The introduction of KBLI 2025 has created understandable concern among foreign investors. Many companies are asking whether their existing licences remain valid. Others are considering immediate amendments to their NIB and Articles of Association. The short answer is reassuring. A PT PMA does not automatically need new licences merely because KBLI 2025 exists. Existing licences […]
A creditor may hold one large unpaid claim against an Indonesian company. However, the creditor may lack evidence of another creditor. This creates a serious obstacle before filing a PKPU petition. Could the creditor transfer part of its claim to another party? Would that transfer create two creditors under Indonesian law? The short answer is […]
Coal export regulation Indonesia 2026 is now one of the most important legal issues for mining companies. Indonesia remains a major global coal exporter. However, the regulatory landscape is becoming more controlled, more technical, and more enforcement-driven. For mining companies, this creates real business pressure. A contract that looked safe last year may now need […]
The Indonesian Ministry of Law and Human Rights Regulation Number 22 of 2023 outlines the legal framework for all visas and stay permits.
What is a PT PMA?
A PT PMA is a foreign-owned company in Indonesia, allowing international investors to own shares and operate within Indonesia under specific regulations.
What is a PT PMDN?
PT PMDN is a company fully owned by Indonesian nationals or entities and operates under local investment laws with fewer restrictions than PT PMA.
What is a Representative Office (RO)?
RO is a non-revenue-generating office set up by foreign companies for liaison, market research, or promotional activities in Indonesia.
What is a Permanent Establishment (PE)?
A PE is a foreign company’s local business presence in Indonesia, taxed similarly to local companies and used for operational activities.
What is the minimum number of shareholders required for PT PMA and PT PMDN?
Both PT PMA and PT PMDN require at least two shareholders.
What are the capital requirements for PT PMA and PT PMDN?
PT PMA requires a minimum of IDR 10 billion in capital, while PT PMDN has no specific minimum but must follow general corporate laws.
Can foreigners be involved in PT PMA?
Yes, foreigners can be shareholders and directors in PT PMA, though restrictions apply in certain sectors.
What taxes apply to PT PMA, PT PMDN, RO, and PE?
PT PMA and PT PMDN are subject to corporate taxes and VAT; PEs are taxed on local income, while ROs are not taxed as they don’t generate revenue.
Can a PT PMA operate in all business sectors in Indonesia?
No, certain sectors are restricted or closed to foreign investment under the Negative Investment List. It’s essential to verify sector-specific regulations.
Is local partnership mandatory for a PT PMA?
Not necessarily, but in some sectors, foreign investors must partner with a local entity or individual, depending on the industry’s regulations.
What documents are required to establish a PT PMA?
Key documents include Articles of Association, shareholder and director IDs, a registered office address, and compliance with sectoral licenses.
Can an RO transition into a PT PMA?
Yes, but the process requires establishing a new legal entity (PT PMA) and cannot simply be converted; it involves fulfilling investment requirements.
Can an RO hire employee?
Yes, an RO can hire local staff but is limited in terms of its operational scope since it cannot conduct direct business activities.
Are there industry-specific licenses required for PT PMA or PT PMDN?
Yes, many industries require specific permits or licenses in addition to general company registration, such as those for finance, construction, or mining.
What are the reporting obligations for PT PMA and PT PMDN?
Both must submit annual financial reports, tax filings, and comply with local labor and employment reporting to relevant authorities.
What is the difference between a PE and a branch office?
PE is a local taxable entity for foreign companies engaged in certain business activities, while a branch office is not common in Indonesia except for specific industries like banking.
The MERP allows you to leave and re-enter Indonesia while holding a KITAS. Without a MERP, your KITAS would be invalidated upon exit. The permit typically lasts for the duration of your KITAS and must be renewed along with your KITAS if needed.
What types of intellectual property are protected under Indonesian law?
In Indonesia, intellectual property is protected under several categories: trademarks, copyrights, patents, industrial designs, geographical indications, and trade secrets.
How do I register a trademark in Indonesia?
To register a trademark, you must file an application with the Directorate General of Intellectual Property (DGIP). The process involves submitting a trademark application, undergoing an examination, and addressing any objections or oppositions before receiving the registration certificate.
What is the duration of trademark protection in Indonesia?
It is lasts for 10 years from the date of registration. It can be renewed indefinitely for subsequent 10-year periods.
How do I protect my copyright in Indonesia?
Copyright protection in Indonesia is automatic upon creation of the work, but registering it with the DGIP provides additional legal advantages. Copyright covers literary, artistic, and scientific works, including software and multimedia content.
What are the requirements for patent registration in Indonesia?
To obtain a patent, your invention must be novel, involve an inventive step, and be industrially applicable. The process involves submitting a detailed patent application, undergoing an examination, and meeting any necessary requirements before the patent is granted.
Can I enforce my intellectual property rights in Indonesia?
Yes, intellectual property rights can be enforced in Indonesia through civil lawsuits or administrative actions. Our firm can provide legal assistance to navigate the enforcement process effectively.
How long does the intellectual property registration process take?
The registration process varies by type of intellectual property. Generally, trademark registration takes 8-12 months, while patents can take up to 2 years or more.
Can foreign entities register intellectual property in Indonesia?
Yes.
How often do I need to renew my intellectual property rights?
Trademark rights need to be renewed every 10 years. Patents are valid for 20 years from the filing date, while copyright does not require renewal but lasts for the lifetime of the author plus 70 years.
Are there any international treaties that Indonesia is part of regarding intellectual property?
Yes, Indonesia is a member of several international treaties, including the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works. These treaties facilitate the protection of intellectual property across member countries.
Can I transfer my intellectual property rights to another party?
Yes, intellectual property rights can be transferred through assignments or licensing agreements. Such transfers must be recorded with the DGIP for trademarks, patents, and industrial designs to be legally effective.
No, freelancers or self-employed individuals cannot apply for a Work Permit KITAS. The KITAS requires sponsorship from an Indonesian company that employs you in a specific role. However, other visa types may be available depending on your circumstances and types of freelancer activity.
