To attract more foreign investors, the Indonesian government has been easing foreign investment regulations and restrictions around some of its industries. However, some business sectors and lines, still remain closed-off to foreign investments. Businesses that are interested in these business lines will need to opt for a Special Purpose Vehicle (SPV) Company Setup.
Indonesia’s Positive Investment List serves as a guide for foreign investors, helping them understand what type of company structure is required to start operating in Indonesia. It enumerates closed and regulated industries, plus the percentage of shares between a local and or foreign company can hold.
For example, businesses related to the construction and installation of high-voltage electricity is capped at 49% of shares for foreign investment. The remaining 51% of shares must be held by a Local PT company.
Foreign investors or companies who are interested to operate in these partially-restricted sectors will have to opt for a SPV company setup.
In an SPV arrangement, your professional shareholder, director, and or commissioner registers the business without your name as a shareholder. Instead, both parties have a common understanding that the professional shareholder, director, and or commissioner is pledging the shares on your behalf.
This setup is extremely risky if you do not have the right documents. Foreign investors could end up dealing with entities that would assert their shares, resulting in them attaining greater control over your business. In the worst situations, unscrupulous appointed shareholders, directors, and or commissioners may take full ownership of everything you invested, from shares to your assets.
As a foreign investor, what you need is an SPV shareholders agreement that protects your investment. Cekindo offers you the following solutions:
Cekindo can develop a customized plan once you’re ready to set up a business in the country using any or a combination of the above suggestions. We can also offer you a comprehensive Safe Package that includes the following:
We will be here to help you in local partner selection, market research and analysis, product registration, licenses for imports and business, and business visa and work permit. We can take care of all the major processes your business needs to start and run smoothly in Indonesia.
Let Cekindo help you set up a local company Indonesia that protects your interests. We can also help you find dependable, reliable, and carefully selected local partners that will help support and epand your business.