Establishing a company is the first step to expanding your business operations into Indonesia. Register your business in Semarang and Central Java by choosing the type of company you would like to establish.


company registration in semarang pma

PT PMA

If you are a foreign investor wanting complete control of your business, register your business in Semarang and Central Java as PT PMA. 100% foreign ownership is one of the benefits investors can have when running a business in Indonesia. However, there are several regulations regarding business activities to note and other legalities based on the Positive Investment List.

General Representative Office (KPPA)

For the early stages of expanding into Indonesia, a representative office poses as the proper solution. A general representative office is useful for doing research on the Indonesian market before establishing commercial business operations. However, representative offices cannot conduct activities that generate financial advantage for the company.

General Representative Office (KPPA) in Semarang
Representative Office for Business Trading (KP3A) in Semarang

Representative Office for Business Trading (KP3A)

For a business trading company, KP3A is the representative office that can be established in Indonesia. Although it’s designed for business trading companies, the KP3A is prohibited from conducting business activities that generate financial income. One of the merit differences is that KP3As allow having branches in other regions in Indonesia, while the general representative office is not allowed to do so.

Representative Office for Construction Company (BUJKA)

As another specifically designed representative office, a BUJKA is made only for foreign construction companies. This type of office may engage in large-scale construction projects. However, the activities will be accounted for as a joint operation with a local company known as a Local PT. The collaboration also allows foreign companies to do projects by obtaining a construction license (SIUJK).

company registration in Semarang - representative office

The Process of Setting Up a Company in Indonesia

Internal Process

  • Consultation

    Talk to our experts about your expansion objectives in Indonesia.

  • Collecting Required Documents

    Provide us with all the documents required for company establishment.

  • Document Review

    We ensure your submitted documents are aligned with the latest regulations.

  • Drafting

    We will prepare your application letter addressed to related government bodies.

  • Documents Submission

    We file all your documents to the related government bodies on your behalf.

External Process

  • Registration of Indonesian Tax ID (NPWP)

    An NPWP is required to secure other business licenses, open a bank account, and fulfilling tax obligations.

  • Obtain Indonesian Business Identification Number (NIB)

    A NIB is required for a company to conduct immediate business operations.

  • Deed of Incorporation (For PT PMA)

    A Notary should draft and legalized your Deed of Incorporation.

  • Approval of Legal Entity (For PT PMA)

    After the notary submits the Deed of Incorporation, the Ministry of Law and Human Rights will approve.

  • Securing Other Licenses (For PT PMA)

    Some sectors and business activities require more specific business licenses and permits. This process can from 7 to 20 days, depending on your business sector.

*The estimated time after all the required documents are deemed eligible for submission to the related government’s bodies.

Comparisons of Company Establishment Options
for Foreign Investors in Indonesia

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FAQs

As their names suggest, the main differences among three business kinds in Indonesia lie in the nature of the businesses and the purpose of their incorporation. Owners of a local company (PT) must be Indonesian citizens as even 1 percent of foreign ownership is not allowed. This type of companies is not limited to enter any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open for international investors, but the maximal percentage of foreign share differs in various business sectors. Contact Cekindo to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understand the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and does not have the right to do the direct selling and receive income.

Yes, this particularly applies to import and export businesses. Instead of establishing a company, you can use an undername import service, also known as an importer of record.

It should take between 1 to 1.5 months.

This depends on the type of company you decide to establish.

  • In a local (PT) company, a foreigner cannot become a commissioner. It is possible to have a foreign director, but there has to be at least 1 local Director in PT.
  • In a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner.

Yes, it is possible for foreign citizens to expand to Indonesia and set up a foreign-owned company (PT PMA) in the country. Depending on the business line you want to pursue, there are regulations for foreigners to follow when establishing a company in Indonesia. One of the most important is the so-called Positive Investment List which has been—as well as other regulations in Indonesian—updated frequently.