by | Mar 15, 2025 | Business
Embarking on the journey of establishing a business in Indonesia necessitates a firm grasp of the company registration process. Aspiring entrepreneurs and seasoned investors alike are met with a maze of legal intricacies and procedural hurdles. From selecting the appropriate legal structure to navigating regulatory requirements, every step demands careful consideration. Amidst this complexity, understanding the nuances of company registration is crucial for laying a solid foundation for future growth and success. In this article, we delve deep into the Indonesian company registration process, shedding light on key procedures and insights to empower businesses in their pursuit of market entry and expansion.
In terms of business development, the Indonesian market offers competitive value and opportunity. Indonesia is among the most promising countries for business due to its enormous labor force, strategic position, and plenty of natural resources. Additionally, the government has implemented various reforms to attract foreign investors and simplify the process of starting businesses in the country.
However, there are a lot of intricate factors to take into account for foreigners wishing to conduct business in Indonesia. As an illustration:
Determine whether your company is a representative office or has direct foreign investors, specifying the type of legal body it represents.Identify the industry in which your company’s legal entity will operate.Assess whether foreign investment is permitted in this sector, and if so, determine the ownership percentage permitted.
Continue reading below to learn more about the Indonesian International Company Registration Process.
You ought to be aware of and comprehend the minimal capital requirements, regulatory framework, organizational structure, mandatory activity reports, tax laws, labor force usage in Indonesia, and so on. Here’s how to establish a foreign business in Indonesia:
In fact, this kind of firm is better suited for establishment in its early stages. Among its benefits are:
Reasonably quick and simple to operate.Neither a large investment nor a capital deposit are necessary.simple structure to create. Only appoint a Chief Representative Office to run the representative office in Indonesia
Nevertheless, this method may not be flexible enough for some kinds of businesses. The reason is that your company will have a legal umbrella in Indonesia, but it is not allowed to take profits from sales or engage in business transactions. So, the representative office was better set up for market research and marketing purposes before establishing a full legal body.
2. Foreign business organization PT. PMA
The Act governs the process of forming a foreign firm in Indonesia through Foreign Investment (PMA). The PMA is essentially a limited corporation (PT).
Meanwhile, funds or investments from foreign entities are referred to as foreign direct investment, or FDI. FDI is governed in Indonesia by:
Investment Law No. 25/2007.Law No. 40/2007 Concerning Limited Liability Company (as partially amended by Government Regulation In Lieu of Law No 2/2022).Perpres No. 10/2021 as amended by Perpres No. 49/2021 concerning Investment Business Fields. Positive Investment List Disclosure.
Any company with shares owned by foreigners is required to register as a PMA. In the meantime, positive investment lists all company sectors that are available to full-owned ownership as well as those that are restricted to specific restrictions for foreign investment.
Depending on your business activities, a further business license from the government may be a requirement for each PT PMA that registers in Indonesia. You still need to take care of several licenses with the local government after that.
You should think about hiring a local consultant to help you with the licensing and legal matters. They would be of great assistance.
The method by which PT. PMA is created
There are a few steps you must take when setting up a PMA, such as:
Get approval from Kemenkumham, the Ministry of Human Rights and Law, for the name of your business.Deed of Establishment by Public NotaryAcquire the company’s formation certificateAcquiring a mandatory tax identification.Acquire the corporate registration numberBusiness license (as necessary depending on the business activities)
Terms of PT. PMA’s establishment
Establishing a PT PMA in Indonesia can be a remarkable and enduring process. On the other hand, the procedure might be simpler and quicker if all the conditions were satisfied. What prerequisites must be met in order for PT PMA to be established in Indonesia?
1. Minimum Capital Requirement for Foreign-Owned Company
In Indonesia, the minimum capital requirement for a foreign-owned company is IDR 10 billion or equivalent to approximately USD680,000. For the purpose of establishing a PT PMA, a statement letter/commitment letter is required to be signed by the shareholders as the bank account of the PT PMA is not yet be able to set up.
2. Shareholder Requirements
In compliance with the law, the company must issue shares if the PMA operates in the form of a PT enterprise. This necessitates a minimum of two shareholders, each of whom can also act as a director and commissioner.
3. Location Consideration
Foreign investor owners have the freedom to establish their businesses in any part of Indonesia. However, it is important to note that the government emphasizes the establishment and launch of industries within designated commercial business area (not housing complex or apartment).
