THE COMPARISON BETWEEN FOREIGN DIRECT INVESTMENT AND REPRESENTATIVE OFFICE IN INDONESIA

THE-COMPARISON-BETWEEN-FOREIGN-DIRECT-INVESTMENT-AND-REPRESENTATIVE-OFFICE-IN-INDONESIA

Indonesian Government gives facilities to Foreign Investor who wants invest in Indonesia. Foreign Investor can establish the Foreign Direct Company (“PT PMA”) or Representative Office (in Bahasa: Kantor Perwakilan Perusahaan Asing, hereinafter briefly referred to as “Rep. Office”). Investment Coordinating Board (“BKPM”) governed the law of procedure for establishing both legal entity as mentioned above,…

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FIRST FINTECH REGULATION IN INDONESIA TO REGULATE PEER-TO-PEER LENDING PLATFORMS

FINTECH-REGULATION-IN-INDONESIA

In the last days of 2016, Indonesia’s Financial Services Authority (OJK) issues its first regulation on Fintech, regulating the services most commonly known as Peer-to-Peer (P2P) Lending Platforms. Read more regarding what the regulation entails and how Fintech players move forward to run their business in Indonesia. Financial technology, commonly shortened as Fintech, is a…

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AMENDMENT OF AUTHORIZED CAPITAL FOR LIMITED LIABILITY COMPANY IN INDONESIA

AMENDMENT-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…

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OBLIGATIONS RELATED TO LOAN FROM FOREIGN PARENT COMPANY TO INDONESIAN SUBSIDIARY

OBLIGATIONS-RELATED-TO-LOAN-FROM-FOREIGN-PARENT-COMPANY-TO-INDONESIAN-SUBSIDIARY

In order to finance their subsidiaries in Indonesia in the form of PT PMA, many foreign parent companies enter into loan agreements with their subsidiaries. Learn more about the obligations applicable to Indonesian subsidiaries that receive loan from their parent companies. It is common for foreign subsidiary companies (Perseroan Terbatas Penanaman Modal Asing or “PT…

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CAN INVESTORS ESTABLISH A SPECIAL PURPOSE VEHICLE (SPV) COMPANY IN INDONESIA?

CAN-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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INCREASE OF PAID-UP CAPITAL FOR PMA COMPANY

INCREASE-OF-PAID-UP-CAPITAL-FOR-PMA-COMPANY

With the growth of the business, and the financial requirement of the Company, General Meeting of Shareholders (“GMS”) can decide to increase the paid-up capital of a Company, to increase the equity and value of the Company itself. The process to increase the paid-up capital includes several steps, especially if the Company is a foreign…

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