Jun 16, 2015

Doing Business in Indonesia by Foreigner

Foreigner shall be able to conduct business in Indonesia in an appropriate ways in accordance to the prevailing laws in Indonesia. For foreigner, there are 2 (two) ways to conduct business in Indonesia, by establishing a 100% fully owned by the foreigner or by having a joint venture with the domestic shareholder.
According to the Foreign Investment Law, it is possible for a foreigner to conduct business in Indonesia by establishing a foreign company (“PMA Company”). The PMA Company is possible to establish by 100% ownership by foreigner or joint venture with domestic person,subject to the Negative List. The Negative List contains the area of business which is possible or impossible for foreigner to invest in Indonesia. Some areas are impossible for foreigner to participate and some areas are possible for foreigner to participate with the condition of joint venture with domestic investor and opened areas for investment.