Sunday, November 24, 2013

Popular Job Websites Indonesia

Jobs DB (http://id.jobsdb.com/id) most popular

Jobstreet (http://www.jobstreet.co.id) most popular

Freelancer.co.id- launched in Indonesia recently

StartupBisnis.com - Jobs Offerings

DailySocial.net - Jobs

StartupLokal.org - Jobs

Thursday, August 15, 2013

Suppliers in Indonesia

Sourcing Suppliers in Indonesia
These are places to find Indonesian sources of supply:
Indonesian Sources
http://www.indonesia.manufacturers.globalsources.com/
Alibaba.com’s Indonesia Channel
http://www.alibaba.com/countrysearch/ID-Indonesia.html
Twaynet.com
http://www.twaynet.com/indonesiasuppliers/
Indonesia Suppliers, Manufacturers, B2B Portal for Exporting Companies
http://indonesia.exportersindia.com/suppliers/
Trade Indonesia
http://www.tradeindonesia.com/
Other Noteworthy Facts
Other interesting facts about Indonesia:
(http://export.gov/indonesia/considerindonesia/index.asp)
• Indonesia is No. 1 for Twitter user penetration in the world.
• It is No. 2 for Facebook users in the world (behind the United States).
• It is the largest economy in Southeast Asia.
Additional helpful resources:
Doing Business in Indonesia – World Bank Group
http://www.doingbusiness.org/data/exploreeconomies/indonesia/
Export to Indonesia
http://export.gov/indonesia/
CIA The World Fact Book: Indonesia
https://www.cia.gov/library/publications/the-world-factbook/geos/id.html
U.S. – Indonesia Trade and Investment Relationship
http://www.state.gov/r/pa/prs/ps/2011/11/177383.htm
All about Indonesia
http://pinterest.com/gourmetpigs/all-about-indonesia/
Made in Indonesia
http://madeinindonesia.biz

Sunday, August 4, 2013

Indonesian News and Media

Daily Newspapers

News Magazines

Tempo (Weekly, (Indonesian and English)

Trust (Weekly)

Company Incorporation PT.PMA

The Canadian Trade Commissioner Service
An Investment Guide to Indonesia
The Canadian Trade Commissioner Service (TCS) can play a pivotal role by facilitating Canadian clients' investments in foreign markets

http://www.tradecommissioner.gc.ca/eng/document.jsp?did=133467#toc24

2. Procedures to Establish Foreign Enterprises

Foreign investors have several options when entering the Indonesian market.

Representative Offices

A company may establish a representative office. The representative may be Indonesian or an expatriate. A license from BKPM is required. The office can undertake sales promotions, market research and assist local agents or distributors, but may not generate revenue.

Limited Liability Companies

For direct capital investment, the investor must establish a corporate entity known as a "Penanaman Modal Asing" (PMA) in accordance with the 2007 investment law. The entity takes the form of a limited liability company(PT),and can be either wholly-owned by the investor or with a local partner.

Permits

Investors usually first obtain a principle licence from BKPM, which is valid for three years, while they prepare to start commercial operations, at which time they apply for a permanent license. Companies are advised to engage lawyers or consultants to assist in navigating this process.

To establish a PT company and obtain a principle license, which BKPM says will take 10-14 days, the investor must:

Submit its investment application containing information about the investment plan. The components of the application include the legality of the prospective investor and the investment plan (planned capacity, diagram or flowchart of production, marketing plan, number of employees, capital), with required documents

Once the company is ready to start operations, it must apply for its permanent license, a process that can take up to 70 days. The process involves:

Securing approval for the company's official name from the Ministry of Justice.
Establishing articles of association through an Indonesian notary public.
Registering the company address with the Kelurahan (the lowest level of government administration).
Obtaining a tax payer registration number (NPWP) and Value-added Tax number from the Taxation Directorate General.
Placing initial capital at the bank.
Paying non tax state revenue (PNBP) for legal services at a bank.
Registering at the Ministry of Justice and Human Rights to secure approval for the establishment of the company.
Securing a company registration number from the Trade Ministry.
Securing the permanent business trading license (SIUP) from the Trade Ministry.
Registering at the Ministry of Manpower
Registering with the worker's insurance program (Jamsostek).

The next step is to submit the permanent license application to BKPM, or the Office of the State Minister for projects in bonded areas, with the required documentation. The permanent license is valid for 30 years.

Investors are required to submit regular investment reports to BKPM (semi-annually for companies with their principle licenses and annually for those with permanent licenses) using BKPM templates.

