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Company Set Up in Indonesia

Location : Indonesia, Jakatra




Generally to establish a company, there are some requirement procedures to follow. In Indonesia, the procedures to set up a Foreign Investment Company (known as “Penanaman Modal Asing/ PMA“) are as mentioned below.

Establishment of PMA Company:
1BKPM Approval
In Indonesia, there is a government body that appointed to help investors in their investment plan in Indonesia. Badan Koordinasi Penanaman Modal / BKPM (Investment Coordinating Board) is authorized to issue approval or to reject the investment plan.

To have an approval from BKPM, is the main step of our plan in order to establish a PMA Company in Indonesia.

2. Deed of Establishment and MOLHR Approval
After having the BKPM Approval, we need to drawn up the Deed of Establishment (“DOE“) before the Indonesian Notary.

The Notary will register your proposed company in order to have approval from the Minister of Law and Human Rights (“MOLHR“). After having this approval, the company is officially have its status as a Legal Entity.

3. Letter of Domicile
Letter of Domicile (“LOD“) is required to prove your existing company in Indonesia. LOD is issued by the Municipal Agency which covers the area of the company.

4. Tax Registration
Your company must have a tax register number, that issued by related tax office. This license commonly known as Nomor Pokok Wajib Pajak/NPWP (Taxpayer’s Registration Number).

5. Business License
This License is issued by BKPM, depending on your company’s main business. Commonly known as “Izin Usaha/IU“.

6. Company Registration
The final step to set up the Indonesian company (PMA Company) is to register your company by attaching all the required documents as mentioned above.


Author: Dhanu Prayogo, SH.

© PRAYOGO ADVOCATEN Law Office – September 2016

Please deliver any questions related to Company Establishment in Indonesia to our email or by directly filing the Consultation Form in Our Official website.

PRAYOGO ADVOCATEN Law Office has many years of experience practicing law in Indonesia, especially related to Company Establishment in Indonesia. We always propose our fee in advance before close the deal with our Clients, by entering the Legal Services Agreement. Therefore, we guarantee that there will be no surprising/upcoming fee other than agreed.