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ONE PACIFIC PLACE, 10TH FLOOR, SUDIRMAN CENTRAL BUSINESS DISTRICT, JL. JEND SUDIRMAN KAV 52-53, JAKARTA SELATAN 12190, INDONESIA
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DOING BUSINESS IN INDONESIA

Contributed by Siregar & Djojonegoro

Doing Business in Indonesia Graphic

ESTABLISHING BUSINESS IN INDONESIA

Indonesia has many potentials as investment destination country. The capital owners from many foreign countries consider Indonesia as the country with many potentials for investment because Indonesia has many important aspects to support good investment.

There are 2 (two) legal entities that are permitted for foreigners in Indonesia: (1) a foreign representative office; and (2) a foreign investment limited liability company (“PT PMA”).

Foreign Representative Office

Foreign companies are permitted to establish foreign representative offices in Indonesia. However, unlike a PT PMA, a foreign representative office has more restrictions on its activities. A foreign representative office’s activities are limited to: (i) take care of the company interests or its affiliated companies and/or; (ii) prepare for the establishment and development of business enterprise of foreign investment in Indonesia or in other countries; and (iii) located in the provincial capital and located in an office building.

Generally, there are 3 (three) types of foreign representative office: (1) foreign company representative office (“KPPA”); (2) foreign trade company representative office (Kantor Perwakilan Perusahaan Perdagangan Asing or “KP3A”); and (iii) construction service provider representative office (Kantor Perwakilan Badan Usaha Jasa Konstruksi Asing or “KPBUJKA”). KPPA is approved by the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”). A KP3A is approved by the Minister of Trade. Foreign construction companies may establish a representative office in order to bid for potential projects and develop construction projects in Indonesia. KPBUJKA can only carry out construction projects if they are considered to be high risk, high cost, or if the project requires a certain type of technology which the relevant foreign company possesses. KPBUJKA is required to execute projects with a local construction company partner pursuant to a joint operation agreement. In order to establish KPBUJKA, a foreign construction company is required to obtain a license from the Minister of Public Works.

Foreign Investment Limited Liability Company

The investment of foreign capital is now regulated by Law No 25 of 2007 regarding Investment (“Investment Law”) which in general provides free inflow of foreign investment, subject to certain foreign investment restrictions.

Based on Investment Law, a foreign investment in Indonesia is defined as an investing activity conducted by a foreign investor for the purpose of running a business within the territory of Republic of Indonesia. The legal entity through which a foreign person, foreign company, or foreign government body can conduct business in Indonesia is foreign investment limited liability company (the “PT PMA”). The establishment of a PT PMA is regulated by Law No. 40/2007 regarding Limited Liability Companies.

Investment Restrictions

Restrictions on foreign investments in Indonesia are currently set out in President Regulation No. 44 of 2016 (the “2016 Negative Investment List”). The 2016 Negative Investment List is intended to increase Indonesia’s regional competitiveness and encourage greater foreign direct investment, whilst maintaining protections for domestic businesses of a certain size. The 2016 Negative Investment List is consistent with the 10th economic package as announced by the Indonesian Government in February 2016 in which it is focusing on Micro Small and Medium Enterprises.

The significant changes under the 2016 Negative Investment List, amongst other, are as follows :

  1. Opening or relaxation of the foreign ownership limitation of 45 line of businesses . These business lines are listed in Attachment 1.
  2. Removing recommendation requirements from the relevant Ministries on 83 business sectors, including hotels (non-star, 1 star hotel, 2 star hotel), motel, leisure businesses, artistic, entertainment businesses, billiards, bowling, and golf course.
  3. Simplifying line of businesses categories. For example, there were 39 line of businesses for construction services under the previous Negative Investment List (e.g., warehouse construction, building construction, and building reparation) which now have been combined into 1 line of business "construction services".
  4. The industry sectors with the most noticeable relaxation of the foreign investment limation include, among others: (i) warehouse distribution, travel agencies and telecom services (from 33% to 67%); (ii) crumb rubber and certain healthcare support services (previously closed for foreign investment, now 67% open); (iii) passenger transportation over land (previously closed for foreign investment, now 49% open); (iv) cold storage (previously 33%, now 100% open); (v) certain film businesses (previously closed for foreign investment, now 100% open); (vi) large scale power plants (>10 MW) during a concession period under a PPP schedule (previously 95%, now 100% open); (vii) department stores with a retail space between 400-2,000sqm (previously closed for foreign investment, now 67% open); and (viii) toll roads now open 100% (previously 95%).
  5. Similar to the previous Negative Investment List, the opening of foreign ownership or the permission of higher foreign ownership for investors from ASEAN member States is maintained.
Procedures for Setting up a PT PMA in Indonesia

The establishment of PT PMA in Indonesia has to be processed at BKPM. In practice, most foreign investors are using Indonesian law firm that is specialized in the setting up of a PT PMA or representative office to deal with all procedures at the BKPM and other institutions. At least two shareholders are required for the establishment of PT PMA.

