Home Blog Starting A Business in Lombok: Why and How Uncategorized Starting A Business in Lombok: Why and How InCorp Editorial Team 21 October 2019 4 minutes reading time Table of Contents Starting A Business in Indonesia: Why Invest in Lombok Options to Set up a Company in Lombok How Cekindo can Assist in Starting a Business in Lombok, Indonesia Many years ago, many people did not know about Lombok. But today, Lombok is often referred to as “The Little Sister of Bali”. Therefore, because of its increasing fame and popularity, Lombok has become one of the most common choices when it comes to starting a business in Indonesia. A huge number of tourists has been arriving in Lombok over the past few years since the launch of its new international airport in 2011. In addition, being an island east of Bali and west of Sumbawa, Lombok is one of the region’s best performers in both local and foreign investments. This is especially true for tourism and property investments, owing to its ever-increasing infrastructure and property developments. Now, let’s take a look at the reasons you should invest in Lombok and how you should go about choosing the right type of legal entity for your business. Starting A Business in Indonesia: Why Invest in Lombok The earthquakes in August 2018 brought serious consequences to many tourism businesses in Lombok. However, approximately 90% of tourism operations on the islands are already back to business since then. In addition, most tourism businesses in south Lombok are open as normal just like pre-earthquake as the beaches are not very much impacted. With so many potentials that are still available for your to take advantage of, here are the reasons you should invest in Lombok: Lombok has become conveniently accessible with its newly constructed international airports and other infrastructure developments The cheap airfares from low-budget airlines have allowed more and more visitors to come into the island, enhancing tourism investment opportunities Lombok has been gaining so much popularity for the past several years as “the new Bali” – for surfers, beachgoers, vacationers and of course the investors The investment climate is positive in Lombok with the government’s effort to boost the local revenues by attracting investors and visitors Many investors have already started to build hotels, bars, restaurants, salons, and resorts to cater to the increasing demands Options to Set up a Company in Lombok With these fascinating potentials and possibilities, Lombok is an alluring destination for individuals and companies to invest and set up a company. Before anything, you must choose the right type of legal entity that works for your business requirements. If you haven’t had any experience in setting up a company in Indonesia, especially when you’re a foreigner, opting for professional consultation or expert assistance is highly recommended. Basically, foreign investors often use these three types of legal entity in Lombok: Local Limited Liability Company (PT) It has low minimum investment capital Only local nationals are eligible for its ownership As a foreigner to set up a PT, you will require a Special Purpose Vehicle arrangement through reliable business consultant No restrictions under the Negative Investment List (NIL) Foreign-owned Limited Liability Company (PT PMA) Restricted under NIL with 1%-100% foreign ownership. The percentage of ownership depends on the type of business you are in It has better conditions if you want to do import You are allowed to provide work permit and business visa sponsorship under this establishment Representative Office No transactions or business activities with incomes/profits are allowed Suitable for business promotion, market presence and market survey PMA Scheme in Lombok If you want to buy a property in Lombok as a foreigner for investment, you will need to purchase it under the PMA scheme that is controlled by the government in Indonesia. You must provide the following: Business plan Proof of documents for your business plan on how it can help the communities Proof of deposits Other requirements on request based on the type of your business How Cekindo can Assist in Starting a Business in Lombok, Indonesia With a team of specialists in business setup, Cekindo is your gateway to starting a business in Lombok. Our experienced consultants and legal practitioners can guide you through the company registration process, step-by-step. Speak to one of our consultants today by filling 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 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 a PT PMA? Limited liability company with foreign direct investment ranging from 1-100% 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 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 Get in touch with us. 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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 How do You Open a Bank Account in Semarang? Read more Things You Need to Know Before Moving to Bali Read more Visa Options for Stay in Lombok Read more