Indonesia is the fourth most populous country in the world with a large workforce and abundant natural resources. This makes Indonesia one of the most promising countries to invest in. Based on the 2015-2019 Investment Strategic Plan, the Government of Indonesia has set investment priority sectors, namely infrastructure, agriculture, industry, maritime, tourism, Special Economic Zones (SEZs) and Industrial Zones, and the digital economy.
For foreign investors who wish to invest in Indonesia, they must establish a company based on the business fields listed in the KBLI (Indonesian Standard Industrial Classification). This foreign company is in the form of a PT (Limited Liability Company) owned by at least two shareholders, either individuals or companies. Furthermore, as mentioned above, investors must pay attention to the guidelines for closed and open business fields with requirements for foreigners listed in Presidential Regulation No. 44/2016. If the field of business is not listed in the list, it means that foreign share ownership can be up to 100%.
As mentioned earlier, foreign companies in Indonesia must be owned by at least two shareholders. This company (PT) itself can be formed through merger or acquisition. Merger is the merging of one company with another to form a new company. Meanwhile, acquisition is the takeover of a company (one company is bought by another company).
There are many benefits that we can get with the entry of foreign investment into Indonesia. One of them is the influx of new capital to help fund various sectors that are short of funds. This foreign investment also creates many new jobs so that the unemployment rate can be reduced.
For more information about investing in Indonesia, you can contact Stay Indonesia via Whatsapp or check our Instagram for more info!
