Indonesia, with its booming economy and strategic location in Southeast Asia, has become a prime destination for foreign investors. Brazilian entrepreneurs exploring international opportunities will find Indonesia’s vast market, natural resources, and pro-investment policies attractive.
But what does it take for Brazilian investors to start and own a business in Indonesia? Here’s a comprehensive guide to help you understand the process and opportunities.
Also read: Top Foreign Investors in Indonesia (by Country and Continent)
Can Brazilian Entrepreneurs Start and Own a Business in Indonesia?
Yes, Brazilian entrepreneurs can establish and fully own a business in Indonesia, provided their chosen industry permits full foreign ownership. The Indonesian government organizes industries into two primary categories:
- Positive Investment List (DPI): Sectors fully open to foreign investors, designed to attract investment and stimulate economic growth.
- Negative Investment List (DNI): Sectors where foreign investment is restricted or requires partnerships with local entities.
Understanding these lists is crucial for determining the type of business you can establish.
Also read: Can a Foreigner Own 100% of a Business in Indonesia?
Industries Open to Brazilian Investors
Under the Positive Investment List, Brazilian entrepreneurs can fully own businesses in a variety of high-potential industries, including:
- Agriculture: Possibilities include farming crops, raising livestock, and developing aquaculture businesses.
- Manufacturing: Focus areas include producing textiles, vehicle components, and electronic goods.
- Tourism: Investments in hotels, resorts, and travel-related services.
- Telecommunications: Providing internet and mobile communication services.
- Financial Services: Engage in sectors such as banking, insurance, and financial solutions.
- Healthcare: Establishing hospitals, clinics, and other medical facilities.
These industries not only offer significant growth potential but are also aligned with Indonesia’s focus on boosting its economy through foreign investments.
Also read: Major Industries in Indonesia (Based on Contribution to GDP)
Sectors with Conditional Foreign Investment
Some industries, such as mining, oil and gas, real estate, and retail, have restrictions on foreign ownership. Conditions may include:
- Minimum capital requirements.
- Mandatory partnerships with local companies.
- Technology transfer or export-oriented obligations.
To navigate these restrictions effectively, consulting with the Indonesian Investment Coordinating Board (BKPM) or a trusted advisor is highly recommended.
Also read: Top Foreign Investment Sectors in Indonesia
How Brazilians Can Set Up a Business in Indonesia
There are two primary ways for Brazilian entrepreneurs to establish a business in Indonesia:
PT PMA (Penanaman Modal Asing)
A PT PMA is a limited liability company that allows full or partial foreign ownership. Requirements include:
- A minimum investment of IDR 10 billion (around USD 650,000) is mandatory.
- At least two directors are needed, with one being an Indonesian national.
- Approval from the BKPM.
PMA Representative Office
This option is suitable for businesses looking to explore the market without generating direct profit. Requirements include:
- A registered office in Indonesia.
- An Indonesian national must be designated as the company’s representative.
Both options come with their own set of advantages, depending on your business goals and operational needs.
Also read: Indonesia Investment Incentives: Government Support for Foreign Businesses
Why Indonesia is an Excellent Opportunity for Brazilian Entrepreneurs
Indonesia’s robust economic growth, young population, and strategic position as a gateway to Southeast Asia make it a lucrative destination for Brazilian investors. Key factors include:
- Growing Middle Class: Increased consumer spending and demand for goods and services.
- Diverse Resources: Opportunities in agriculture, manufacturing, and energy sectors.
- Government Support: Pro-investment policies and incentives for foreign businesses.
By leveraging these opportunities, Brazilian entrepreneurs can establish a strong foothold in one of Asia’s most dynamic markets.
Start Your Business Journey in Indonesia
Navigating Indonesia’s business registration process may seem complex, but expert guidance can simplify it. From understanding industry classifications to complying with local regulations, having the right support ensures a seamless experience.
For expert guidance on Indonesia company registration for Brazilian businesses, you can rely on InvestinAsia’s Indonesia PMA company registration and Indonesia Representative Office Set Up services to simplify the process.
Start a chat with us for FREE consultation and get a special package!
Also check out our services for other business legality matters:
- Indonesia PT PMDN Company Establishment
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses application
- Indonesia Trademark Registration
Contact our experts now for FREE consultation and special package!
