Foreign Investment (PMA)
PMA (Foreign Investment) is an investment activity, which is carried out by foreign investors and aims to be able to do business in the territory of the Republic of Indonesia. PMA is one of the ways for outside investors to build, buy the whole, or acquiring a company.
BEFORE INVESTING IN FOREIGN CAPITAL IN INDONESIA, THIS IS SOMETHING YOU SHOULD KNOW!
1. PMA must be in the form of a Limited Liability Company (PT)
2. Can only do business activities in large businesses
3. Investment value greater than IDR 10 billion
4. Minimum paid-up capital IDR 10 billion
What are the benefits of having a Foreign Investment Permit?
Market Access: A PMA allows foreign investors to access Indonesia’s vast market, which offers significant growth potential due to its large population and emerging middle class.
Ownership Rights: With a PMA, foreign investors can have full or partial ownership of a company in Indonesia, depending on the sector and investment amount.
Legal Protection: Holding a PMA provides legal protection for foreign investors, ensuring that their investments are recognized and safeguarded under Indonesian law.
Incentives and Facilities: The Indonesian government often provides various incentives and facilities to attract foreign investment, such as tax breaks, import duty exemptions, and investment allowances.
Access to Resources: Foreign investors with a PMA can access Indonesia’s abundant natural resources and skilled labor force to support their business operations.
Potential for Expansion: Having a PMA allows foreign investors to expand their operations in Indonesia, tapping into new markets and sectors as their business grows.
International Trade: With a presence in Indonesia through a PMA, foreign investors can leverage the country’s strategic location as a gateway to other markets in the Asia-Pacific region.
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