Blog » Business and Investment Insights » Indonesia Company Registration for Philippines Entrepreneurs

Indonesia Company Registration for Philippines Entrepreneurs

Abi Mulya
December 12, 2024
10:45 am

This article was written with the assistance of Artificial Intelligence (AI) and went through a manual review process by the InvestinAsia team before publication.

Indonesia, with its robust economy and strategic location in Southeast Asia, has become a prime destination for foreign investors. Entrepreneurs from the Philippines, looking to expand their business footprint, often ask: Can Filipino entrepreneurs start and own a business in Indonesia?

Let’s dive into the possibilities and procedures for setting up a business in this vibrant market.

Also read: Indonesia Free Trade Zone and Free Port (FTZFP): A Complete Guide

Table of Contents hide

1) Can Philippines Entrepreneurs Start and Own a Business in Indonesia?

2) Industries Fully Open to Philippines Investors

3) Sectors with Conditional Foreign Investment

4) How Filipino Entrepreneurs Can Establish a Business in Indonesia

5) Why Indonesia is an Attractive Market for Philippines Entrepreneurs

Can Philippines Entrepreneurs Start and Own a Business in Indonesia?

Indonesia Company Registration for Philippines Entrepreneurs (source:pexels)

Yes, Filipino entrepreneurs can establish and fully own a business in Indonesia, provided their ventures operate within sectors that allow complete foreign ownership. Indonesia categorizes industries into two main lists to guide foreign investments:

Positive Investment List (DPI): This list outlines sectors fully open to foreign investors, aimed at fostering economic growth.
Negative Investment List (DNI): This list specifies industries where foreign investment is restricted or subject to conditions like mandatory local partnerships or ownership caps.

Industries Fully Open to Philippines Investors

The Positive Investment List offers Filipino entrepreneurs opportunities for full ownership in various lucrative industries, including:

Agriculture: Crop cultivation, aquaculture, and livestock production.
Manufacturing: Producing textiles, electronics, automotive parts, and more.
Tourism: Operating hotels, resorts, and tourism-related businesses.
Telecommunications: Providing internet services, mobile networks, and digital solutions.
Financial Services: Engaging in banking, insurance, and other financial operations.
Healthcare: Running hospitals, clinics, and medical facilities.

These industries are ripe for growth, with Indonesia actively encouraging foreign investment to boost its economy.

Also read: Can a Foreigner Own 100% of a Business in Indonesia?

Sectors with Conditional Foreign Investment

Some sectors, such as mining, oil and gas, real estate, and retail, are subject to specific conditions. These may include:

Minimum investment thresholds.
Mandatory partnerships with local businesses.
Export or technology transfer obligations.

To navigate these conditions effectively, consulting Indonesia’s Investment Coordinating Board (BKPM) is crucial. Professional assistance can help ensure compliance with the latest regulations.

Also read: Top Foreign Investment Sectors in Indonesia

How Filipino Entrepreneurs Can Establish a Business in Indonesia

Indonesia Company Registration for Philippines Entrepreneurs (source:pexels)

There are two primary avenues for Filipino entrepreneurs to establish a business presence in Indonesia:

PT PMA (Penanaman Modal Asing): A type of limited liability company allowing either full or partial foreign ownership. Requirements include:
- A minimum paid-up capital of IDR 10 billion (approximately PHP 38,000,000 or USD 650,000).
- Requires a minimum of two directors, with one mandatorily being an Indonesian citizen.
- Approval from BKPM.
PMA Representative Office: A non-profit-generating entity representing the interests of a foreign company in Indonesia. Requirements include:
- A registered office in Indonesia.
- Designates an Indonesian citizen to serve as the representative.

Also read: How to Check Company Details in Indonesia: A Complete Guide

Why Indonesia is an Attractive Market for Philippines Entrepreneurs

Indonesia’s rapidly expanding economy, strategic location, and large population of over 270 million people make it a lucrative market for Filipino entrepreneurs. Key sectors like agriculture, manufacturing, and tourism provide fertile ground for growth.

By understanding the country’s investment lists and regulations, the process of setting up a business can be straightforward.

Also read: 10 Reasons Why You Should Invest in Indonesia

Expert Assistance for Indonesia Company Registration

Establishing a business in Indonesia requires careful planning and adherence to local regulations. For Filipino entrepreneurs seeking a seamless process, professional services can simplify the journey.

For expert guidance on Indonesia company registration for Filipino businesses, you can rely on InvestinAsia’s Indonesia PMA company registration and Indonesia Representative Office Set Up services to simplify the process.