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ARTICLE · 18 SEPTEMBER 2013

Quick guide to establishing a presence in Indonesia

Corrs Chambers Westgarth
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With GDP growing, and an emerging Indonesian middle class, there are many investment opportunities for foreign entities.

AustraliaInternational Law
Jared Heath
Jared Heath
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By 2030, Indonesia is predicted to be the worlds' seventh largest economy. With GDP growing at around six percent and an emerging middle class there are significant opportunities for foreign entities wishing to invest.

So, what are the choices for establishing a presence in Indonesia?

Our Quick Guide overviews the three main vehicles which are available to foreign entities to establish themselves in Indonesia:

  • a foreign representative office (FRO); 1
  • a foreign investment limited liability company (PMA Company); and
  • a not-for-profit foundation (Yayasan).

Each of the three vehicles has different legal and tax implications.

FOREIGN REPRESENTATIVE OFFICE

An FRO is a useful first step to develop the business interests of a principal foreign company (or foreign group of companies) in Indonesia and prepare for establishment in Indonesia (usually by way of a PMA Company).

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