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Indoconsult®
Business & Intercultural Consulting Indonesia
Doing Business in Indonesia
Company Setup & Market Entry
Christ...
Indoconsult®
Business & Intercultural Consulting Indonesia
What do you need to establish business in a foreign country?
De...
Indoconsult®
Business & Intercultural Consulting Indonesia
Ways of doing business
in Indonesia
Indoconsult®
Business & Intercultural Consulting Indonesia
In general open market for foreign investment
(Limitations in s...
Indoconsult®
Business & Intercultural Consulting Indonesia
• Sales Market
via own local company
via distributor / agent
• ...
Indoconsult®
Business & Intercultural Consulting Indonesia
Variety of engagement in Indonesia
Sales Agent
Representation
O...
Indoconsult®
Business & Intercultural Consulting Indonesia
Process of company registration
1. Preparation
2. Company Setup...
Indoconsult®
Business & Intercultural Consulting Indonesia8
What does a company need?
Indoconsult®
Business & Intercultural Consulting Indonesia
Preparation
Is your business
open for foreign
investment?
You n...
Indoconsult®
Business & Intercultural Consulting Indonesia
Do you have
sufficient money
for investment?
Foreign Investors ...
Indoconsult®
Business & Intercultural Consulting Indonesia
How should your company
structure look like?
Is your area of bu...
Indoconsult®
Business & Intercultural Consulting Indonesia
Where should your
company have ist
domicile?
Indonesia is big, ...
Indoconsult®
Business & Intercultural Consulting Indonesia
Company Setup
Applying for your
Company Name!
To take you good ...
Indoconsult®
Business & Intercultural Consulting Indonesia
Investor
Administrative Act
Obtain administration
Number for Li...
Indoconsult®
Business & Intercultural Consulting Indonesia15
Some points for successful Market Entry
Be prepared, plan in ...
Indoconsult®
Business & Intercultural Consulting Indonesia
Do you have questions about doing
business in Indonesia?
We sup...
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Doing business in indonesia - Company establishment and market entry by Indoconsult

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How to setup a company in Indonesia? What are the requirements for foreign investores? What do you need to consider when doing business in Indonesia?

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Doing business in indonesia - Company establishment and market entry by Indoconsult

  1. 1. Indoconsult® Business & Intercultural Consulting Indonesia Doing Business in Indonesia Company Setup & Market Entry Christian Hainsch Managing Partner
  2. 2. Indoconsult® Business & Intercultural Consulting Indonesia What do you need to establish business in a foreign country? Demographic Data Basic Country know how Infrastructure and Location details Economic and Market Data Information about Laws, Regulations and Taxess Intercultural information and know how Country specific experience or consulting Market Entry Strategy
  3. 3. Indoconsult® Business & Intercultural Consulting Indonesia Ways of doing business in Indonesia
  4. 4. Indoconsult® Business & Intercultural Consulting Indonesia In general open market for foreign investment (Limitations in some areas) „Single Point of Entry“ for Investors via Investment Coordination Board (BKPM) Foreigners can hold up to 100% of companies in Indonesia (Limitations in some areas) Currency conversion & transfer w/o restriction Several tax incentives available − Authorities do not work efficient − Corruption is still a big issue − Unequal treatment of foreigners − Lack of Infrastructure − Inscrutable jungle of Laws & Regulations Market Entry | Not easy but possible
  5. 5. Indoconsult® Business & Intercultural Consulting Indonesia • Sales Market via own local company via distributor / agent • Sourcing Market • Production • Research & Development • Executing Projects What is possible in Indonesia Very limited
  6. 6. Indoconsult® Business & Intercultural Consulting Indonesia Variety of engagement in Indonesia Sales Agent Representation Office Local Company Local partner (Distributor) for sales of products in Indonesia „First Step“. Branch of your company. No operative business allowed! Limited Liability Company PT (Perseroan Terbatas). For foreign investment - PT PMA (Penamanan Modal Asing). Joint Venture Investment in existing local company
  7. 7. Indoconsult® Business & Intercultural Consulting Indonesia Process of company registration 1. Preparation 2. Company Setup 3. Permanent Business License
  8. 8. Indoconsult® Business & Intercultural Consulting Indonesia8 What does a company need?
  9. 9. Indoconsult® Business & Intercultural Consulting Indonesia Preparation Is your business open for foreign investment? You need to check in the Negative Investment List (DNI) if there are restrictions or special requirements for your area of business in Indonesia.
  10. 10. Indoconsult® Business & Intercultural Consulting Indonesia Do you have sufficient money for investment? Foreign Investors have to meet minimum capital requirements for certain areas of business. Every foreign investors has to proof its investment by presenting an investment utilization plan
  11. 11. Indoconsult® Business & Intercultural Consulting Indonesia How should your company structure look like? Is your area of business open for foreign Investment? Which structure is required to meet legal requirements? This topics need to be planned in Detail before setting up your business. It is important to select the right people for the necessary positions (e.g. director, commissionaire)
  12. 12. Indoconsult® Business & Intercultural Consulting Indonesia Where should your company have ist domicile? Indonesia is big, very big! For operative business and administration processes it is important to select your place of domicile carefully. Of course can do business all over Indonesia but your company domicile is the place where you management is located.
  13. 13. Indoconsult® Business & Intercultural Consulting Indonesia Company Setup Applying for your Company Name! To take you good name to Indonesia is fine but not that simple. Before getting your company registered you need to get approval to use it in Indonesia.
  14. 14. Indoconsult® Business & Intercultural Consulting Indonesia Investor Administrative Act Obtain administration Number for License Agreement Letter Validations: necessary Validations: • Negative Investment List • Letter of Recommendation nötig • Local partnership necessary Return of Application Application Receipt Issue of approval by Back Office Application Form: All necessary documents including attachments Self Assessment (Self Assessment Check list) BKPM Assessment of all application documents and attachments Application received and completed Application Process – BKPM for Principal Licences Mandatory Process incorrect correct
  15. 15. Indoconsult® Business & Intercultural Consulting Indonesia15 Some points for successful Market Entry Be prepared, plan in detail and have a solide strategy Take a look behind the curtains of business in Indonesia Take care not to be rushed Get good advice and consulting Keep calm, be patient and have endurance Select local partners and employess with great care Indonesia is not Europa Not everyone who is smiling at you is your friend
  16. 16. Indoconsult® Business & Intercultural Consulting Indonesia Do you have questions about doing business in Indonesia? We support you with Market Entry consulting & services, setting up your company and business structure in Indonesia. Christian Hainsch Managing Partner Phone: +49 (0) 1522 4604094 christian.hainsch@indoconsult.de Picture Sources: Government of the Republic of Indonesia Istockphoto.com HorizonP Coaching & Training e.K. Munich

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