Business Set up

In Indonesia
TABLE OF CONTENTS

1. Incorporation ………………………………………………………..................................................... 3
1.1. Foreign-Owned Company Registration (PMA) ................................................................. 3
1.2. Local Company Registration (PT) ………………………………………………………………………………... 4
1.3. Local Nominee ................................................................................................................. 5
1.4. Nominee Agreement ....................................................................................................... 5
1.5. Representative Office ...................................................................................................... 6
1.6. Bank Account Opening ……………………………………………………………………………………………….. 6
1.7. Office Space ……………………………………………………………………………………………………………….. 6
2. Licenses ..................................................................................................................... 8
2.1. VAT Payer Certificate ……………………………….………………………………………………………………….. 8
2.2. Trademark ………………………………………………………………………………….……………………………….. 8
3. Expatriate Services ………………………………………………..…………………………………………………. 9
3.1. Work and Stay Permit (KITAS) ............................................................................................ 9
3.2. Multiple Entry Business Visa .............................................................................................. 10
3.3. Single Entry Visa ……………………………………..……………………………………………………………………. 10
4. HR Services ……………………………………..……………………………………………………………………….. 11
4.1. Payroll Processing and Outsourcing ……………………………………..……………………………….……… 11
4.2. Recruitment ....................................................................................................................... 12
4.3. HR Outsourcing ……………………............................................................................................ 12
5. Finance Services …………………………………..…………………………………………………………………… 14
5.1. Accounting and Tax Reporting (Basic) ............................................................................... 14
5.2. Accounting and Tax Reporting (Management Accounting) …………………………………………… 14
5.3. Zero Tax Reporting ………………………………………………………………………………………………………. 15
5.4. Online Accounting Platform …………………………………………………………………………………………. 15
5.5. Financial Auditing …………………………………………………………………………………………………………. 16
6. Terms of Payment ……………………………………………….…………………………………………………… 16
1. INCORPORATION

1.1. FOREIGN-OWNED COMPANY REGISTRATION (PMA)

The only form of company allowed for foreign investment is Limited Liability Company – Foreign
Direct Investment (in Indonesia called PT PMA).

The company registration process as follows:

No. Procedure Duration
(working days)
1 Approval of company name at the Ministry of Law and Human Rights 1

2 Preparation of Article of Association by Notary 3

3 Approval of Deed of Establishment at the Ministry of Law and 3
Human Rights
4 Obtain Tax payer registration number 2
5 Obtain Certificate of Domicile from local district office 10
6 Approval of Business Registration Number (NIB), Business Permit, 2
Commercial/Operational Permit, Location Permit, Environmental
Permit and BPJS through the Indonesian Online Single Submission
(OSS) System

 Period : 1.5 months

 Fee : USD 2,500
 Notes
o The fee above is valid for Jakarta area
o Minimum investment plan is above IDR 10,000,000,000 or equal with above USD
800,000. The minimum paid up capital shall be 25% of the investment plan or equal
with above IDR 2,500,000,000 or equal with above USD 200,000. The investment plan
could include non-financial investment and the paid-up capital could be submitted after
company established and has bank account (stated on capital statement letter)
o Minimum 2 Shareholders (corporate or individual), 1 Director, and 1 Commissioner
o Business field of Trading, IT, and Management consultancy will directly get the
activated Business Registration Number (NIB). For other sectors such as Manufacturing,
Agriculture, and Construction, the company shall fulfill the specific requirements first
(Environmental permit such as AMDAL/ UKL-UPL/ IMB) in order to validate the
Commercial/ Operational License. Business field of Property developer as well as
Energy and mineral resources (ESDM) shall apply Business license at BKPM
o BPJS social security and health registration number obtained during NIB application
shall be activated with the fee of USD 350
o Cekindo provides Share Certificate and Shareholder Register with the fee of USD 300
o After incorporation, Cekindo assists our client in the preparation and submission of
Investment Activity Report (LKPM) bi-annually or quarterly with annual fee for USD 500
(includes 4 LKPM report)
o Cekindo provides translations of all documents to English by sworn translator with the
fee of IDR 800 or USD 0,05 / word
o The fee excludes costs for sending documents overseas through courier, if required
1.2. LOCAL COMPANY REGISTRATION (PT)
The local PT company registration process as follows:
No. Procedure Duration
(working days)
1 Approval of company name at the Ministry of Law and Human Rights 1

