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QUESTIONS FOR FOREIGNERS
1. What are the requirements to obtain patent right in Indonesia (for a foreigner)?
2. How much does the cost to obtain patent right in Indonesia?
3. Can foreign investors invest their money in Indonesia?
4. Do the government treats foreign investors differently from domestic investors?
5. If I invest my money in Indonesia, will the government eventually nationalised my company?
6. Does the company allows to employ foreign workers?
7. What kind of businesses that foreign investors are prohibited to invest?
8. What are the requirements to set up company (companies) in Indonesia?
9. What are the procedures to open business in Indonesia?
10. What are the procedures to build warehouse in Indonesia?
11. Where should I submit the investment application?
12. What are the application procedures to invest in Indonesia?
13. What are the application procedures to invest in Bonded Zones?
14. What are the requirements in obtaining licence for foreign distributionship?
15. How much Rupiah is allowed to be brought to Indonesia?
16. Are business visitors granted free visa?
17. Are grants free of import duties and excises?
18. Am I exposed to Indonesian tax if I receive income from Indonesia but not residing in Indonesia?
 
QUESTIONS FOR INDONESIANS
1. Apakah Austrade menyediakan pelayanan jasa terhadap impor ke Australia?
2. Apakah ada peraturan yang mengatur membawa rupiah keluar/ masuk wilayah Republik Indonesia?
 
ANSWERS FOR FOREIGNERS
1. What are the requirements to obtain patent right in Indonesia (for a foreigner)?
   
The requirements for foreigners to obtain patent right in Indonesia are:
Request for patent right must be written in Bahasa and must include:
  ° Date of letter
  ° Full address of the applicant
  ° Full name and citizenship of the inventor
  ° Full name and address of the authorized if the request is not represented by the applicant
  ° Power of Attorney to sign application if the participant is represented by another party/ parties
  ° Request statement
  ° Name of the Invention
  ° Claim of the invention
  ° Complete description about the invention including the process of making
  ° Picture of the invention, as mentioned in the description
  ° Abstraction of the invention
List of registered patent consultants in Indonesia:
Name of the patent concultants Website
                        Biro Oktroi Rooseno                                  www.iprbor.com
                        AmBadar & Partners
                                 www.ambadar.co.id
                        Januar Jahja & Partners
                                 www.jhja.com
                        Pacific Patent                                  www.pacificpatent.com
                        General Patent International                                  www.gpi.co.id
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2. How much does the cost to obtain patent right in Indonesia?
   

To obtain patent right in Indonesia is very affordable and cheap. According to the government regulation no. 50/ 2001 (PP No. 50/2001), the expenses are as follows:

Patent request Rp. 575.000
Substantive check expenses Rp. 2.000.000
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3. Can foreign investors invest their money in Indonesia?
   

Yes of course they can. Foreign investors are allowed to invest their fund in the form of LIMITED COMPANY (Ltd.) based on the regulations and laws in Indonesia. The limited company must be operated in Indonesia, unless the state laws provide different provision.

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4. Do the government treats foreign investors differently from domestic investors?
   
No. According to Law No 25/ 2007 article 4 (2), foreign investors will receive the same treatment as domestic investors (the national interests are considered).
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5. If I invest my money in Indonesia, will the government eventually nationalised my company?
   
Government will not nationalise foreign investors’ company or take over investors’ proprietary rights. Unless it is regulated with state laws. If the company is nationalised, compensation will be given. If the compensation agreement is not achieved, the settlement will be achieved through arbitration.
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6. Does the company allows to employ foreign workers?
   
Yes. The company is allowed to employ foreign workers as regulated by the state laws, as long as Indonesians are not qualified to fill the positions. Government regulations limit the employment of foreigners only to “experts” which can contribute to national development. Due to the high unemployment rate, it must be proven that the expertise of a foreigner can not be provided by a local.
If a company in the framework direct investment wants to employ foreigners, the company should submit an Expatriate Placement Plan (RPTKA-Rencana Penempatan Tenaga Kerja Asing) to the Investment Coordinating Board (BKPM).
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7. What kind of businesses that foreign investors are prohibited to invest?
   
