Doing Business In Indonesia(Company Formation)
4 (FOUR) THINGS YOU SHOULD KNOW ABOUT THE REPRESENTATIVE OFFICE OF FOREIGN TRADE COMPANY (KP3A)
Previously we have discussed the Representative Office of Foreign Company (KPPA), so currently we wants to discuss the Second Type of Representative Office, which is Representative Office of Foreign Trade Company (Kantor Perwakilan Perusahaan Perdagangan Asing/KP3A). KP3A BACKGROUND The definition KP3A are similar with the KPPA, in which Pursuant to Article 1 paragraph 29 Regulation…
Read MoreVENTURE CAPITAL COMPANY IN INDONESIA
The Indonesian Government has been very outspoken on the development of Micro, Small, and Medium Enterprises (“MSMEs”) especially concerning how to provide incentives and facilities for investors to invest more in MSMEs. One of the initiatives of the Indonesian Government is tosupport the development of the Venture Capital institutions in Indonesia, asstipulated in Article 22…
Read MoreAMENDMENT OF AUTHORIZED CAPITAL FOR LIMITED LIABILITY COMPANY IN INDONESIA
One of the most important thing to prepare when establishing a limited liability company (“PT”) in Indonesia is how much capital the shareholders need to pay up. In its efforts to ease entrepreneurs to start their business, the Indonesian Government enacted a Government Regulation which regulates further regarding the minimum authorized capital for PT. As…
Read MoreFOREIGN COMPANY OBLIGATION ON DIVESTMENT
Divestment is the releasement, exemption or reduction of shares, which is an obligation for Foreign Direct Investment (Penanaman Modal Asing/PMA) Company who owned 100% shares in the company to gradually shift its share to Indonesian participant(s) (both individual or legal entity) within within 15 year subsequent to its first production through direct ownership or domestic…
Read More4 (FOUR) THINGS YOU SHOULD KNOW ABOUT REPRESENTATIVE OFFICE OF FOREIGN COMPANY (KPPA) IN INDONESIA
As we explained in our previous SMART Article regarding the Representative Office, there are three (3) types of representative office in Indonesia based on Article 21 Regulation of Head of Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) Number 15 of 2015 Concerning Guideline and Procedure for Licensing and Non-Licensing Investment (“BKPM Regulation No.15/2015”), as follows:…
Read MoreCAN INVESTORS ESTABLISH A SPECIAL PURPOSE VEHICLE (SPV) COMPANY IN INDONESIA?
The utilization of a Special Purpose Vehicle (SPV) Company to raise foreign investment funds is a common practice by investors worldwide. The question is, does Indonesia recognize a SPV Company? And how can investors establish a SPV Company in Indonesia? The worldwide exposé at the beginning of 2016 known as the “Panama Papers” reveals the popular…
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