Can a PMA company hire expats in Indonesia?

Frequently Asked Questions

Will the government check the minimum paid-up capital for doing business in Indonesia?

The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must.

What duties do investors have when they own shares in a company that has been liquidated?

Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation.

Can Investors 100% own a PT PMA Company?

According to Presidential Regulation No. 10/2021 and the amended version, all businesses are open for domestic and foreign investment with these limitations and classifications:

• Eight businesses are closed to foreign investment and may be operated by the central government.
• Designated business sectors or joint ventures with cooperatives (koperasi) and micro, small, and medium enterprises
• Open businesses are subject to specific conditions, such as those that are exclusively available to 100% local investors, those with restricted foreign shareholding, and investments requiring special licenses

Certain sectors are closed to foreign investment, including narcotics cultivation, gambling, and environmental conservation activities.

What are the shareholder rights in a PMA company?

Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information.
They must approve significant matters through general meetings of shareholders with specified quorums, such as:

• Amending articles of association
• Changing share capital
• Appointing or dismissing directors and commissioners
• Approving major transactions, dividends, and financial statements
• Company reorganization