Complete Terms and Procedures for Establishing

PT PMA

Most foreign-owned companies build in Indonesia with a Limited Liability

Company (LLC), known as PMA-Foreign Investment-in Indonesia, because
it can take the form of 100% limited foreign ownership or can be
established as a limited liability company through joint ventures with
Indonesian partners.
The advantage of this type of company is that it gives foreign investors
complete control over the direction of the company, there are no
restrictions on where FDI can operate in Indonesia, and reduces the risk of
finding suitable local partners.
Certain business fields require a foreign company to build a company with
a local partner and allow a certain percentage of ownership to depend on
this sector. This specification is included in the Negative Investment List.
However, there are several business activities that are closed to foreign
ownership based on the Negative Investment List, therefore it must be
established as a local Indonesian company (referring to the Presidential
Regulation No. 39/2014 concerning a list of closed business fields for
investment business and conditional open for investment).
In this case foreign investors still have an alternative choice by
establishing a local nominee company in the form of a local limited
liability company (ie a limited liability company) with 100% of local
shareholders but remaining under the control of foreign investors.
PT PMA Investment Plan
BKPM has issued BKPM Regulations Number 5 of 2013 introduces new
requirements for investment registration procedures. Under the
regulation, investors must invest more than USD 1 million or refer to IDR
10 billion as their investment plan with a minimum paid up capital of over
USD 250,000 or referring to IDR 2.5 billion. investment plans can be in the
form of cash or fixed assets such as machines but excluded Land and
buildings
Paid up capital must be paid after the company is established and has a
bank account (stated in a notary letter). The company needs to achieve
an investment of more than Rp. 1 million to obtain a business license as
their permanent license, import permit, and other permits related to the
corporate sector.

Where Can Investors Establish PT PMA? Basically, PT PMA status companies

can be established in all parts of Indonesia. However, administrative matters and
application for the establishment of the company are still handled by the BKPM head
office (Investment Coordinating Board) located in Jakarta. In addition to having
offices in Jakarta (specifically for administration and correspondence), PT PMA can
also establish branch offices in other cities in Indonesia that are in line with its
business targets and objectives.

Things to Look For Before Establishing PT PMA

There are several important points that must be considered by employers
and prospective foreign investors before submitting an application for the
establishment of PT PMA to BKPM (Investment Coordinating Board),
namely:

Types of Business Fields

The first thing that must be known by prospective founders of PT PMA is to
identify whether the type of business can be wholly owned by foreigners.
This matter has been regulated in Presidential Regulation No. 44 of 2016
concerning List of Business Fields that are Closed and Business Fields that
are Open with Requirements in the Field of Investment or commonly
referred to as the Negative Investment List (DNI).

Steps for establishing PT PMA in Indonesia

Expected
Procedure Institution
Duration
Approval of company name (should The Ministry of Law and
2 days
consist 3 words) Human Rights
Review, Revision, and Approval of
Principle License as their temporary BKPM 14 days
license
Article of Association (AKTA) Notary 4 days
Legalized of Legal Entity (Deed of The Ministry of Law and
3 days
Establishment/ SK Kehakiman) Human Rights
Landlord of the office
Certificate of Domicile 3 days
building and Local Council
Tax Payer Registration Number (NPWP)
Tax Office 3 days
and VAT payer (PKP)
Company Registration Certificate (TDP) Provnicial Government 10 days

1. Approval of the company name

Requests for company names are made through an online system, which can be accessed by
a notary. The Ministry of Law and Human Rights can reject names for various reasons,
including if they already exist or are similar to the names of other companies. Based on the
latest Indonesian regulations, the company name must consist of three words. Does not
contain words that are considered vulgar or obscene in Indonesia.

2. Basic Permit (BKPM Approval)

The Indonesian Investment Coordinating Board (BKPM) is the official
central body to receive, review and approve applications for foreign
investment as well as monitoring approved and running projects. Investors
must submit an application and investment invested in their plan which
illustrates the realization of their investment above USD 1,000,000. Willl's
investment plan is reviewed and revised by BKPM. After it has been
approved, BKPM will issue a Principle License as a Temporary Investment
License. The Principle License will be valid for one year and can be
extended for two years. So the company needs to apply for a business
license within three years.

