(合同范本)协议合同.docxVIP

Brief Un dersta nding for FDI (PMA) Compa ny Inv estme nt A. NATURE OF INVESTMENT In Indonesia the term investment denotes two meaning. The first meaning is direct in vestme nt and the sec ond meaning is in direct in vestme nt. Direct in vestme nt is in vestme nt through the mecha nism of Foreig n In vestme nt Law. While in direct in vestme nt is in vestme nt by way of buy ing shares through the stock excha nge. