How to Start Business in Indonesia


It’s for foreigners not allowed to start a company in Indonesia without a nominee or a PMA. Using a nominee means that the decisions, formal, have to be made by the nominee. The foreigner is without rights, which can lead to big problems. The thoughts of the investor are sometime not the thoughts of a nominee.

A better solutions is to establish a PMA ( Penanaman Modal Asing ) in Indonesia. A PMA is a limited company, you can compare this legal form, for example, with a LTD (England) , SA (France) or GmbH (Germany). A PMA has shares and works mostly with foreign capital. The director can make decisions. It doesn’t matter if the director is a local person from Indonesia or a foreigner who lives in Indonesia.

In some branches it is necessary (by the Indonesian law) that a part of the shares belong to a local company or person of Indonesia. But in the most cases the foreign investor can have the majority shares and thus also a majority votes.

As soon as the PMA is established it is possible to start your (own) business and can you make your own decisions. As it takes two till three monts to establish a PMA we always advice to start up a PMA before you buy land or make business obligations. If you work together with a local person or company, make sure the contracts are correct. You also have to make sure the company has all the licences it needs, otherwise you will be surprised afterwords.

That is why Shanuka Indo Travel and Consultancies always makes a investigation of documents and licenses the company needs to start in a legal way.

A local PT can be established faster but this legal form can be used only by Indonesian companies or persons.

Shanuka Indo Travel and Consultancies can help you to establish your PMA and other documents.