Establishment

1. PT(Perseroan Terbatas)

* Overview The most common form of legal entity in Indonesia, similar to a limited liability company.

2. PT PMA (Perseroan Terbatas Penanaman Modal Asing)

* Overview A legal entity specifically for foreign investment, established based on foreign capital investment.

* Characteristics

1. Requires a minimum paid-up capital, typically IDR 10 billion or more.

2. Can be controlled by foreigners, requiring business operations through an Indonesian legal entity.

3. Requires a minimum of two shareholders.

4. Up to 100% ownership is possible for foreign investors (except in specific industries).

5. Legal liability rests with the corporation itself, not the shareholders.

1. Branch Office

* Overview A part of a foreign company that supports the operations of the head office.

* Characteristics

1. Does not have independent legal personality and shares the legal liability of the head office.

2. Operates in the same manner as the head office's business activities, and the existence of the parent company is essential.

2. Representative Office

* Overview A temporary office that allows foreign companies to explore and prepare for the Indonesian market.

* Characteristics

1. Cannot generate sales or profits, and is limited to marketing and market research activities.

2. Primarily used to promote the foreign company's presence and for networking.

1. PT(Perseroan Terbatas)

* Overview The most common form of legal entity in Indonesia, similar to a limited liability company.

2. PT PMA(Perseroan Terbatas Penanaman Modal Asing)

* Overview A legal entity specifically for foreign investment, established based on foreign capital investment.

* Characteristics

1. Requires a minimum paid-up capital, typically IDR 10 billion or more.

2. Can be controlled by foreigners, requiring business operations through an Indonesian legal entity.

3. Requires a minimum of two shareholders.

4. Up to 100% ownership is possible for foreign investors (except in specific industries).

5. Legal liability rests with the corporation itself, not the shareholders.

1. Branch Office

* Overview A part of a foreign company that supports the operations of the head office.

* Characteristics

1. Does not have independent legal personality and shares the legal liability of the head office.

2. Operates in the same manner as the head office's business activities, and the existence of the parent company is essential.

2. Representative Office

* Overview A temporary office that allows foreign companies to explore and prepare for the Indonesian market.

* Characteristics

1. Cannot generate sales or profits, and is limited to marketing and market research activities.

2. Primarily used to promote the foreign company's presence and for networking.