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Doing Business in Indonesia:Unlocking the Opportunities in this Region
Health Ingredients South East AsiaJakarta, 7th of April 2016
Contents
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Market-entry Strategy in Indonesia
Product Registration
Company Profile
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HOW TO ENTER INDONESIAN MARKET?
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• The decision to enter new market is critical, particularly in Asia. Indonesia market is one of potentials market to be entered in Asia. As a consulting firm, we have wide experience in assisting our clients from various industries to enter Indonesian market.
• As we understand the local market specifics and take advantage of our wide network, we aim to provide an update information to foreign entities and entrepreneurs to support their business in Indonesia.
• There are two options prior to enter Indonesian market.
1. Incorporation2. Cooperate with local partner or
distributor
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INCORPORATION
1. Minimum 2 shareholders, 1 director and 1 commissioner2. Business activities determine percentage allowed for foreign3. Minimum investment USD 1.000.000 & 25% paid up capital4. IUT (Permanent License) can be obtained after realization of investment by LKPM report5. Other license can be obtained after IUT is obtained
Foreign Owned Company (PT. PMA)
1. Minimum 2 shareholders, 1 director and 1 commissioner 2. Shareholders % commissioner required local and at least 1 local director3. There are 3 sizes of local PT : - small - medium - large 4. If company plans to hire foreign, medium size with capital IDR 1.000.000.000 is required
Local Company (PT)
1. Limited only for market studies, marketing, promotion and not allowed to generate revenue2. No shareholder requirement3. No director and commisoner requirement4. No capital requirement5. Minimum 1 Chief of Representative Office
Representative Office
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Foreign Owned Company (PT. PMA)
2 days• Approval of company name at Ministry of Law
and Human Rights
15 days• Approval of Principal License at the
Indonesian Investment Coordinating Board
4 days• Preparation of Article of Association
3 days• Obtain Deed of Establishment at Ministry of
Law and Human Rights
15 days• Obtain Certificate of Domicile at the local
government office
3 days• Obtain tax payer registration number
(NPWP)
10 days• Obtain Company Registration Certificate at
the local government
• Regulations of PT. PMA
Time process approximately 2,5 months The investment plan USD 1.000.000 should be
spend and can include non financial investment The time given is 1 year to fulfill the investment
and can be extended 2 years Permanent business license (IUT) can be obtained
after realization around 1 year The double investment can be implemented to
have more than 1 business activities Any licenses e.g. Import license in order to
support the business can be obtained after IUT is obtained
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Local Company (PT)
2 days• Approval of company name at Ministry of Law
and Human Rights
4 days• Preparation of Article of Association
3 days• Obtain Deed of Establishment at Ministry of Law
and Human Rights
15 days
• Obtain Certificate of Domicile at the local government office
3 days• Obtain tax payer registration number (NPWP)
10 days• Obtain Trading Business License
10 days
• Obtain Company Registration Certificate at the local government
• Regulations of local company (PT)
Time process approximately 2 monthsThere are 3 types according to the mount of paid
in capital :1. Small : IDR 50.000.000 - 500.000.0002. Medium : IDR > 500.000.000 - 10.000.000.000 3. Large : IDR > 10.000.000.000
Medium size of company with minimum capital IDR 1.000.0000 is required to employ 1 foreign
Maximum 3 (three) business activitiesAfter company is established, company is
automatically obtain business license (SIUP)Any other licenses can be obtained after company
is established
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Representative Office
15 days
• Approval of representative office by BKPM
15 days
• Obtain Certificate of Domicile at the local government office
3 days
• Obtain tax payer registration number (NPWP)
15 days
• Obtain Company Registration Certificate at the local government office
• Regulations of Representative Office
Time process approximately 2 months The transactions shall be done through the
mother company There is no minimum investment, shareholders,
director and commissioner requirement The Representative Office shall be located in the
office building or commercial area There are 3 types of Representative Office
1. Representative Office (KPPA)2. Trading Representative Office (KP3A)3. Construction Representative Office (BUJKA)
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COOPERATION• Aside from incorporation, other way to enter
Indonesian market is to cooperate with local partners e.g local distributors.
• As the distributors are the key players in the market, prior to appoint the partners and distributors, ensure and review the distributor’s background is highly recommended.
• As a consulting firm, we have wide experience in asissting foreign entities and entrepreneurs in finding potential local distributors to develop the business in Indonesia. We help finding them the potential distributors based on requirements needed.
• Alternatively, Cekindo can assist to hold the product license under Cekindo.
There are several steps to encourage the potential distributors :
Listing the requirements
Shortlisting the potential distributors based on the requirements
Company review to clarify the background of the distributors
Conduct and arrange initial meetings with potential distributors
Negotiations and dealing
Close deal
cekindo.com
Contents
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Market-entry Strategy in Indonesia
Product Registration
Company Profile
cekindo.com
ONE STEP AHEAD TO ENTER INDONESIAN MARKET
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• Prior to mainly enter Indonesian market, the products shall be registered before it being marketed in Indonesia.
• The products shall be registered in Indonesia under government or institutions to obtain the product license to be distributed legally.
• The products shall be registered under legal entity in Indonesia.
• Type of product determine the institutions where the products shall be registered.
BPOM
Food and Beverage
Food Suppleme
ntCosmetics
Pharmaceutical
Ministry of
Health
Medical Device
Household Product
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Food Supplement Registration in Indonesia
• Food Supplement registration in Indonesia shall be under Indonesia National Agency of Drugs and Food Control (BPOM). To obtain the product license. The registration process around 3 – 6 months.
