Welcome to our FAQs page! We’ve compiled a list of frequently asked questions to help you find the information you need quickly and easily. If you can’t find what you’re looking for here, please don’t hesitate to contact us.
Welcome to our Frequently Asked Questions (FAQs) page, where we’ve compiled a list of the most commonly asked questions by our valued customers. We hope you find this page helpful in providing the information you need. If you have any other questions or concerns, please don’t hesitate to reach out to our customer service team.
An Indonesian group advisory or consulting firm that provides local and multinational client support for start-up and managing business operations in Indonesia. We offer a range of consulting services to help our clients to improve their Business in Indonesia.
We provide a solid legal foundation with experience, reasonable cost, reliable corporate & business legal services with excellence, integrity, and trusted services for ease of doing business in Indonesia. We are a consultant with a good track record of handling our expert cases. armed with the experience and capabilities of our team and the community law and business. evident from the many online reviews of cases that have been resolved.
You can send an email to info@et-consultant or call us at +6221 5290 7039.
Yes. ET Consultant has a main goal as an ASEAN Business and Investment Hub in Indonesia for the ASEAN market and beyond through good collaboration and partnership between the organizations. Therefore, it can be a foundation to be able to accept clients of foreign nationals to be part of our journey.
The services provided by ET Consultants are broadly divided into several sections, namely
- Business Setup and Incorporation
- Business Licenses and other Licenses
- Immigration Formalities
- Business Process Outsourcing
- Legal Advisory
- Tailored Services according to the needs of our clients.
The legal services that we provide can accommodate both business and personal needs to support your desired needs.
- Foreign-owned Company (PT Pendanaan Modal Asing / PMA)
- How do you establish PT PMA in Indonesia?
Foreign Investment (“PMA”) is an activity of putting investment to do business in the territory of Indonesia by foreign investors, either using fully foreign capital or jointly with domestic investors. PMA must be in the form of a limited liability company (“PT”) under Indonesian law and located in Indonesia unless otherwise stipulated by law. Regulations regarding Foreign Investment Limited Liability Company (PT PMA) in Indonesia are regulated by Government Regulation in lieu of Law No. 2 of 2022 concerning Job Creation (Perppu 2/2022) and Presidential Regulation Number 49 of 2021 concerning Amendments to Presidential Regulation Number 10 of 2021 regarding Priority Investment List (PR 10/2021). Generally, the investment value of PMA is regulated by minimum capital requirements, namely, the issued/paid-up capital of at least IDR 10 billion. Foreign investors can only carry out business activities in large businesses hence, it is not permitted for micro, small, and medium enterprises in Indonesia.
One of the services provided by ET Consultants is to assist in the formation of PT PMA, PT PMA Licensing, and legal services related to PT PMA with an easy process that allows you to run your business without obstacles.
Call us now for a free consultation and find the best way to improve your business!
- Local Company (PT Pendanaan Modal Dalam Negeri / PMDN)
- How do you set up a Local Company?
The formation of a limited liability company (PT) in Indonesia is regulated by Law no. 40 of 2007 (UUPT) as amended by Government Regulations in lieu of Law No. 2 of 2022 Concerning Job Creation (Perppu 2/2022), the founders of a limited liability company (PT) consist of at least 2 people. However, this provision does not apply to PTs whose shares are wholly owned by the state, as well as PTs that manage stock exchanges, clearing and guarantee institutions, depository and settlement institutions, and other institutions regulated in the Capital Market Law.
Thus, PT can be established individually, as long as the company is managed according to the criteria of micro and small companies. Additionally, unlike a PT in general, the process of establishing a PT for micro and small companies does not require a deed of establishment, but a statement of establishment in the Indonesian language is sufficient. We follow regulatory updates and actual matters in the establishment of a Limited Liability Company.
One of the services provided by ET Consultants is to assist in the Formation of Limited Liability Companies, Domestic Investment (PMDN), Licensing of Limited Liability Companies, and legal services related to Limited Liability Companies with an easy process and allows them to run their business without an obstacle. Call us now for a free consultation and find the best way to improve your business!