Land Use

Foreign individuals are prohibited from having direct freehold ownership of land. Freehold title may only be held by Indonesian citizens or by Indonesian entities that are 100% owned and controlled by Indonesian citizens. The 2007 investment law outlines different types of land rights available to investors:

HGU is the right to exploit land that is owned by the state for farming, fishery and livestock purposes.
HGB is the right to construct and own buildings on land owned by the state or individuals and which are not farm lands.
Right to Use is the right to use and/or earn income from land owned by the state or individuals. The stipulation on the right to use is set by a relevant official or under an agreement with the land owner. The right to use is given for a certain period or as long as the land is used for certain purpose.

HGU and HGB rights can be held by Indonesian citizens and corporate bodies that are established under Indonesian law and are based in Indonesia (including PMA) but not by foreign individuals or foreign representative offices. This right could change hands during the contract period.

Right to Use can be held by Indonesian citizens and corporate bodies that are established under Indonesian law and are based in Indonesia (including PMA) as well as by foreign individuals or representative offices. If the land belongs to the state, the Right to Use can be transferred to another party with approval of the relevant government official. The Right to Use land belonging to individuals can also change hands.

Table- 5.1
Land rights
Right over land	Description
a. Right to cultivate (HGU)	60 years with possible 35-year extension.
b. Right to build (HGB)	50 years with possible 30-year extension.
c. Right to use	45 years with possible 25-year extension.

--------------------------------------
FAQ
http://www.healyconsultants.com/company-incorporation/indonesia-faqs.html

What is the minimum number of shareholders required for an Indonesian company?A minimum of two shareholders is required.

What is the minimum number of directors required for an Indonesian company?Under statutory regulations, an Indonesian company requires a minimum of two directors.

Are shareholder/director details available for public viewing?Yes.

What are the minimum capital requirements for an Indonesian PT.PMA company?
An Indonesian wholly-owned foreign company has a minimum share capital requirement of 877 million rupiah (US$100,000).
---------

Company Registration Formalities in Indonesia PT.PMA

http://www.asiabusinesssetup.com/company-formation/indonesia-company-registration/

Most investors choose to use a professional services Firm to handle all formalities related to Indonesia business start up, which include:

Arranging for company shareholders to sign a Deed of Establishment before an Indonesian notary.
Applying for company name approval to the Ministry of Justice and Human Rights.
Obtaining a Certificate of Company Domicile from the management of the building in which office space is leased or where the registered office is located.
Arranging for the notary to prepare the Deed of Establishment by electronically filing the bank account certificate, tax registration certificate and Certificate of Company Domicile at the Ministry of Justice and Human Rights.
Registering the company at the Department of Trade.
Arranging for the notary to publish the company’s Articles of Association in the State Gazette. The application is submitted to the State Printing Company, which usually takes 2 to 3 months to publish the notice. Until this is done, the company is unable to begin trading.
Registering the company with the Ministry of Manpower (if it employs more than 10 staff).

Because of the complications of Indonesia business set up as described above, it is normal for most entrepreneurs to hire the services of a Firm to project manage all formalities. This Firm will i) incorporate the company ii) open a corporate bank account iii) obtain employment permits for expatriate staff, and iv) assist with tax and accounting obligations.

CHALLENGES OF INDONESIA COMPANY REGISTRATION

Indonesia company incorporation is challenging for foreign investors. Inconsistent legal frameworks and procedures, a lack of transparency over incorporation procedures and costs, and the ever-present prospect of corruption combine to make Indonesia one of the most difficult investment locations in Southeast Asia.

The following is an overview of the Indonesian corporate entities available to foreign investors, as well as Indonesia company registration requirements.

Indonesia company formation is hampered by foreign investment restrictions, erratic law enforcement, uncertain government costs and a lack of regulatory transparency. In terms of the ease of doing business, Indonesia is poorly ranked at 121st according to the 2011 Doing Business Survey by the World Bank. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
Indonesia poorly ranks as the 110th least corrupt country in the world, according to the 2010 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
An Indonesian company is liable to pay a corporation tax of 25% on income sourced in Indonesia and internationally. Capital gains are taxed at 20%. Additionally, Indonesia is poorly ranked as the world’s 116th freest economy in the Heritage Organization’s 2011Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
Indonesia remains blacklisted by the Financial Action Task Force (FATF) on Money Laundering, making it difficult to open corporate bank accounts following Indonesia company registration process.

----------------------------------------------------

BKPM - NEGATIVE INVESTMENT LIST - YATIRIM YAPILAMIYACAK YADA KISITLANMIS ALANLAR

http://www4.bkpm.go.id/contents/general/117139/negative-investment-list

On May 25, 2010, the Government of Indonesia issued decrees establishing a new list of sectors that were either wholly or partially closed to private foreign and/or domestic investment called the Negative Investment List, known as the acronym DNI.

