Written by Diva lailita
Many questions arise, what is the value of investment needed by foreign companies To create a company in Indonesia, let’s discuss based on Investment Coordinating Board (BKPM) regulation no 6 year 2018 concerning the guidelines and conditions for licensing and investment facilities.
There are several permits required for foreign companies, the first is licensing in the energy & mineral resources sector. including the electricity sector, oil and gas sector then there are the mineral and coal sector which are still needed by Indonesia.
the second one is the licensing of public works and public housing sectors as we know that there will be big projects run by Indonesia. This of course requires investment both from domestic and investment third foreign countries namely customs, and taxation. For an example is the provision of machinery import facilities.
The fourth is investment licensing, one of them is a permit from a foreign company representative office as we know, YouTube, Google already has an representative office in Indonesia. Then, how much investment is needed to invest in Indonesia?
Investment is divided into two, namely domestic and foreign investment, for domestic capital Investment , the investment value is not determined only in company deed, the capital is determined in writing on agreement/pact
Then, for foreign investment, there are several provisions, which is in essence is determined based on qualifications of large company. based on BPKM Regulation no 6 of 2018, for companies with a net worth of Rp 10 billion excluding land & buildings.
Then, the second one has an annual turnover of> Rp. 50 billion per year based on the latest financial report. That the requirement needed for a qualified company as a large category PMA company in Indonesia. unless otherwise specified by law up to later there will be a derivative regulation underneath.
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