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Foreign Investment guide, Bintan Island 

Step by step procedure

        

To be able to invest their money in Indonesia, first of all, investors should register themselves and establish a legal entity that will run the investment activities. Although there is no difference in providing facilities to Domestic Investment (PMDN-Penanaman Modal Dalam Negeri) and Foreign Investment (PMA-Penanaman Modal Asing), the registration procedures for Domestic Investment are different from those for Foreign Investment.

    

Step 1

 Establishing a Business and Conducting Registration (Foreign investment )

  
 

 

A. Foreign Investment Registration

1. Foreign Investment (PMA)

Foreign Capital Enterprise wishes to invest in Indonesia must be of a legal entity and operates as a limited liability company (PT) organized under the Indonesian Law. Foreign Investors are required to apply and register at the Capital Investment Coordinating Board (BKPM) or at the Free Trade Zone and Free Port Administration Board (Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas) in either Batam, Bintan, Karimun or Sabang. The application may be submitted before or after the limited liability company license is obtained.

 

 

Investment Registration

Relevant Regulation

Procedure

Registration is conducted at the Capital Investment Coordinating Board (BKPM) or the Free Trade Zone and Free Port Administration Board, commensurate with its applicable regulation and authority. Walk in registration may also performed by showing the required documents.

 

• Law No. 25 - 2007

• Presidential Decree No. 36- 2010

• Presidential Decree No. 27-2009

• Head of BKPM Decree No. 12-2009

Requirement

  1. Foreign investor is required to have a letter of recommendation officially issued by country of origin or its Embassy in Indonesia:

  2. Individual Foreign citizen must present a copy of valid passport;

  3. Foreign enterprise is required to provide a copy of enterprise's articles of association in English or Bahasa Indonesia translated version by sworn translators, when applicant is of foreign origin.

  4. Individual Indonesian citizen must show a copy of valid Indonesian Resident's ID Card (KTP);

  5. Foreign investors are required to provide a copy of enterprise's memorandum of association and its amendments approved by the Ministry of Law and Human Rights must be shown when a foreign applicant operates a limited liability company based on the Law of Republic of Indonesia;

  6. Indonesian individuals or enterprise operates a limited liability company based on the Law of Indonesia must possess a valid Indonesian taxpayer's ID number (NPWP);

  7. Application forms must be filled up correctly, stamped and signed by applicants (if the enterprise has not been registered) or by member of the board of directors (if the company has been registered). Legally stamped application signed by board of director and an authorization letter/power of attorney in case the enterprise is unable to apply directly. Requirement of power of attorney is set up in Article 63 of the regulation.

 

Time

 

One day

Fee

Foreign investment registration is free of charge.

 

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2. Obtaining Legal Entity Status

Each activity of foreign capital enterprise in Indonesia must be a legal entity organized under Indonesian Law in form of limited liability company and approved by the Ministry of Law and Human Rights.

 

Composition of a Limited Liability Company (PT) Legal Entity

Relevant Regulation

Procedure

Article of incorporation or license is a notarial instrument and it complies with the stipulated requirements.

• Law No. 40-2007

• Law No. 25-2007

Requirements

  1. A copy of valid Resident's ID card of founder of the enterprise.

  2. Name of the company proposal.

Time

  • Verification of company's name: 7 days.

  • Signing of notarial instrument by founder(s): 5 days.

Fee

Each notary charges different fee to compose a limited liability enterprise's memorandum of association (Akte Perseroan Terbatas) (excluding legal entity validation fee).

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Legal Entity Validation

Relevant Regulation

Procedure

Notary submits Legal Entity for approval to the Directorate General for General Law Administration, Ministry of Law and Human Rights, through Legal Entity Administration System.

• Law No. 40 - 2007

• Gov't Reg. No. 26 - 1998 re. Usage of PT Entitlement

• Law & Human Rights Ministerial Decree No. M-01.HT.01.01 - 2000 re. SISMINBAKUM Imposition

Requirements

  1. Stamped copy of enterprise's memorandum of association.

  2. Enterprise's Indonesian taxpayer ID Number (NPWP).

  3. Prepayment receipt of enterprise's memorandum of association notification fee in Supplement to the Indonesian State Gazette (TBN) issued by the Republic of Indonesia Mint Public Corporation.

  4. Payment receipt of Non-tax State Revenue (PNBP) issued by Directorate General of General Law Administration.

  5. Capital deposit receipt issued by the Bank for:

  6. Cost of Enterprise establishment.

  7. Capital improvement.

 

Time

 

21 work days

Fee

  • Approval on company name/title

  • Limited liability company legal entity validation

  • Official notification in Indonesian State Gazette (BNRI)

  • Official notification in Supplement to the Indonesian State Gazette

  • _______________________________________________________________________________________________________________

 

 

3. Obtaining Taxpayer's ID Number (NPWP)

Each and every Indonesian legal entity is required to obtain a Taxpayer's ID Number.

 

Obtaining a Taxpayer's ID Number (NPWP)

Relevant Regulation

Procedure

Taxpayer's ID Number may be obtained by filling out an application form and submit it to tax office closest to enterprise permanent domicile or by online system.

• Ministry of Finance Regulation No. 20/PMK.03/ 2008

Requirement

  1. Business entity memorandum of association from notary office.

  2. Copy of individual Resident's ID Card of member of the enterprise's board of director.

  3. Letter of statement from site of activity (if it is a hired location).

  4. Certificate of domicile.

Time

One day

Fee

Free of charge
   
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