Summary
In conclusion, establishing a business in Indonesia entails a comprehensive understanding of the company registration process. From selecting the appropriate legal structure to navigating regulatory requirements, entrepreneurs encounter various challenges. Two primary methods for foreign companies include setting up a representative office or forming a Foreign Business Entity (PT. PMA). While the former offers simplicity and ease of operation, it restricts profit-making activities. Conversely, PT. PMA requires adherence to specific laws and regulations, including minimum capital requirements, shareholder criteria, and location considerations. Throughout the process, collaboration with local consultants can streamline licensing and legal matters. Ultimately, achieving success in Indonesia’s dynamic market requires meticulous planning, compliance with regulations, and strategic decision-making.
Let us ease the process of registering an international company in Indonesia! Register your business here with CPT Corporate!
This Press Release has also been published on VRITIMES
by | Mar 15, 2025 | Business
March 15, 2025 – VRITIMES, an innovative press release distribution platform, is pleased to announce its strategic partnership with KakaComputer, a trusted technology news and information hub. This collaboration aims to provide businesses, startups, and tech professionals with a stronger platform to share their latest developments, innovations, and industry insights with a broader audience.
With this partnership, VRITIMES will leverage its advanced distribution technology to help businesses seamlessly publish and promote their press releases on KakaComputer. This ensures that key updates, product launches, and breakthrough advancements in technology reach the right industry professionals and enthusiasts.
“We are excited to collaborate with KakaComputer, a well-respected platform in the tech community,” said Ferry Bayu, CEO of VRITIMES. “This partnership will allow technology-driven businesses to enhance their reach and gain more visibility among tech-savvy audiences who are eager to stay ahead of the latest trends.”
KakaComputer has built a reputation for delivering in-depth tech news, reviews, and analysis, making it a go-to resource for IT professionals, tech enthusiasts, and businesses looking to stay informed about the latest industry shifts. By working with VRITIMES, KakaComputer strengthens its role as a key distribution channel for important industry news.
This collaboration represents a shared commitment to supporting the growth of the tech industry by streamlining access to relevant news and developments. Through this partnership, businesses can connect with their target audiences more efficiently, ensuring their stories receive the recognition they deserve.
This Press Release has also been published on VRITIMES
by | Mar 15, 2025 | Business
WEHI researchers have made a huge leap forward in the fight against Parkinson’s disease, solving a decades-long mystery that paves the way for development of new drugs to treat the condition.
First discovered over 20 years ago, PINK1 is a protein directly linked to Parkinson’s disease – the fastest growing neurodegenerative condition in the world. Until now, no one had seen what human PINK1 looks like, how PINK1 attaches to the surface of damaged mitochondria, or how it is switched on.
In a major breakthrough, researchers at the WEHI Parkinson’s Disease Research Centre have determined the first ever structure of human PINK1 bound to mitochondria, in findings published in Science. The work could help find new treatments for the condition that currently has no cure or drug to stop its progression.
At a glance
In a world-first, WEHI researchers have discovered what human PINK1 looks like and how it is activated.PINK1 is a protein linked to Parkinson’s disease, the second most common neurodegenerative disease after Alzheimer’s.There is no cure for Parkinson’s.This discovery, published inScience, is a huge leap forward in the fight against Parkinson’s with the hope that it will accelerate the search for a drug to stop the condition.
Parkinson’s disease is insidious, often taking years, sometimes decades to diagnose. Often associated with tremors, there are close to 40 symptoms including cognitive impairment, speech issues, body temperature regulation and vision problems.
In Australia, over 200,000 people live with Parkinson’s and between 10% and 20% have Young Onset Parkinson’s Disease – meaning they are diagnosed under the age of fifty. The impact of Parkinson’s on the Australian economy and healthcare systems is estimated to be over $10 billion each year.
Breakthrough after decades of research
Mitochondria produce energy at a cellular level in all living things, and cells that require a lot of energy can contain hundreds or thousands of mitochondria. The PARK6 gene encodes the PINK1 protein, which supports cell survival by detecting damaged mitochondria and tagging them for removal.
In a healthy person, when mitochondria are damaged, PINK1 gathers on mitochondrial membranes and signals through a small protein called ubiquitin, that the broken mitochondria need to be removed. The PINK1 ubiquitin signal is unique to damaged mitochondria, and when PINK1 is mutated in patients, broken mitochondria accumulate in cells.
