As you find out that the business you run is excluded by Indonesian’s Negative Investment List, you would feel as though this is the end of your dream to establish a company in Indonesia. However, this is not completely true. You can still apply for a Company Registration In Indonesia even if your business is excluded (or being granted with too small an ownership percentage).
Just establish a local PT company and you are good to go. The company will still be yours despite its shares being split among holders consisting of both foreigners and locals.
A local PT company is classified into three types based on its size. The size of the local PT company is measured by the capital needed to open it. Small company has a capital within the range of IDR 50,000,000 – IDR 500,000,000. Medium-sized one is between IDR 500,000,000 – 10,000,000,000.
Large company occupies anywhere beyond IDR 10,000,000,000. Based on this spec, you can apply for a Company Registration In Indonesiathat matches any one of them. Your company is allowed to hire foreign employees only if it is of medium class and at least a capital of more than IDR 1,100,000,000.
When you apply for a Company Registration In Indonesia under this business form, the process will take about 47 working days. This process includes anything from Deed of Establishment released by the Ministry of Law and Human Rights to Certificate of Domicile to tax payer registration number to VAT number. Keep track on each steps so you do not miss out on anything.
Also, find a local nominee that may represent the locals within your company. Your company will need a director and the director must be of local origin. Other divisions and positions may be filled by foreigners but this one director chair must belong to a local.