Opening a Local Business, Laws and more..

[Daniel Gomez]

Hello all,
it's been a while but it is good to be back. Need some information, more like confirmation on my research. 1) Foreigners can not legally own a local company (PT), correct? If there are any updated laws or regulations, I'd like to be informed.
2) What is it common for people to start small local business (PT) and sell them here? Seems to me that this isn't a very common practice in Indonesia. In the States some people start business for the purpose of selling them for a profit. The idea is that the new owner would scale it up and make a great profit in the future. Is there anything similiar to this here in Indo, if there is, where should I start looking ?

 

[jstar]

A PT is not a ‘small’ local business. A CV and UD are. But these are not available to foreigners. And of the PT you’d need a special version, the PT PMA. See here for instance:

Establish PMA Company in Indonesia (Foreign Owned Company)

We have summarized the steps, requirements, and advantages of establishing a PT PMA Company (Foreign Owned Company) in Indonesia. Check now.

www.cekindo.com

Nope, it’s not a common practice here to buy and sell companies. Only in the horeca (restaurant) business it is quite common. They build up the hype and after 6 months to 1 year when the clientele starts to wind down, they sell the business. I’ve never seen that being successful for the acquiring party btw.

 

[Daniel Gomez]

Thank you jstar. Would you kindly take a look at the link below. I'm a little confused about the information I have been getting. Im aware that for foreigners PT PMA is the main stream. So is that all our options ? We arnt to open just a local business ? regardless of our visa status ?

How to Open a Company in Indonesia in 2024

With an annual GDP growth rate of 5%, Indonesia is a top developing location for those looking to start up in Asia. So here's how to open a company in Indonesia.

statrys.com

 

[snpark]

I would be wary of ever trusting such articles and companies that charge fees for you to open companies etc here especially when they are not even based in the same country.
Just go to the official government website for exact rules and costs

Then in country get a recommended agent to help or your Indonesian sponsor / partner

 

[R Cameron]

Thank you jstar. Would you kindly take a look at the link below. I'm a little confused about the information I have been getting. Im aware that for foreigners PT PMA is the main stream. So is that all our options ? We arnt to open just a local business ? regardless of our visa status ?

How to Open a Company in Indonesia in 2024

With an annual GDP growth rate of 5%, Indonesia is a top developing location for those looking to start up in Asia. So here's how to open a company in Indonesia.

statrys.com

That website gets more wrong than it gets right, I advise disregarding everything they say about Indonesia. Look for an Indonesia based consultancy to get accurate information, for instance https://www.cekindo.com/

 

[snpark]

cek indo has a bad rep, several people have spent a lot with them and got nothing back

Dont trust a bule run company with big fancy offices
Why you think they charging you so much? So he can get $10,000 a month salary and have 50th floor corner office just to do the same as my agent on a w/a and 750rb lol
"Pak come to Imigrasi next Thursday at 11a.m"

 

[centurion]

cek indo has a bad rep, several people have spent a lot with them and got nothing back

In what sense, they should be quite reputable?

 

[snpark]

People paying and not receiving service

 

[jstar]

Thank you jstar. Would you kindly take a look at the link below. I'm a little confused about the information I have been getting. Im aware that for foreigners PT PMA is the main stream. So is that all our options ? We arnt to open just a local business ? regardless of our visa status ?

Well, with everything here, including purchase of land, you can circumvent the existing laws and get it done by a nominee system.

That means you use an Indonesian citizen (WNI) and everything is done in her/his name. So they own the business. The idea is that by creating solid contracts and all kinds of rental/lease and sales approval agreements you (try to) make sure there is no way they can screw you and walk away with the ownership and money.

There are enough agents and law firms perfectly willing to help you with such an endeavor and who claim it is watertight. But whatever they say, it stays risky. Not only about money and trustworthiness, also because one moment in time the government becomes keen to close these loopholes (after officials have made a lot of money in ‘dealing‘ with borderline cases). Or they make a nice “you see we take action?” case out of you what we see from time to time in the nominee system.

Now I have been involved in doing business with the family-in-law concerning restaurants, interior design & furniture and even a gas station, and I can say the experience was not really wholeheartedly positive. Very often the mentality has been rather ‘american’ which means for me “ah it didn’t work it’s a shame okay next!”. And then they make the same mistakes all over again. Sorry for the stereotyping. Currently I only trust my spouse.

 

[Daniel Gomez]

My spouse is an Indonesian citizen
But the business is between my friend and I. He is from Malaysia. I like to do everything according to the law.
So whatever is legal is fair game
Thank you for all the info, really helpful.

 

[duke]

No way do I trust anyone, especially a woman. They are fickle and totally unpredictable, one day they love you the next they're banging the plumber and telling him what a bad man you are while cleaning his pipes. Never trust a woman they're trecherious.

 

[fastpitch17]

No way do I trust anyone, especially a woman. They are fickle and totally unpredictable, one day they love you the next they're banging the plumber and telling him what a bad man you are while cleaning his pipes. Never trust a woman they're trecherious.

Welcome tou our new gay member.

 

[snpark]

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duke​

New Member​

43 minutes ago​

Hello, I'm a new member, Is it appropriate to ask where one could meet a nice Indonesian girl? I'm looking for a solid relationship, not a fling, I'm in the market for good wife material. Can anyone steer me in the right direction? I don't want to join any fake dating sites, alreadty tried that, all fake and scammers. Any help from somone wise to let me know. Thank you for your consideration.