FAQ (Frequently Asked Questions)

Yes, as a foreigner you can set up a foreign-owned company (PT PMA) in Indonesia if your business field is entirely open to foreigners. Find more about Indonesia’s Positive Investment List.

Yes, particularly for export and import business, you can use a service called undername import.

Depending on your business requirements, preferences, and the nature of your business. there are 3 company types you can choose

• Local Company (PT): 100% local ownership. However, foreigners are able to set up a Local PT. via a Special Purpose Vehicle Company setup and Agreement.
• Foreign Company (PT PMA): can be entirely owned by foreigners, however, restrictions in business sectors apply
• Representative Office: a branch of parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits

It all depends on the nature of your business and the purpose of your business incorporation. Consult with us if you are not sure.

Our Special Purpose Vehicle package comes with appointed local professional shareholders and professional commissioners, who are legally bound through a Shareholder Agreement to safeguard the owners of the business.

A shelf company on the other hand, is a pre-made company that is created specifically for foreign investors and companies that require a fast turnaround to access the marketplace.

As soon as the company completes its establishment process, the minimum paid-up capital should be deposited. Another option to look into: after the company receives the Article of Association and Deed of Establishment.

Yes, the government will check twenty-five percent (25%) of the amount, which is the minimum paid-up capital. Fulfilling this requirement is a must.

Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner.

Yes, through purchasing a shelf company. This allows immediate transfer of management control to you. Your shelf company will be ready to operate within 5 days.

You can use our Special Purpose Vehicle services, where a professional shareholder, director or commissioner will be appointed by Cekindo, together with a Shareholder Agreement.

No, you cannot. Business visa can only used for business purposes such as attending business meetings, seminars, exhibitions, or training.

To work in Indonesia, you are required to apply for a work permit as well as a limited (KITAS) or permanent (KITAP) stay permit.

Difficulty level depends on your country of origin. Indonesia has a list of restricted countries, including Afghanistan, Guinea, Israel, North Korea, Cameroon, Liberia, Niger, Nigeria, and Somalia. Citizens from those countries will find the process complicated and difficult and with a high possibility that their application will be rejected.

For business visa and work visa, the sponsor has to be a company legally registered in Indonesia.

Regarding social-cultural and retirement visa as well as KITAS & KITAP, the sponsor must be either an Indonesian legal entity or citizen. Cekindo provides visa sponsorship should you require this service.

The duration depends on the visa type.

• Work and stay permit take approximately 2 months. If the applicant is a director of a company, the visa is valid for 1 year. For other positions, the visa is valid for 6 months.
• Multiple-entry business visa takes approximately 1 week and will be valid for 1 year.
• Single-entry business visa and social-cultural visa take approximately 1 week and will be valid for 2 months with the possibility to extend the visa 4 times, each time for an additional 30 days.
• Retirement visa takes approximately 2 months and will be valid for 1 year.

Yes, it is mandatory to submit monthly and annual tax reports even if your company does not have any business activities, thus zero taxes.

Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report. To avoid this, it is best to hire a local third party to handle your taxation matters in Indonesia such as Cekindo.

Health Insurance and Social Security Insurance (BPJS) are mandatory. Certain percentage will be borne by the company and the employee respectively. Other obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get the information on your specific field.

The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information to be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia.

Before you can distribute your products in Indonesia, you will have to register your product with the BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). Only an Indonesian legal entity can register the product. If you decide to distribute your product via a local distributor, they will register the product under their entity in Indonesia and become the product license holder. Cekindo can act as your local distributor and register the product under its name.

Yes and no. It is very important to choose a reliable distributor as they will register the product under their company and become the product license holder as well as the import license holder. It is difficult to change the local distributor in case you are not satisfied with the cooperation.

You can transfer the license as long as your current local distributor agrees to change the product license holder.

You need to register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months.

The Indonesian Halal bodies recognise some of the international halal certifications. Nevertheless, since there might be differences in the standards used by each of the certification bodies, it is still needed to process Halal Certification in Indonesia.

Yes, if they are halal. Law no. 33 of 2014 states that all halal products distributed in Indonesia that are not halal certified will be considered as non-halal since October 2019. Further information can be found in Halal Certificate Registration with Cekindo.

• Minimum salary of IDR 3.9 mil for Jakarta region
• 12-day annual leave (minimum)
• BPJS coverage
• Holiday allowance

As your HR outsourcing provider, Cekindo signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. Cekindo is also responsible for paying the salary to the employee.

• Employee income tax article 21
• VAT on both service invoice and salary invoice
• 2% recovery tax on salary invoice