Below is a list with tagged columns and company profiles.

Today's Headlines FDI

  • Chinese Furniture Companies Want to Relocate to Indonesia?

    According to Franky Sibarani, Head of the Indonesia Investment Coordinating Board (BKPM), around 200 Chinese furniture companies have expressed their interest to relocate their factories to Indonesia because operational costs in China have been rising sharply in recent years, particularly wages. Moreover, rattan (an important material for furniture) is readily available in Indonesia. Sibarani said the changing structure of the Chinese economy (shifting from investment and export-driven to consumption) is why many Chinese manufacturing companies want to relocate their companies abroad.

    Read more ›

  • Coffee Producer Classic Worldwide International Group Expands to Indonesia

    Malaysia-based coffee producer Classic Worldwide International Group (CWIG) will soon start operations at its coffee factory in Indonesia. The factory, located in Banten (West Java), is expected to be ready for production at the end of the second quarter this year with a designed production capacity of 500,000 boxes of coffee per month. Output will be branded Kopi Pak Belalang. The management of CWIG said the plant will require about 100-150 local workers. Besides supplying the domestic market, output will also be exported to Malaysia.

    Read more ›

  • World Bank Cuts Forecast for Indonesia's 2016 GDP Growth to 5.1%

    In its March 2016 Indonesia Economic Quarterly, titled "Private Investment is Essential", the World Bank cut its forecast for Indonesia's economic growth in 2016 to 5.1 percent year-on-year (y/y) from an earlier estimate of 5.3 percent (y/y). This downward revision was made due to weaker-than-expected global economic conditions, further weakening commodity prices, and limitations to Indonesian government spending brought about by a looming shortfall in tax revenue.

    Read more ›

  • FDI in Indonesia: Japan Remains Committed to Invest, says Kankeiren

    Japanese companies remain committed to invest in Indonesia - particularly into infrastructure, power and manufacturing - according to the Kansai Economic Federation (Kankeiren), one of Japan's private, non-profit representative economic organizations. Kankeiren Chairman Shosuke Mouri met Indonesia's Chief Economics Minister Darmin Nasution on Monday (07/03) in Jakarta. Japan is one of the biggest investors in Indonesia. During the period 2010-2015 the country invested a combined total of USD $14.9 billion in Indonesia.

    Read more ›

  • E-Commerce in Indonesia Open to Foreign Investment; IPOs Welcomed

    The move of the Indonesian government to relax foreign ownership rules regarding e-commerce businesses in Indonesia has also given rise to expectation that the country's major e-commerce players (including foreign ones) will be interested to list their companies on the Indonesia Stock Exchange through an initial public offering (IPO). Generally an IPO improves a company's transparency and corporate/financial management. E-commerce businesses are particularly in need of consumers' trust and confidence and therefore an IPO is considered a good corporate move.

    Read more ›

  • Indonesia's Rubber Producers Unhappy with Foreign Investment

    Indonesian rubber producers do not welcome the government's decision to open the nation's crumb rubber sector to foreign ownership for the full 100 percent. This decision is part of the government's tenth economic stimulus package, announced last week. Stakeholders in Indonesia's rubber sector argue that current installed production capacity of existing rubber processing plants in Indonesia already exceeds domestic demand. Crumb rubber is recycled rubber produced from automotive as well as truck scrap tires.

    Read more ›

  • Foreign Investment in Indonesia: Opening Room for Foreign Ownership

    The government of Indonesia is again opening room for foreign ownership in a number of sectors in an effort to boost economic expansion and reach the 7 percent year-on-year (y/y) gross domestic product (GDP) growth rate by 2019 as targeted by Indonesian President Joko Widodo. Examples of sectors that are to be opened for the full 100 percent to foreign ownership are the cold storage business, crumb rubber industry, sport-centers, film production industry, restaurants, raw materials for medicines, toll roads, and telecommunication equipment. These revisions are part of Indonesia's 10th economic stimulus package.

    Read more ›

  • Foreign Direct Investment into Indonesia Grows 19.2% in 2015

    In rupiah terms, foreign direct investment (FDI) into Indonesia increased by 19.2 percent year-on-year (y/y) to IDR 365.9 trillion in 2015, according to the latest data from the Indonesia Investment Coordinating Board (BKPM). The BKPM, the central government's investment services agency, said FDI was strong in the fourth quarter of 2015 - rising 26 percent (y/y) - on the back of the government's recently unveiled series of economic stimulus packages.

    Read more ›

  • Indonesia Investment Coordinating Board Eyes 594.8 trln Investment in 2016

    The Indonesia Investment Coordinating Board (BKPM), the central government's investment service agency, said foreign direct investment (FDI) is projected to account for 65 percent - or IDR 386.6 trillion (approx. USD $28.2 billion) - of total direct investment in Indonesia in 2016. The BKPM sees domestic direct investment realization next year at IDR 208.4 trillion. As such, in total, direct investment realization in Indonesia is estimated at IDR 594.8 trillion (approx. USD $43.4 billion) in 2016.

    Read more ›

  • Stimulus Measures Indonesia: Tax Incentive Revaluation Fixed Assets

    Effective immediately, the government of Indonesia introduced a new tax incentive that makes it more attractive for companies to revalue their fixed assets. Previously, companies had to pay a ten percent tax on the company's fixed asset growth. As a result, companies tended to refrain from increasing the level of fixed assets resulting in limited tax revenue. The Indonesian Finance Ministry said that companies will only have to pay 3 percent tax on the increased amount, provided that they submit their proposals for fixed asset revaluation before the end of this year.