---------------------------------

Incorporation of Foreign Company Investment (PMA Company) in Indonesia

http://www.wijayaco.com/index.php/library/29-incorporation-of-foreign-company-investment-pma-company-in-indonesia-
Thursday, 03 September 2009 00:00 | Written by Wijaya

Business activities in Indonesian may be carried-out in the form of a sole proprietorship, a general or limited partnership or one of a various number of corporations. However foriegn capital investment (so called "PMA Company") in Indonesia may only conducted in form of a limited liability company, being established and existed under the Indonesian laws and havin its legal domicile within the Indonesian territory.
The limited liability company (Perseroan Terbatas, so called "PT") is the most ideal vehicle for direct foreign investment because of its nature as an association of capital with objection to make profits and the laws on establishment of other type of legal entity does not accomodate foreign investors.

An application to the Investment Coordination Board ("BKPM") is necessary in order to have a foreign capital investment. A letter of approval (Investment license) will be issued by the Head of the Investment Coordinatong Board to the applicant after all of the requirements have been completed and fulfilled.

Form of Foreign Capital Investments
Foreign Capital Investment may be conducted in the form (1) Joint ventures between foreign capital and capital owned by Indonesian citizens and/or Indonesian statutory bodies. Under the current applicable regulation, the foreign party may have 95 % of the share in the Company, and at least 5 % of the share shall be owned by Indonesian citizen or legal entity; (2) Direct Investments, which the entities capital being owned by foreign legal entities, whether it is a foreign citizens or foreign statutory bodies.

A foreign entity may invest their capital through several ways, e.g. purchasing an existing company, wholly or partly as well as setting-up a whole new company.

Incorporation of a Limited Liability Company
In order to incorporatea limited liability company, the company shall at least require two legal entities (persons or business entities) or more ("Founder") using a notarial document written in Indonesian language. The founder may be represented by its attorney or proxies. Each founder of the company shall get their part of the company shares at the time the company is incorporated.

Deed of Incorporation
The notarial document which in this matter is the Deed of Incorporation shall contain the company articles of associations and other relevant information, at least information regarding personal or company profile of the founder, member of the board of directors ("BoD") and Board of Commissioners ("BoC") of the company for the first time appointed and name of shareholders and the shares that they hold, objectives and purposes of the company.

Approval from the Minister of Justice
In order to be able to commence its business legitimately, a company must apply for an approval of its incorporation from the Ministery of Justice ("MOJ"). It is then considered as a corporate body/legal entity. Normally, the MoJ shall grant the approval no later than 60 days after the receipt of the complete application. Once it is approved, the BoD of the company must register the company to the Company Registry Office in oder to be registered within the List of Company. After it has been registered, it will be announced within the Supplement to the Gazette of the Republic of Indonesia. As long as the registration has not yet been made, the BoD shall collectively be held responsible for all legal acts conducted by the company.

Limitations
Certain industries are entirely closed to foreign capital investment, the most notable being industries vital to the national defense, e.g. industries producing arms, ammunition, and military equipment. Large sectors of trading and distribution business, particularly domestice retail trades, exports and import are largely closed to foreign capital investment. The government gradually issue and publish a list of business sectors absolutely restricted as well as business sectors that are open but with certain conditions for foreign and domestic capital investment.

In regards to sales activities (merchandise selling), trading and its supporting services are restricted to foreign investment except for large retailers (superstore, shopping mall, etc), large scale trading (distributorship/wholesaler), restaurants, quality certification services, market research services and after sales services are opened for foreign investment. However these sectors are opened with certain conditions set-up by other relevant regulations.

Visas for Foreign Husbands of Indonesian Women

http://www.wijayaco.com/index.php/library/14-visas-for-foreign-husbands-of-indonesian-women

Visas for Foreign Husbands of Indonesian Women

Monday, 11 August 2008 00:00 | Written by Wijaya

KITAS and 12 Months Sosbud Visa: Visas for Foreign Husbands of Indonesian Women

There are many married couples in Indonesia where either the wife or husband is foreigner and the spouse is Indonesian. Indonesian government regulations do not treat these two circumstances in the same manner. Almost all the regulations that apply to foreign wives of Indonesian men are very different that those that apply to foreign husbands of Indonesian women, few similarities can be found between the two circumstances.
The basis for the difference is treatment seems to be related to the issue of working. Foreign wives of Indonesian husbands are assumed by the Indonesian government to be housewives and mothers. Foreign husbands of the Indonesian women are assumed to be looking for a job. The Indonesian government treats these two cases very differently.