Although PINK1 has been linked to Parkinson’s, and in particular Young Onset Parkinson’s Disease, researchers had been unable to visualise it and did not understand how it attaches to mitochondria and is switched on.
Corresponding author on the study and head of WEHI’s Ubiquitin Signalling Division, Professor David Komander, said years of work by his team have unlocked the mystery of what human PINK1 looks like, and how it assembles on mitochondria to be switched on.
“This is a significant milestone for research into Parkinson’s. It is incredible to finally see PINK1 and understand how it binds to mitochondria,” said Prof Komander, who is a laboratory head in the WEHI Parkinson’s Disease Research Centre.
“Our structure reveals many new ways to change PINK1, essentially switching it on, which will be life-changing for people with Parkinson’s.”
Hope for future treatments
Lead author on the study, WEHI senior researcher Dr Sylvie Callegari, said PINK1 works in four distinct steps, with the first two steps not been seen before.
First, PINK1 senses mitochondrial damage. Then it attaches to damaged mitochondria. Once attached it tags ubiquitin, which then links to a protein called Parkin so that the damaged mitochondria can be recycled.
“This is the first time we’ve seen human PINK1 docked to the surface of damaged mitochondria and it has uncovered a remarkable array of proteins that act as the docking site. We also saw, for the first time, how mutations present in people with Parkinson’s disease affect human PINK1,” said Dr Callegari.
The idea of using PINK1 as a target for potential drug therapies has long been touted but not yet achieved because the structure of PINK1 and how it attaches to damaged mitochondria were unknown.
The research team hope to use the knowledge to find a drug to slow or stop Parkinson’s in people with a PINK1 mutation.
The link between PINK1 and Parkinson’s
One of the hallmarks of Parkinson’s is the death of brain cells. Around 50 million cells die and are replaced in the human body every minute. But unlike other cells in the body, when brain cells die, the rate at which they are replaced is extremely low.
When mitochondria are damaged, they stop making energy and release toxins into the cell. In a healthy person, the damaged cells are disposed of in a process called mitophagy.
In a person with Parkinson’s and a PINK1 mutation the mitophagy process no longer functions correctly and toxins accumulate in the cell, eventually killing it. Brain cells need a lot of energy and are especially sensitive to this damage.
The study, “Structure of human PINK1 at a mitochondrial TOM-VDAC array”, is published in Science (DOI: 10.1126/science.adu6445).
This Press Release has also been published on VRITIMES
by | Mar 15, 2025 | Business
This comprehensive guide provides essential information about employment contracts in Indonesia, ensuring you comply with local labor laws. Whether you’re planning to start a business or manage employees in Indonesia, understanding the various types of employment contracts, working hours, overtime regulations, and leave entitlements is crucial. This guide offers detailed insights to help you navigate the complexities of employment contracts in Indonesia effectively.
When running a business in Indonesia, it’s vital to understand local employment contracts to ensure compliance with labor laws. This guide explains the key types of employment contracts, working hours, and leave entitlements in Indonesia, helping you manage your workforce effectively.
There are two primary types of employment contracts in Indonesia: fixed-term and indefinite-term. Each type has specific rules and ideal use cases.
Fixed-Term Employment Contracts
Best for Project-Based Roles: Fixed-term contracts are suitable for hiring employees for specific projects or seasonal work. Duration: These contracts can last up to five years. Probation period is prohibited if you use this contract. Ensure these contracts are written in both Indonesian and English for clarity and legal compliance.Renewal: After the initial term, the contract can be renewed based on mutual agreement, provided it doesn’t exceed the maximum allowable period, which is 5 (five) years in total..
Indefinite-Term Employment Contracts
For Permanent Roles: Indefinite-term contracts are used for long-term roles.Probation Period: These contracts include a probation period of up to three months, after which a permanent appointment letter must be issued.Stability: This type of contract offers job security and benefits for both employer and employee, fostering long-term employment relationships.
Working Hours and Overtime Regulations
Understanding working hours and overtime regulations is crucial for compliance and employee satisfaction.
Regular Working Hours
Maximum Hours: Employees should not work more than 40 hours per week. You can choose between seven hours per day for six days a week or eight hours per day for five days a week.Flexibility: This flexibility allows businesses to choose a schedule that best fits their operational needs while adhering to legal limits.