Foreign investors are not allowed to invest in these following business sectors:
Weapons, ammunitions, explosives, and related components
Cultivation and processing of marijuana and other addictives
harmful chemicals
Collection or utilisation of sponge
Casino and gambling facilities
And businesses which are not allowed for foreign investment, as regulated by the state laws.
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8. What are the requirements to set up company (companies) in Indonesia?
   
Applicants have to submit these following requirements:
Letter of Intent
Letter of appointment
Statement letter
Business Strategic Plan
Copy of ABN or ACN
Resume of appointed representative
Copy of passport of appointed representative
Copy of certificate of registration
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9. What are the procedures to open business in Indonesia?
   
Indonesia has improved its’ rank in the Ease of Doing Business. It requires 9 step procedures which only takes 60 days. Those procedures are:
Obtain the standard form of the company deed; arrange for a notary electronically; obtain clearance for the Indonesian company's name at the Ministry of Law and Human Rights.
Notarize company documents before a notary public
Pay the State Treasury for the non-tax state revenue (PNBP) fees for legal services at a bank
Apply to the Ministry of Law and Human Rights for approval of the deed of establishment
Register with the Company Register (Department of Trade) and obtain a registration certificate (TDP)
Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP)
Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP)
Register with the Ministry of Manpower
Apply for the Workers Social Security Program (Jamsostek Program)
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10. What are the procedures to build warehouse in Indonesia?
   
It requires 14 procedures which takes 160 days. The procedures are:
Request Pre-approval letter from Zoning Department
Receive inspection from Zoning Department
Obtain Pre-approval letter from Zoning Department
Request and obtain notarized copy of Land Ownership certificate
Request and obtain the preparation of the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)
Request and obtain the approval for the Environmental Management Plan (UKL) and Environmental Monitoring Plan (UPL)
Request and obtain building construction permit (IMB)
Request and obtain the building completion and compliance minutes
Obtain building usage permit (IPB)
Register with land and building tax office
Register the warehouse with the regional office of the ministry of industry and trade
Obtain electricity connection
Obtain water and sewerage connection
Obtain phone connection
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11. Where should I submit the investment application?
   
Foreign investment approval can be issued either in Indonesia, the Investment Coordinating Board (BKPM) in Jakarta or Regional Investment Coordinating Board (BKPMD) in every province, or through representative offices of the Republic of Indonesia in several countries. Therefore, investors can choose one of those offices for submitting their investment application. However, for foreign investment projects located in Bonded Zones, investors should submit the application to BKPM through the respective Bonded Zone Authority.
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12. What are the application procedures to invest in Indonesia?
   
To apply for a new investment approval, foreign investment applicants have to complete and submit 2 (two) copies of form Model 1/ PMA to the Indonesian Embassy or Consulate General or to BKPM and to the corresponding BKOMD where the project will be located and vice versa.
The following documents should be attached to the application form as enclosures, in order to ensure that the application will furnish all information and required documents:
a. By Foreign Participant:
  Articles of Association of the Company in English or in Indonesian language; or
  Copy of valid passport for foreign individuals
  By Foreign Investment Company (PMA):
  Articles of Association of the Company and any amendment(s) there of;
  Taxpayer Registration Number
  Taxpayer Identification Number (TIN/ NPWP)
  By Indonesian Participant:
  Articles of Association of the Company and any amendment(s) there of or Identity Card for Individuals
  Taxpayer Registration Number (NPWP)
b. Must also enclose these following documents
  Flowchart of the production process and raw material requirements for processing industries
  Description of business activities for the service sector
c. Power of Attorney to sign application if the participant(s) is represented by another party
d. Other requirements from the sectoral minister concerned, if any, as stated among others in the “Capital Investment Implementation Technical Guidance”.
e. Required for partnership cooperation in the business sector as follow:
  Agreement between Small Scale Enterprise and Medium/ Large Scale Enterprise outlining among other things name and address of each party, pattern of partnership, rights and obligations of each party as well as guidance provided for Small Scale Enterprise
  Letter of Statement by the Small Scale Enterprise stating that the enterprise concerned, meets the criteria of Small-Scale Enterprises based on law of the Republic Indonesia No. 9/ 1995.
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13. What are the application procedures to invest in Bonded Zones?
   