The foreign investor is able to acquire an existing non-PT PMA company and further change its status to become a PT PMA company.

Generally, the following licenses/documents are required for the establishment of a PT PMA in Indonesia: (i) Principle License & Business License from BKPM; (ii) Deed of Establishment (containing the Articles of Association) of PT PMA as made before the Public Notary; (iii) legalization of the legal entity status of PT PMA by the Ministry of Law and Human Rights; (iv) Domicile Letter from the local district authority; (v) tax identification number (NPWP) and taxable entrepreneur confirmation (PKP) from the tax office; (vi) company registration certificate (TDP) from the agency for integrated licensing services (BPPT); and (vii) manpower report and company welfare report from the sub-department of the Ministry of Manpower.

3 Hours Investment License

In order to attract the investors to invest in Indonesia and to boost the investment into Indonesia, BKPM provides 3 hours investment license services . With this 3 hours investment license service, an interested investor is be able to start investing in Indonesia just within 3 hours.

The investor with investment value of Rp100 billion and/or labor absorption of 1000 workers is eligible to enjoy this 3 hours investment license service. The investor’s board of management is required to directly come to BKPM office.

The investor will then receive 9 (nine) types of permits, such as investment license, company deed and approval, tax registration number, company registry (Tanda Daftar Perusahaan or TDP), expatriate employee utilization plan (Rencana Penggunaan Tenaga Kerja Asing or “RPTKA”), expatriate work permit (Izin Mempekerjakan Tenaga Kerja Asing or “IMTA”), producer importer’s identification number (Angka Pengenal Importir Produsen or “API-P”), custom identification number (Nomor Induk Kepabeanan or “NIK”) and land title information certificate (Surat Keterangan Peta Informasi Ketersediaan Lahan).

Investment and Capital Requirements for the PT PMA

For the establishment of PT PMA, the foreign investor needs to comply with minimum investment requirements for foreign investment. The total investment value of PT PMA must be more than IDR 10 billion. The investment value of buildings or lands shall not be included in the calculation of the total investment of PT PMA. PT PMA must at least have paid-up capital in the amount of IDR 2.5 billion.

MERGER & ACQUISITION IN INDONESIA

The foreign investors are quite often using Merger & Acquisition (“M&A”) transaction as a way to enter into the Indonesian market. Therefore, it is important for the investors to have an understanding on the legal aspects in conducting M&A in Indonesia.

General Legal Framework for M&A in Indonesia

In principle, the M&A transactions in Indonesia are subject to the requirements under (aa) Indonesian Company Law; (bb) the capital market laws and regulations as issued by Otoritas Jasa Keuangan (OJK) (previously known as Badan Pengawas Pasar Modal dan Lembaga Keuangan), Indonesia Stock Exhange (Bursa Efek Indonesia) and Indonesian Central Securities Depository (PT Kustodian Sentral Efek Indonesia), for publicly listed companies; and (c) certain applicable industry-specific laws and regulations.

Highlighted Issues of M&A Transactions
1. How to determine the Change of Control?

As you may be aware, change of control is one of the most important factors in M&A transactions. However, the Indonesian Company Law does not define "control and specific threshold of change of control as well”. Then, the question is how to determine the change of control in Indonesia?

In practice, “change of control” is interpreted as the change of shareholder owning more than 50% of issued shares in the company on the basis that by such ownership, such shareholder is able to control over the majority of voting rights in the shareholders meeting and having the ability to nominate the management in a company. This interpretation has been used in M&A transactions which involving private companies.

On the other hand, the public companies will refer to the capital market regulation. The Indonesian Capital Market regulation provides a threshold of control over a public company. Rule No. IX.H.1 provides that "a change control" is generally deemed to occur where: (i) more than 50% of shares of the total paid up shares in the company are acquired, or (ii) less than 50% of the shares are acquired, however they have ability to determine, whether directly or indirectly, the management and/or policy-making in the company. It becomes interesting as the control does not only limited to the shareholder who owns more than 50% of shares of the company. It also extends to the shareholder that owns less than 50% of shares of the company, but it retains control over the public company as discussed in the preceding.

In addition, it also important to note that acquisition of public companies may lead to an obligation of the new controller to carry out an offer to purchase the remaining shares held by the public shareholders ("Mandatory Tender Offer” or “MTO"). The execution of MTO is subject to certain pricing formula of shares as stipulated in IX.H.1.

In general, therefore, it seems that the determination of whether M&A transaction triggers a change of control should be exercised on a case-by-case basis.

2. Employment Matters

The interest of the employees is one of the issues that should be considered by the company in performing M&A transactions. In respect of M&A, the target company has 2 (two) primary duties concerning the employment matter. First, notify the employees concerning the proposed transaction within no later than 30 (thirty) days before the notification of GMS to approve such transaction. This information is necessary to give time to the employees to decide whether they wish to continue or terminate the employment contract. Second, the target company has to provide the severance payment and any compensation to the employees in the event of termination as a result of such M&A transaction.

Under the Indonesian Manpower Law, in the event of merger, consolidation or change of ownership of the company, each party (the employer and the employees) shall be entitled to terminate the employment contract. In the event of termination of employment, the employees of the target company shall receive a severance payment, a reward for tenure pay and compensation from the company pursuant to by the calculation formula as stipulated in the Indonesian Manpower Law.

Moreover, it is interesting to note that the Manpower Law does not define the term of change of ownership as mentioned in Article 163 of the Manpower Law, whether it is similar to the term of change of control as discussed in the definition of acquisition under the Indonesian Company Law. Therefore, in practice, the change of ownership in the company is associated with the change of control of the company. As a result, in the event of the transfer of shares which does not cause the change of control in the company, the employees are not entitled to exercise such rights as discussed in the preceding paragraph.

3. Rights of Minority Shareholders

The Indonesian Company Law explicitly states that the minority shareholders who oppose the M&A transactions are entitled to require the company (or the controlling shareholders-) to purchase their shares at a reasonable price. However, the Indonesian Company Law does not provide any explanation on the reasonable price itself. Furthermore, in case such shares exceed the buy-back rules as stipulated in the Indonesian Company Law, the company must manage to sell the remaining shares to the third party. However, it should be noted that the execution of such right does not cease and prevent the process of the transaction even if there is no agreement on the price of the shares.

4. Creditors’ Consents

Notwithstanding the interests of the employees and minority shareholders, the creditors’ interest is also one of the key issues in M&A transaction. In fact, this is highly important in M&A transactions. The Indonesian Company Law states that prior approvals of the creditors are required in M&A transactions. Without such approvals, the company is not able to perform the transaction.

5. Foreign Investment Restrictions

It should be noted that not every line of business is open to foreign investment in Indonesia. There are certain lines of business which are closed or conditionally open to foreign investment. These provisions are stipulated under the Indonesian Negative List, which periodically updated by taking into consideration the business environment in Indonesia. Therefore, it becomes one of the main issues for foreign investors in doing business in Indonesia, as they should determine the deal structure by complying with the maximum foreign ownership in the line of business of the target company.

6. Post-transaction notification

In respect to M&A transaction, the Competition Supervisory Commission (“KPPU”) intends to preserve the market from the transactions which may potentially violate the Anti-Monopoly Law. Therefore, a post-completion mandatory filing will be required where an acquisition exceeds certain thresholds, namely: (i) the value of the assets of the transaction exceeds IDR2,500,000,000 (two trillion five billion rupiahs) or IDR20,000,000,000,000 (twenty trillion rupiahs) (apply for banks); and/or (ii) the sales turnover of the transactions exceeds IDR5,000,000,000,000 (five trillion rupiahs).

The investors should be aware that if the company does not submit a written notification of the transaction within 30 (thirty) working days since the deal becoming effective, KPPU may impose an administrative sanction in the form of fine to the company which amounting to IDR1,000,000,000 (one billion rupiahs) for every day delay. The maximum penalty that can be imposed is for IDR 25,000,000,000 (twenty-five billion rupiahs).

In addition, it should be noted that the investors can voluntarily consult to KPPU prior to the commencement of transaction to the extent that the investors and target companies have signed an agreement or a memorandum of understanding concerning the acquisition plan, and the value of transaction exceeds certain thresholds (similar to the thresholds for post-transaction notification as discussed above).

Based on such consultation, KPPU will conduct an initial assessment to determine whether such transaction may trigger the possibility of monopoly practice, and if necessary, they will also conduct a full assessment.

Since the nature of consultation is voluntary, thus there is no specific fines or penalty which may occur if it is not conducted. Moreover, it is also important to note that such consultation does not disregard the mandatory post transaction notification.

7. Whether it is important to perform due diligence?

As an investor, it is important to note that due diligence is an essential part of doing business in Indonesia. Before doing the M&A transaction, the investors are advised to conduct a due diligence of the target company to understand and gain more information relating to the risk which associated with the target company. The Indonesian system is still not integrated. Therefore, it is difficult to find and rely on the information of the target company which publicly available. As a result, the due diligence relies on documents provided by the target company. Also, most of documents and regulations are recorded in Bahasa Indonesia. Therefore, it is advised to the investors to engage a legal consultant to assist them with the transaction.

FINANCING IN INDONESIA

Foreign Exchange

In relation to the foreign exchange activities, Indonesian Central Bank (“Bank Indonesia”) has issued several regulations i.e. PBI No. 16/10/PBI/2014 concerning Foreign Exchange Derived from Export Transactions and Offshore Loan Drawdowns as amended by PBI No. 17/23/PBI/2015; and SEBI No. 16/9/DSta dated 26 May 2014 issued by Bank Indonesia concerning Foreign Exchange Derived from Export Transactions ) (“BI Regulations”) on 2 (two) foreign exchange activities actively conducted by the business players, which are the export transactions and offshore loans. These regulations aim to optimize the use of foreign exchange banks in export transactions and offshore loan drawdowns. Therefore, Bank Indonesia requires the business players to receive the export proceeds and withdraw the offshore loans through a licensed foreign exchange bank in Indonesia (“Foreign Exchange Bank”). However, it should be noted that the Foreign Exchange Bank does not include the overseas branch offices of a bank which have to headquarter in Indonesia.

Under BI Regulations, there are several obligations which shall be fulfilled by the exporters and/or offshore loan borrowers, amongst others:

Foreign Exchange – Export Proceeds
Obligation to Receive Foreign Exchange Export Proceeds through Foreign Exchange Bank
  • Indonesian government requires the exporters to receive their foreign exchange income which derived from export transactions through a licensed Foreign Exchange Bank in Indonesia.
Obligation to Report
  • Exporters must submit information which contained in the Notification of Exported Goods (Pemberitahuan Ekspor Barang – PEB) concerning foreign exchange income which derived from such export transaction to the Foreign Exchange Bank by the fifth day of the following month after the receiving of foreign exchange export proceeds. Afterwards such Foreign Exchange Bank will deliver such information to Bank Indonesia in a form of written report.

  • In relation to payment which not received by the Foreign Exchange Bank:
    • Cash payment in the amount of above USD 10,000 or its equivalent (which received in Indonesia):
    • The exporters must submit the supporting documents directly to Bank Indonesia on the fifth day of the following PEB registration.
    • Payment through letter of credit, consignment, open account or collection:
    • The exporters must provide supporting documents for the transaction to the foreign exchange bank to be forwarded to Bank Indonesia by the fifth day of the month following PEB registration.
Foreign Exchange – Offshore Loans
Obligation to Withdraw Foreign Exchange Offshore Loans
  • The borrower must disburse the foreign exchange derived from offshore loans through a Foreign Exchange Bank. This obligation applies to all offshore loans that derive from non-revolving loan agreement and debt securities.
  • The withdrawal of offshore foreign exchange loans shall be reported to Bank Indonesia along with supporting documents no later than the 15th day of the following month after the loan disbursement.

Bank Indonesia has imposed administrative sanctions to the exporters and the borrowers in the form of fine. If the exporters fail to comply with these regulations, a fine amounting to 0.5% of the nominal amount of foreign exchange which has not yet received (being a maximum of IDR 100,000,000 (one hundred million rupiahs) for 1 (one) PEB registration and suspension of export service as enforced by customs authority will be charged to such exporters. Meanwhile, in the event of non-compliance by the borrowers, such borrowers will be imposed by a fine amounting to 0.25% of the nominal amount of foreign exchange which has not been received through Foreign Exchange Bank, with a maximum of IDR 50,000,000 (fifty million rupiahs).