2 Preparation of Article of Association by Notary 3

3 Approval of Deed of Establishment at the Ministry of Law and 3
Human Rights
4 Obtain Tax payer registration number 2
5 Obtain Certificate of Domicile from local district office 10
6 Approval of Business Registration Number (NIB), Business Permit, 2
Commercial/Operational Permit, Location Permit, Environmental
Permit and BPJS through the Indonesian Online Single Submission
(OSS) System

 Period : 1.5 months

 Fee : USD 1,500
 Notes :
o Minimum 2 Shareholders (corporate or individual), 1 Director, and 1 Commissioner
o 100% Shareholders and Commissioner shall be local, and it is required to have at least 1
Local Director
o In the event there is no local shareholder, Cekindo is able to provide local shareholder
nominee (corporate or individual) with notarized nominee agreement to protect the
client ownership in the company (details below)
o The company shall register business fields under supervision of the same Ministry
o There are 3 sizes of local PT company according to the amount of paid-up capital:
 Small : above IDR 50,000,000 – 500,000,000
 Medium : above IDR 500,000,000 – 10,000,000,000
 Large : above IDR 10,000,000,000
o The paid-up capital can be submitted after the company is established and has bank
account (stated on capital statement letter)
o BPJS will be activated once the company managed the 1st payment of BPJS bill
o Especially for trading sector, the Business Registration Number would cover Import and
Custom Registration Number
o Especially for manufacturing, agriculture, construction and real estate developer, the
Commercial/Operational Permit, Location and Environmental Permit would be
validated once the company fulfilled specific requirement (has AMDAL/UKL-UPL, IMB,
etc.)
o If the company plans to hire foreign employee, the minimum size is medium company,
with paid-up capital minimum IDR 1,200,000,000
o Cekindo provides Share Certificate and Shareholder Register with the fee of USD 300
 o Cekindo provides translations of all documents to English by sworn translator with the
fee of IDR 800 or USD 0,05 / word
o The fee excludes costs for sending documents overseas through courier, if required

1.3. LOCAL NOMINEE

Cekindo assists our Client with local nominee services as Shareholder (corporate or individual),
Director (individual), and Commissioner (individual). Cekindo ensures the nominee
arrangements safely by managing notarized nominee agreement between Client and local
nominee.

 Period : Minimum 1 year of services

 Fee :

Shareholder USD 2,000 / year

Director USD 3,500 / year*
Commissioner USD 2,000 / year

 Notes
o The fee excludes notarized nominee agreement (details below)
o Shareholder nominee is provided only for the capital up to IDR 2,000,000,000
o For Director Nominee is bundled with Accounting and Tax report service
o There will be a refundable deposit fee amounted USD 2,000. Cekindo will refund the
deposit fee upon termination once all nominees have been taken out from company
documents. The deposit fee is not refundable if the client does not pay the next year
nominee service payment upon 3 times reminder. In this event Cekindo will have the
right to dissolve or take over the company

1.4. NOMINEE AGREEMENT

Cekindo arranges nominee letter and agreement, legalized by notary to protect our Client
ownership and authority in the company.

The package of nominee agreement below:

 Loan Agreement between local shareholder and investor

 Pledge of Shares Agreement
 Call Option Agreement
 PoA to Vote and Sell
 Consent to Transfer
 Assignment of Dividends Agreement
 Indemnity Agreement

 Fee : USD 1,000

1.5. REPRESENTATIVE OFFICE

Representative office acts only as a supervisor, liaison, coordinator, and manage the interests of
the company or its affiliated companies in Indonesia. Representative office is established when
the client intends to explore the market first before deciding to establish limited liability
company in Indonesia.

The outcome of representative office establishment as follows:

 Approval of Representative Office by BKPM

 Domicile Letter
 Company Tax ID
 Company Registration Certificate
 Period : 1,5 months
 Fee : USD 2,000
 Notes
o Representative office is limited to marketing and promotion activities, as it is not
allowed to do direct selling and receive income (all transactions shall be done
through the mother company)
o There is no minimum investment requirement
o There is no shareholder and director requirement
o The fee excludes bank account opening assistance for USD 300, if required
o The fee excludes BPJS social security and health program registration with the fee of
USD 350

1.6. BANK ACCOUNT OPENING

Cekindo assists our client in opening bank account in IDR or any other applicable foreign
currency in Indonesia, includes internet banking if required.

 Period : 1 weeks (for current account)

 Fee : USD 300
 Notes
o The fee includes internet banking
o For saving account in Bank Mandiri, the account can be activated within 1 day

1.7. OFFICE SPACE

Cekindo provides office space for our client’s registered business address in Indonesia.