Beside documents and application forms which are required to invest in Indonesia (for details, click on question: What are the application procedures to invest in Indonesia?), applicants must also attach the following documents:
Foreign investment applicants have to complete and submit 2 (two) copies of form Model 1/ PMA to BKPM through the corresponding Bonded Zones Authority where the project will be located
To implement the approved investment projects that are located in Bonded Zones, investors are not required to apply for any further implementation licenses such as location permit, building construction permit, nuisance act permit, land title, etc.
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14. What are the requirements in obtaining licence for foreign distributionship?
   
Applicants have to submit these following requirements:
Letter of Intent from the foreign company or the association of the Foreign Companies abroad which declares its intention to obtain licence on distributionship.
  The Letter of Intent should be acknowledged or legalised by the local Chamber of Commerce or the Notary Public and The Indonesian Embassy/ Consulate where the principal is located.
A Letter of Permit (Surat Ijin Usaha Perdagangan/ SIUP) from the Department of Industry and Trade.
A certificate of Establishment (Akte Pendirian) and Certificate of Registration on Change of Name (Perubahan Perusahaan) if applicable, of the principal company.
A valid Certificate of Registration (Tanda Daftar Perusahaan/ TDP/ Australian Business Number/ Australian Business Registration).
Letter of Agreement or Letter of Appointment as an agent or distributor acknowledged or legalised by the notary Public and The Indonesian Embassy/ Consulate where the principal is located.
Letter of Agreement or Letter of Appointment to supplier if the appointee is a Trading House (Supplier) not the principal manufacturer.
Original Leaflet/ Brochure/ Catalogue of the product/ service
Letter of Statement declaring that no agent/ distributor has been appointed for that particular product/ service
Letter of Statement declaring that the product is not categorized as illegal as well as banned from importation (please provide the product’s HS number).
Certificate of Registration as an Importer Producer of products categorized in IP/ PI.
Certificate of Registration from Health Department for local company who distribute medicine, food, beverages, cosmetics, and medical supplies (SK Mendag No.314/ KP/ VII/ 74 tanggal 4 Agustus 1974).
Foreigners are not allowed to sign any company’s agreement (SK Mendag No. 78/ KP/ III/ 78 tanggal 9 Maret 1978 pasal 3(c)). Foreigners who work in a selling or buying agent are not allowed to sign a contract, claim, etc.
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15. How much Rupiah is allowed to be brought to Indonesia?
   
Indonesia does not limit the amount of cash you bring. But to monitor the cash flow within Indonesia, there are several regulations regarding that.
Every person or corporations who bring more than Rp 100.000.000 (one hundred millions rupiah) in cash into Indonesia’s territory, MUST first check the authenticity of the money to the customs officer(s).
Every person or corporations who exit Indonesia’s territory and bring more than Rp 100.000.000 (one hundred millions rupiah) MUST first obtain permission from Bank Indonesia (Indonesia’s Central Bank).
Any person or corporation who violates the law must pay administrative sanction 10 percent of the amount of cash he/she brings, with maximum limit of sanctions Rp 300.000.000.
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16. Are business visitors granted free visa?
   
According to Presidential Decree (Keppres) No.103 Year 2003, business visitors and tourist (not only business visitors) from 11 countries, which are Brunei Darussalam, Chili, Hong Kong Special Administration Region, Macao Special Administration Region, Malaysia, Morocco, Peru, Philippines, Singapore, Thailand, and Vietnam do not require visa for a maximum stay of 30 days in Indonesia. The granting of free visa to visitors as such is limited for the purposes on holidays, inter-government relations, social-culture relations, business investigations or discussion with their business. They are not permitted to conclude any business transaction, engage in local employments and perform any professional or technical service. These visas are un-extendable and un-changeable to other immigration purposes.
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17. Are grants free of import duties and excises?
   
