Description of Domestic Investment Business Entity
Domestic investment
Domestic Investment or abbreviated (PMDN) is an investment to conduct business in the territory of the Republic of Indonesia which is carried out on domestic investors using domestic capital.
Provisions for Investments are regulated in Law No. 25 of 2007 concerning Investment.
Understanding
Domestic Investment (hereinafter referred to as "PMDN") pursuant to Article 1 of Law Number 25 Year 2007 concerning Investment ("UUPM"), investment activities to conduct business in the territory of the country, which are made by domestic investors using capital in country. The definition of a domestic investor is an individual Indonesian citizen, an Indonesian business entity, the Republic of Indonesia, or an investment area in the Republic of Indonesia. Indonesian business entities intended here may form a limited liability company ("PT").
Based on Article 5 paragraph (1) of the Capital Market Law, it explains that investment in the country can be carried out in the form of a business entity, a legal entity, not a legal entity, or an individual, in accordance with the provisions of the law. Article 5 (3) further explains the Capital Market Law, domestic and foreign investors who invest in PT is done by doing the following:
take part in shares at the time of establishment of a limited liability company;
buy shares; and
do other ways in accordance with the provisions of the legislation
Description
Domestic investors can be carried out by individuals, State business entities and / or the government itself making investments in the territory of the Republic of Indonesia. Business activities or types of business open for investment activities, except business fields or types of business that are declared closed and open with the requirements and restrictions on ownership of the State assets of business transfer from companies are regulated in Presidential Regulation Number 36 Year 2010 concerning List of Changes in Closed and Open Business Sectors Business with requirements in the Investment or Investment Sector.
Special Facilities for PMDN
A fundamental difference in ordinary PT domestic investment companies and domestic investment to get facilities from the Indonesian government in operations where facilities are not acquired by ordinary PT. Based on Article 18 paragraph (2) of the Capital Market Law, it is clear that investment facilities can be provided to investors:
Investment in South Sumatra Reaches IDR 15.90 Trillion Until End of 2015
Investment in South Sumatra Reaches IDR 15.90 Trillion Until End of 2015
expand business; or
make new investments.
Furthermore, Article 18 paragraph (4) of the Capital Market Law describes the form of facilities provided by the government to investors, including domestic ones, to be able to:
Income tax through reduction of net income to a certain level of investment made within a certain time;
Exemption or relief of import duty on capital goods, machinery or equipment for production purposes that cannot be produced domestically;
Exemption or relief of import duty of raw materials or supporting materials for production needs for a certain period and certain requirements;
Exemption or suspension of Value Added Tax on the import of capital goods or machinery or equipment for production purposes that cannot be produced domestically for a certain period of time;
Depreciation or amortization; and
Land and building tax breaks, especially for certain sectors, in certain regions or regions or regions.
PMDN Ratification and Licensing
Pursuant to Article 25 paragraph (4) of the Capital Market Law, corporate investors, including domestic ones, who will carry out business activities are required to obtain a permit in accordance with the provisions of the legislation from an authorized agency. License as previously stated was obtained through a one stop service. The single service counter is intended to assist investors in obtaining ease of service, fiscal facilities, and investment information, both domestic investment and foreign direct investment.