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Corporate Establishment in Indonesia
• Foreign Investment means activities of capital investment for conduct of business in the
territory of the Republic of Indonesia, which are implemented by FOREIGN CAPITAL
INVESTOR, whether use the foreign capital entirely or use in form of a Joint Venture with
Domestic Capital Investors.
• Foreign Capital Investor means an individual foreign state citizen, foreign business entity,
and/or foreign government which conduct capital investment in the territory of the Republic
• Capital means assets in form of money or other form other than money which are owned by
a capital investor for conduct of business in the territory of the Republic of Indonesia.
Form of Business Entity:
• For Foreign Capital Investment (Foreign Investment) the form of business entity must in
form of Limited Liability Companies (in Indonesia known as “PT”or Perseroan Terbatas).
The Limited Liability Companies are to be conducted with:
a. Subscription to a part of shares at the time of the LLC establishment;
b. Purchase of shares; and
Implementation of other methods in accordance with the current regulations of law.
(Please note that the percentage of the capital share that owned by the Foreign Investor are
basically different from one business sectors to another. Some business sectors may only contain
about 50% Max of Capital Share from foreign investor. For more information please read about
Opened and Closed Business Sectors below or Read the Presidential Decree No. 96/2000 concerning
Opened and Closed Business Sectors with certain Conditions for Investment.)
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