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Characteristics of PT PMA - What Are Regulations to Build PT PMA in Indonesia?
Characteristics of PT PMA - What Are Regulations to Build PT PMA in Indonesia? - pixabay

What Are Regulations to Build PT PMA in Indonesia?

PT PMA which stands for Perseroan Terbatas Penanaman Modal Asing in Bahasa Indonesia is a legal company owned by the foreigner to do the productive activities for their goods and services. Based on New Investment Law No. 25/2007, each company which is shared with the foreigner is categorized as a foreign company. Then, as the new businessman, regulations to build PT PMA in Indonesia is as important as the business itself. Therefore, some following information regarding PT PMA will be beneficial.

 

Characteristics of PT PMA

Characteristics of PT PMA - What Are Regulations to Build PT PMA in Indonesia?
Characteristics of PT PMA – What Are Regulations to Build PT PMA in Indonesia? – pixabay

 

This foreign company should consist of at least two shareholders both from Indonesia or overseas. Also, this investor can be from individual or company. Then, the shares of PT PMA can be owned fully by the foreigner, but it depends on the business sector run by the company. This condition related to the Presidential Decree No. 39/2014 as stated in Negative Investment List. For instance, in the field of cultivation, the foreigner only can obtain maximum capital ownership 49% and will be different in the plantation with 95% maximum.

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Before setting up permanently in Indonesia, PT PMA has to submit the investment plan as the part of the requirement to the BKMP. This license is valid range from 1 to 5 years which is being differentiated based on the sector of the company. Besides, there is a capital requirement for at least IDR 10 billion.

 

The benefit of establishing PT PMA

The benefit of establishing PT PMA - What Are Regulations to Build PT PMA in Indonesia?
The benefit of establishing PT PMA – What Are Regulations to Build PT PMA in Indonesia? – merdeka

 

After finishing the registration and has officially operated, PT PMA can be utilized to conduct business activities such as production, manufactured, import, export, and more. Also, the position of this foreign company is equal with the local as participating in any tenders. If there are foreign directors, employees, and experts will be placed in Indonesia, PT PMA can arrange the Expatriate Work Permit and Stay Permit.

Required documents for PT PMA

Required documents for PT PMA - What Are Regulations to Build PT PMA in Indonesia?
Required documents for PT PMA – What Are Regulations to Build PT PMA in Indonesia? – bruceharris

 

  1. Principle and Business License

It is the first step should be passed by the company. It has to be done after arriving at the BKPM office.

  1. Request for the name of the company to the Ministry of Laws and Human Rights of Indonesia
  2. Deed of establishment and article of association
  3. Domicile of the company letter
  4. Tax Identification Number (NPWP)
  5. Legalization
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Alternatively, those regulations can be changed a little bit by changing the submission of principle license from the first position into fifth without any additional steps. Also, these steps can be different if the sector that is running by the company is different. Those are mentioned as the general requirement for the investors.

 

Regulations to build PT PMA is simple enough if the investors are familiar with the bureaucracy of Indonesia. However, the development of technology which also in line with the increasing of goods distribution attracts new businessman to invest their capital in Indonesia. Therefore, if you have no enough time to handle all of the procedures and regulations, it will be better if you put trust in a professional company that can be reached at www.company-registration.co.id.

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