Three Ways to Conduct FDI in Indonesia

 

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Knowing Joint Venture Companies in FDI Indonesia", "Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia", you may read also "Understanding 5 Steps Foreign Direct Investment In Indonesia" and on this occasion we will discuss about 'Three Ways to Conduct FDI in Indonesia'.

Many people consider that Indonesia is a country with great potential for foreign investment, because there are many factors that are attractive to investors. One of them is low costs, covering various types of expenses for a business, such as the price of raw materials to labor wages. Therefore, it is not surprising that we often find factories and companies owned by business people from other countries.[1]

The three ways to make foreign investment in Indonesia are as follows:[2]

1. FDI can be done by buying an existing company in a country, or it can also be done by providing capital to build a new company in that country.
2. Direct foreign investment is also usually characterized by the purchase of at least 10% of shares in a country's company by individuals or companies from other countries. If the share purchase is less than 10%, the International Monetary Fund (IMF) defines share ownership as a person's or company's share portfolio only.
3. Other ways to carry out foreign direct investment are also usually in the form of purchasing or building factory construction, as well as purchasing land by foreign investors. This form of building or land ownership from foreign direct investment is generally full or almost full.

And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Foreign Direct Investment, Lihat Cara Investasi & Manfaatnya di Sini!", www.online-pajak.com., 28 November 2019, Diakses pada tanggal 22 April 2024, Link: https://www.online-pajak.com/tentang-pph-final/foreign-direct-investment

2. Ibid.

Knowing Joint Venture Companies in FDI Indonesia

  

(iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Basic Requirements for Foreign Direct Investment in Indonesia", "Understanding 5 Steps Foreign Direct Investment In Indonesia", you may read also "Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia" and on this occasion we will discuss about 'Knowing Joint Venture Companies in FDI Indonesia'.

FDI or "Foreign Direct Investment" is a form of investment carried out by a company from one country to invest its capital over a long period of time into a company in another country. So this foreign direct investment involves two countries at once.[1]

There are various forms of FDI, one example is a joint venture, this joint venture is the ownership of a company that is jointly owned by two or more countries.[2] Examples of this joint venture include PT Nestle Indofood Citarasa Indonesia which is a company formed between PT Nestle Indonesia and PT Indofood CBP Sukses Makmur Tbk. And many more. The most important legal basis for the formation of this joint venture company is the Investment Law and the Limited Liability Company Law. And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "FDI DI INDONESIA", bbs.binus.ac.id., Diakses pada tanggal 20 April 2024, Link: https://bbs.binus.ac.id/ibm/2017/11/fdi-di-indonesia/

2. Ibid.

Basic Requirements for Foreign Direct Investment in Indonesia

  

(iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Suspect Still Underage, Murder Case in Germany Closed", "Understanding 5 Steps Foreign Direct Investment In Indonesia", you may read also "Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia" and on this occasion we will discuss about 'Basic Requirements for Foreign Direct Investment in Indonesia'.

For foreign investors who wish to invest their capital in Indonesia, they must establish a company based on the business fields listed in the KBLI (Standard Classification of Indonesian Business Fields). This foreign company is in the form of a PT (Limited Liability Company) which is owned by at least two shareholders, either individuals or companies. Furthermore, investors must pay attention to the guidelines for closed and open business fields with the requirements for foreigners as stated in Presidential Decree No. 44 of 2016. If the business field is not listed on the list, it means foreign share ownership can be up to 100%.[1]

What is the minimum value of foreign investment in Indonesia? The minimum value of foreign investment in Indonesia is IDR 10 billion (excluding land and building prices). The minimum amount of capital paid into a bank in Indonesia is IDR 2.5 billion.[2] And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Penanaman Modal Asing di Indonesia", investindonesia.go.id., BKPM, Diakses pada tanggal 11 April 2024, Link: https://investindonesia.go.id/id/artikel-investasi/detail/penanaman-modal-asing-di-indonesia

2. Ibid.

Suspect Still Underage, Murder Case in Germany Closed

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Strange Divorce Case Because of Coffee", "Prices of Houses that Foreigners Can Buy and Own in Indonesia", you may read also "How To Buy Land In Indonesia?" and on this occasion we will discuss about 'Suspect Still Underage, Murder Case in Germany Closed'.

Reported by the AFP news agency, the victim, known only as Luise, disappeared in March after leaving a friend's house near the town of Freudenberg, in the state of North Rhine-Westphalia. His body was found with multiple stab wounds the next day in a forest area, not far from his house. Two girls aged 12 and 13 who knew Luise later confessed to the murder. Investigators said there was no sign that a third party was involved in the stabbing.[1]

German prosecutors said they had closed the murder case involving two minors. The two girls admitted to stabbing to death a 12 year old girl. This case was closed because the perpetrator of the murder was too young to be held criminally responsible. In Germany, the age of criminal responsibility begins at 14 years old.[2]

After the murder, the schoolgirls were placed under the care of juvenile welfare authorities. According to local authorities, they are currently housed in a "therapy facility" and receiving school lessons there. The case revived memories of the 1993 murder of two-year-old James Bulger in England. The boy was kidnapped and tortured before being killed by two 10-year-old boys, Robert Thompson and Jon Venables.[3] And if you have any legal issue in Indonesia territory, contact us then, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Geger Pembunuhan Anak di Jerman, Kasusnya Kini Ditutup", news.detik.com., Rita Uli Hutapea, Selasa, 12 Sep 2023 15:04 WIB, Diakses pada tanggal 15 Maret 2024, Link: https://news.detik.com/internasional/d-6926937/geger-pembunuhan-anak-di-jerman-kasusnya-kini-ditutup

2. Ibid.

3. Ibid.