Foreign investors can manufacture in Indonesia by forming a foreign investment company. This type of company offers special financial and non-financial incentives, incentives for setting up in special economic zones (SEZs), ownership of one percent to 100% of the company, participation in government-sponsored business tenders, ease of processing for business licenses and work permits, lower tax and import duties, a simple organization structure, and the ability to sponsor foreign executives.To form a PT PMA, investors must have a minimum paid-up capital of 10 billion rupiah (US$696,000), two shareholders, at least one commissioner and director, and the director in charge of daily operations. Registering a company name with the Ministry of Law and Human Rights, determining the industrial business classification code (KBLI), establishing a legal entity, obtaining a taxpayer identification number, domicile letter, tax registration certificate, and Business Identification Number (NIB) through the Online Single Submission (OSS) system are the steps.Businesses are licensed based on their 'business risk level'—the possible hazards they pose. Lower business risk means simpler licensing. The OSS system requires a taxpayer number, company activity code, business profile, financial structure, and projected location to acquire an NIB. NIBs and licenses for high-risk businesses may involve environmental impact studies. Corporate formation and licensing are part of government initiatives to boost Indonesia's investment climate.Link di fonte: https://www.aseanbriefing.com/news/picking-the-right-entity-for-manufacturing-in-indonesia/ (ICE GIACARTA)

Fonte notizia: ASEAN Briefing, 6 March 2024