Type of Business Entities

HC Consultancy will assist our Client to form the optimal business entity for their business needs in Indonesia.

Starting a business in Indonesia can be complex and time –consuming for foreigners, as the registration of foreign company, the PMA, is subject to approval by the Indonesia Authorities (BKPM) and requires a minimum paid up capital of US$200,000. Alternatively, our Clients can also request us to incorporate a local company with nominee shareholders or to open a representative office for their business.

Local law in Indonesia regulates and restricts the establishment of a foreign company in Indonesia. The Indonesian Government determines which industries are closed to foreign investment through the Negative Investment List (Daftar Negatif Investasi), which in theory is issued every three years unless revised before then.

The Negative Investment List contains specific business sectors and fields that are entirely closed to foreign investment and those which are conditionally open for foreign investment.

There are 3 company types that foreign investors can choose when they decide to expand their business to Indonesia:

1)         Local PT Company

2)         PT PMA

3)         Representative Office