Below is a list with tagged columns and company profiles.

Today's Headlines FDI

  • Q3-2015 Foreign Direct Investment in Indonesia Grows 18.1% in Rupiah Terms

    The Indonesia Investment Coordinating Board (BKPM) announced on Thursday (22/10) that foreign direct investment (FDI) into Indonesia climbed 18.1 percent (year-on-year) to IDR 92.5 trillion (approx. USD $6.85 billion) in the third quarter of 2015 from the same quarter a year earlier. The Q3-2015 18.1 percentage point growth was almost the same as the 18.1 percent (y/y) increase in FDI posted in the previous quarter. FDI data from the BKPM does not include investment in the country's banking and oil & gas sectors.

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  • Indonesian Language Proficiency Requirement for Foreign Workers Scrapped

    Several weeks ago it had already been reported that Indonesian President Joko Widodo requested Manpower and Transmigration Minister Hanif Dhakiri to revise a draft regulation (made in 2013) that forces expats to pass a mandatory Indonesian language proficiency test in order to be eligible to obtain a work permit. According to Widodo this regulation jeopardizes the attractiveness of Indonesia’s investment climate.

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  • Indonesian Finance Ministry Extends Tax Incentive Pioneering Industries

    Today, the Indonesian government announced it extended a tax incentive for “pioneering” industries. This term refers to those industries that are considered key industries that cause a multiplier effect in the Indonesian economy (hence boosting economic) and provide employment opportunities for the local population. Examples of such industries are oil refinery, infrastructure, maritime transport, telecommunications, downstream metal production and agriculture processing. The extended incentive is effective per 16 August 2015.

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  • Indonesia Investments' Newsletter of 2 August 2015 Released

    On 2 August 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic subjects such a forecast for Indonesia’s economic growth in the Q2-2015, an update on the rupiah rate, foreign direct investment realization in Q2-2015, consumer confidence, new tax regulations in the palm oil sector, and more.

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  • International Relations Indonesia: Joko Widodo, David Cameron & Singapore

    Today (28/07), Indonesian President Joko Widodo, who is often referred to as Jokowi, went on his first state visit to Singapore where he will discuss trade, investment and bilateral issues with Singaporean President Tony Tan Keng Yam, Prime Minister Lee Hsien Loong, and 150 Singaporean CEOs in a bid to enhance cooperation between both nations. President Widodo is accompanied by Indonesian Trade Minister Rachmat Gobel, Chief Economics Minister Sofyan Djalil, and Foreign Affairs Minister Retno Marsudi, among others.

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  • Foreign Direct Investment Indonesia: up in Rupiah, down in USD Terms

    The Indonesia Investment Coordinating Board (BKPM) announced today (27/07) that - in rupiah terms - foreign direct investment (FDI) in Indonesia rose 18.2 percent (y/y) to IDR 92.2 trillion rupiah in the second quarter of 2015, the fastest growth pace recorded since 2013. However, in US dollar terms, FDI fell to USD $7.38 billion in Q2-2015 from USD $7.43 billion in the same quarter one year earlier. The BKPM uses an IDR 12,500 per US dollar exchange rate in 2015 and an IDR 10,500 per US dollar exchange rate in 2014.

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  • Infrastructure Development Indonesia: More Investment Licenses Issued

    Although the Indonesian government is having difficulty to enhance infrastructure spending, a statement from Indonesia Investment Coordinating Board (BKPM) Chairman Franky Sibarani conveyed a more positive message. On Monday (20/07), Sibarani announced that since October 2014 the BKPM issued about IDR 335 trillion (approx. USD $25 billion) worth of investment licenses for infrastructure projects, triple the figure from the same period one year earlier, implying that President Joko Widodo’s promotional efforts have had success.

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  • 24th World Economic Forum: Indonesia Wants More Foreign Investment

    On the sidelines of the 24th World Economic Forum (WEF) on East Asia, Indonesia’s Chief Economic Minister Sofyan Djalil said that - despite global challenges - the government maintains its economic growth target of 5.7 percent (y/y) in 2015. However, he added that it will require great effort to achieve this target. One key strategy to achieve the target is to attract foreign investment through several policies including tax incentives and by easing the country’s bureaucratic hurdles for investment permits.

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  • S&P Awaiting Results from Indonesia’s Economic Policy Reforms

    Global credit rating agency Standard & Poor’s remains the only credit rating agency among the big three to maintain its BB+/stable rating on Indonesia’s sovereign credit (which is one notch below investment grade). Both Fitch Ratings (BBB-/stable) and Moody’s Investor Service (Baa3/stable) had already brought Indonesia back to investment grade in 2011 and 2012. Standard & Poor’s has been reluctant to raise Indonesia’s status as it wants to see more results from the country’s economic policy reforms.

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  • Investment in Indonesia: Revoked Permits Expose Problems

    The Indonesia Investment Coordinating Board (BKPM) announced it revoked 6,541 principle investment permits granted to foreign investors that were issued between the years 2007-2012 involving projects that would have had a combined total value of USD $23 billion. These principle permits are the first step for foreign investors to realize their investment commitments in Indonesia (it usually requires several more years for projects to be realized after issuance of these principle permits).

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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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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).

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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