There are 3 types of office space below:

 Serviced office (1 workstation)

 Fee (without PC) : USD 360 / month
 Fee (with PC) : USD 450 / month
 Co-share office
 Fee : USD 200 / month

 Virtual office
 Fee : USD 70 / month
 Period : Minimum 1 year of services (to obtain domicile letter)
 Notes
o For foreign owned company (PT PMA), it is not allowed to have virtual office (only
address and phone number, without dedicated office space), thus minimum shall
arrange a serviced office or co-share office
o For more workstations (maximum up to 5 workstations) and office supporting
services are provided in separate proposal
2. LICENSES

2.1. VAT PAYER COMPANY CERTIFICATE

Cekindo assists our client in registering the company as VAT payer company (PKP) to the tax
office. PKP is mandatory for company which has turnover above IDR 4,800,000,000; however the
company could apply as PKP if required, although the turnover has not reached the minimum
amount yet.

 Period : 2 weeks
 Fee : USD 500
 Notes
o There will be visit required to the office room by the tax officer
o The fee includes e-tax invoice (e-faktur) application to the tax office

2.2. TRADEMARK

Cekindo assists our client in protecting their company and product logo and brand by registering
trademark, valid for 10 years.

 Period : 24-34 months

 Fee : USD 500 per class per application - under legal entity/Individual in
Indonesia
: USD 700 per class per application - under overseas
 Notes
o The total timeframe will take up to 2 years for approval.
o The registration fee of USD 500 or USD 700 is applied per class per application,
includes 10 types of product / service
o For more than 10 product / service, the fee is USD 300 for every additional of 10
types of product / service under legal entity/ individual in Indonesia and USD 700
under overseas

2.3. GENERAL MEETING OF SHAREHOLDERS

According to Company Law (UUPT), each company shall arrange Annual General Meeting of
Shareholders (GMS) to approve the company report of the preceding year, especially related to
the company’s activity, financial report, and its’ Director and Commissioner activity. Cekindo
assists our client in arranging annual GMS or extraordinary GMS when there is necessary
approval from the shareholders.

Packages:
 Company invitation letter
 Circular letter
 Company deed concerning GMS
 Shareholder certificate (if applicable)

➢ Period : 1-2 Weeks

 ➢ Fee : USD 1000
➢ Notes:
o The General Meeting Shareholder could be arranged by Circular Resolution,
hence physical meeting is not mandatory
o If required physical assistance, it could be arranged with additional fee of
USD 100/ hour in Jakarta area. In the event the meeting is arranged outside
Jakarta, the assistance fee is USD 200/ hour excludes out of pocket expenses
(accommodation and transportation)

2.4. COMPANY REGULATION DRAFTING / REVIEW

Cekindo assists our client in preparing company regulation based on the applicable law
in Indonesia. The company regulation could be adjusted based on company internal
policy.

Packages:

 Drafting company regulation based on applicable law in Indonesia, adjusted to the

company internal policy

 Legal review up to 4 times

➢ Period: 1- 2 Month
➢ Fee: 1000 USD
➢ Notes:
o The company regulation shall be registered at the Manpower Department
for company with more than 10 employees. We could assist this registration
with the fee of USD 500
3. EXPATRIATE SERVICES

3.1. WORK AND STAY PERMIT (KITAS)

Cekindo assists our client in arranging the overall process in obtaining work and stay permit
(KITAS) in Indonesia.

The work and stay permit (KITAS) procedure as follows:

Duration
No Process
(working days)
1 Manpower scheduling (RPTKA) 15
2 New work permit (IMTA) 10
3 Temporary stay permit visa approval (VITAS) 10
4 New temporary stay permit (KITAS) 7
5 New local police report (STM) 2
6 New temporary resident registration (SKPPS) 14
7 Expatriate admittance report to manpower 2

 Period : 2 months
 Fee : USD 950 / person
 Notes
o The fee above is valid for Jakarta area
o It excludes the government fee (DPKK) for USD 100 per month
o The fee Includes visa stamping fee at the Indonesian Embassy overseas
o It excludes Exit permit which shall be arranged prior to visa expiration and leaving
the country, with the fee of USD 100
o In the event the foreign employee brings family, dependent visa can be applied
with the fee of USD 650 / person
o As part of requirements of applying work permit, Cekindo assists our client in
arranging Employment Report, with the fee of USD 150 as well as BPJS social
security, health program, and JSHK registration for USD 350
o During RPTKA process, a representative of company requires to have interview with
the Ministry of Manpower (expose) by skype to explain the objectives of foreign
worker in the company. In the event company representative in not able to
present, Cekindo can represent our client.
o If the client does not have a sponsor company, Cekindo can provide a sponsorship
as a part of HR outsourcing service, refer to section 4.3
3.2. MULTIPLE ENTRY BUSINESS VISA
Cekindo assists our client in managing multiple-entry business visa, valid for 1 year. Business visa
is used for business purpose, such as attending business meeting, seminar, exhibition, training,
etc.