Furthermore, the borrowers should be aware that starting from March 2016, Bank Indonesia has imposed additional sanctions to the borrowers which does not comply to such regulations, by imposing administrative sanctions, i.e. (i) written warning; and/or (ii) notification of the non-compliance to the foreign creditors, and/or relevant institutions.

Currency Law

Currency law is another important aspect that should be consider in doing business in Indonesia.. In order to strengthen the stability of its currency, the Indonesian government has issued certain regulations to require the mandatory use of Rupiah (or IDR) as the currency of Indonesia for payment and financial transactions which conducted within the Indonesian Territory. Please note that Indonesian Territory means all areas of Indonesia, including any Indonesian-flagged ships or planes, Indonesian Embassies and other representative offices of the Republic of Indonesia overseas.

Under Law No. 7 of 2011 on the Currency Law and PBI No. 17/3/PBI/2015 on the Mandatory Use Rupiah in the Indonesian Territory (“Currency Law and Regulations”), all parties which conduct transactions in Indonesian Territory are required to use Rupiah. The transactions include cash and non-cash transactions for any payments, settlement of obligations, or other financial transactions.

There are certain activities which exempted from the obligation to use Rupiah in Indonesian Territory, which are as follows:

(i) Certain payment transactions

  • certain payment transactions to implement the State Budget;
  • the receipt of provision of grants from overseas;
  • International trade transactions;
  • Foreign currency deposits in banks in Indonesia (including deposit and/or withdrawal of foreign currency activities in the relevant deposits);
  • International financing transactions.

(ii) Foreign currency transactions conducted under the laws, which cover the following transactions:

  • Foreign currency business transactions carried out by banks (including loans in the foreign currency for exports, trading of commercial papers in foreign exchange, etc.);
  • The transaction of commercial papers issued by the Indonesian Government in foreign currency;
  • Other transactions in foreign currency conducted under the prevailing laws.

(iii) The following specific activities, which include the following:

  • Foreign exchange transactions conducted by money changers according to the prevailing laws;
  • Carrying foreign banknotes into or out of the Indonesian Customs area by the prevailing laws and regulations.

In the event of non-compliance of the Currency Law Regulations, the Indonesian government may impose the following sanctions prison for up to 1 (one) year and a fine of maximum amounting to IDR200,000,000 (two hundred million rupiahs) for (a) failure to comply with the obligation to use Rupiah in cash transactions and/or (b) rejecting payment in Rupiah, except the originality of rupiah received is questioned; and administrative sanctions in form of written warnings, payment of a fine and the prohibition against participating in payment transactions.

No.

Sector

Business Line

2014 Negative List

2016 Negative List

1

Maritime and Fishery

Coral breeding/cultivation

Limited to 49% foreign investment

100% foreign investment, but requires a recommendation from the Ministry of Environmental and Forestry

2

Energy and Mineral Resources

Biomass Pellet producing industry for energy

Partnership with Local SMEs

100% foreign investment

3

Industry

Salting/drying fish and other water biota industry

Reserved for Local SMEs

100% foreign investment, but requires a partnership with Local SMEs

4

Sugar Industry (white crystal sugar, refined crystal sugar and raw crystal sugar)

Limited to 95% foreign investment, but requires a sugarcane plantation before constructing a new sugar mill or expanding a sugar mill

00% foreign investment, but requires a partnership in the form of 20% plasma core of the total land area

5

Crumb rubber industry

Closed for foreign investment (100% domestic ownership)

100% foreign investment, but requires a special license from the Minister of Industry provided that it is integrated with the development of crumb rubber plantation:

a. Fulfilment of raw material at least 20% of production capacity derives from its own crumb rubber plantation; and

b. Fulfillment of raw material in the maximum amount of 80% with partnership, with at least 20% of the plantation area is plasma plantation

6

Public Work

Toll road business

Limited to 95% foreign investment

100% foreign investment

7

Non-hazardous waste management and disposal

Limited to 95% foreign investment

100% foreign investment

8

Trade

Direct selling through marketing network developed by business partners

Limited to 95% foreign investment

100% foreign investment

9

Retail trade through mail order or internet (for certain goods), namely:

