What is a PT PMDN?

Frequently Asked Questions

Can a PMA company hire expats in Indonesia?

Yes, PMA companies in Indonesia can hire expatriates, but certain positions are restricted by the Ministry of Manpower. Expatriates need both working and stay permits, and employers must employ Indonesian counterparts for each expatriate employee, typically at a ratio of at least one Indonesian counterpart per expatriate.

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 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.

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.