Can a PMA company keep non-Rupiah bookkeeping and use a language other than Indonesian?

Frequently Asked Questions

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.

Can a foreigner form a CV?

A foreigner is not allowed to form a CV in Indonesia

What responsibilities does a PMA company have in terms of non-tax compliance?

In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as:

• Annual financial report
• Investment realisation report
• Manpower and employee welfare report
• Expatriate utilisation report
• Company loan repot
• Foreign exchange and prudential principles report

However, depending on the business activities and classification relevant authority may require additional reports from a PMA company.

How do investors choose a holding jurisdiction for a PMA firm in Indonesia?

Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.