Frequently Asked Question

If you can’t find the answer you are looking for, please contact our Front Officer at Help Desk

How long will it take to finish an investment approval?
The entire process would take 4 (four) working days since completing the application letter and its attachments.
How much does it cost to have an investment approval?
There is not any cost to be spent at all to have the approval, it is free of charges formally.
How many Foreign Direct Investment (FDI) are there now in Indonesia?
The Capital Investment within the framework of FDI as well as Domestic Investment approved are mentioned at facts & figures on our website http://www.bkpm.go.id.
How to set up a new Representative Office in Indonesia?
  1. A foreign company Representative Office (Kantor Perwakilan Perusahaan Asing/KPPA) outside the finance sector shall be established with the approval of the Chairman of BKPM.
  2. To apply the approval , applicants have to submit 2 (two) copies of form Model KPPA to the BKPM Office with the following attachments.
How do we know about either a business field is open for investment or other business is?
Basically all of business fields are opened to investment in the framework of FDI as well as Domestic Investment, except some of those business fields are closed or regulated ones as stipulated as "Negative List /Daftar Negative Investasi (DNI)" as those mentioned in Presidential Regulation number 76/2007 and 77/2007 jo.111/2007.
What kind of Tax incentives are provided for the company?
Now, investment in certain industry and in certain region will be granted tax facilities as follows:
  1. Reducing net (taxable) income up to 30% (5% per annum) of the value of the realized investment.
  2. Accelerated depreciation and amortization.
  3. Loss carried forward facility for period of no more than 10 years.
  4. A 10% income tax on dividends, and possibly being lower if stipulate din the provisions of an existing particular tax treaty.
Is it possible to have 100% shareholding for Foreigners?
Yes it is, basically a new company can be established in the form of 100% foreign ownership, which should be a minimum participated by 2 (two) shareholders either as foreign individuals or companies entity according to legal conditions.

Leave a Reply

Your email address will not be published. Required fields are marked *