3. Articles of Association (Company Deed)

After obtaining a Basic Permit from BKPM, investors are allowed to build
Foreign Owned Limited Liability Companies (PT PMA) by arranging for the
Articles of Association through a notary, which applies as the Articles of
Association for the company.

4. Ratification of Legal Entity (Judicial Decree)

The Articles of Association were submitted to the Minister of Law and Human Rights
to be ratified.

5. Certificate of Domicile
The next step is to get a Domicile Certificate from the office building owner and from
the Subdistrict, which states the company address.
6. Taxpayer Identification Number (NPWP)
The company must obtain a Taxpayer Identification Number (NPWP) and if
registering is required as a VAT payer (PKP) in the Tax Service Office located in the
same sub-district. The NPWP applies as a corporate tax ID and is useful for
proposing bank loans, obtaining other required company documents and for paying
corporate taxes.
7. Sign of Company Register (TDP)
To complete PT PMA company registration, the company must arrange a Company
Registration Certificate from the Provincial Government to officially register the
company in the region
PMA the process of registering a company in Indonesia is very
appropriate and can be sued. In addition, as ASEAN countries
renew and change business regulations, having an expert
partner on land in Indonesia can be important for success.
Attractive professional help helps companies navigate local
regulations and understand business culture in Indonesia.

Value of Investment
The minimum investment value set at each PT PMA is Rp 10,000,000,000
(ten billion rupiahs), while the amount of Issued Capital and Paid Up
Capital is at least 25% of the total investment value.
Office Domicile
BKPM requires employers who will submit applications for establishment
of PT PMA must include a clear address of the company's physical office,
not a virtual office.

Procedure for Establishing PT PMA

There are several steps that need to be done before PT PMA can operate
legally in Indonesia, namely:

Temporary License Submission

Temporary licenses are needed to find out whether the business fields run
by the company are open to foreign investment. If the answer is yes, then
it must be stated how much the composition of foreign capital may be
invested. This is in accordance with Presidential Regulation No. 36 of
2010.
Investment Registration at BKPM
Next is filling out the application for investment registration at BKPM. In
this process, the documents that must be attached include:

Statement from the Embassy of the country of origin of

the investor in Indonesia.
1. Copy of passport.
Company Articles of Association (AD) in English - If AD is still in
Indonesian, then it must be legally translated by a sworn translator.
2. Copy of Company Establishment Deed.
3. Copy of NPWP.
The original power of Attorney stamped signed by the company's
directors.
If the document is complete and the Investment Registration Permit has
been issued by BKPM, the next procedure is to apply for the PT PMA
Principle License.

How to apply for a principle license for PT PMA?

Businessmen or investors who want to establish PT PMA in Indonesia must
complete the following documents to be submitted to BKPM:

1. Photocopy of passport for foreigners.

2. Photocopy of Identity Card (KTP) and special NPWP of Indonesian
Citizens.
3. Photocopy of UN place of business.
4. Photocopy of contract letter (only included if the office is
contracted).
5. Certificate of Domicile from the building manager (especially if the
office is in an office building area).
6. When the photo of the person in charge of the 3 × 4 business is 2
pieces.

Before moving on to the next step, investors or business people are

required to have reached an agreement with their business partners (if
any) regarding the following:

1. Company name.
2. Position and field of business to be carried out.
3. Amount of authorized capital and deposit capital.
 4. Share composition.
5. Composition of company management (including directors
and commissioners).

After all documents are complete, the next procedure is to fill out an
application for an online application via the official BKPM website at
https://online-spipise.bkpm.go.id/
If the above matters have been agreed upon, the businessman or investor
can only take care of the continuation of the process of establishing PT
PMA to BKPM. Normally, the application will be processed for
approximately 12 days after the application is submitted. In order for the
application that you submit to be processed quickly without significant
constraints, it's good to consult with BKPM first to check the completeness
of the document.

