Home Blog How to Start a Business in Power Supply in Indonesia Uncategorized How to Start a Business in Power Supply in Indonesia InCorp Editorial Team 4 January 2021 4 minutes reading time Table of Contents Compulsory Company Registration before a Business License Application Mandatory Business License – IUPTL Start a Power Supply Business in Indonesia Hassle-free with Cekindo Indonesia has been extending a warm welcome to foreign entrepreneurs, investors, and businesses who can contribute to the country’s economy. This can be seen in their recent more business-friendly policies and improved licensing infrastructure – making Indonesia one of the best destinations for foreigners to start a business in Indonesia. Particularly for the power supply business in Indonesia, thanks to this archipelago’s rich energy and renewable resources, many foreigners are now putting more of their investment capital in the energy sector. The foreign investment in the power supply sector is expected to rise tremendously with the forecast showing that the energy demand in Indonesia is going to increase by 80% before 2030. Compulsory Company Registration before a Business License Application Before you can apply for your power supply business license in Indonesia through the Online Single Submission (OSS) system, it is a requirement for you to register your company in the country. For most expats and foreign businesses, a foreign limited company of power supply in Indonesia is their most preferred type of legal entity. Here is a summary of the steps to go about it: Submit an investment plan to the Indonesian authority known as the Indonesian Investment Coordinating Board Deposit the minimum share capital, and the amount depends on the type of business Submit the Article of Association and other company registration documents Apply for a tax number and register with the tax authorities and trade register in Indonesia Depending on the power supply business activities, register with other specialised agencies or associations Authorities approve the company incorporation Apply for a power supply business license Mandatory Business License – IUPTL The Indonesian Law 30/2009 in regards to Power Electricity states that businesses of power supply serving the public must obtain a power supply business license (Izin Usaha Penyediaan Tenaga Listrik – IUPTL). Before the authority can issue an IUPTL to your power supply business, you are obliged to fulfill certain requirements: Administrative Requirements You shall submit the following information: Applicant’s identity Validation as a legal entity in Indonesia Company profile with applicant’s profile Tax identification number Financial capability documents with funding source including audited financial statement and bank statement Technical Requirements You should also complete the technical requirements by providing the below information: Business feasibility study in Bahasa Indonesia One-line diagram Installation location (except for power sales business) Location permit (except for power sales business) Construction schedule Business type and capacity Operational schedule MoEMR’s approval letter on power sales or power network lease Power network lease agreement Power sale-purchase agreement Electricity supply business plan (RUPTL) and work area determination Environmental Management Requirement The final section of the requirement to meet to acquire your business license is the environmental management requirement: Environmental management and monitoring effort document such as Environmental Impact Analysis (AMDAL) Start a Power Supply Business in Indonesia Hassle-free with Cekindo Cekindo offers foreign individuals and businesses who possess the right business skills, acumen, and experience to take part in this booming business environment. Our services to help you start a business of power supply in Indonesia are meticulously designed to support your business presence and growth in the country. In addition to realising your business goals, another key aspect of establishing a business in Indonesia is that you can explore the diversely-cultural, healthy, friendly, and fun aspects of the Indonesian lifestyle. Cekindo’s team of business professionals are experts who work hand-in-hand with you to understand your aspiration, business, and personal circumstances, and financial capability – so that we can provide you with the best solution. Book a free consultation with Cekindo and we will answer all your related inquiries. Fill in the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Is halal registration required for all products in Indonesia? Under the latest regulations on Halal Product Assurance, the mandatory requirement for halal certification has been expanded to encompass a wide range of consumer products in Indonesia. This change, which was previously voluntary, now dictates that various items must obtain halal certification. Initially, the certification focus has been on food and beverage products, with the deadline for compliance set for October 17, 2024 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. How long does it take to set up a PMA company, and how soon can it begin commercial operations? Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process. What is PT (Perseroan Terbatas)? PT (Perseroan Terbatas) is the Indonesian term for a limited liability company. Get in touch with us. Lead Form Contact Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized Mandatory Use of Indonesian Language in Business Environment Read more How to Hire a Worker in Bali Read more Important Things to Consider before Starting A Fitness Business in Bali Read more