The twists and turns of investment development in Indonesia are diverse.
The ebb and flow of business activities is largely determined by existing investments.
It is often assumed that a business becomes advanced when it receives investment or capital from abroad.
However, it is not uncommon for Foreign Investment (PMA) companies to change their capital status scheme to Domestic Investment (PMDN).
The procedure for changing the status of PMA to PMDN is important to understand and know, considering that there is a transfer of the company’s investment status which also results in several PMA licensing provisions.
Where at this time, in terms of taking care of changing the status of PMA to PMDN, it is no longer necessary to submit an application to the Investment Coordinating Board (BKPM).
Then, what is the procedure?
Check out the full explanation in the following article.
Causes of the Change of PMA Status to PMDN
A company is said to have PMA status if all or part of its shares are owned by foreigners.
Basically, a change in the status of PMA to PMDN can occur due to a change in shareholders.
Where the shareholder in PMA must transfer all of its shares from a foreign person or business entity to fully belong to an Indonesian person or business entity.
With the change in the status of PMA to PMDN, it causes a change in the management of the company.
So it is necessary to adjust the data of the new management or person in charge after the change in company status.
What is the Procedure for Changing PMA Status to PMDN?
Previously, the change of PMA status to PMDN needed to submit an application for a change in principle license to BKPM (Decree of the Head of BKPM No. 57/SK/2005), but after the government issued PP 24/2018, the application now only needs to be made through the Online Single Submission (OSS) system.
The application for the change of principle license is made by submitting an application for investment registration with the type of status transfer registration.
To make data changes in the OSS system, companies need to pay attention to the following points:
- Legality Adjustment
Companies need to adjust their profile data, authorized capital, paid-up capital, and issued capital and/or changes in shareholders, the management or person in charge of the company, and the company’s purpose and objectives.
The data adjustment is included in the company’s Articles of Association data.
Adjustments to changes in legality can be made by comparing the company’s existing legality data in OSS, with the new company legality data.
- Business Identification Number (NIB) Adjustment
NIB adjustments are made by looking at data from the Indonesian Standard Industrial Classification (KBLI), customs activities, registration data for social security organizing bodies, and data on mandatory labor reports in companies.
- Change of Business License
In connection with changes to business license data in OSS, companies must pay attention to project data, location data, and licensing data related to infrastructure.
The change in the status of PMA to PMDN causes a change in the management of the company.
So it is necessary to adjust the data of the management and the person in charge after changing the status of the company.
KH Contact
Changing the status of PMA to PMDN is not a difficult thing to do.
However, business actors need to understand the steps during the process.
In addition, it is not only the company’s Articles of Association that need to be adjusted but also its licensing.
For KH friends who need consultation and assistance in the process of changing the status of PMA to PMDN, including related to the Articles of Association and business legality, please contact Kontrak Hukum.
We have digital notary services that can help make changes to the Articles of Association including KBLI, transfer of shares, changes in directors and commissioners, changes in authorized capital, to changes in the type of company.
Guaranteed to be safe and reliable because the services at Contract Law will be done by experienced professionals. What are you waiting for? Come on, immediately visit the page KH Services – Digital Notary.If you still have questions, you can also consult for free at Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
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