Three Ways to Conduct FDI in Indonesia

 

 (iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Knowing Joint Venture Companies in FDI Indonesia", "Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia", you may read also "Understanding 5 Steps Foreign Direct Investment In Indonesia" and on this occasion we will discuss about 'Three Ways to Conduct FDI in Indonesia'.

Many people consider that Indonesia is a country with great potential for foreign investment, because there are many factors that are attractive to investors. One of them is low costs, covering various types of expenses for a business, such as the price of raw materials to labor wages. Therefore, it is not surprising that we often find factories and companies owned by business people from other countries.[1]

The three ways to make foreign investment in Indonesia are as follows:[2]

1. FDI can be done by buying an existing company in a country, or it can also be done by providing capital to build a new company in that country.
2. Direct foreign investment is also usually characterized by the purchase of at least 10% of shares in a country's company by individuals or companies from other countries. If the share purchase is less than 10%, the International Monetary Fund (IMF) defines share ownership as a person's or company's share portfolio only.
3. Other ways to carry out foreign direct investment are also usually in the form of purchasing or building factory construction, as well as purchasing land by foreign investors. This form of building or land ownership from foreign direct investment is generally full or almost full.

And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "Foreign Direct Investment, Lihat Cara Investasi & Manfaatnya di Sini!", www.online-pajak.com., 28 November 2019, Diakses pada tanggal 22 April 2024, Link: https://www.online-pajak.com/tentang-pph-final/foreign-direct-investment

2. Ibid.