Guidance to establishing a PT.PMA in Lombok – Indonesia

Guidance to establishing a PT.PMA in Lombok, Indonesia : Many foreign citizens come to Indonesia, especially in Lombok island, Because it promises business profits through investment in the tourism sector in particular.

To start a business, of course, it must be supported by a mature plan and have a strong foundation. It is not only about the foundation of a building that must be sturdy and strong, but a foundation in the form of legality is also a basic thing that must be fulfilled so as not to violate the rules that apply in a country that will be the destination of your investment plan. And here for the example is Lombok – Indonesia.

Man in office with investment presentation on screen and papers on table.

Establishing a Foreign Investment Company (PT PMA) in Indonesia requires compliance with BKPM regulations, with a minimum capital requirement of IDR 10 billion (excluding land/buildings) and a minimum paid-up investment of IDR 2.5 billion. The process includes checking the KBLI (Indonesian Business License) system, obtaining a notarial deed, approval from the Ministry of Law and Human Rights, obtaining a Taxpayer Identification Number (NPWP), and obtaining a Business Identification Number (NIB) through the OSS system.

But before we go any further, let’s detail them one by one :

What BKPM is ?

The Investment Coordinating Board (BKPM) is a ministerial-level government agency directly responsible to the President, tasked with formulating policies, coordinating, and providing integrated services in the investment sector. BKPM was transformed into the Ministry of Investment/BKPM to encourage direct investment, create a conducive investment climate, and manage business licensing.

Main Functions and Roles of BKPM/Ministry of Investment:
* Licensing Services: Managing the OSS (Online Single Submission) System or Electronically Integrated Business Licensing.
* Investment Promotion: Attracting domestic and foreign investors to invest in Indonesia.
* Policy Coordination: Formulating and implementing investment policies.
* Investment Facilities: Providing convenience and facilities, such as import duty relief (Masterlist).
* Project Escort: Providing assistance in resolving investment obstacles.

As the main link between the business world and the government, this institution plays a crucial role in increasing quality investment, creating jobs, and driving national economic growth.

What KBLI is ?

KBLI (Indonesian Standard Business Classification) is a 5-digit code system issued by the Central Statistics Agency (BPS) to classify economic activities in Indonesia. It is mandatory for use in business licensing (NIB) applications through the OSS (Online Business Registration). Its function is to determine business scale, risk level, and the basis for tax reporting.

Following are the important points regarding KBLI :
* Synonyms/Related Terms: Business field code, Economic activity classification, KLU (Business Field Classification).

Main Function :
* Legality: Mandatory requirement for registering a Business Identification Number (NIB) in the OSS system.
* Licensing: The basis for determining the level of business risk (low, medium, high) which influences the type of operational permit.
* Statistics & Taxes: Reference for monitoring economic evaluation by BPS and determining taxpayer KLU.

What NIB is ?

NIB stands for Business Identification Number, which is the official identification number for business owners in Indonesia, issued through the Online Single Submission (OSS) system. The NIB consists of 13 digits, is secure, and includes an electronic signature. Business owners are required to have an NIB to ensure their business is legal and legally valid, and to facilitate the processing of business permits.

How to set up PT.PMA ?

The following are the detailed steps for establishing a PT PMA:

Checking the Positive Investment List (DPI): Ensures that business sectors are open to foreigners in accordance with presidential decree 10 / 2021
Company Name Ordering: Check and order PT names via AHU Online.
Making a Deed of Establishment: Making a deed of establishment containing the Articles of Association before a notary.
Legal Entity Approval: The notary submits the approval of the PT PMA to the Ministry of Law and Human Rights (Kemenkumham).
NPWP Management: Create a NPWP (Taxpayer Identification Number) in the name of the company at the tax office.
OSS (Online Single Submission) Registration: Obtain a Business Identification Number (NIB) and operational permit through the OSS system.
Capital Deposit: Open a bank account in the company name and deposit the required minimum capital.

vital Records :

* Minimum Capital: Based on current regulations, paid-up capital is usually a minimum of IDR 10 billion (excluding land and buildings).

* Structure: Requires a minimum of 2 shareholders (foreign or local, individual or legal entity).

Do you need PT.PMA establishment services?

If you don’t want to worry about establishing or set up a PT PMA (Foreign Investment Company) in Lombok or other legal and regulatory matters while running a business in Lombok Island, Lombok One Gate will help direct you to a lawyer with an official office and expertise in this field. We recommend them, and you can consult with them regarding the licensing process.

We hope that our article this time entitled Guidance to establishing a PT.PMA in Lombok, Indonesia can be useful and provide an understanding of how important a legal foundation is before starting your business in Lombok especially about how to set up PT.PMA

For legal processes such as establishing a PT/PMA, property legal due diligence, land acquisition, foreign investment, power of attorney services, legal opinions, and building licenses/building permits (PBG/IMB/SLF), etc., you can discuss with us and we will connect you to the experts.

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