Under the new law, that conditions are no longer exist. Indonesian wife nowadays can sponsor her husband to obtain KITAS (Kartu Ijin Tinggal Terbatas/Limited Stay Visa). This new type of KITAS is not popular yet. But still, the foreign husband is not allowed to engage with formal employment with the Indonesian company.

The following are the type of stay permit visa that suitable to your personal conditions:

KITAS (Kartu Ijin Tinggal Terbatas/Limited Stay Card)
In order to entile KITAS, you must employed by the Indonesian company. This visa allows the holder to work and stay in Indonesian for one year. The basis in issuing this visa is IMTA (Ijin Mempekerjakan Tenaga Asing/Foreign Employment License) issued by the Ministry of Manpower. Upon receipt this license, Directorat General of Immigration in turn will issue VITAS (Visa Ijin Tinggal Sementara/Limited Stay Visa). The VITAS can be obtained at any nominated Embassy of Indonesia abroad.

Upon receipt of VITAS, you are allowed to enter Indonesia. KITAS must be applied at the local immigration office having jurisdiction over your residence. Other documents must be obtained, among others are Buku Pengawasan Orang Asing (Alien Registration Book), Surat Tanda Melaporkan Diri (Self Report Police Certificate), and Surat Keterangan Tempat Tinggal (Domicile Letter).

As a KITAS holder, you're entitle to almost everything (except vote!) such as local driving license, you can even allowed open a bank account ( if you wish to open a joint account with your wife), and among others, you are also entitle to the same flag tarrif at the hotel that usually offered to any local Indonesians.

If you have engaged employment with the Indonesian company, you don't have to worry about all this hassles. They will take care of these documents for you.

But if you wish your wife to be your sponsor to obtain a spousal sponsorship KITAS, the same procedures are applied, except you are not required to get an employment approval from the Ministry of Manpower. You can go directly apply to the Immigration Head Office and upon receipt of completed supporting documents, they will issue an approval of Limited Stay Visa. You can collect the visa at any Indonesian Embassy abroad, then you can enter Indonesia.

The same thing like the working KITAS, you must get the KITAS Card from the local immigration office. It is recommended for you to report to the Police Headquarters as a registered alien. You will then receive a SKLD (Surat Keterangan Lapor Diri/Self Reporting Police Certificate). The SKLD will be useful for application to obtain Indonesia's Police Clerance Certificate. Police Clearance Certificate are required in the event you wish to migrate to other country such as Canada or United States.

Also for the purpose of population administration, go apply for SKPPS (Surat Keterangan Pendaftaran Penduduk Sementara/Temporary Resident Certificate) from the Civil Registry Office. This is very useful when you are applying KITAP (Kartu Ijin Tetap/Permanent Stay Permit) Card which valid for five (5) years. KITAP can be obtained after you hold KITAS for three (3) years continuously.

Our Indonesian law firm has assisted foreigners who married to Indonesian women to obtain KITAS under Indonesian wife sponsorship. Feel free to send inquiry email, once we received completed supporting documents, our Indonesian lawyer will initiate the process with the Directorate General of Immigration in Jakarta. We will also assist you after your enter Indonesia.

Multiple Entry Social Cultural (Sosbud) Visa: 12 Months Validity

This is the new visa issued under the New Citizenship Law, effective since Jun. 26, 2006. The visa is suitable to foreign husband who does not have any employment with the Indonesian company. The official visa name is Visa Kunjungan Beberapa Kali Perjalanan (Multiple Entry Social Cultural Journey Visa). It valids for one year. You are allowed to stay maximum 60 days for each visit. This visa will only require one time application for each year.

Your wife can the sponsor for this visa. She must signs two sponsorship letter and fill-in Form Model 13 VIS-K. The telex approval must first be obtained at the Directorate General of Immigration in Jakarta, to collect the visa at any nominated Indonesian embassy abroad.

Supporting Documents

Prior to obtain the telex approval for your 12 Months Sosbud Visa, you must first submit the following supporting documents:

Photograph size 4 x 6 cm in red background;
Copy of your passport;
Copy of your marriage certificate/marriage book;
Copy of your Indonesian wife's ID Card;
Copy of your Indonesian wife's Family Card (Kartu Keluarga);
Sponsorship Letter signed by your wife;
Copy of your bank statements;
Fill-in Form Model 13 VIS K.

The telex approval will be send to your wife and you can bring the copy to the nominated Indonesian embassy abroad to pick-up the visa.

At the Indonesian embassy abroad, you will be requested to fill-in Visa Application Form for Visit - Single/Several Journey(s). Choose "Several" instead of ''Single''. At the ''Purpose of Visit to Indonesia'' Section, please do not conflicting between choice number "10-Social'' and number ''15-Family Visit''.

