Can you have a nominee arrangement when setting up PMA?

Frequently Asked Questions

What kind of license does a PMA company need to get?

In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:

• Business Identification Number (NIB)

Low-risk businesses needing only an NIB

• Standard Certification
• Standard Certification is necessary for medium-low and medium-high-risk businesses
• Licenses/Permits

High-risk businesses require licenses/permits
Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).

What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor?

You can transfer the license if your local distributor agrees to change the product license holder.

Is there limited responsibility for shareholders in a PMA company?

In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors.

What requirements are needed if my Indonesian company registers the product?

Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months.