Business structure in Indonesia

Incorporating a foreign company

A foreign company can set up a business in Indonesia as a:

Representative Office

Its work can only involve handling the interests of the company or its subsidiaries. It cannot do business or perform any operations entailing income.

Branch

Only applicable for certain highly specific cases (such as tenders for infrastructures which require this) and the parent company takes on all the obligations of the branch. Running one of these is more complicated than a corporation (PT).

Incorporating an Indonesian company

Limited Liability Company

The structure is that of a public limited company (PT in Indonesian).
Partners: at least two, and they may be 100% foreign (natural or legal). There are restrictions in some sectors.

Companies with foreign capital are given the name of PMA.

Minimum authorised capital of IDR and minimum paid up capital of 25% of the sum authorised.
Joint venture:

A very common form for business development that requires an Indonesian partner. It must have the legal form of a corporation (PT).

It is advisable to get assistance from a local legal firm when choosing the form of economic activity and for any legal matter that it is going to be handled in the country