According to the new Decree of the State Minister of Investment / Head of Investment Board Number 38/SK/1999 dated October 6, 1999, to obtain approval for setting up a PMA Company, the shareholders should complete and submit two copies of the Model I/PMA-form to the BPM, or Indonesian Embassy or Consulate General or Consulate (where the foreign investors are stationed) or Regional BPM (known as BKPMD) where the project is located.
The application should have certain documents enclosed, i.e. :
·By Indonesian participant
- Copy of the Articles of Association of the company (if the shareholder of PMA Company is a company) along with copy of the Identity Card of the person signing the Model I/PMA-form or Identity Card (if the applicant is an individual);
- Copy of the Tax Identification Number (known as Nomor Pokok Wajib Pajak– NPWP).
·By foreign participant
- Copy of the Articles of Association of the company in English or Indonesian (if the proposed shareholder of PMA Company is a company) and copy of passport of the person signing the Model I/PMA-form on behalf the Company;
- Copy of the passport of an individual foreign citizen shareholder of the person signing the Model I/PMA-form if the proposed shareholder of PMA Company is an individual.
·Draft of the Joint Venture Agreement between the counterparts (not necessary for 100% foreign owned companies);
·Company profiles of the proposed shareholders of PMA Company (not necessary for individual shareholder);
·Explanation of scope of activities of a service sector investment or flow chart of the production process for a industrial sector investment;
·Power of Attorney to sign the Model I/PMA-form if the proposed shareholders of PMA Company are represented by another party, and also the copy of the passports of the persons giving the power of attorney and the proxy holder. In cases where the Model I/PMA-form is signed by a member of the Board of Directors (of a company) or an individual, also attached is the copy of the passport or Identity Card as well as copy of their appointment letter as the directors;
·Power of Attorney to us for submitting the application by attaching a copy of the passport of the person signing the Power of Attorney;
·Foreign investors intending to invest in certain business lines, such as mining especially for extraction activities, palm oil plantation, energy, and fishery sector investment, have to obtain a Recommendation Letter from the government body which regulates the industry in which the investment is being made. Such recommendation letter has to be applied for by the investor to the related government body, by quoting the intended name of the PMA Company as well as its business line.
· Foreign investors intending to invest in the business lines (such as distributor, retailer, etc), which require the form of partnership (“Kemitraan”) with the Indonesian Small-Scale Enterprise, have to attach:
- The Partnership Agreement between the proposed PMA Company and the Indonesian Small-Scale Enterprise.
- The statement letter from the Indonesian Small-Scale Enterprise stating that such Small-Scale Enterprise has fulfilled the criteria as the Small-Scale Enterprise.