Are you a foreign investor who wants to establish a company in Indonesia? If yes, then you need to know about Pt PMA. Pt PMA or Perseroan Terbatas Penanaman Modal Asing is a limited liability company that is established by foreign investors in Indonesia. In this article, we will provide you with a comprehensive guide on how to establish Pt PMA in Indonesia.
What is Pt PMA?
Pt PMA is a type of company that is established by foreign investors in Indonesia. This type of company is regulated by the Indonesian Investment Coordinating Board (BKPM) and is subject to the Foreign Investment Law. The main purpose of Pt PMA is to conduct business activities in Indonesia and contribute to the country’s economic growth.
Why Establish Pt PMA in Indonesia?
Indonesia is a country with a large market potential and abundant natural resources. It offers various investment opportunities for foreign investors who are looking to expand their business in the region. By establishing Pt PMA in Indonesia, foreign investors can enjoy various benefits such as:
- Access to a large market with a population of more than 270 million people
- Availability of natural resources such as oil, gas, coal, and minerals
- Low labor cost
- Various investment incentives
- Stable political and economic environment
What are the Requirements to Establish Pt PMA?
Before establishing Pt PMA in Indonesia, foreign investors need to fulfill several requirements. These requirements include:
- Obtaining a business license from the Indonesian Investment Coordinating Board (BKPM)
- Minimum investment of IDR 10 billion (approximately USD 700,000)
- At least two shareholders
- At least one director and one commissioner
- Registered office in Indonesia
How to Establish Pt PMA in Indonesia?
Establishing Pt PMA in Indonesia involves several steps. These steps include:
Step 1: Conduct Investment Feasibility Study
Before establishing Pt PMA in Indonesia, foreign investors need to conduct an investment feasibility study. This study will help them to determine the potential market, competition, and profitability of their business in Indonesia. The study should also include a financial projection and marketing plan.
Step 2: Obtain Business License from BKPM
After conducting an investment feasibility study, foreign investors need to obtain a business license from the Indonesian Investment Coordinating Board (BKPM). The application process usually takes around 5-7 working days.
Step 3: Register the Company with the Ministry of Law and Human Rights
Once the business license is obtained, foreign investors need to register their company with the Ministry of Law and Human Rights. The registration process usually takes around 7-10 working days.
Step 4: Obtain the Tax Identification Number (NPWP)
Foreign investors also need to obtain a Tax Identification Number (NPWP) from the Tax Office. This number is required for tax purposes and can be obtained within 3-5 working days.
Step 5: Obtain Other Licenses and Permits
Depending on the type of business, foreign investors may need to obtain other licenses and permits such as a trading license, import license, and environmental permit.
Conclusion
Establishing Pt PMA in Indonesia can be a lucrative investment opportunity for foreign investors. However, it requires a thorough understanding of the regulatory requirements and procedures. By following the steps mentioned above, foreign investors can successfully establish Pt PMA in Indonesia and contribute to the country’s economic growth.
