Foreign-Owned Company (PMA) Establishment in Indonesia South East Asia’s Biggest Market
Penanaman Modal Asing or PMA
The best way for foreign investors to achieve full control of their businesses is by establishing PT PMAs, as the legal structure of PT PMA allows foreign businesses to be fully owned and controlled by foreign investors in Indonesia. Each sector has its own guidelines for permissible business operations as well as restrictions on foreign ownership as per regulations stated in the Positive Investment List
invest in Indonesia
PT Penanaman Modal Asing or PMA, was created to allow foreigners to invest in Indonesia through the use of fully-funded foreign capital or joint ventures with domestic investors as per Indonesian law No. 25/2007 defines PT PMA as an enterprise in which foreign investors, companies, or governments have a controlling interest within Indonesian territory. The PT PMA rules are legitimized by Company Law No. 40/2007.
When it comes to setting up a company in Indonesia as a business owner, there are two main options: A Foreign-Owned Company (PT PMA) or Representative Office, and your specific business needs will determine which option is more beneficial to pursue.
it may be worth considering
If you’re an investor or entrepreneur planning to expand to Indonesia early on, then it may be worth considering opening a representative office (KPPA) as the usage of KPPA’s permits new entrants into the Indonesian market to get a taste for it before moving towards long term operation.If you’re looking for a solution that excels at non-sales tasks like customer service support or approaching potential clients, then look no further than KPPA’s. They’re also great for conducting marketing and brand awareness initiatives.
The other type of Representative Office is KP3A to represent businesses in their trading activities and this is why it was established. However, the general and trading Representative Office cannot engage in business activities that generate financial income. Although it is impossible for General Representative Offices to exist in every part of the country , Trading ones are permitted to do so under Indonesian law
Foreign-Owned Company (PMA) Establishment in Indonesia
Like the KP3A model of being a representative office specifically established for foreign construction firms, BUJKAs are also set up and they only permit joint ventures with local companies like Local PT to undertake massive building works making it a sound platform for foreign concerns.
