|
The classic definition of a foreign direct
investment (FDI) company is a company from one country making a
physical investment in a factory or a business expansion in another
country and can be extended to include investments made to acquire a
lasting interest in enterprises operating outside of the national
economy of the investor. The FDI relationship consists of a parent
enterprise and a foreign affiliate which together form a
Multinational Corporation (MNC). The intricate process required to
set up a multinational corporation for the purpose of foreign direct
investment is detailed.
To begin the process of foreign direct investment, many companies
choose a Representative Office, referred to as a PMA (Penanaman
Modal Asing) in the Indonesian language. The Representative Office
is your first line of interaction with all of the various Ministries
involved in setting up a Foreign Direct Investment (FDI). The
following is a list of the various offices involved and their
purpose:
-
Foreign Direct Investment Representative
Office for the Ministry of Finance to accomplish all of your
organization’s commercial banking requirements.
-
Foreign Direct Investment
Representative Office for the Investment Board (BKPM) to
accomplish all of your organizations legal negotiation for the
FDI.
-
Foreign Direct Investment Representative
Office for the Ministry of Manpower for the expatriate visas
and other manpower requirements.
-
Foreign Direct Investment Representative
Office for the Ministry of Industry and Trade for the agent of
negotiation for Import and Export.
-
Foreign Direct Investment Representative
Office for the Ministry of Public Work for the use of
consultants and contractors.
-
Foreign Direct Investment Representative
Office for the Ministry of Energy and Mineral Resources in the
event the Foreign Direct Investment involves mining.
|
|