 Period : 1 week
 Fee : USD 300 per person
 Notes
o The fee excludes visa collection fee at the Indonesian Embassy overseas
o In the event the foreign employee brings family, dependent visa can be applied
with the fee of USD 300 / person without sponsorship
o Cekindo could provide sponsorship as and when necessary, with the fee of USD 100
for 1 year
o The maximum length of stay in Indonesia for 1 period is 2 months, thus every 2
months require to exit the country to obtain stamp from immigration at the airport
o There is additional fee of USD 500 for restricted countries that are Afghanistan,
Guinea, Israel, Iraq, North Korea, Cameroon, Liberia, Niger, Nigeria, Pakistan, and
Somalia
o For Chinese client there are additional fee of USD 100.

3.3. SINGLE ENTRY VISA

Cekindo assists our client in managing single-entry visa, divided into business visa or social visa,
according to the purpose of visit. Social visa is used for social purpose, mainly for family visit.
This visa is valid for 2 months and extendable for 4 times (each extension for 30 days), with
maximum stay in the country for 6 months.

 Period : 1 week
 Fee : USD 200 per person
 Notes
o The fee excludes visa collection fee at the Indonesian Embassy overseas
o The fee excludes visa extension fee for USD 150 per extension
o Cekindo could provide sponsorship as and when necessary, with the fee of USD
100
o For Chinese client there are additional fee of USD 100.
4. HR SERVICES

4.1. PAYROLL PROCESSING AND OUTSOURCING

Cekindo provides payroll processing and outsourcing for client’s employees before and after
establishment of legal entity in Indonesia.

The package of payroll processing as follows:

 Monthly payroll, tax, and BPJS calculation

 Monthly tax report (SPT Masa 1721 & 1721-II)
 Social security (BPJS Ketenagakerjaan)
 Health program (BPJS Kesehatan)
 Payroll summary
 Detail payslip
 Annual proof of tax cut (SPT 1721A1)
 Additional activities for payroll outsourcing is processing payments (salary, tax, health
insurance, social insurance) and report submission
 Period : Minimum 1 year service
 Fee
Employees Payroll Processing Payroll Outsourcing
(or Review)

Implementation fee One-time USD 300/ per tax + USD 0

entity
Monthly fee (according to 1 – 10 USD 200 + USD 50
number of employees)
11 – 50 USD 300 + USD 50

51 – 100 USD 400 + USD 50

Bank transfer fee - USD 0.5/person

BPJS registration USD 25 / person USD 25 /person

  Notes
o For any off-cycle calculations, such as bonus and Festive Holiday Allowance will be
charged into 1 month fee
o The fee excludes Annual Individual Tax Return (SPT 1721-I) below:
 Foreigner : USD 200 per person
 Local : USD 20 per person

4.2. RECRUITMENT

Cekindo assists our client in recruitment / head hunting of employees in Indonesia or hiring
Indonesian employees for our client’s office overseas.

We help our clients to looking for best candidate to be their employee, from the staff level,
supervisior level, managerial level and the director level. Each of position have a different
timeline, you can see the detail below:
 Staff level : Approx 3 Weeks – 1 Month*
 Supervisor level : Approx 1 Month – 1,5 Month*
 Managerial level : Approx 2 Months*
 Director level : Approx 2 Months – 3 Months*
If the clients have a specific requirment, we need more time to looking for the best candidate.
We also can provide the offering letter to clients when the clients already decide who will be
their employee. It takes 1 – 2 days of working day.
The activities of recruitment also include:
 Promotion of the job vacancies
 Conducting pre-interview
 Shortlist of candidates based on requirements
 Arranging final interview physically or by phone with client’s representative

 Period : refer to above (*without any specific requirements)

 Fee : 2 month’s salary
 Notes
o There is initial fee of USD 300 which will be deducted from the service fee after
candidate selected
o The time required for candidate selection will depend on the requirements
o Warranty period is applicable for 3 months, where Cekindo will replace the
candidate without any additional fees

4.3. HR OUTSOURCING

Cekindo provides HR Outsourcing for client’s employees to have payroll under Cekindo in the
event the client doesn’t establish a legal entity in Indonesia or in the process of incorporation.

