval from BKPM.