3 Steps to Open a New Company in Indonesia
January 17, 2022
“Indonesia has risen to prominence as a nation with rapid economic development, attracting global investors from all across the globe. Anyone, even foreigners, may establish a business in Indonesia thanks to the many viable business initiatives.”
Of course, there were various measures to take before creating a well-run Indonesian corporation. If you want to establish a new business and invest in a rental warehouse in Indonesia, take the time to read these simple actions to help you become a successful business owner.
1st Steps: Check out The Regulation
To start a foreign investment firm in Indonesia, you first must pick which business field you want to invest in using the Indonesian Business Sector Classification.
Then, depending on the Regulation Number on the Negative Investment List, you must determine if the corporate sector is open or close to foreign investment.
Moreover, if the company sector you're interested in has no regulation and limitations from linked technical departments, then it's open to foreign investment with limited foreign participation of 100%.
In 2019, several sectors may have transitioned from being partly open to being completely open to foreign ownership. Therefore, this list might assist you in determining whether or not you require a local partner.
Indonesian enterprises in the commerce, tourism, entertainment, transport, and technology industries are included on the Negative Investment List.
On a more recent note, the Indonesian government has proposed creating a "positive" investing list to promote some businesses that are accessible to both international and local investment.
Moreover, rather than barring foreigners from owning certain businesses, Indonesia will welcome international funders with a list of priorities in the future.
2nd Step: Creating A Company in Indonesia
Next, to form a new business in Indonesia, you need to decide which sort of Indonesian firm a foreigner may establish.
The first step is to form a Limited Liability Company (LLC). A minimum of 2 shareholders should own the 'PT' firm. Thus, individual or corporate stockholders, or a mix of both, might be included.
An FDI business must spend at least IDR 15 billion (excluding land and construction costs), with a minimum paid-up and issued capital of IDR 2.5 billion. Nevertheless, a minimum of IDR 10 million (USD equivalent) is needed for each shareholder.
Furthermore, a foreign investor might open a Representative Office to do market research. A foreign corporation establishes a Foreign Representative Office to advocate itself in Indonesia.
Foreign Representative Offices are often restricted from directly participating in operational operations, such as signing a rental warehouse lease, issuing formal invoices, accepting money from customers, and participating in other business activities.
3rd Step: Choose a Location
Another crucial stage is deciding where your firm will be located. Specific ground rules apply to different locations and kinds of businesses, which you must follow. Any industrial activity must be placed in industrial estates, according to Industrial Law No. 3 of 2014 and State Regulation No. 142 of 2015.
The Indonesian Industrial Estates Association now has 87 corporate members spread throughout 18 provinces, spanning a total gross area of about 86,059 hectares. There are almost 9,950 manufacturing enterprises in operation, which does not include industrial parks that are not HKI members.
To ease your location hunt, we provide a selection of rental warehouses and factories in various industrial and manufactures districts. You can contact us at https://www.slp.id/ to get more information about warehouse location. We would like to assist you when you finally open a company in Indonesia.