Indonesia, an extensive archipelago comprising of thousands of islands between the Indian Ocean and the Pacific Ocean, is the largest economy in Southeast Asia. Its GDP, valued at USD 1.12 trillion (CHF 1.01 trillion) in 2019, comprises nearly half of ASEAN’s economic output.
What kind of company is recommended in Indonesia?
The foreign investment in Indonesia shall be conducted in the form of a limited liability company (foreign investment company or PT PMA). Foreign investor has to be specific in its business sectors/activities, since the details of business sectors/activities will be reflected in the Indonesian Standard Business Field Classification (KBLI) code, and will further be used to determine investment limitations, establish PT PMA, and obtain licenses.
Different types of risk of business activities
Under the Government Regulation 5/2021, there are 3 types of risk of business activities that are related to the business license: Low Risk, Medium Risk and High-Risk business. According to the Investment Coordinating Board Regulation No. 4 of 2021 on Guidelines and Procedures for Risk Based Business Licensing and Investment Facilities, the minimum issued and paid-up capital for PT PMA is 635,000 CHF, while the investment value has also to be more than 635,000 CHF (excluding land and building).
Further information about business establishment in Indonesia can be found in our guide down below. Download it now and benefit from our market insights.
Should you want to receive further information about Company establishment in Indonesia, please contact Switzerland Global Enterprise (S-GE) and the Swiss Business Hub (SBH) Indonesia for further assistance customized to your specific requirements.
