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Guidelines for Establishment of Construction and Foreign Investment Corporation in Indonesia



Purpose


Establishment and construction of construction corporations in Indonesia by foreign construction companies



Basic Conditions


1. At least 84,000,000 rupiah (US$6 million) per construction experience (corresponding project)


2. For 10 years of construction experience, the total amount is 250,000,000 rupiah (US$17 million)


3. 50,000,000 rupiah (US$3.5 million) in corporate capital


4. Shareholders are corporations, and their stakes are up to 67% for foreign corporations and 33% for local corporations



Establishment procedure


1. Establishment of a local foreign investment corporation (PMA)

(Registration of corporate name, incorporation of incorporation, registration, registration of corporate tax, construction business permission (business registration, etc.))


2. Join the construction association (two professional employees, join the construction association, pay registration fees, pay annual fees)


3. Construction license (acquired construction license with Korean headquarters construction license and documents)


4. Construction Permit (Final Construction Permit, EFECTIVE)



Establishment period

Total establishment period takes approximately 4 months.

1. External investment corporation - 2 weeks

2. Construction association - 2 weeks

3. Construction license - 4 weeks

4. Construction permit - 4 weeks

5. Other - 4 weeks



Other expenses


1. Office - Commercial buildings, shopping malls, etc. (Construction branch is not allowed to shop as an office) Rental costs of commercial buildings are around $30 per M2 (excluding administrative expenses and VAT) Commercial rent per year, US$8,000~ (around 200M2 on average, 3rd floor) Shopping mall purchase amount US$250,000~(3rd floor, around 200M2)


2. Foreign visa - ITAS visa fee (1 year), US$900 per person per year (visa number 312)

(Multiple immigration permits included - Foreigner employment costs $1,200 per year separately)


3. Expense for foreign employment - US$1,200 per year paid for general employees (312) (official government expense)

* Exempts executives or investors of foreign-invested corporations

4. Investor Visa - Executives of foreign-invested corporations can own certain shares There are one and two years and multiple entry and exit.


5. Local Employee Salary - According to the regional minimum wage system, the most expensive area Jakarta and its suburbs 2020 (approximately US$300-based on general staff)


6. Internet - General office standards around $100 per month


7. Vehicle- Rental car (including driver) around $800 per month (SUV medium-sized vehicle)


8. RESIDENCE - APARTMENT 2 ROOMS Around $1,000 PER Month, Purchase Amount US $150,000


9. Domi- Cleaning, laundry, etc., housework assistance, 2-3 hours a day (around $150 per month), If you eat Korean food while staying in and out, it'll be around 300 dollars per month - separately for food


10. One restaurant - Kimchi stew, soju, etc. around $10, pork belly (serving per person) around $15, The schedule may change depending on the government's new regulations (COVID-19).

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