Recent Posts by indonesiaforeigninvestmentlaw

Merger on Investment Company

Background Merger is a legal action conducted by one or more company to merge with another existing company causing the assets and liabilities of the merging company transferred by law to the surviving company. Moreover, the legal entity status of the merging company will be ended by law. In relation to investment activity, the Government…
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Closed Business Sector (Negative Investment List)

Background One of the government's efforts in improving the flow of investment in Indonesia is by providing flexibility for investors to determine the business sector of investment based on its interest. This triggers a simplification process of rules towards the Priority Scale List to become the Negative Investment List/ Daftar Negatif Investasi (DNI) DNI is…
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Types of Licenses and the Period of Establishment

Background BKPM holds 2 (two) types of services on investment activity for the investor in the territory of Indonesia, which is the licensing service and the non-licensing service. Based on Article 1 paragraph 6 of Regulation of Chairman of BKPM Number 12 of 2009 (“Perka BKPM 12/2009”), what is included in the licensing services is…
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Transfer of Ownership of Foreign Shares

Background The transfer of ownership of foreign shares for a domestic investment company occurs when domestic investment company conducts a change in the company’s capital as a result of the entry of foreign capital which causes some or all the company’s capital becomes a foreign capital.Conversion of Domestic Investment Company to Foreign Investment Company In…
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Foreign Company Representative Office License

Background Foreign Company Representative Office/ Kantor Perwakilan Perusahaan Asing (KPPA) is the representative office established by foreign company or foreign companies outside the territory of Indonesia with a view to manage the interests of the company or the affiliated companies in Indonesia and/or in other countries and/or to prepare the establishment and development of foreign…
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