Mediamaz Work

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Mediamaz Work

Member of Mediamaz Group

Setting up a company is the first step to expanding your business operations in Indonesia. There are many references that business owners can choose to set up their business, still the most universal type of business is a Foreign-Owned Company (PT PMA) or Representative Office. Each has its own benefits, and perhaps one of them will be a good fit for you and your business expansion. We are here to help you set up your own foreign company in Indonesia in just 5 business days. In Mediamaz Work, we handle paperwork and navigate through strict laws so you can rest easy and focus only on your core business.

Get A Business License

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Foreign investment company PT PMA is the most suitable choice for foreign investors who want to expand their business and also get profits from the huge Indonesian market. For the PT PMA company formation, investors need assistance to navigate the complicated rules and bureaucracy. This is where Mediamaz Work comes in.

PT Local is a Perseroan Terbatas (Limited Liability Company) that allows local Indonesian shareholders only. This type of company is intended for Indonesian citizens only; however, foreign investors can do PT Local company incorporation by employing the nominee shareholder service.
pt (local) - mediamaz work
kppa - mediamaz work
Foreign investors could set up a Representative Office in Indonesia to study the market for a maximum period of 5 years which would be incorporated by an overseas company/parent company to represent in Indonesia before developing foreign investment companies in Indonesia.

The process of setting up a company in Indonesia

Talk to our experts about your expansion objectives in Indonesia.

Provide us with all the documents required for company establishment.

We ensure your submitted documents are aligned with the latest regulations.

We file all your documents to the related government bodies on your behalf.

  • Shareholders can be individuals and corporations. It depends on what business you are in, and there may be a maximum foreign ownership limit.
  • The capital is expected to be transferred to your corporate bank account after company registration is completed. Some industries have higher capital requirements.
  • Directors and commissioners can but don’t have to be shareholders. The director is responsible for the operations of the company while the commissioner oversees the work of commissioners.
  • Your company must use a registered address that is in a commercial building which can be provided by Emerhub.
  • Minimum investment should be above IDR,- (ten billion Indonesian Rupiah) or equivalent to current exchange rate. It doesn’t include the value of land and buildings owned by the company
  • Minimum paid-up capital should be IDR 2.500.000.000,- (two and a half billion Indonesia Rupiah)
  • Should be owned by minimum 2 parties, either individual or corporate
  • All banking transactions such as capital injection, administration of loans, payment of capital equipment, material, etc.) of PT PMA has to be transacted through bank account in Indonesia,

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In Indonesia, there are 3 (three) legal business entities, which can be seen below:

  • First, PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company
  • Second, a domestic owned limited liability company or commonly referred as PT (Perseroan Terbatas)
  • The last thing is that depending on the character of your business, foreigners open their business in Branch Offices or Representative Offices (RO) in Indonesia.
The documents and applicable laws that new business owners need to refer to are the Indonesian Investment Positive List. Number of foreign ownership shares, type of company (namely: PT, PT PMA, and RO), business district, line of business or locally referred to as KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) as outlined in the Indonesian Positive Investment List. This is a document that includes all the details of thousands of KBLIs, each with different regulations. Therefore, it is very important for you to understand KBLI first.
Starting a business in Indonesia takes about 1-3 months. This time indicated can depend on how quickly the business owner sends the required documents and requirements to the consultant to carry out the process. Companies that have prepared complete documents and files can immediately operate in less than 30 working days, starting from the time the business owner submits the documents and files to the authorized party.

Domicile Letter or locally referred to as Surat Keterangan Domisili is legal evidence that you have registered and verified the location and address of your company office. All foreign-owned companies are required by law to have an office during their incorporation process. To have a Domicile Letter, what is needed is an office rental agreement. Domicile Letters are managed and issued by Kelurahan or village administration, and Kecamatan or city/district expansion. Please note that a personal residential address cannot be registered as an address for a business. The documents that need to be prepared are, as follows:

  • Application letter for making SKDP (Certificate of Domicile of the Company) addressed to Kasatlak (Head of Implementing Unit) PTSP (One Stop Service) Kelurahan and signed by the President Director of the company. This letter also contains information regarding the line of business to be carried out by the company, the number of employees, and so on.
  • Stamped statement letter regarding the validity of the document attached and signed by the President Director or the person in charge of the company.
  • Notary Deed of Establishment and/or Change of Company (Original & Photocopy).
  • Identity Card (KTP) of the Director or Person in Charge (Original & Photocopy). If the Director or Person in Charge of the company is not an Indonesian citizen, please include your Passport or KITAS (Limited Stay Permit Card) or locally called Kartu Izin Tinggal Terbatas).
  • Family Card (KK) of Director or Person in Charge of the Company.
  • NPWP (Taxpayer Identification Number) Personal Director or Person in Charge of the Company (Photocopy).
  • Proof of land ownership: Land Certificate or Deed of Sale and Purchase (Photocopy).
  • PBB payment slip (Land and Building Tax) for the current year (Photocopy).
  • Building Permit (IMB) with a statement that the building is an office not a private residence (original and photocopy). For buildings that do not have an IMB on the grounds that the building was built before 2000, a statement letter with sufficient stamps from the building owner can be replaced with the knowledge of the local RT, RW, and Lurah, but this possibility only applies in certain areas. Please ask for further information to the local village office.
  • Employment BPJS (Social Security Administering Agency) registration certificate for Legal Entities or Business Entities.
  • Distraction permit retribution deposit slip and Advertising Tax (photocopy).
  • Regional Retribution Tax Certificate.
  • Statement of No Objection Letter from the surrounding neighborhood, this requirement is specifically for business locations that are adjacent to other buildings or there is a possibility of disturbing the surrounding neighbors.
  • Business Place Permit (ITU) (photocopy).

Unfortunately it can not. You must have these requirements, or if the requirements already exist but the validity period has expired, you can come to the appropriate office to take care of the requirements again.

In general, PT PMA is required to have a minimum capital of IDR10 billion (approximately USD690,000) and this capital must be paid up in advance.

For foreign investors who plan to operate in fields that require large capital, the minimum capital and initial deposit capital may be higher. You can find out more information about initial capital by contacting Mediamaz Work.

The answer is yes. Foreign-owned companies can hire foreigners and be a promoter for work permits for them. However, it is important to note, some sectors do not allow foreign employment.

Below are the initial steps and documents that need to be prepared to start a business in Indonesia.

  • Domicile Letter
  • Principle License and Business License
  • Deed of Establishment
  • Approval of Nomor Induk Berusaha (NIB) or Business Registration Number
  • Tax Identification Number (NPWP)
  • Taxable Entrepreneur Letter (PKP)
  • Company Welfare Report and Labor Report
  • Proof of capital income of IDR10 billion 

For the Jakarta area, the address used by the company must comply with the zoning provisions contained in the DKI Jakarta Regional Regulation No. 1/2014. In this regulation, the domicile of the company is not allowed to be in a residential area. As for other areas, you can first confirm through the local DPMPTSP (Internal Investment and One-Stop Integrated Service) whether or not you can use your home address as your company’s domicile.

Mediamaz Work has registered and trusted talent and staff, and experts in their fields so you do not need to hesitate and can entrust the process of establishing your company to us.

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