Do you want to establish a PT PMA in Jakarta? Indonesia’s capital city offers numerous opportunities for foreigners to engage in commercial activities. The recent easing of rules on foreign investment, coupled with the government’s decision to grant lease concessions of government buildings to private investors, make Jakarta an ideal location to participate in the city’s booming economy. This article explains how to set up a PT PMA in Jakarta.
What is a PT PMA in Jakarta?
PT PMA in Jakarta is a limited liability company that foreigners can establish. Indonesian law requires foreigners who want to engage in commercial activities in Jakarta to establish a PT PMA, which stands for Perseroan Terbatas Penanaman Modal Asing.
Establishing a PT PMA in Jakarta allows foreign investors to conduct business, generate revenue, and own and control their company. A foreign individual, company, or government body can establish and run a PT PMA in Jakarta, although it’s subject to specific regulations and requirements. The PT PMA is distinct from the PT (Perseroan Terbatas), which can only owned by Indonesian nationals.
Advantages of a PT PMA in Jakarta
Foreign investors can own anywhere from one to 100% of a company, depending on the industry. PT PMAs enjoy lower taxes and import duties and a simple organizational structure that requires only one director, commissioner, and shareholder.
In addition, establishing a PT PMA in Jakarta is very convenient since almost all important government offices are located in the city, such as the Investment Coordinating Board (BKPM) and the Ministry of Industry.
Establish a PT PMA in Jakarta
Open a PT PMA in Jakarta in 5 simple steps
Follow these five steps to start a PT PMA in Jakarta:
- Approval of company name obtained from the Ministry of Law & Human Rights
- Deed of Establishing with notarization
- Approval of the legal entity by the Ministry of Law & Human Rights
- Acquisition of Tax Identification Number (NPWP) and taxpayer registration certificate (SKT)
- Acquisition of Business Identification Number and licenses
It can take between two and six weeks to establish a PT PMA in Jakarta. Once you’ve established your company, you must pay taxes and perform administration tasks. It’s essential to work with a reliable accountant who can assist you.
How much does a PT PMA in Jakarta cost?
Establishing a PT PMA in Jakarta costs between IDR 15 million ($945) to IDR 30 million ($1,890). PT PMA registration in Jakarta is cheaper than in other regions, primarily due to its thriving foreign commercial presence. For a PT PMA in Bali, agencies charge between IDR 25 million ($1,575) to IDR 35 million ($2,205) to establish a PT PMA.
What are the requirements to register a PT PMA in Jakarta?
Foreigners should prepare the following before registering a PT PMA in Jakarta:
1. Required documents
There are the required documents to start a PT PMA in Jakarta:
- Company name
- Deed of Incorporation
- Company Registration Certificate (TDP)
- Tax ID registration
- Business licenses
One advantage of registering a company in Jakarta is that you do not have to submit a domicile letter to the local council.
2. Organizational structure
To register a foreign-owned company or PT PMA, the minimum organizational requirements include having two shareholders who can be foreign individuals or corporations combined with local shareholders. The company must have at least one director, with at least one being a local and one commissioner, who can be a foreigner or local.
3. Minimum investment
In contrast to local companies with more flexibility, foreign companies must have an investment plan worth at least IDR 10 billion ($630,000), with 25% or IDR 2.5 billion ($157,500) of it paid as capital upfront.
Alternative: Buy an existing PT PMA in Jakarta
When considering setting up a business in Jakarta, there are different options. One can establish a new PT PMA or acquire an existing PT PMA or PT. It’s important to note that since only Indonesian citizens can own a PT, it needs to be converted to a PT PMA after acquisition. Acquiring an existing PT PMA or PT is a more cost-effective and time-efficient alternative to starting a new one.
Register your PT PMA in Jakarta with Own Property Abroad
Are you looking to establish a PT PMA in Jakarta? Own Property Abroad can assist you seamlessly and hassle-free, thanks to our extensive knowledge and experience in the Indonesian market and regulations.
With our expert team, you won’t have to navigate the complexities alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected].
Establish a PT PMA in Jakarta
Conclusion
Overall, a PT PMA is crucial for foreign investors looking to engage in commercial activities in Jakarta while complying with the country’s investment laws and regulations. Numerous agencies and law offices specialize in these dealings, making starting your business in Jakarta easier. These resources can be beneficial for navigating the complexities of setting up and running a foreign-owned company in Jakarta.
Frequently Asked Questions (FAQs)
Can I apply for an Investor KITAS in Jakarta?
Yes, you can apply for an Investor KITAS in Jakarta. This type of KITAS is specifically designed for foreign investors who have invested in Indonesian companies. The application process can be initiated at the Indonesian Immigration office or through an authorized agent in Jakarta.
Who is eligible to register a PT PMA?
Eligibility to register a PT PMA ) is open to foreign individuals or legal entities. The company must engage in business activities approved by the Indonesian Investment Coordinating Board (BKPM) and meet the minimum investment requirements set by the government.
Can foreigners buy property in Jakarta through a PT PMA?
Yes, foreigners can buy property in Jakarta through a PT PMA. The PT PMA can acquire property rights such as Hak Guna Bangunan (Right to Build), allowing the foreign-owned company to engage in property transactions within the regulations set by Indonesian law.
