How to Start a Business in Indonesia: A Step-by-Step Guide

Frequently Asked Questions

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
Is it required to hire Indonesian staff in the PMA company?

In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations.

How to conduct a company registration in Indonesia for a foreigner?

A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.

How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities?

A PMA company in Indonesia must obtain an NIB, which also functions as:

• Importer Identification Number (Angka Pengenal Impor or API)
  Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production.
  General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System.
• Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process.

Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals.