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LICENSE PROCESSING |
Q: Should a Foreigner whose plan to incorporate a new company come to Indonesia to attend to license processing with the authority ?
A: There's no need to come directly in attending the licensing process with the authority. All necessary and up to date data is made available at www.iiagroups.com. You can communicate with us efficiently by email, phone call or fax. All process can be done without the presence of the prospective investors. It means your precious time and cost saving. Q: Does the handling of licensing process need the payment of some fees?
A: Basically the handling of licensing process does not need the payment of some fees, but in practice our office will charge only for the service fee on such kind of job to tend to the licensing process with the authority.Q: There is a rumor that the licensing process in Indonesia is very complicated and time consuming, is it true?
A: The procedure indeed needs some time for the finalization (according to the survey of World Bank). Therefore the longest time frame shall be 150 days, while through our office it could be shortened to 60 working days or normally 75 days calendars.BUSINESS SECTORS Q: Are all Business Sectors open to foreign investment?
A: Not all; but most business sectors are open to foreign investment (PMA). The Government in this case has already issued the negative List for Business Sectors that are closed to Foreign Investment (PMA).BENEFIT OF FOREIGN INVESTMENT (FDI) ARRANGEMENTS Q: Is there any tax incentive for Foreign Investment (PMA)?
A: For PMA (Foreign Investment), the Government allows the concerning company to import goods, models and machineries and as for the import duties it can be suspended as long as the imported goods are used. If the products are exported overseas, then the Value Added Tax (PPN) payable for such imported goods can enjoy incentives. For certain regions such as East Indonesia Regions, the Government shall give incentives of certain taxes, but not all regions comply with such rule.FINANCIAL & FIXED ASSETS TRANSACTION Q: Are there any limitation as regards the inflow and outflow of cash money or capital in Indonesia?
A: Indonesia is of Free Foreign Exchange country. There is no limitation on the inflow and outflow of monies. The Central Bank requires the filling out of a certain form for such inflow and out flow of monies but it is only a formality in nature.Q: May Foreign Investment buy lands or fixed asset?
A: Yes, it may. There is no hindrance in buying lands and asset. The title of lands is Hak Guna Bangunan (Right to Build) for the usage of 20 until 30 years.COMPANY ESTABLISHMENT Q: How many parties are needed to set up a company either of Foreign Investment Company or Domestic Investment Company?
A: Minimum 2 parties which can be done by individuals or companies.Q: What is the minimum amount for the Authorized Capital and Paid up Capital for Foreign Investment Company ?
A: The Minimum Authorized & Paid up amount shall be US$. 250.000.Q: Can a foreigner set up a Domestic / Local Company?
A: No, Foreigner should set up Foreign Investment Company. In some cases, foreigners use nominee for Local Company but we suggest foreign investment ones in order to benefit from some facilities.Q: Can a foreigner work in Indonesia? What are the conditions and procedures?
A: A foreigner can work in Indonesia as long as He/She applies for staying and working permit through a company. |