Indonesia - Market Entry and Legal Services

Lawyer & Law Firm in Indonesia

Indonesia is the largest economy in the Southeast Asia and fourth most populous country in the world. Its rapidly growing economy has been attracting investors and entrepreneurs from around the globe. Indian is among the top trading partners of Indonesia followed by China, Singapore, Japan, and other countries. Skilled and low-cost labour, productive and highly motivated workforce, business friendly policies and various incentive schemes make Indonesia ideal location for investment and business.

Commercial relations between India-Indonesia

India and Indonesia have a strong bilateral relationship with growing trade ties. Indonesia is India's second-largest trading partner in the ASEAN region. India imports crude palm oil, coal, minerals, rubber, and pulp and paper from Indonesia, while exporting refined petroleum products, maize, vehicles, telecommunications equipment, and pharmaceuticals to Indonesia. The economic cooperation between the two countries has led to mutual benefits and opportunities for further collaboration.

Business Advantage for Indian Companies in Indonesia

Indian businesses in Indonesia have traditionally been involved in textiles, wood products, and manufacturing. However, there is a growing interest in health and infrastructure industries. The infrastructure sector has attracted significant investments from India, aligning with Indonesia's infrastructure development goals. Indian investors are particularly interested in roadwork, urban railways, oil and gas, airports, and the health industry. They are also exploring opportunities in waste management and technology. This diversification reflects the expanding business horizons of Indian companies in Indonesia.

Incentives and Support Programs by Indonesia for Indian Companies

Indonesia offers various incentives and support programs to attract and facilitate Indian companies' business activities in the country. Some of the key initiatives include-

• Investment incentives: Tax allowances, tax holidays, import duty exemptions, and investment allowances are offered to attract foreign direct investment.
• Special Economic Zones (SEZs): Strategic locations with simplified licensing procedures, tax incentives, and infrastructure support for companies.
• Tax facilities: Sector-specific tax incentives, R&D deductions, and preferential tax rates support investment and business activities.
• Infrastructure development: Focus on improving transportation networks, industrial parks, and utilities, providing opportunities in construction, transportation, and logistics.
• Export promotion programs: Support for export financing, trade missions, participation in trade fairs, and market intelligence services.
• Business matching and investment facilitation: Assistance in identifying partners, market research, and guidance through dedicated investment promotion agencies.
• Intellectual property protection: Stronger enforcement of intellectual property rights through established offices and legal measures.

Starting a Business in Indonesia

In Indonesia, there are three types of legal entities for setting up a business: foreign-owned limited liability (PT PMA), local company (PT), and representative office (RO). To establish a foreign-owned company, a PT PMA is required with a minimum paid-up capital of Rp2.5 billion. The corporate structure includes shareholders, a board of commissioners, and a board of directors. The process involves approval of the company name, preparation of the Deed of Incorporation, submission and approval by the Ministry of Law and Human Rights, tax ID registration, obtaining a domicile letter, registration in the single submission system, issuance of the NIB, and additional registrations depending on the business sector. These steps ensure the legal operation of a PT PMA in Indonesia.

Visa and Immigration

• Business Visa
• Investor KITAS
• Permanent Stay Permit (KITAP)

Investing in Indonesia offers abundant opportunities due to its strong economy, large consumer market, and favourable business environment. Key sectors include manufacturing, healthcare, FMCG, infrastructure, renewable energy, and digital technology. Government reforms and infrastructure development support foreign investment. Challenges include navigating regulations, cultural nuances, and bureaucracy. Careful planning and market research are essential for successful investment in Indonesia's dynamic economy.

To read more about the Indonesia market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to Indonesian companies seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Indonesia, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our Indonesian counterparts, we are well-equipped to provide guidance on cross-border transactions between India and Indonesia, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo- Indonesian business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

Our Partner in Indonesia

We maintain a close working relationship with NUSANTARA LEGAL PARTNERSHIP, a reputable law firm based in Jakarta, Indonesia. NUSANTARA LEGAL PARTNERSHIP has been offering comprehensive legal assistance to both domestic and international clients in Indonesia. The firm specializes in various key areas of business law with special focus on General Corporate and Commercial Law, Merger & Acquisition, Foreign Direct Investment, Banking and Finance, Labor and Industrial Relation. NUSANTARA LEGAL PARTNERSHIP is dedicated and committed to serve high quality legal advice and exceptional level legal services.

If you are an Indonesian company or individual seeking assistance in India or an Indian entrepreneur planning to enter the Indonesian market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated to providing the guidance and support you require.