    Read more ›

Latest Columns FDI

  • New Regulation Construction Representative Office Indonesia

    In late September, the Minister of Public Works (Minister) issued Minister Regulation number 10/PRT/M/2014 regarding Guideline Requirements for Giving Permission Foreign Construction Service Representative Office (New Regulation). The New Regulation for construction representative offices in Indonesia replaces the old Minister regulation 05/PRT/M/2011 (Old Regulation) which had a similar title. The New Regulation has become more comprehensive than the Old Regulation and in this column we will discuss the most significant changes for foreign investors.

    Read more ›

  • US Investments in Indonesia: American Companies Eager to Invest

    A total of 35 American companies are interested to invest a combined USD $61 billion in Indonesia over the next five years according to a survey conducted by the Paramadina Public Policy Institute, the American Chamber of Commerce in Indonesia (AmCham Indonesia), the Indonesian Employers Association (Apindo), and the Indonesian Chamber of Commerce and Industry (Kadin Indonesia). These 35 US companies have already invested a total of USD $65 billion in Indonesia over the period 2004 to 2012.

    Read more ›

  • Positive Outlook Investments in Indonesia’s Food & Beverage Industry

    Investment in Indonesia’s processed food and beverage industry is expected to grow at least ten percent to IDR 55 trillion (USD $4.6 billion) in 2015 from an estimated investment realization of IDR 50 trillion in 2014. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said that investments in this sector have been solid due to rising consumption of food and beverages in Southeast Asia’s largest economy. Particularly foreign investments have been strong in 2014 and are expected to continue next year.

    Read more ›

  • Growth Pace of Foreign Direct Investment in Indonesia is Slowing

    The Indonesia Investment Coordinating Board (BKPM) announced that growth of foreign direct investment (FDI) in Indonesia has slowed in the first nine months of 2014. In the first three quarters Indonesia saw the influx of IDR 228.3 trillion (USD $18.7 billion) worth of FDI, a 14.6 percentage point increase year-on-year (y/y). However, this growth pace is much lower than the 21.3 percent point growth of FDIs in the first nine months of 2013. In US dollar terms the decline was even greater as the rupiah has been depreciating.

    Read more ›

  • Amendment Articles of Association Indonesia

    An amendment to the articles of association of a limited liability company in Indonesia - a PT in case of local investment and PT PMA in case of foreign investment - must be approved by the general meeting of shareholders. Besides approval of the general meeting of shareholders, law number 40 of 2007 (Company Law) requires in certain cases also approval of the Minister of Law and Human Rights (Minister). In this column we discuss such specific amendments and we will explain the approval procedure of such amendments.

    Read more ›

  • Legalization Status of Company in Indonesia

    In Indonesia a foreign investment limited liability company (PT PMA) and/or local investment limited liability company (PT) must obtain a Minister’s Decree regarding the legalization of the legal entity status of the company, based on article 7 (4) of law number 40 of 2007 (Company Law). In order to obtain such Minister’s Decree, the founders must submit an application to the Minister of Law and Human Rights (Minister). The exact requirements for submitting such legalization application are stated in article 9 (1) Company Law and Minister regulation number 4 of 2014 (Minister Regulation).

    Read more ›

  • Company Types Limited Liability Company Indonesia

    The limited liability company (local PT or foreign PT PMA) in Indonesia is regulated under law number 40 of 2007 (Company Law). The Company Law sets the minimum establishment requirements for a limited liability company, but does not regulate the different company types for limited liability companies in Indonesia. These are regulated in law number 20 of 2008 (SME Law) which essentially differentiates micro companies, small companies, medium companies and large companies. This column will discuss the differences in company types in Indonesia.

    Read more ›

  • Shareholders Amount Limited Liability Company Indonesia

    Both a foreign investment limited liability company (PT PMA) and local investment limited liability company (PT) must be established by two or more shareholders according to Article 7 of law number 40 of 2007 (Company Law). The shareholders can be individuals and/or legal entities of foreign or Indonesian nationality. In this column we will deepen the minimum requirements as set by the Company Law for shareholders in foreign and local limited liability companies.

    Read more ›

  • Foreign Investment Company: Company Law Indonesia

    The establishment of a foreign investment company in Indonesia is partially regulated by law number 40 of 2007 (Company Law) regarding limited liability companies. The Company Law provides the general corporate requirements for the establishment of both a foreign investment limited liability company (PT PMA) and a local investment limited liability company (PT). In this column we will discuss the establishment requirements for a foreign investment limited liability company (foreign investment company) in Indonesia as regulated in the Company Law.

    Read more ›

  • Company Establishment Requirements (PT PMA) Indonesia

    Establishment of a company in Indonesia is done through a foreign investment and is subject to specific establishment requirements. A foreign investment is by law 25 of 2007 (Investment Law) defined as an investing activity conducted by a foreign investor for running a business inside Indonesia (including company establishment). Such foreign investment can be conducted either by using 100% foreign capital (which is subject to certain restrictions) or by partially using domestic capital. A foreign investor can be a foreign person, a foreign company or a foreign government body.

    Read more ›

No business profiles with this tag