PT PMA Creation Info/Help

[VartanRilen]

Hello, I would like to create a business in Indonesia, I have been with my partner for 7 years now (not married yet). And I would like to get started, I have been thinking about it for several years now and I looked for several solutions.

Firstly, the aim of the company would be web/video game development, I have worked in the past with Indonesians on projects related to this subject and I find them very competent not to mention the fact that their workforce is very affordable compared to other countries.

So let's back to why I do this post.

I have talk with few people that already setup PT PMA in Indonesia, normally according to the law it would take 10 billion rupiah (around 600K USD) to create a PT PMA type company. Obviously my budget is way above that, most of the people I spoke with and met who have had a PT PMA in operation for several years told me the same thing, that I don't I did not need these 10 billion rupiah, I also contacted a lawyer who told me the same thing (I contacted an independent lawyer) apparently the 10 billion rupiah requested for creation would serve as a barrier for avoid abuse and false companies.

So to conclude I just wonder if it is safe to choose this process? I could very well wait until marriage with my partner (which would make things easier) but I would really like to create the company before marriage (I don't want marriage too soon).

Thank you for reading me.

I hope I can get some advice from you, I wish you a good day.

 

[jstar]

I don’t see why the process would not be safe?

But if you trust your partner and (s)he would be willing to be included it might make sense to consider marriage -with prenup- and create a (local so no PMA) PT instead.

Wish you all the best. Our son studied video game development in Murdoch and ended up somewhere completely different, the competition seems to be cut throat.

 

[VartanRilen]

thank you for your answer, when I mean not safe I am talking about the fact that in the law it takes 10 billion rupiah to create the company and as I said I do not have them but apparently we can very well open the company without have these 10 billion rupiah.


and yes it's true this sector is very competitive

 

[jstar]

Ah ok.

I heard they are much more strict now as in the past where money had to be committed* only. As far as I remember the investment must be done within a period of 1 year as of the date of the business license.

But something to look into is the Presidential Regulation some 3 years ago on Investments by Businesses. There is an exception where the company in special economic zones in the field of technology-based start-up businesses can invest with less. Could be interesting for you.

* at the time it was even possible to just show a loan agreement or have the money even on a foreign bank account during the application. All case by case of course