• Registration lifetime for food supplement is 5 years.
• Building Inspection, laboratory test and sample of product are required for the food supplement registration.
• The importation and distribution of the product is allowed by the distributor after the whole registration process is completed.
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Phase 5
Phase 4
Phase 3
Phase 2
Phase 1Preparation
company and products documents
Building and Facility Inspection
Laboratory Test
Online Registration and Documents Submission
verification
Product ID
Contents
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Market-entry Strategy in Indonesia
Product Registration
Company Profile
cekindo.com
COMPANY PROFILE
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PT. Cekindo Bisnis Grup is a leading consulting firm of business services to clients expanding and operating in Indonesia and further to Southeast Asia.Cekindo provides full-range of market-entry and corporate secretarial services to enable our clients to focus on their core business and activities in Indonesia.
Our VisionTo be leading consulting firm of business services to clients expanding and operating in Indonesia.
Our Mission To provide full-range of market-entry and corporate services to enable our clients to focus on their core business and activities in Indonesia and beyond.
Our ValuesClient-focused
Excellence performance
Knowledgable locally
Integrity moral
Normative operations standards
Delivered on-time
One stop services provider
Our main services include :
Business Set Up
- Company Registration- License & Product Registration- Market Research & Analysis- Local Partner Selection- Trade Mission- Land & Property Ownership
Business Process Outsourcing
- Recruitment & HR Establishment- Payroll Management- Accounting & Tax Reporting- Visa & Work Permit- Mystery Shopping
Local Representation
- Local Distributor & Partner- Buying Agent- Office Space
cekindo.com
Profile Overview Relevant Experience:
Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup.
Hi is a Research Professor at the Agency for the Assessment and Application of Technology.
The honorary degree of Doctor Honoris Causa from Monash University, Australia and Northeastern University Boston.
Senior Advisor– Prof. Dr. Rahardi Ramelan
• Minister of State for Research and Technology of the Republic of Indonesia and Chairman of the Agency for Assessment and Application of Technology (BPPT) in the Seventh Development Cabinet of the Republic of Indonesia.
• Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of Indonesia and Chairman of National Logistic Agency.
• Deputy Chairman for Industrial Analysis and Vice Chairman of the National Development Planning Agency of the Republic of Indonesia
• Several management positions and responsibilities related to Indonesian Aviation industry, the Weapon industry.
Prof. Dr. Rahardi Ramelan
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cekindo.com
Profile Overview Relevant Experience:
Michal is currently Principal Consultant at PT Cekindo Bisnis Grup.
He has more than 5 year‘s experience in the Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of Business Feasibility Studies.
He has worked for various industries, namely Grocery and Marchandise Retail, Energy, Medical Device, Heavy and Automation Industries.
+6281282300584 [email protected]
Principal Consultant– Michal Wasserbauer
Multinational grocery and general merchandise retailer: Capital Investment Appraisals• Performed a position of Senior Capital Investment Specialist for Czech & Slovak with key
responsibilities for Capex, appraisals of new store openings, reconstructions, market opportunities valuation, long-term planning, financial performace strategy and performance evaluation, and financial reporting to Financial Director for Czech Republic & Slovak Republic.
World‘s largest student and recent graduates-run organisation: Financial Controller• As Vice President for Finance and member of Executive Board, responsible for managing the
financial team. Ensuring financial stability and financial legality of all local entities in the Czech Republic, includes budgeting, controlling, financial education, coaching and mentoring. Implementing measurable performance indicators such as competencies and KPIs.
International consultation company: Market Expansion Consultant• Provided marketing consultancy and advisory for foreign companies with goal to expand to
Indonesia. Delivered feasibility studies for energy, medical device, retail, heavy and automation industries. Assisted in establishment of the local and international company related to legal and bureaucracy requirements as well as outsourcing of supporting processes for foreign companies.
Michal Wasserbauer
Relevant Skills:• Market opportunities valuation• Investment analysis• Performance management • Feasibility studies• Strategy planning
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• Stakeholder management• Marketing consultancy
cekindo.com
Profile Overview Relevant Experience:
Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup.
She has wide experience in the areas of Business Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development & Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change Management.
She has worked for various industries, namely Energy & Resources, Telecommunication, Retail, Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.
+628119691987 [email protected]
Principal Consultant– Nurmia Dwi Agustina
International Management company: Management & Legal consultant • Responsible in designing, developing, and implementing of strategies for market expansions,
Project management, Develop communication and legal plan and program, support the organization alignment from current to new leagl and business process, conduct value chain mapping of prioritized businesses and alalyze.
Chamber of Commercial: Head of Business Processing Section • Responsible for business processing section, assisting European companies in their expansion
legal process in Indonesia, holds position of the honorary Vice-President for the Asian market in the Portuguese Association Expandia.
She has worked for various industries, namely Energy & Resources, Telecommunication, Retail, Pharmaceutical & Medical, Financial Services, Non-Profit, IT and Heavy Industries.
Nurmia Dwi Agustina
Relevant Skills:• Corporate law• Outsourcing processes• Company formation• Acquisitions• Project Management• Competitive Analysis
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• Business Planning• Risk Management• Talent Management Strategy• Recruitment• Visa & Work Permit• Change Management
cekindo.com
Selected Clients…
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PT. Cekindo Bisnis GrupMenara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1Jakarta Pusat 10310, Indonesia
[email protected]/ +6221 580 6889cekindo.com
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