Recently, we have received a lot of private letters from bosses in the background, “I heard that going to Indonesia to open factories now is like picking up money, is it true?”

Every time I see a question like this, I want to immediately hold down their hands as they pull out their money. The opportunities are real, but the pit is also deep. Do you think you can replicate your domestic success by rushing there with money and technology? Indonesia's latest "Negative List of Investment (DNI)" is like a sophisticated filter, the first step in the wrong step, all the subsequent investment may go down the drain.

Today, we will pick up those investment promotion will never tell you the truth of building factories in Indonesia.

01, Your industry, can you do it in Indonesia?

When investing in Indonesia, the first life and death hurdle is not money, but policy. The Indonesian government has a regularly updated Negative List for Investment (DNI), the latest version of which came into effect in July 2024. This list directly categorizes industries into three, six, nine or nine classes:

• Completely prohibited “no-go areas”You want to dig radioactive minerals, or a casino, do a bit of alcoholic beverage business? Get rid of it before it's too late, these areas are 100% banned by foreign investors, don't even touch them.
• Conditionally open “minefields”: This is what is most damaging. For example, construction engineering, some segments of foreign capital holdings of up to 67%; large marine fishing, the upper limit is 49%. medical, education and other industries are even more restrictive. You think you can be a major shareholder, only to find out when you register that you can only be a minor shareholder and do the graft for others.
• 100% Open “Golden Zone”: It's certainly not all bad news. Areas like wholesale trade, pharmaceutical manufacturing, e-commerce, large power plants and plantations still warmly welcome foreign 100% holdings.

Here, many bosses will begin to headache: my business model in the end belongs to which category? Is there a red line for the shareholding ratio? Relying on yourself to check the hundreds of pages of bill provisions is not only inefficient, but also prone to the risk of misjudgment. A professional cross-border service organization must have the latest industry access checklist in hand, which can help you avoid the prohibited areas and pinpoint the open areas at the first time.For example, we Enterprise Caiying Group, professional consultants in Shenzhen, Guangzhou, Shanghai and other places, every day to deal with overseas company registration, including Southeast Asia, Singapore, the shareholding restrictions and access conditions of Indonesia's various industries door clear, can help you to do the front risk screening. You need or interested in contact me at any time (consulting phone: 16620947137, add WeChat: Qicaiyingjituan)The

02, money out of the sea, your money can be compliant out?

The industry is fine, how does the money get out?Here is a key link that almost all Chinese enterprises can't get around - ODI filing (Outbound Investment Filing).

Simply put, if you want to remit your funds to Indonesia for factory construction through bank compliance, you must first complete the ODI filing. Without this, the funds out of the country is empty talk. This process involves the local development and reform commission, the commerce department and foreign exchange registration, three departments linkage supervision. It is recommended that companies start at least 2-3 months in advance, do not wait for the office in Indonesia are rented, found that the money is still sleeping on the domestic account.

Many bosses find this process cumbersome, but from another perspective, completing the filing is also the first step for your business to go overseas in a compliant manner, which is a guarantee for the safe return of profits in the future. Leaving this specialized aspect to an experienced team can help you avoid a lot of rework and communication costs.The one-stop enterprise services of Qicaiying Group covers the core business of ODI filing/FDI filing, which can assist enterprises in sorting out the materials and planning the path, so that your funds can legally comply with the “go out”. If you need, you can call 16620947137, or add WeChat Qicaiyingjituan detailed understanding.

03. How to step on the threshold of Rp 10 billion to register a company?

Indonesia allows foreign-invested companies (PT PMA) to hold TP3T 1001 in many manufacturing sectors, but there is a hard threshold: a minimum registered and paid-up capital requirement of Rp10 billion (about Rp4.5 million). Note that this is not just a random number, the registered capital needs to be paid in at least 25%, with the rest in place within one year.

Besides money, you need to prepare at least two shareholders, one director and one supervisor. A bunch of articles of incorporation, shareholders' passports, office lease agreements and other documents need to be prepared. The whole process, if you run it yourself, the translation and notarization of various documents may make your head spin. Usually, the whole registration process takes 10-15 working days if it goes smoothly.If you don't want to spend effort in the registration process, Qicaiyingjituan Group can provide a full range of services from name search, data preparation to tax registration (NPWP) and VAT business mark (PKP) application to ensure that your company registration in Indonesia is fast on the ground. If you are interested, our consulting phone number is 16620947137, WeChat: Qicaiyingjituan.

04. The biggest pitfall in purchasing land is in the tenure!

The company was registered, the land was looked at, and the most thrilling step began.

When a foreign company acquires land, it is preferred to acquire land in an industrial park because of clear title and good infrastructure. However, even if the land is located in an industrial park, you must complete a standard process: sign a letter of intent (MOU) → land due diligence → sign a purchase and sale contract (PPJB) → sign a deed of purchase and sale (AJB) → and finally, go to the Land Office to apply for a change of ownership.

The central point of risk here, theLand due diligence. You must check whether the land ownership is clean, whether there is no mortgage, and whether it is in line with the government's spatial planning. Once you buy a disputed land, the subsequent environmental assessment, building permits, production permits can not be done, invested heavily in the construction of the factory may become illegal structures.

05, build plants into operation, environmental assessment is a “one-vote veto” items

Don't think that everything will be fine if you get the land. In Indonesia, EIA permits can be “vetoed”. Large-scale projects must pass a rigorous AMDAL environmental assessment, which can take up to 6-12 months. There is a bloody legal red line:Businesses that build without approval can face up to a suspension or even revocation of their business licenses.

Even the relatively simple UKL-UPL EIA takes at least 3-6 months. The subsequent Permit to Build (PBG) and Certificate of Fitness for Building Function (SLF) is another six-month long process. Without professional counseling, any one of these steps can lead to project delays and huge financial losses.

From the decision to go to sea to the final production, each link is intertwined, testing not the individual ability, but the whole process of coordination and compliance control.Enterprise Caiying Group has been deeply engaged in enterprise overseas services for many years, covering Shenzhen, Hong Kong, Southeast Asia, the United States and other regions of the company registration and subsequent bookkeeping and tax reporting, tax compliance, change of information and other one-stop services, our team of experts can help you to sort out every step of the compliance details of the construction of factories in Indonesia, to avoid those invisible traps. If you are planning to build a factory in the sea, you may want to talk to us first, which may help you take a lot less detours. Contact us at 16620947137 or add WeChat Qicaiyingjituan, looking forward to your inquiry.

Don't let your overseas blue ocean become a “dead ocean” with no return.