Submit a business license

An investor or businessman cannot immediately carry out his business
activities in Indonesia even though he has obtained a Principle License
from BKPM, because there is still the next stage, namely the submission of
a Business License at BKPM (in accordance with Article 20 Perka BKPM No.
12 of 2009). The documents that must be included are:
1. Project Examination Results Report (LHPP) for businesses that
require import duty for goods or materials.
2. Copies of company establishment deeds or endorsements from the
Ministry of Law and Human Rights.
3. Record of Registration / Principle License / Extension Principle
License / Approval of Investment / Business Permit, and or
Investment / Expansion Business License Expansion Agreement.
4. Copy of NPWP.
5. Proof of land use (can be in the form of a copy of the lease
agreement or land sale deed from PPAT).
6. Copy of Building Permit.
7. Copy of Disturbance Permit (UUG / HO) or Business Place Permit
(SITU) for companies located outside the industrial area.
8. A copy of the latest LKPM (Report on Investment Activities).
9. EIA copy.

Managing the establishment of PT PMA is indeed quite troublesome.

However, you don't need to worry because this management process can
be represented, in accordance with Article 63 paragraph (1) of BKPM
Regulation No. 12 of 2009:

"The signing and management of the investment application to BKPM

PTSP, PTSP PDPPM, or PTSP PDKPM can be carried out by the applicant or
other party authorized by the applicant with the original power of attorney
with a sufficient stamp with a clear identity from the authorized recipient."

Because it is quite crucial and involves business continuity, it is better to

leave the arrangement of the establishment of PT PMA to a trusted party.
Now many legal service providers are ready to administer this kind of
administration practically from the beginning to the end of the process,
one of which is dunianotaris.com.
Business License Has Been Obtained. What next?

Manage the Deed of Establishment of PT

After BKPM issued a business license, the process of establishing the PT
PMA deed could begin. Remember, before the name of the company that
will be used must have official approval from the ministry. Generally a
copy of the company's deed of establishment will be completed within 14
days after signing the document.

Manage Certificate of Domicile and NPWP

This process takes about 10 days. When arranging your NPWP at KPP (Tax
Service Office) in your local city your company is established, don't forget
to also take care of the PKP (Taxable Entrepreneur) letter.

Opening a Bank Account

Bank accounts are certainly needed in the process of establishing a
company. We recommend that you create an account / bank account in
the name of the company so that everything related to the administration
of the company can be managed more easily later.
After the account is finished, deposit shares (cash) into the company's
cash. Next, submit proof of deposit to the notary so that the application
for business approval can be immediately forwarded to the Indonesian
Ministry of Justice. This process can also be done online and takes a
maximum of one working day.

Manage TDP
After the Department of Justice issues proof of company validation, then
you still have to take care of the TDP (Company Registration Mark). This
section usually takes about two weeks or 14 days.

Manage State News

If the TDP has been issued, the next step is to take care of documents for
the State News process. The maximum duration of this process is 3
months.

If the process of obtaining a business permit has been completed. At this

stage, as a business owner, you are allowed to enter all types of
equipment / equipment to be used in the production process later,
including machines imported from abroad.

Because the company has PT PMA status, you will get a subsidy or import duty relief
from the Director General of Customs, with the note that you have obtained the
Masterlist and APIS (Temporary Import Identification Number) that can be obtained
from BKPM. Flow: Take care of SKBPPN (customs-free letter) first at PT PMA KPP >>
Producer Registration Letter (SRP) or Importer Registration Letter (SRI) at the Customs
Office >> PT PMA takes care of PIB at the port.
What are the rights of companies that have been PT PMA status?
Free to establish and develop business wings in Indonesia is a right obtained by a
company that has changed its status to PT PMA. After officially obtaining a business
license from BKPM, ministries, Customs, and so on, PT PMA has full authority, among
others in: Receive facilities and relief of import duties for machines Imported goods tax
facility Income Tax Exemption Facility (SKB PPH) Import Identification Number -
Manufacturer (API-P) Import - General Identification Number (API-U) Plan for the Use
of Foreign Workers (RPTKA) Visa recommendations for work (TA.01) Permission to
Employ Foreign Workers (IMTA)

Take care of the company establishment permit, especially if the business

entity that will be in the form of PT PMA requires a complicated process.
Starting from the collection of documents, management and application
for permits in various related institutions, to the process of filling out
applications and coordinating with BKPM itself.

For some people this certainly will take a lot of time and energy. However,
you do not need to worry because you can hand over power and represent
the management of the establishment of PT PMA to other trusted parties,
namely the World Notary.