The number 15 is for family member when you have a family in Indonesia and you visit them in Indonesia with their sponsorship. The number 10 is for non-family members, such as, if you have an Indonesian girlfriend, and you want to visit her in Indonesia under her sponsorship.

As one of Indonesian legal services working for immigration cases, we will assist you before you enter and after you enter Indonesia and to make sure you given proper legal advise for your situations.

Property Jargon Words

http://indonesia.angloinfo.com/housing/property-jargon/

English-Indonesian Property Jargon

When reading the property classifieds looking for a house or apartment to buy or to rent, some terms may be unfamiliar - here are English translations of the key Indonesian real estate words and phrases...

English	Bahasa Indonesia
all-new construction	bangunan baru
apartment for rent	apartemen yang disewakan
asset	aktiva/harta
bathroom/facilities	kamar mandi/perlengkapan
bedroom	kamar tidur
bill	rekening
bottled gas/cylinder	tanki/tabung gas
broker	perantara
building	bangunan, gedung
building licence	IMB (Izin Mendirikan Bangunan)
connection to the power supply	hubungan sumber tenaga listrik
deposit	pembayaran di muka/uang muka
estate agent	agen properti
flat/apartment	apartemen, rumah susun
furnished	dilengkapi mebel
furnished rental or property	sewa atau bangunan lengkap dengan mebel
garden	kebun/ taman
heating	pemanasan
holiday residence	bungalo/vila
home insurance	asuransi rumah
home amenities	perlengkapan rumah
inventory	inventarisasi
kitchen	dapur
land and building	tanah dan bangunan
land/property with land	tanah/property termasuk tanah
land cultivation title (right to cultivate)	Hak Guna Usaha
land ownership title	Hak Milik
land use title (right of use)	Hak Pakai
lounge/living room	ruang duduk/ruang keluarga
LST (luxury sales tax)	PPNBM (pajak pertambahan nilai atas barang mewah)
meter (water/electricity)	meteran (air/listrik)
mortgage	pinjaman dengan rumah sebagai jaminan
non-resident	orang asing
open-plan kitchen/living area (American kitchen)	dapur/ruang keluarga terbuka (dapur gaya Amerika)
owner	pemilik
parking area	tempat parkir
payment of bills by direct debit or standing order	pembayaran rekening dengan debit langsung atau perintah pembayaran berkala
property	properti
rent	sewa
rented residential property	hunian yang disewakan
rooms	kamar
sales and purchase deed	AJB (Akta Jual Beli)
service charge	biaya pemeliharaan
shower	shower
swimming pool	kolam renang
tenant	penyewa
to give notice/terminate (a contract)	menyampaikan pemberitahuan/ mengakhiri (kontrak)
to rent	menyewa
toilet	toilet, WC
total amount	jumlah keseluruhan
unfurnished	tidak dilengkapi mebel
VAT (value added tax)	PPN (pajak pertambahan nilai)
water heater	pemanas air/air panas

Indonesia Renting Property

----------------------------------------------------
Property Jargon
http://indonesia.angloinfo.com/housing/property-jargon/

-------------------------------------------------

Buying Property

Renting Accommodation

Property Jargon
Useful Contacts
-----------------------------
Types of Rental Property
http://indonesia.angloinfo.com/housing/renting-accommodation/types-of-property

Find out about the different types of property available to rent in Indonesia...

Renting a room
It is possible to rent a bedroom in an Indonesian family's home. Meals and laundry prices can be negotiated with the family. This type of rental is usually informal, and is made by meeting and becoming friends with an Indonesian family.

Hotel rooms and penginapan
Renting a room in a hotel or a penginapan (simple lodging) is a long-term option, which can be negotiated. Meals and laundry are sometimes available for an extra fee.

Kos or Kost - places to rent
Typical western-style flats are not found outside Bali, Jakarta and other developed areas. Most rental units, or kos, are rooms similar to those in a boarding house or residential hotel. They are typically small and may be either furnished or unfurnished. Private bathrooms are sometimes provided, or they may be shared. Contracts are monthly, six monthly or a year. Payment is usually made in advance.

Houses
There are plenty of houses to rent in Jakarta and Bali because most foreign residents are transient. In other parts of Indonesia, houses are available, but not as readily, because generally families who own these houses have lived there for generations. Rental contracts for these houses are usually between one to three years.

Furnished houses
Furnished houses are often rented for twice the price of unfurnished properties.
Many homes have air conditioning, but only new houses in upscale, gated communities in Jakarta or Bali have hot water geysers.

