Doing Business in Indonesia:

Unlocking the Opportunities in this Region

Health Ingredients South East Asia
Jakarta, 7th of April 2016

Contents

Market-entry Strategy in Indonesia

Product Registration
Company Profile

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Market-entry
Strategy in
Indonesia
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HOW TO ENTER INDONESIAN MARKET?

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. Incorporation

2.
Cooperate
with
partner or distributor

local
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INCORPORATION
Foreign Owned
Company
(PT. PMA)

1.
Minimum
2
shareholders,
1 director and 1
commissioner
2.
Business
activities
determine
percentage allowed
for foreign
3. Minimum investment
USD
1.000.000 & 25% paid
up capital
4.
IUT
(Permanent
License) can be
obtained after
realization of

Local Company (PT)

1.
Minimum
shareholders,
1 director and
commissioner
2.
Shareholders
commissioner
required local and
least 1
local director
3. There are 3 sizes
local PT :
- small
- medium
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- large
4. If company plans
hire

2
1
%
at
of

to

Representative Office

1.
Limited
only
for
market studies,
marketing, promotion
and not
allowed to generate
revenue
2.
No
shareholder
requirement
3.
No
director
and
commisoner
requirement
4.
No
capital
requirement
5. Minimum 1 Chief of
Representative
Office
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Foreign Owned Company (PT. PMA)

Approval of company name at
2
days Ministry of Law and Human Rights

Approval of Principal License at

15
the Indonesian Investment
days Coordinating Board
4
days

Preparation of Article of
Association

Obtain Deed of Establishment at

3
Ministry of Law and Human
days Rights
15
days

Obtain Certificate of Domicile at

the local government office

3
days

Obtain tax payer registration

number (NPWP)

Obtain Company Registration

10
Certificate at the local
days 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)

Approval of company name at
2
Ministry of Law and Human Rights
days
4 Preparation of Article of Association
days
Obtain Deed of Establishment at
3
Ministry of Law and Human Rights
days
15
days

Obtain Certificate of Domicile at the

local government office

Obtain tax payer registration

3
number (NPWP)
days
10

days
10
days

Obtain Trading Business License

Obtain Company Registration
Certificate at the local government

Regulations of local company (PT)

Time process approximately 2 months

There are 3 types according to the
mount of paid in capital :
1.Small
: IDR 50.000.000 500.000.000
2.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 activities
.After 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

15 days

3 days

Approval of representative
office by BKPM

Obtain Certificate of Domicile

at the local government office

Obtain tax payer registration

number (NPWP)

Obtain Company Registration

Certificate at the local
15 days
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.

There are several steps to encourage the potential

distributors :

Listing the requirements

Shortlisting the potential distributors

based on the requirements

Company review to clarify

background of the distributors

the

Conduct and arrange initial meetings

with potential distributors

Negotiations and dealing

As the distributors are the key players

in the market, prior to appoint the
partners and distributors, ensure and
review the distributors 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.

Close deal
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Contents

Market-entry Strategy in Indonesia

Product Registration
Company Profile

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Product
Registration
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ONE STEP AHEAD TO ENTER INDONESIAN

MARKET
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.

Food
Supplemen
t

Cosmetics

Food and
Beverage

Pharmaceut
ical

BPOM

The products shall be registered under

legal entity in Indonesia.
Type
of
product
determine
the
institutions where the products shall be
registered.

Medical
Device

Househol
d Product

Ministr
y of
Health

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Food Supplement Registration in Indonesia

Preparation
company
Phase
1 and

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.

products
documents

Building and
PhaseFacility
2
Inspection

Laboratory

Registration lifetime for food

supplement is 5 years.

Phase Test
3

Building Inspection, laboratory test and

sample of product are required for the
food supplement registration.

Online
Registration and
Documents
Phase
4
Submission
verification

The importation and distribution of the

product is allowed by the distributor
after the whole registration process is
completed.

Product
Phase
5 ID
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Company
Profile
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Contents

Market-entry Strategy in Indonesia

Product Registration
Company Profile

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COMPANY PROFILE
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 main services include :

Our Vision
To be leading consulting firm of business services
to clients expanding and operating in Indonesia.

Company Registration
License & Product Registration
Market Research & Analysis
Local Partner Selection
Trade Mission
Land & Property Ownership

Business Process
Outsourcing

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 Values

Client-focused
Excellence performance
Knowledgable locally
Integrity moral
Normative operations standards
Delivered on-time

Business Set Up

- Recruitment & HR
Establishment
- Payroll Management
- Accounting & Tax Reporting
- Visa & Work Permit
- Mystery Shopping
Local Representation

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- Local Distributor & Partner

- Buying Agent
- Office Space
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Senior Advisor Prof. Dr. Rahardi Ramelan

Profile Overview

Prof. Dr. Rahardi

Ramelan
Mr. Ramelan is currently Senior Advisor at PT
Cekindo Bisnis Grup.

Relevant Experience:

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.

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.

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Principal Consultant Michal Wasserbauer

Profile Overview

Relevant Experience:
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.

Michal Wasserbauer

Worlds 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.

He has more than 5 years experience in the

Corporate Market research, Strategy and
Evaluation Expansions, Business Consultancy,
and Preparation of Business Feasibility Studies.

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.

He has worked for various industries, namely

Grocery and Marchandise Retail, Energy,
Medical Device, Heavy and Automation
Industries.

Relevant Skills:

Michal is currently Principal Consultant at PT

Cekindo Bisnis Grup.

+6281282300584
michal.wasserbauer@cekindo.com

Market opportunities valuation

Investment analysis
Performance management
Feasibility studies
Strategy planning

Stakeholder management
Marketing consultancy

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Principal Consultant Nurmia Dwi Agustina

Profile Overview

Relevant Experience:
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.

Nurmia Dwi Agustina

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
nurmia.agustina@cekindo.com

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.

Relevant Skills:

Corporate law
Outsourcing processes
Company formation
Acquisitions
Project Management
Competitive Analysis

Business Planning
Risk Management
Talent Management Strategy
Recruitment
Visa & Work Permit
Change Management

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Selected Clients

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Contact Us
PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310, Indonesia
info@cekindo.com/ +6221 580 6889
cekindo.com