- Representative Offices / RO (Kantor Perwakilan Perusahaan Asing / KPPA)
- Can you help with the process of setting up a Representative Offices in Indonesia?
We can assist in the establishment of a representative office in Indonesia. Experienced with the various establishment of Foreign Company Representative Offices, ET Consultant can assist in the process of Foreign Trade Company Representative Office (KP3A), Foreign Construction Service (BUJKA), and the Representative Office of Foreign Oil and Gas Company (KPPA Migas).
A Foreign Company Representative Office (KPPA) is a representative office established by a foreign company or several foreign companies outside the territory of Indonesia to manage the interests of the company or affiliated companies in Indonesia and/or in other countries and/or preparing for the establishment and development of a business foreign investment companies (“PMA”) in Indonesia and/or in other countries. To carry out KPPA activities it is mandatory to have a KPPA permit, with KPPA Actions limited to:
- as a supervisor, liaison, coordinator, and managing the interests of the company or its affiliated companies;
- preparing for the establishment and business development of PMA companies in Indonesia or other countries;
- located in an office building in the provincial capital;
- not seeking any income from sources in Indonesia, including not being justified in carrying out activities or entering into an agreement/transaction of the sale and purchase of commercial goods or services with companies or individuals in the country; And not participating in any form in the management of a company, subsidiary or branch of a company in Indonesia.
Furthermore, there are terms and conditions for the implementation of the KPPA which are regulated in the Investment Coordinating Board Regulation Number 4 of 2021 Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities.
To understand more about KPPA, you can refer to the following article
ET Consultants can assist with the Formation of KPPA, KPPA Licensing, and legal services related to KPPA through an easy process, and allows them to run their business without a hitch. Call us now for a free consultation and find the best way to improve your business!
- Do Processed Food companies need BPOM permits?
Processed food companies for humans in Indonesia require a permit from the Food and Drug Supervisory Agency (BPOM) before their products can be distributed and sold on the market. One of the permits that can be used is that CPPOB is a guideline that explains how to produce Processed Food that is safe, of high quality, and suitable for consumption. The CPPOB Implementation License is a valid document that serves as proof that the processed food production facilities have met and implemented the CPPOB standard in the production of processed food. Producers who produce processed food to be distributed must obtain a CPPOB Implementation License as regulated in PerBPOM 22/2021. The CPPOB Implementation License is valid for 5 (five) years, provided that there are no changes made by the Producer. Producers violating this license are subject to administrative sanctions ranging from warnings to product destruction.
Sanctions can be imposed on processed food entrepreneurs who do not yet have BPOM permits, ranging from administrative sanctions to product destruction. To find out about the CPPOB permit (click here)
ET Consultant is here to help your business to avoid sanctions related to licenses and further obtain the licenses optimally. ET Consultants can help you with Business Licenses, Company Registration, NPWP, Import and Export Licenses, Industrial Business Licenses, Health and Safety Licenses, Environment Licenses, and Building Permits.
- Can ET Consultant help clients in the Halal Certificate process?
A Halal Certificate is an acknowledgment of the halalness of a product issued by the Halal Product Guarantee Agency (BPJPH) based on a written halal fatwa issued by the MUI. Products that can be certified as halal include food products, medicines, cosmetics, consumer goods (chemicals, soaps, detergents, leather, water filters, etc.), as well as services that handle these products, such as logistics and retail services. This halal certificate is valid for 4 years and must be extended for approximately 6 months before the validity period expires.
At present, many global markets require a product to have halal certification, such as Indonesia which requires foreign products to be halal certified. countries that enter Indonesia must be halal certified, not only foreign products, domestic products require halal certificates.
