China Fortune Land Development: A Case Study

China Fortune Land Development: A Case Study

  • InCorp Editorial Team
  • 23 June 2025
  • 3 minutes reading time

Problem

China Fortune Land Development Co Ltd (CFLD) is one of the leading industry city developers in China, based in Beijing, with an estimated net worth of more than US$4.1 billion.

In 2015 was, one of the planned CFLD projects in Indonesia, called the First International New Industrial City (NIC) project officially approved by the Indonesian government. As a result, CFLD is formally entering the Indonesian market to run the project.

Before they proceed with the entire approved investment, one of the CFLD’s initial steps is to establish 5 independent companies to run their activities in Indonesia, including all relevant licenses, permissions, and operation compliances related to their sector.

Solving and Solution

To set up a business in Indonesia, CFLD confirmed to establish 5 PMA companies in Indonesia through a 3-hour Investment Licensing Service (One-stop integration service program called PTSP) 

The licensing service will allow establishing a company in 3 hours with the requirement of a minimum investment of IDR 100 billion (US$ 7.33 million) and/or absorb a workforce of more than 1,000 people to have their preliminary permits. 

Except for company establishment, CFLD needs to obtain all licenses and permits to start their project in Indonesia. Also, the work permits for their management are based in Indonesia.

InCorp Indonesia Services Solution

CFLD appointed InCorp Indonesia (an Ascentium Company) as the principal consultant for their legal entity setup and compliance and engaged InCorp Indonesia to provide the following services in the initial stage:

  • 5 PMA company registration in Indonesia (complete company documents)
    • 5 Principle License
    • 5 Article of Association
    • 5 Deed of Establishment
    • 5 Domicile Letter
    • Tax ID Registration
    • 5 Company Registration Certificate
    • 5 VAT payer application
  • Investment activity report (LKPM)
  • Company document revision
  • Company document translation
  • Land principal permit (IPR)
  • 16 work permit and visa (KITAS/ITAS)
  • business visa
  • Payroll outsourcing
  • Employment report
  • BPJS social security and health program registration

Result and Impact

All 5 companies were successfully established, and the whole company registration process took only 3 hours (registration through a one-stop integrated service) with 2 weeks of document preparation before application. 

In the initial step, CFLD received eight preliminary permit documents, including a principal license, tax ID, work permits (RPTKA, deed of establishment, including the land-booking letter issued by the Ministry of Agrarian and Spatial Planning. And the rest of the documents follow in a short period.

“We start to cooperate with InCorp Indonesia after comparing several consultants; I found InCorp Indonesia is an international and professional organization with a good understanding of the local market. InCorp Indonesia helped our company to set up our first Indonesian entity and also helped with day-to-day operations. InCorp Indonesia showed a high level of professionalism. We see the biggest added value in fast starting the business in Indonesia, taking care of the routine process. Therefore, we can focus more on our core business.” Max Yang – President, Indonesia Region at China Fortune Land Development Co., Ltd.

Challenge and Cross Services

The process was carried out within a significantly shortened period of 3 hours of service and requested precise preparation and detailed knowledge of all individual laws.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.

Frequently Asked Questions

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.
    • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

    For tax purposes in Indonesia, companies must maintain their books in Rupiah, using the Indonesian language, and store them within the country. Exceptions for using USD and English in bookkeeping require prior notification to the authorities and any use of languages other than Indonesian needs approval from the Ministry of Finance.

    Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.

    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.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.