Property Buying & Renting

FAQ
http://www.healyconsultants.com/company-incorporation/indonesia-faqs.html

What is the minimum number of shareholders required for an Indonesian company?A minimum of two shareholders is required.
What is the minimum number of directors required for an Indonesian company?Under statutory regulations, an Indonesian company requires a minimum of two directors.
Are shareholder/director details available for public viewing?Yes.
What are the minimum capital requirements for an Indonesian PT.PMA company?
An Indonesian wholly-owned foreign company has a minimum share capital requirement of 877 million rupiah (US$100,000).
----------------------------------------------------
Property Jargon
http://indonesia.angloinfo.com/housing/property-jargon/

-------------------------------------------------

Buying Property

Renting Accommodation

Property Jargon
Useful Contacts
-------------------------

How foreigners can own property in Indonesia?

http://www.baliproperty.com/own_property.html

A. TITLE

There are a number of different types of title in Indonesia:

Hak Milik (Freehold) is the type of title that can only be held by an Indonesian citizen.
Hak Pakai (essentially leasehold title) and other forms of title can be held by a P.T. or PMA Company (Foreign Investment Company).

A non-Indonesian citizen cannot own land in Indonesia. However a foreigner can acquire a leasehold title to a building - almost the same as a strata title except that the title lasts only for25 years with an extension of 30 years for a maximum of 55 years and then reverts to the original owner (lessor).

B. SOLUTION

There are 2 ways for foreigners to own the land in Indonesia:

1. Using the Nomine
The Nominee will sign four documents with the foreigner as follow:

A Loan agreement: acknowledges that the foreigner has lent to the Nominee the purchase price of the land.
A Right of Use agreement: allows the foreigner to use the land.
A Statement Letter: where the Nominee acknowledges the foreigners loan and intention to own the land.
Power of Attorney: The nominee signs an irrevocable Power of Attorney giving the foreigner the complete authority sell, mortgage, lease or otherwise deal in the land.

2. Using the PMA

This way not efficiant. PMA setup is expensive.

3. Using a nominee PT or CV olabilir

--------------------------

Investing through an Indonesian nominee
http://indonesia.angloinfo.com/housing/buying-property/investing-in-property/

An Indonesian citizen can hold the land title as a nominee on behalf of a foreigner. To do this a number of documents are signed in front of a notary including:

1. The contract (rental or purchase) transferring the rights for the property to the nominee.
2. A Loan Agreement for the rental or purchase price between the nominee and the investor. This acknowledges that the nominee has been loaned the purchase price by the investor.
3. A "Right of Use" agreement which enables the foreign investor to use the land.
4. A statement letter in which the nominee acknowledges the loan from the investor and their intention to own and use the land.
5. A power of attorney. This allows the investor the authority to sell, transfer or dispose of the property as well as to represent the nominee in any dispute regarding it.

The notary requests that the nominee gives all the original land titles to the investor.

Investing in property in this way, although not against the law, is considered to be not strictly in the spirit of it. The law encourages foreigners to invest directly via leases.

This "Right to Rent" (Hak Sewa Bangunan) cannot be mortgaged or registered at an Indonesian land office and therefore does not exist in certificate form. There are no laws defining how long such agreements can last, and the transfer of the property depends on the terms of the original agreement drawn up between the nominee and the investor.

-----------------------------------------------

Indonesia Nominee Trading Company
(To buy property via company)
http://www.healyconsultants.com/company-incorporation/indonesia-nominee-trading-company.html

An Indonesia nominee trading company is a legitimate way to conduct business in Indonesia, and is often used as a legitimate vehicle for entrepreneurs to overcome foreign investment restrictions (for example, the purchase of Indonesian property). The following information will help you determine whether an Indonesia nominee trading company is the optimum corporate structure to fulfill your business objectives:

Advantages of an Indonesian nominee trading company
1. An Indonesian nominee trading company is a legal way for foreigners to acquire property in Indonesia. To achieve this, the company buys land on behalf of the investor, and Land Title deeds are in the name of the nominee company.
2. Healy Consultants can obtain a 30-year business license for your Indonesia nominee trading company.
3. Healy Consultants can open global corporate bank accounts to support your Indonesia nominee trading company.

Disadvantages of an Indonesian nominee trading company
1. An Indonesia nominee trading company requires a minimum of two directors and shareholders, whose details appear on a public register. At least one shareholder must be an Indonesian citizen.
2. An Indonesian nominee trading company requires an initial share capital of 50 million rupiah (US$5,400).
3. An Indonesian nominee trading company is obliged to submit an annual tax return and audited financial statements.
4. An Indonesian nominee trading company requires a registered office and company secretary. Healy Consultants Indonesia office will act as your registered office and company secretary.

