How to investing and doing business in Indonesia? According to your need, there are few options to establish a legal presence in Indonesia. The procedure will be done through the Indonesian Investment Coordination Board (BKPM) in the form of Limited Liability Company – Foreign Direct Investment (PT PMA) or Representative Office. 1. Limited Liability Company – Foreign Direct Investment (PT PMA) Limited Liability Company – Foreign Direct Investment (PT PMA) is the only form of company allowed for foreign investment. The first arrangement is to verify your business area in the Negative Investment List (DNI) to confirm if your business area is allowed for foreign investment, closed for foreign investment, or open with requirements. Download the complete negative list here. 2. Representative Office Representative Office is established mostly for marketing purpose, selling or buying agents, and market research. However, the main limitation of Representative Office is that you are not allowed to conduct direct sales and generate revenue. Thus, several foreign investors establish Representative Office to promote the company and start to grow the market before establish a Limited Liability Company. Feel free to contact us for further information and get a free quotation for Investing in Indonesia. Cekindo Menara BCA Grand Indonesia 50th fl, JL. MH. Thamrin No. 1, Jakarta Pusat 10310 - Indonesia Tel: +6221-5806889 Fax: +6221-5806893 Email: info@cekindo.com www.cekindo.com

1. Investing in Indonesia ?
Expand Successfully

2. Indonesia as the biggest archipelago and the
third largest democracy in the world
Indonesia is showing its’ rightful position as
a major destination for your investment
Why Indonesia?

3. Indonesia is the 4th most populous nation in
the world
Demographic advantage of the 251 million people:
• Over 50% of the population is under 29 years old
• 60% of the population is under the age of 39
• Around 52% of the population living in urban areas
• Indonesia’s population covers more than 39% of total population
of 10 Southeast Asian countries

4. Economy of Indonesia
Indonesia is an emerging global
powerhouse in Asia
Indonesia is the largest economy in
Southeast Asia
Indonesia is a country that contains
great economic potential

6. Indonesia is going to hold
general elections this year
2014
Underlying Indonesia’s vibrant
economy is political stability
Indonesia is a constitutional
democracy
Indonesia is one
of the most decentralized
countries in the world
Politic of
Indonesia

7. Natural Resources of Indonesia

8. How to Investing in Indonesia?

9. Investment Step by Step
Step 1 : Preparation
Step 2 : Construction
Step 3 : Ready for Production/Operation

10. Step to establish an Indonesian
Legal Entity to conduct investment
activities in Indonesia

11. Step 1 : Preparation
Preparation is the step to establish an Indonesian Legal Entity to conduct
investment activities
Principal License
Principal license of investment is a license granted by the
Central Government / Provincial Government / Municipality
Government as an initial government approval that must be
obtained before conducting investment in Indonesia
Deed of
Establishment by
the Notary
- Deed of establishment is arranged by the notary in
Indonesia in order to establish an Indonesian Legal Entity.
- In the case of a foreign capital investment, the legal entity
shall be in the form of a Limited Liability Company (LLC).
Ratification of
Legal Entity by
Minister of Law &
Human Rights of
the Republic of
Indonesia
- The Deed of Establishment is subsequently processed by
the Notary in Indonesia to obtain ratification from Minister of
Law & Human Rights of the Republic of Indonesia.
- After ratification, the Legal Entity shall become a valid
Indonesian Legal Entity.

12. Step 1 : Preparation
Preparation is the step to establish an Indonesian Legal Entity to conduct
investment activities
Certificate of
Domicile
Certificate of Domicile is used in relation to the Double
Taxation Avoidance Agreement (Tax Treaty). Certificate of
Domicile is used to prove that a particular taxpayer is a
residence of a State who signed Tax Treaty.
Tax Payer
Registration
Number
The Tax Registration Number (In Indonesian term is called
Nomor Pokok Wajib Pajak or NPWP) is a number issued to
Taxpayers by the tax office to identify taxpayers and to
assist them in fulfilling their taxation rights and obligations.
Company
Registration
Certificate
Company Registration certificate or further called as TDP
(Tanda Daftar Perusahaan), is a certificate of authorization
presented by office company registration to the
applicant/company that has been registered.

13. The procedure includes legal entity establishment
also applying licenses of fiscal and non-fiscal
facilities granted by government

14. Step 2 : Construction
Construction is the step in preparing facilities, infrastructures and licensing / non-licensing
arrangements for capital investment
API-P
Facility for Import
Duty Exemption on
Machinery
Facility for
Corporate Income
Tax (PPh Badan)
API-P (Producer Importer Identification Number) is an identity number
that a Company must have to conduct importation of goods which will be
used by the company itself as capital goods, raw materials, auxiliary
materials, and or materials to support production process.
Import duty exemption on machinery granted by the government to a
company in certain business field.
Facility for Corporate Income Tax (PPh Badan) given by the government
could be in the form of Tax Allowance or Tax Holiday.
Regional License
On investment implementation, the company is required to have a
regional license in project location issued by the regional government
(Province/Municipality/District).
Operation Permit
On investment implementation, the company is required to have
Operations Permit, which is a permit on the technical aspects of its
business field.

15. Ready for operation means a condition of
completion on facilities / infrastructures
in order of business implementation

16. Step 3 : Ready for Production/Operation
Ready for Production/Operation is the stage where the company is ready to conduct
production activities or to conduct operational activities
Business
License
- Business License is a permit granted by Government / Provincial
Government / Municipality Government, which is required to be obtained in
order to start production / operational activities to produce goods or
services, unless stated by the sector regulations.
- To get Business License, a company submits application of Business
License to the institutions that implement One Stop Service according to its
authority.
- Having obtain Business License, Trading Companies may submit
application of General Importer Identification Number (API-U).
- Companies who use Import Duty Facilities on Machineries may submit the
Exemption Import Duty Facilities on Goods and Materials

17. Indonesia is always the right place to
develop your business. That might be the
most exact statement to sum up
You can see Indonesia as a promising investment
opportunities which are ripe, from the
infrastructure and manufacture in all sectors

18. Get a free quotation for
Investing in Indonesia
info@cekindo
www.cekindo.com
+62 21 580 6889