STEP BY STEP

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PREPARATION

(Establishing foreign investment company(PMA)

STEP
1

  • Obtaining Principal License
  • Establishing of Limited Liability Company
  • Researching about the sectors open for investment under the Negative Investment List
BKPM

Ministry Of Law and Human Rights(with the help of notary)
       
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PRE-OPERATION

(Obtaining facilities and necessary permits)

STEP
2

  • Obtaining import identification number (API-P) for manufacturing companies, inf needed.
  • Submitting investment activities report (LKPM) every 3 months.
  • Obtaining facilities such as machinery import duty exemption and approval of tax facilities.
  • Obtaining licenses from local government, such as building permit, domicile certificate.
  • Obtaining permit from relevant sectoral ministries, such as plantation permits.
BKPM

BKPM

DG of Taxation, Ministry Of Finance

Local government

Sectoral ministries
       
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COMMERCIAL OPERATION

(Securing business licenses)

STEP
3

  • Obtaining business license (IU) before the start of commercial operation
  • Obtaining general import identification number (API-U) and material import duty exemption, inf needed.
  • Submitting investment activities report (LKPM) every 6 months.
  • Obtaining periodic operational permits, such as construction services permit.
BKPM

BKPM

BKPM

Sectoral ministries
       

TAXATION

Under the prevailing Indonesian tax law, a company is treated as a resident of Indonesia for tax purposes by virtue of having its establishment or its place of management in Indonesia. A foreign company carrying out business activities through a permanent establishment (PE) in Indonesia will generally have to assume the same tax obligations as a resident taxpayer.

Cost of doing businees in Indonesia

Cost of doing business in Indonesia sources from Doing Business Report 2014, a study elaborated by the World Bank Group to measure the costs to firms of business regulations and their enforcement across 185 economies and selected cities at the subnational and regional level. To have perspectives on business related regulations and cost upon doing business in Indonesia, please visit

Ease of Doing Business in Indonesia 2014