Huawei Indonesia

Frequently Asked Questions

If investors intend to conduct business in Indonesia, what kind of organization must they establish?

Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways:

• Set up a PMA (Perusahaan Modal Asing)

PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons

• Set up a RO (Representative Office)

According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities.

What is the minimum shareholder requirement to incorporate a PT?

The minimum number of shareholders to incorporate a PT is two

Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia?

It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment.

What needs to be included in an employment background check?

These are a few things you need to examine while performing an employee background check:

• Criminal record
• Educational background, qualifications, and professional certifications
• Work and employment history
• Sexual offense record
• Alcohol and drug tests
• Credit and financial background