World Notary is a company engaged in the management of business

licenses. Balanced by excellent service, we have experience in various
document processing and business permits, such as:

Establishment of PT PMA
1. Making CV
2. Making PT
3. SIUP and SITU
4. Immigration Permit
5. Tourism Permit
6. Customs Permit
7. Certification Permit
8. Personal permission
9. Health Permit
10. Intellectual Property Rights
11. Disruption permission
12. Cargo Business License, and others

Why Must Choose the World of Notaris?

Besides having complete services, DuniaNotaris also offers excellent and
professional services, such as:

Guarantee of completeness of business license. Clients will be assisted

and accompanied from the beginning of the management until
completion, including guarantee of obtaining a business permit to the end.
Easy and practical to get permission. No need to bother with the
bureaucracy that is convoluted because DuniaNotaris is already
professional in its field.
Consultation with experts. We provide consulting services and prioritize
working principles that are faster, professional, and transparent, so that
clients can easily monitor the progress of their business licensing
arrangements.
Cheaper Cost Compared to similar business licensing service providers,
DuniaNotaris offers friendly prices, but still professional and quality.
Cooperation with Thousands of Clients. Our services are supported by
workers who are experienced and pro in their fields. Evidently thousands
of satisfied clients use our services, both from local and international
companies.
The following is a list of the costs of the establishment of the company in
the form of PT, CV, PT PMA, Deed of establishment of PT, BKPM permission
and others as well as other licensing fees at our notary. We summarize
this list of costs with the duration of the process. For the requirements for
the establishment of the company that you are referring to
List of Fees Using Our Notary Services

Name of Processing, Costs and Complete Company

1. Establishment Package *** Limited Liability Company (PT) Establishment of PT
Complete, Jakarta Rp.10,000,000, - 4 Weeks,
2. Business Days Establishment of Complete PT, Bogor Rp. 15,000,000 - 4 Weeks,
3. Business Days Establishment of PT, Tangerang Selatan Rp.12,000,000, - 4 Weeks,
4. Business Days Establishment of PT, Bekasi Rp.12,000,000, - 4 Weeks,
5. Business Days Establishment of PT PMA, Complete Rp.35,000,000, - 5 Weeks,
Business Days

Cost of Establishing Company Deed & Decree

1. Deed & Decree of Establishment of PT Rp.3,300,000 - 3 Business

Days
2. Deed & Decree of Establishment of PMA Rp.5,000,000, - 3 Business
Days

*** Commanditaire Vennootschap (CV)

1. Establishment of CV, Tangerang Selatan Rp.8,000,000 - 4 Weeks,
Business Days
2. Establishment of CV Jakarta Rp.6,500,000, - 4 Weeks, Business Days
3. Establishment of CV Bekasi, Complete Rp. 8,000,000 - 4 Weeks,
Working Days
4. Establishment of Bogor CV, Complete Rp.9,000,000, - 4 Weeks,
Working Days
5. Other Business Establishments
6. Foundation Establishment Rp.4,000,000 - 3 Business Days
7. Jakarta Trade Business Rp.6,500,000, - 4 Weeks, Business Days

Business License Fee

1. API and NIK Management, Complete IDR 20,000,000 - 4 Weeks,
 2. Working Days NIK Management, Complete IDR 10,000,000 - 2 Weeks,
3. Working Days Management of BKPM Principle License Rp. 8,000,000 - 2 Weeks,
4. Working Days Gapensi SBU Management Rp. 20,000,000 - 4 Weeks,
5. Working Days SIUJK Management, Complete IDR 20,000,000 - 2 Weeks,
6. Business Days SIUP & TDP, Complete Rp.4,000,000, - 2 Weeks,
7. Business Days Trademark Registration Rp.4,500,000, - 1 Week,
8. Business Day Notary Agreement Services Rp.2,000,000, - 3 Business Days

 021-791-86-531 (Office)
Telp
 +62+62-818-658-989 (Ernida Sinaga.SH)
 +62-811-848-816-576-768 (Inis., SH.,Mkn)
Phone  +62-878-4214-4244 (Inis., SH.,Mkn)
 -688 (Ernida Sinaga.SH)
 +62-818-667-548 (Jonni Tambunan, SH.,Mkn)
E-Mail  DuniaNotaris@gmail.com

Address, Jl. Mampang Prapatan Raya, No.24-D, Jakarta Selatan, 12790 (Di
Samping Mampang Square).