Basic Requirements for Foreign Direct Investment in Indonesia

  

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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

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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.