The package of HR Outsourcing as follows:

 Employment contract
 Monthly payroll computation
 Monthly tax computation
 Monthly tax report (SPT Masa 1721 & 1721-II)
 Fund transfer report
 Detail payslip
 Annual tax report (SPT 1721A1)

 Period : According to the project duration

 Fees :
Implementation fee One-time USD 300
Foreign employee Monthly 5% from total gross salary, with minimum
amount USD 550 / person
Local employee Monthly 5% from total gross salary, with minimum
amount USD 120 / person

 Notes :
o Each employee will receive employment contract under Cekindo for temporary
period on a project basis.
o There will be deposit amounted 3 Months from total employee gross salary
o Recovery Tax amounted 2% from monthly salary will be applied for Transfering
salary from foreign account into Cekindo’s account
o 10% VAT will be applied for both Salary and Service Invoice
5. FINANCE SERVICES

5.1 ACCOUNTING & TAX REPORTING (BASIC)

Cekindo provides accounting and taxation services. After your company is established, it is
mandatory to submit monthly tax report although you have no activities and zero taxes.

The package of accounting and tax reporting as follows:

 Balance Sheet
 Income Statement
 Monthly tax report (withholding tax)
 Monthly VAT report for additional 50 USD
 Annual tax report

 Period : Minimum 1 year service

 Fee
Implementation fee One-time USD 300
1 – 50items USD 250
Monthly fee
51 – 150 items USD 300
(according to number of
151 – 300 items USD 400
transaction)
Above 300 items USD 1.3 / item
Annual report/Tax Return Annually USD 400

 Notes
o Items refer to all financial documents, e.g. invoice, receipt, bank statement, etc.
o If the client would like to engage only in the tax reporting service, the monthly fee
is USD 150 and annual report fee is USD 200
o Additional USD 50/month applied for monthly VAT Reporting.
o Items refer to Ledger inputs or number of Journal in the ledger e.g. certain period
of invoices can be included within one Journal ledger other financial items
includes receipt, bank statement, etc.
o The fee shall be paid in advance for 1 year period

5.2 ACCOUNTING & TAX REPORTING (MANAGEMENT ACCOUNTING)

SUITABLE FOR PRODUCTION COMPANIES
Cekindo provides accounting and taxation services. After your company is established, it is
mandatory to submit monthly tax report although you have no activities and zero taxes.

The package of accounting and tax reporting as follows:

 Balance Sheet & Inventory management

 Income Statement
 Job costing including direct labor and overhead costs
 Monthly tax report (withholding tax)
 Monthly VAT report for additional 50 USD
 Annual tax report

 Period : Minimum 1 year service

 Fee
Implementation fee One-time USD 300
1 – 50 items USD 375
Monthly fee
51 – 150 items USD 600
(according to number of
151 – 300 items USD 825
transaction)
Above 300 items USD 1.5 / item
Annual report/Tax Return Annually USD 400

 Notes
o Items refer to all financial documents, e.g. invoice, receipt, bank statement, etc.
o Additional USD 50/month applied for monthly VAT Reporting
o Items refer to Ledger inputs or number of Journal in the ledger e.g. certain period
of invoices can be included within one Journal ledger other financial items
includes receipt, bank statement, etc.
o The fee shall be paid in advance for 1 year period

5.3 ZERO TAX REPORTING

Cekindo provides zero taxation report services. After your company is established, it is
mandatory to submit monthly tax report although you have no activities and zero taxes such as
for dormant company.

Implementation fee USD 100

Annual report Annually USD 400

5.4 ONLINE ACCOUNTING PLATFORM

Cekindo offers online accounting and bookkeeping solutions as extension from our standard
accounting service. We offer online accounting system with following advantage:
 Database saved in the cloud
 Accessed anytime and anywhere, possibility to downloading the app for Android
 Documents can be uploaded to extract transaction, no need to store documents separately
 Online approval module for every transaction such as invoicing, payment, etc
 Cost center suitable for clients with many projects. Easy evaluation of profitability of each
project

 Fee: USD 300/ year for system subscription maintenance (additional to the standard
accounting-tax reporting fee)
 5.5 AUDITING

Cekindo provides auditing service to the client.

The package of auditing as follows:

 Audit procedure
 Scope of audit services
 Paper checks
 Legalization of Public Accounting Firm
 External audit report

 Fee : Start from USD 3.000

6 TERMS OF PAYMENT

 100% payment in advance

 The fee is subject to 10% VAT
 The quotation is valid up to 30 days from proposal submission