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 information: The Latest Regulation on Indonesia 2016 Negative Investment List.

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

There are 3 company types you can choose from depending on your requirements, preferences, and the nature of your business.

• Local Company (PT): can only be owned by Indonesians, foreigners can benefit from local nominee service
• 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.

A local nominee company is provided with local shareholder and commissioner nominees. This service enables entrepreneurs to start a business without the hassle of searching for trustworthy local nominees.

A shelf company has already been established for quite some time and put ‘on a shelf’ immediately after the registration process.

Despite the differences, both company types offer easier and simpler solutions to enter the Indonesian market.

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 local nominee services. A shareholder appointed by us will not interfere with your business operations.

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.

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.

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.

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.