If the goods are for worship, charity, social-culture purposes, the grants will be free of import duties and excises, as regulated in SK Menkeu No.144/KMK.05/ 1997 article 1.
The grantee/ grantor must propose for free of import duties and excises to Director General Duties and Excises. The grantee/ grantor must also attach these followings data:
a. Details of the quantities and types of the goods, including the custom values of the goodss
b. Gift certificate from the grantor, which declares that the goods are gifts/ grants and not using Indonesia’s foreign exchange in the procurement
c. Recommendation from relevant departments
If the grants are frozen meat, there are other requirements to be fulfilled, the grantee/ grantor must also attach these following information:
a. Product specification
b. Certificate of Analysis (COA)
c. Certificate of Free Sales (CFS)
d. Health Certificate
e. Long expiration period
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18. Am I exposed to Indonesian tax if I receive income from Indonesia but not residing in Indonesia?
  There are two classes of income taxpayer:  
Resident taxpayers are companies, partnership, cooperatives, and individuals residing in Indonesia and established according with Indonesian law
Non-resident taxpayers are taxpayers not residing or companies not established in Indonesia—including those defined as permanent establishment—which receiving income from Indonesia
So, yes you are exposed and obliged to pay tax.
The individual tax rate is progressive, as follows:
5% for taxable income up to Rp 25 million per year
10% for taxable income up to Rp 50 million per year
15% for taxable income up to Rp 100 million per year
25% for taxable income up to Rp 200 million per year
35% for taxable income over Rp 200 million per year
The corporate tax rate is also progressive, as follows:
10% for taxable income up to Rp 50 million per year
15% for taxable income up to Rp 100 million per year
30% for taxable income over Rp 100 million per year
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  ANSWERS FOR INDONESIANS  
1. Apakah Austrade menyediakan pelayanan jasa terhadap impor ke Australia?
  Austrade tidak menyediakan jasa untuk para supplier yang tertarik untuk mengimpor produknya ke Australia. Apabila pengusaha berniat untuk mengimpor barang dan jasa ke Australia, mereka harus memperhatikan bea cukai, ijin impor, ijin karantina dan perlakuan terhadap barang impor. Kami rekomendasikan untuk menghubungi organisasi-organisasi berikut terkait produk yang akan diimpor.  
The Department of Agriculture, Fisheries and Forestry/ Australian Quarantine & Inspection Service (AQIS)
  Web: www.daff.gov.au/aqis/import
  AQIS menyediakan informasi karantina dan inspeksi Australia, control terhadap barang impor, seperti: makanan, hewan hidup, produk hewan, ikan, produk perikanan, tanaman, gandum-ganduman, dan kayu.
Australian Customs Services
  NSW Head Office
477 Pitt St
Sydney NSW Australia 2000
  T: +61 2 9213 2000
Email: information@customs.gov.au
Web: www.customs.gov.au/site/page.cfm
  The Australian Customs Services adalah satu-satunya organisasi yang berwenang mengurus pertanyaan terkait impor
Standards Australia
GPO Box 5420
Sydney NSW Australia 2001
  T: +61 2 8206 6000
F: +61 2 8206 6001
Email: mail@standards.com.au
Web: www.standards.com.au

Business.gov.au

  Website ini merupakan komunitas bisnis di Australia, dengan melihat website ini dapat diperoleh informasi mengenai persyaratan pemerintah Australia.
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2. Apakah ada peraturan yang mengatur membawa rupiah keluar/ masuk wilayah Republik Indonesia?
   
Ya ada, hal ini diatur dalam Peraturan Bank Indonesia NO.4/8/ PBI/ 2002. Setiap orang/ perusahaan yang membawa uang rupiah sebesar Rp 100.000.000 (seratus juta rupiah) atau lebih keluar wilayah Republik Indonesia, wajib terlebih dahulu memperoleh ijin dari Bank Indonesia. Ijin Bank Indonesia hanya dapat diberikan untuk kepentingan uji coba mesin uang, kegiatan pameran di luar negeri, hal-hal lain yang menurut pertimbangan Bank Indonesia perlu diberikan ijin atas dasar kepentingan umum.
Setiap orang yang membawa uang rupiah sebesar Rp 100.000.000 (seratus juta rupiah) atau lebih masuk wilayah Republik Indonesia, wajib terlebih dahulu memeriksakan keaslian uang tersebut kepada petugas Bea dan Cukai di tempat kedatangan.
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