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Indonesia-DOING BUSINESS

Local business incentives


The government offers a certain number of advantages to foreign investors within the framework of their setting up in Indonesia. The Board of Investment of indonesia is a governmental agency, which provides exhaustive support regardind investment promotion matters. Particularly, it describes all incentives available for foreign investors.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Persuan Terbata is a Private Limited Company.   Minimum 2 shareholders.   Minimum USD 250,000.   Liability is limited to the amount contributed.   About 0.5 % of the capital plus status registration fees.    
Public Limited Company (PLC)   Minimum 2 shareholders.   Minimum USD 250,000.   Liability is limited to the amount contributed.   About 0.5 % of the capital plus status registration fees.    



Legal framework


The law on foreign investments was changed by the law n°20 of May 1994.


Foreign exchange control


There is no currency exchange control. The Indonesian rupee is freely convertible. The investor does not need any authorization to repatriate dividends after distribution and payment of taxes.


Regulations concerning equity investment


A majority holding interest in stock of capital of an Indonesian company is legal, except in certain activity sectors.  


FDI inflows in Indonesia




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 145   -597   1023   59 / 196
Sources : UNCTAD Database FDI/TNC


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