In Indonesia, there are 3 (three) legal business entities, which can be seen below:

• • First, PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company
• • Second, a domestic owned limited liability company or commonly referred as PT (Perseroan Terbatas)
• • The last thing is that depending on the character of your business, foreigners open their business in Branch Offices or Representative Offices (RO) in Indonesia.

The documents and applicable laws that new business owners need to refer to are the Indonesian Investment Positive List.

Number of foreign ownership shares, type of company (namely: PT, PT PMA, and RO), business district, line of business or locally referred to as KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) as outlined in the Indonesian Positive Investment List. This is a document that includes all the details of thousands of KBLIs, each with different regulations. Therefore, it is very important for you to understand KBLI first.

Starting a business in Indonesia takes about 1-3 months. This time indicated can depend on how quickly the business owner sends the required documents and requirements to the consultant to carry out the process. Companies that have prepared complete documents and files can immediately operate in less than 30 working days, starting from the time the business owner submits the documents and files to the authorized party.

Domicile Letter or locally referred to as Surat Keterangan Domisili is legal evidence that you have registered and verified the location and address of your company office. All foreign-owned companies are required by law to have an office during their incorporation process. To have a Domicile Letter, what is needed is an office rental agreement. Domicile Letters are managed and issued by Kelurahan or village administration, and Kecamatan or city/district expansion. Please note that a personal residential address cannot be registered as an address for a business. The documents that need to be prepared are, as follows:

• • Application letter for making SKDP (Certificate of Domicile of the Company) addressed to Kasatlak (Head of Implementing Unit) PTSP (One Stop Service) Kelurahan and signed by the President Director of the company. This letter also contains information regarding the line of business to be carried out by the company, the number of employees, and so on.
• • Stamped statement letter regarding the validity of the document attached and signed by the President Director or the person in charge of the company.
• • Notary Deed of Establishment and/or Change of Company (Original & Photocopy).
• • Identity Card (KTP) of the Director or Person in Charge (Original & Photocopy). If the Director or Person in Charge of the company is not an Indonesian citizen, please include your Passport or KITAS (Limited Stay Permit Card) or locally called Kartu Izin Tinggal Terbatas).
• • Family Card (KK) of Director or Person in Charge of the Company.
• • NPWP (Taxpayer Identification Number) Personal Director or Person in Charge of the Company (Photocopy).
• • Proof of land ownership: Land Certificate or Deed of Sale and Purchase (Photocopy).
• • PBB payment slip (Land and Building Tax) for the current year (Photocopy).
• • Building Permit (IMB) with a statement that the building is an office not a private residence (original and photocopy). For buildings that do not have an IMB on the grounds that the building was built before 2000, a statement letter with sufficient stamps from the building owner can be replaced with the knowledge of the local RT, RW, and Lurah, but this possibility only applies in certain areas. Please ask for further information to the local village office.
• • Employment BPJS (Social Security Administering Agency) registration certificate for Legal Entities or Business Entities.
• • Distraction permit retribution deposit slip and Advertising Tax (photocopy).
• • Regional Retribution Tax Certificate.
• • Statement of No Objection Letter from the surrounding neighborhood, this requirement is specifically for business locations that are adjacent to other buildings or there is a possibility of disturbing the surrounding neighbors.
• • Business Place Permit (ITU) (photocopy).

Unfortunately it can not. You must have these requirements, or if the requirements already exist but the validity period has expired, you can come to the appropriate office to take care of the requirements again.

In general, PT PMA is required to have a minimum capital of IDR10 billion (approximately USD690,000) and this capital must be paid up in advance.

For foreign investors who plan to operate in fields that require large capital, the minimum capital and initial deposit capital may be higher. You can find out more information about initial capital by contacting Mediamaz Work.

The answer is yes. Foreign-owned companies can hire foreigners and be a promoter for work permits for them. However, it is important to note, some sectors do not allow foreign employment.

Below are the initial steps and documents that need to be prepared to start a business in Indonesia.

• • Domicile Letter
• • Principle License and Business License
• • Deed of Establishment
• • Approval of Nomor Induk Berusaha (NIB) or Business Registration Number
• • Tax Identification Number (NPWP)
• • Taxable Entrepreneur Letter (PKP)
• • Company Welfare Report and Labor Report
• • Proof of capital income of IDR10 billion 

For the Jakarta area, the address used by the company must comply with the zoning provisions contained in the DKI Jakarta Regional Regulation No. 1/2014. In this regulation, the domicile of the company is not allowed to be in a residential area. As for other areas, you can first confirm through the local DPMPTSP (Internal Investment and One-Stop Integrated Service) whether or not you can use your home address as your company’s domicile.

Mediamaz Work has registered and trusted talent and staff, and experts in their fields so you do not need to hesitate and can entrust the process of establishing your company to us.