Overtime Regulations
Limits: Overtime should not exceed four hours per day or 18 hours per week.Pay Rates: Overtime pay varies depending on whether the extra hours are worked on weekdays, weekends, or public holidays. For example:Weekdays: 1.5 times the hourly wage for the first hour, and twice the hourly wage for subsequent hours.Weekends/Public Holidays: Two times the hourly wage for the first eight hours, three times for the ninth hour, and four times for any additional hours.Documentation: Proper documentation and approval processes for overtime work should be maintained to ensure compliance and prevent disputes.
Leave Entitlements
Employees in Indonesia are entitled to various types of leave, ensuring their well-being and compliance with local laws.
Annual Leave
Entitlement: Employees are entitled to 12 days of paid annual leave after one year of continuous work. Unused leave can be carried over for up to six months.Scheduling: Employers should manage and schedule annual leave to ensure business continuity while respecting employees’ right to rest.
Sick Leave
Salary Reductions: There is no specific number of sick leave days, but salary is paid based on the length of absence:100% salary for the first four months.75% salary for the next four months.50% salary for the following four months.25% salary for any subsequent months.Documentation: Medical certificates should be provided to validate the leave and ensure proper record-keeping.
Maternity Leave
Duration: Female employees are entitled to six months of fully paid maternity leave, divided equally before and after childbirth. In case of a miscarriage, they receive 1.5 months of paid leave or as specified by a doctor.Support: Employers should provide a supportive environment for pregnant employees and facilitate their return to work post-maternity leave.
Paid Leave for Specific Reasons
Events: Employees can take paid leave for various personal and family-related events, such as:Marriage of the employee: 3 days.Marriage of the employee’s child: 2 days.Child’s baptism or circumcision: 2 days.Wife giving birth or miscarriage: 2 days.Death of a close family member: 1-2 days.Flexibility: Providing flexibility for such events helps maintain employee morale and loyalty.
Probation Period Regulations
The probation period in Indonesia should not exceed three months. During this period, employees must receive at least the minimum wage. This period allows employers to assess whether an employee is suitable for a long-term role.
Assessment: Employers should use the probation period to thoroughly assess the employee’s performance and fit within the company culture.Feedback: Regular feedback and performance reviews during the probation period can help address any issues and support the employee’s development.
Managing Employment Contracts in Indonesia
Contract Language: In case there is a foreigner as the parties involved, then ensure all employment contracts are written in both Indonesian and English to comply with the law and ensure legal enforceability. If there is no foreigner, then a full Indonesian contract is allowed.Legal Compliance: Regularly review employment contracts and company policies to ensure compliance with the latest labor laws and regulations.Employee Handbook: Develop an employee handbook that outlines all terms and conditions of employment, including working hours, leave entitlements, and company policies. The employee handbook must be registered to the local manpower agency so that it can be enforced on the employees.HR Practices: Implement robust HR practices to manage employment contracts, employee records, and compliance with labor laws.
Conclusion
Understanding employment contracts in Indonesia is crucial for ensuring legal compliance and maintaining a productive and satisfied workforce. By familiarizing yourself with the different types of contracts, working hours, overtime regulations, and leave entitlements, you can manage your employees effectively and avoid legal issues. For personalized assistance and further guidance, consider consulting with CPT Corporate’s experts who can help you navigate the complexities of Indonesian labor laws.
This Press Release has also been published on VRITIMES
by | Mar 14, 2025 | Business
March 14, 2025 – VRITIMES, a leading press release distribution platform, is excited to announce its partnership with JustBaazaar, a prominent online business directory and media platform. This collaboration aims to provide businesses, entrepreneurs, and professionals with a powerful avenue to amplify their brand visibility and share their news with a wider audience.
Through VRITIMES’ cutting-edge press release distribution technology, businesses can now seamlessly publish their announcements on JustBaazaar, ensuring that news about company milestones, product launches, industry trends, and professional services reaches the right audience.
“We are thrilled to partner with JustBaazaar, a platform dedicated to helping businesses grow through increased online visibility,” said Ferry Bayu, CEO of VRITIMES. “By working together, we are making it easier for companies to share their stories and connect with potential customers, partners, and industry leaders.”
JustBaazaar is known for its comprehensive business directory and commitment to showcasing businesses across various industries. By leveraging VRITIMES’ distribution technology, JustBaazaar’s platform will offer businesses a more efficient way to gain media exposure and attract a larger audience.
This partnership reflects a shared commitment to empowering businesses by providing innovative tools for communication and brand promotion. Together, VRITIMES and JustBaazaar are set to redefine how businesses share their news and engage with their target markets.
This Press Release has also been published on VRITIMES
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