Healy Consultants fees for an Indonesian nominee trading company
Healy Consultants' fees to establish an Indonesian nominee trading company start at US$17,950 in Year 1 and US$10,450 from Year 2 onwards, depending on corporate structure and range of professional services required.

Other Information
Healy Consultants fees to act as nominee director to support your Indonesia nominee trading company amount to US$5,950 per annum (together with a one time refundable deposit of US$2,450). When closing down your Indonesia Company, our de-registration/liquidation fees amount to US$3,450.
---------------------------

The Cost of Starting a Business in Bali
http://www.baliadvertiser.biz/articles/business_builder/2013/business_cost.html

Over a warming cup of Earl Grey tea during a blustery evening downpour, a friend was complaining about the cost of doing business here. She was in the process of converting from a CV to a PT company to maintain her KITAS and had been quoted $10,000 for the process.

I blinked a couple of times and suggested something must have been lost in translation, but she was quite definite that that was the price. So I offered to send her some information about actual costs and you can see these below. Note we are talking here about a local PT. PMDN and not a PT. PMA that can be foreign owned. (PT stands for Perseroan Terbatas and is a limited liability company.)

World Bank in its Doing Business project. The information shown below relates specifically to Denpasar.
You can read the full World Bank report on Indonesia at http://www.doingbusiness.org/data/exploreeconomies/indonesia/starting-a-business/.

I have added a couple of additional items that the World Bank does not include. For example:

• Before you can get any business operating licences you must submit a valid Building Certificate (IMB) for your place of business. Either you or your landlord would have this, if there is one. They are still unusual particularly for older buildings. Don’t sign a lease unless you have a copy of a current IMB, or are prepared to pay the cost of obtaining one for the place of business.

• You need to have a deposit slip for funds in your business bank account representing your issued and paid up shareholder equity before you will have your Deed of Establishment approved. The Paid in Minimum Capital Requirement is Rp 12.5 million or 25% of minimum Capital of Rp 50million. To open the bank account in your business name you will need a letter from the Notary saying the business application is in process, plus your NPWP number.

There are other licencing requirements not listed here for specific types of business, for example: restaurants, hotels and industrial (production). Some Regencies in Bali can be a little different in times and costs for local documents, and there are also some major differences for a PT.PMA, which I am not covering here.

There are three key elements involved in the cost structure:
• Actual registration fees – these are mostly set by law and regulation, either nationally or within a regency.
• Notary service fees.
• Agent service fees.

By law, the Notaris (public notary) is the only profession with access to the new computerized system for non-tax state revenue payments which is tied to electronically registering a business name. So the Notaries have a monopoly. But they are also limited by law to a maximum fee of 1.5% of the cost of the transaction.

In practice, notary associations set a fee and I have no problems with paying Rp 8 million (including all the relevant registration fees) to the Notary for effectively pulling together the first stage of the process.

Not all Notaries are created equal.
I’m sure you have your own horror stories or have heard of them; my first CV here was supposed to define my activities as business training but what came though was specifically training people for work on boat crews such as cooks and stewards. It took nearly 6 months to get over the inertia caused by the embarrassment of the notary staff to get it changed. So find yourself a Notary whose knowledge base extends past transacting land deals.

Agents are in Business Too
Agents are free to charge whatever they like. I don’t have a problem paying around 10 million for the service offered by a good agent for the time and effort it saves me, but over that I will object. The creation of One Stop Shops has significantly reduced workload and effort for obtaining the related documents.

Be Active in the Process.
No matter how good your Agent and Notaris, they can’t perform for you if you don’t support them. Make sure you have the required documents ready to go, and be available to sign documents as required. Your agent will advise you on these needs.

Not all Businesses are the same
One of the key reasons we need a business registered, apart from making a profit, is to hold our KITAS. There have been a number of agents advising people that they can get their KITAS as a Komisaris. This may be true but it rather limits your capacity to actually work, as the duties of a Komasaris are pretty much restricted to ensuring the Directors are performing properly! You can just as easily be deported for performing functions that are not represented by your business card (and your business card title has to conform to your KITAS title) – as you can be for not having a KITAS at all. Depending on the type of company charter you nominate it is quite possible that the titles and functions available to you might be restricted to marketing specialist, business development specialist and quality control specialist. Personally, I always nominate as quality control specialist as this allows me to do anything at all in the process of checking the quality of processes, systems, lifting weights, safety and so on.

Getting a Director for Your Business
Your local-type PT business can only be owned by Indonesians and so you need to exercise care in the choice of the person who is nominally in charge of and actually owns your business. There are steps you can take to minimize the risk involved, and it’s prudent to plan for the worst when things are going well.

