Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends?

Frequently Asked Questions

Can investors own shares with preferential rights?

Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period.

What is the Indonesian employment status in PMA company?

In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment.

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.

Is having audited accounts mandatory?

Audited financial statements are required for:

• Entities gathering funds from the public (e.g., banks, insurance companies)
• Entities issuing debt instruments
• Publicly listed companies
• State-owned enterprises
• Companies with assets and/or turnover exceeding IDR 50 billion
• Entities mandated by legislation