· Food, beverages, tobacco, chemical pharmacy, cosmetic and laboratory equipment commodities;

· Textile, apparel, footwear and private goods commodities;

· Household goods and kitchen set; and

· Combination of goods above

Closed for foreign investment (100% domestic ownership)

100% foreign investment, but requires a partnership with Local SMEs

10

Trade

Distribution (affiliated with production)

Limited to 33% foreign investment

100% foreign investment

11

Cold storage

Limited to (i) 33% foreign investment in Sumatra, Java and Bali and (ii) 67% foreign investment in Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua

100% foreign investment

12

Futures Broker

Limited to 95% foreign investment

100% foreign investment

13

Tourism and Economy Creative

Restaurant

Limited to 51% foreign investment (no contradiction with regional regulations)

100% foreign investment

14

Bar

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

15

Café

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

16

Swimming pool

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

17

Tourism and Economy Creative

Football field

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

18

Tennis court

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

19

Fitness center

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

20

Sport center

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

21

Other sport activities

Limited to 49% foreign investment (no contradiction with regional regulations);

Or limited to 51% foreign investment (if partnership with local SMEs)

100% foreign investment

22

Film taking studio

Limited to 49% foreign investment

100% foreign investment

23

Film processing laboratory

Limited to 49% foreign investment

100% foreign investment

24

Film voice dubbing facility

Limited to 49% foreign investment

100% foreign investment

25

Film printing and/or duplication facility

Limited to 49% foreign investment

100% foreign investment

26

Film taking facility

Closed for foreign investment (100% domestic ownership)

100% foreign investment

27

Film editing facility

Closed for foreign investment (100% domestic ownership)

100% foreign investment

28

Film subtitling facility

Closed for foreign investment (100% domestic ownership)

100% foreign investment

29

Film production

Closed for foreign investment (100% domestic ownership)

100% foreign investment

30

Movie theatre

Closed for foreign investment (100% domestic ownership)

100% foreign investment

31

Recording studio (cassette, VCD, DVD, etc.)

Closed for foreign investment (100% domestic ownership)

100% foreign investment

32

Film distribution

Closed for foreign investment (100% domestic ownership)

100% foreign investment

33

Transportation

Salvage service and/or underwater work (PBA)

Limited to 49% foreign investment

100% foreign investment, but requires a special license from the Ministry of Transportation

34

Communication and informatics

Telecommunication kiosk

Reserved for Local SMEs

100% foreign investment

35

Establishment of testing telecommunication device agency (laboratory test)

Limited to 95% foreign investment

100% foreign investment

36

Trade Transaction Operator through Electronic System (market place on a platform basis, daily deals, price grabber, online classified advertising) with investment less than Rp 100,000,000,000

Not included

Limited to 49% foreign investment

100% foreign investment, if the inevestment is more than Rp 100,000,000,000

37

Health

Medicine raw material industry

Limited to 85% foreign investment

00% foreign investment

38

Business and management consulting services and/or hospital management services

Limited to 67% foreign investment

100% foreign investment

39

Supporting health services (medical equipment rental)

Limited to 49% foreign investment

100% foreign investment

40

Clinic laboratory

Limited to 67% foreign investment

100% foreign investment

41

Medical checkup clinic

Limited to 67% foreign investment

100% foreign investment

42

Healthcare equipment industry: Class B (i.e., surgical masks, syringes, patient monitors, condoms, surgical gloves, hemodialysis fluids, PACS, surgical knife)

Not included

100% foreign investment, but requires a special license from the Ministry of Health

43

Healthcare equipment industry: Class C (i.e., IV catheter, X-Ray, ECG, Patient Monitor, Orthopedic Implants, Contact Lens, Oxymeter, densitometer)

Not included

100% foreign investment, but requires a special license from the Ministry of Health

44

Healthcare equipment industry: Class D (i.e., MRI, CT Scan, Cardiac Catheters, Cardiovascular Stents, HIV Test Pacemaker, Dental filler, Ablation Catheter)

Not included

100% foreign investment, but requires a special license from the Ministry of Health

45

Stem cell banks and laboratories

Not included

100% foreign investment, but requires a special license from the Ministry of Health


Disclaimer: The description and information herein is not intended to be a comprehensive review of all relevant law and practice, or to cover all aspects of those referred to, or to be deemed as a legal advice. Please contact us if you seek for an advice to specific issues or transactions or matters.

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