Keep in mind that this risk management is a two-way street. If you cause major problems in non-compliance with regulatory requirements then your Director will be the one who is fined and sent to jail. In those conditions you should not be surprised if your company director declares that either you are fired, or your position is no longer required, or worse. Please share your experiences or any contrary advice.

Is there an aspect of developing a successful business you would like me to write about?
Email:Graeme@stevens.com.au
Copyright © 2013 Graeme Stevens
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Frequently Asked Questions (FAQ) About Legal Aspects Of Land Foreign Ownership In Indonesia:

http://www.baliutamaproperty.com/propertyLaw.htm

Many foreign investors don't understand the laws in Indonesia that rule the order or process of the property investment. Here we write some questions that are often asked in the form of Q (Question) and A (Answer).

How is the rule to purchase property in Bali?

Q : May foreigner owns a land in Indonesia individually?
A : The Land Code states that any individual foreigner can own a land in Indonesia with status of Hak Pakai (Rights of Usage) or through leasehold. The Hak Pakai can be applied to either government land or Hak Milik (Freehold) land. Only Indonesia citizen may own land (property) with the title of Hak Milik (Freehold Title). If foreign investor insist to own a freehold property, he/she can use Indonesian as a nominee, with numbers of contracts and other documents which must be prepared by and signed in front of a qualified notary. These include the Purchase or Rental Contract for the property transferring the rights from the previous owner to the nominee; a Loan Agreement for the purchase/rental price between the investor and the nominee; and an irrevocable and transferable Power of Attorney to sell, transfer or otherwise dispose of the property and to represent the nominee in any dispute regarding the property, given from the nominee to the investor. The nominee will also be asked to hand over all original land titles to the foreign investor.

Q : Is Hak Pakai similar with leasehold?
A : Leasehold is a purchasing directly between purchaser and the land owner by the lease agreement validated by the notary but it is not registered in land affairs. Hak Pakai is a right obtained from releasing of a certain right on the government or Hak Milik land. Therefore Hak Pakai can be registered in the land affairs then a certificate will be under the purchaser's name.

Q : How long does the application of Hak Pakai over the land?
A : The government regulation states that the Hak Pakai over government land may be applied for 25 years and can be extended. However, after the time period was over you should renew (not extend) it by the notary. You may ask an advance renewal before purchase the land by our company and the staffs will be pleased to assist you.

Q : What should I do if I want to secure the land by a company?
A : The Land Code states any local company that established comply with the Indonesia law and/or foreign one that has representative in Indonesia region may own land and has a right to land in the form of Hak Guna Bangunan (right to erect a building) over government land or Hak Milik land. Therefore, you need to set up a foreign direct investment company in Indonesia (Penanaman Modal Asing /PMA) first to obtain and secure the land.

Q : Now, What is a Hak Guna Bangunan?
A : Hak Guna Bangunan is a right to erect building on a particular land. It can be applied on government or Hak Milik land. It also can be registered to the Land Affairs, and they will issue the certificate on a name of the company.

Q : How long does the application of Hak Guna Bangunan over the land?
A : The Hak Guna Bangunan over government land may be applied for 30 years and can be extended. It is also over Hak Milik land with the same time period and renewable. The advance one may be obtained before purchasing by our company.

Q : Can individual foreigner get the Hak Guna Bangunan?
A : Individual foreigner may not own land with Hak Guna Bangunan status, but the one with Hak Pakai. The Land Code states it is only for Indonesia citizen or company that complies with Indonesia law and established in this region.

Q : Let me know which status is safe for foreigner to own land
A : It depends on the needs. When the purchasers are two people or more the Hak Guna Bangunan is the best but setting up a PMA company is a must, without this one the status only Hak Pakai. But it will be useful when the land is wide enough to be sub-divided. It is also the best status if the purchaser is a single person. However both statuses are safe for foreigner.

Q : It means that the Hak Pakai or Hak Guna Bangunan may only be applied to the land of the Indonesia citizen with Hak Milik status.
A : Yes it is, since the Hak Milik is a title given only to Indonesia citizen. The best way to secure your property is by Hak Pakai or Hak Guna Bangunan, because with those Haks the land owner has released his/her title to the one.

Q : Should the land owner provide specific document to secure my property?
A : Yes. You yourself purchase the land in reality. Since the foreigner has no title to the land in Indonesia then the owner's Hak Milik should be transfer into Hak Pakai or Hak Guna Bangunan by several legal mechanisms.

Q : Does the bank accept both rights if I will mortgage the land?
A : Most banks in Indonesia accept both rights, although there may be some different policy between one and the other.