Currently, based on Article 18 PP 6/2023 it states that although medicinal products, biological products and medical devices that have not been halal certified as of October 17 2021 can enter, circulate and are still circulating in Indonesian territory, the three groups of products must still have the appropriate permits. with the provisions of laws and regulations. To find out more about the provisions regarding halal product certification, you can read further the following article *TAUTAN LINK*
By looking at the urgency, now ET Consultant can assist with the Halal permit process to facilitate your business and be sustainable with existing regulatory provisions.
- Do fresh food products of plant origin need a permit?
Licensing for Fresh Food of Plant Origin or abbreviated as PSAT is Fresh Food of Plant Origin (PSAT) is food originating from plants and has not undergone processing and can be consumed directly and/or used as raw material for food processing. quality assurance and food safety, namely through the licensing mechanism for fresh food distributed in retail packaging.
This permit is divided into 3 namely:
1. Foreign PSAT Product distribution permit (PSAT-PL)
2. distribution permit for Domestic Production (PSAT-PD)
3. Registration of PSAT Domestic Production of Small Business (PSAT-PDUK).
The PSAT licensing mechanism is regulated in Government Regulation no. 5 of 2021 concerning Implementation of Risk-Based Business Licensing and Minister of Agriculture Regulation No. 15 of 2021 concerning Standards for Business Activities and Product Standards in the Implementation of Risk-Based Business Licensing in the Agricultural Sector. This certificate is given by the Regional Food Safety Competency Authority (OKKPD) to medium-large scale business actors who handle PSAT, while micro-small business actors are not given certificates but coaching is carried out to commit to good handling of PSAT. The output of this certification is valid for 5 (five) years and can be used to obtain other PSAT business licenses in the form of PSAT distribution permits for the Internal Product (PD) and Outer Product (PL) categories, PSAT security permits/Health Certificates, and packaging house permits.
ET Consultants are present and can assist with the Fresh Food of Plant Origin (PSAT) licensing process for our clients. for the smooth running of your business.
- Can ET Consultant help apply for a Work and Stay Permit KITAS Permit?
A Limited Stay Permit Card (KITAS) is a card that provides access for foreigners to be able to do activities for a longer period in Indonesian territory. Based on Government Regulation No. 48 of 2021, an application for a Limited Stay Permit must be submitted within 30 days of the receipt of entry. Limited Stay Visa is an entry permit for a limited stay. VITAS holders must arrange for their KITAS no later than 30 days after arrival.
For this matter, ET Consultants can assist with the processing of Work and Stay Permit KITAS, Investor KITAS, Spouse or Dependent KITAS, Permanent stay permit KITAP, Social culture visa, Tourist Visa, Visa on Arrival to later facilitate your affairs.
For more about immigration, please refer to (Click here)
- Can ET Consultants help with the Business Visa process for foreign nationals?
Business Visa is a visit visa. In this case the business visa is intended for foreign countries who wish to live in Indonesia and plan to carry out business activities in Indonesia. An Indonesian business visa grants permission to foreign entrepreneurs to be able to enter Indonesian territory for the purpose of short-term business visits and studying the market. With a maximum period of 60 days (can be extended up to 4 times, not more than 30 days each) for single entry and 12 months for multiple entries. As for getting a business visa, you need sponsors such as all local and foreign owned companies, representative offices and institutions.
The documents for applying for a business visa are:
- Passport that is valid and valid for at least 6 (six) months;
- Travel documents that are valid and valid for at least 12 (twelve) months for foreign nationals without citizenship;
- Letter of guarantee from the Guarantor except for visits in the context of tourism;
- Proof of having living expenses for himself and/or his family while in the Indonesian Territory of at least USD 1500 (one thousand five hundred US dollars);
- Return ticket or onward ticket to continue the journey to another country except for the crew of the means of transportation who will stop over to join the ship and continue the journey to another country;
- 2 (two) pieces of color photographs measuring 4 cm x 6 cm (four centimeters x six centimeters).
ET Consultants can help establish your business visa arrangement through an easy and effective process so that your trip can be carried out without a hitch. Contact us now for a free consultation and find the best way to carry out your visa processing!
