Yogjakarta Law Office – HMPLawoffice.com – Foreign investment is an investment activity to do business in the territory of the Republic of Indonesia carried out by foreign investors, both those who use fully foreign capital and those who are joint venture with domestic investment. What is meant by foreign investors is individuals of foreign nationals, foreign business entities, and/or foreign governments that invest in the territory of the Republic of Indonesia.
The principles and objectives carried out by providing opportunities to foreign investors are with legal certainty, openness, accountability and equal treatment and do not distinguish national origin. While the purpose of this activity is to increase national economic growth, create jobs, increase sustainable economic development, increase the competitiveness of the national business world, increase national capacity and technological capabilities, encourage people’s economic development, process the potential economy into real economic strength using funds originated, both from within the country and from abroad. – Lawyer Jogja / Lawyer Indonesia / Advocate Indonesia / Law Firm in Indonesia / Investment Lawyer / Corporate Lawyer in Indonesia / Legal Consultant.
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If foreigners, either individually or through business entities, want to invest business capital in Indonesia, the terms and steps that must be considered according to the provisions of the law are in the form of a Limited Liability Company (PT) which is carried out by taking shares at the time of PT establishment, buying shares and doing other ways in accordance with the provisions of laws and regulations. In addition, it must carry out business activities on large businesses not on the scale of micro, small and medium enterprises. According to Presidential Regulation No. 10 of 2021, several businesses are allowed to be carried out by foreigners such as iron sand mining, tin ore mining, nickel, copper, etc. – Investment Lawyer in Indonesia / Corporate Lawyer in Indonesia / Law Firm Indonesia / Expert Business Lawyer / Legal Expert
Another requirement that must be considered is the investment value that must exceed the nominal value of Rp. 10 billion but is excluded for Foreign Investment (PMA) in Special Economic Zones (SEZs) in technology-based starts up. Another thing that is considered if foreigners want to invest in Indonesia is to require an Indonesian citizen as a member of the board of directors in a PT PMA because it is the party responsible for managing and paying corporate taxes. – HMP & Associates Law Office
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