- Can investors have KITAS?
KITAS (Limited Stay Permit Card) is a residence permit that provides access for foreigners to be able to carry out activities for a longer period of time in Indonesian territory. Broadly speaking, investors who will apply for an ITAS are required to have a minimum investment of IDR 1 billion and the capital invested in the company must exceed IDR 10 billion. In Indonesia, investor KITAS/ITAS can be divided into two, namely:
- Index 313: KITAS/ITAS for 1 year
- Index 314: KITAS/ITAS for 2 years and can be extended 5 times.
Both types of KITAS allow investors to enter and leave Indonesia multiple times as long as the permit is valid.
The flow of obtaining investor KITAS/ITAS is divided as follows:
- Prepare a signed application letter, company registration document, NPWP, identity card, passport, OSS account, SKT PT, NIB, etc.
- Applying for a VITAS
- Apply for a KITAS/ITAS upon arrival in Indonesia, no later than 30 days from arrival.
ET Consultants can help manage your Investor KITAS through an easy and effective process so that your trip can be carried out without a hitch. Contact us now for a free consultation and find the best way to carry out your visa processing!
- Is it permissible for a company to hold a Business Process Outsourcing (BPO)?
Business Process Outsourcing (BPO) is an activity outsourcing some of the company’s business processes to third parties with the aim of cost efficiency and reducing risk to the company so that the company can focus more on its core business. Provisions regarding BPO are regulated in Government Regulation in lieu of Law No. 2 of 2022 concerning Job Creation (“Perppu 2/2022”) in article 64 paragraph (1) it states that “Companies can hand over part of the execution of work to other Companies through an outsourcing agreement that made in writing.” Further stipulated in Government Regulation (GR) Number 35 of 2021 concerning Work Agreements for Specific Time, Outsourcing, Working Time and Rest Time, and Termination of Employment. In its implementation, BPO must comply with all applicable regulations to operate legally and avoid risks and laws.
Besides BPO, ET Consultant is here to help your business focus more on its core business by presenting Accounting Services, Tax Services, Premium Cloud Marketing Platform, Premium Cloud Marketing Platforms, E-Finance Solutions, and Digital Service Solutions.
- Does ET Consultant provide other legal services?
Based on our expertise, ET Consultants also provide customized or personalized services specifically designed to meet the different needs and requirements of each client. In practice, we can accept requests such as Legal Opinion, Legal Document Drafting & Review, and even up to the court process according to the requests and needs of our clients. - Can ET Consultant assist in WLKP & LKPM?
Yes.As compliance is also fundamental in the continuation of business activities in Indonesia, we also provide the service to deal with company compliance based on a schedule such as Mandatory Company Employment Report (WLKP), Investment Activities Report (LKPM), Tax related compliances, and any other compliance related.
Specifically, WLKP is pivotal because it acts as an indicator for companies in carrying out employee welfare programs, and it is one of the requirements for companies to hire expatriate employees. Further, WLKP is important to avoid sanctions coming from the Ministry of Manpower. Companies have to submit WLKP annually.
Additionally, other compliance such as LKPM is also important to picture the investment trends, the obstacles that happen in the sectors, and policies that need to be issued to prevent such hurdles. Apart from that, LKPM also holds an important role in advancing economic growth in Indonesia. This particular report needs to be submitted every quarter through the OSS website to the Ministry of Investment.
ET Consultant understands the importance of compliance that companies need to maintain and how cumbersome the reporting process could be. Ergo, we offer the solution to the problems through customized services following your needs to provide more individualized and comprehensive solutions that can effectively address each client’s specific challenges and goals, with no exception to the reporting process to the government. Ultimately we drive the growth of your business and needs.
Discuss with Us!
Let’s discuss your business and investment opportunities in Indonesia. We will assist you in navigating your business with the most recent regulatory updates.
Discuss with Us!
Let’s discuss your business and investment opportunities in Indonesia. We will assist you in navigating your business with the most recent regulatory updates.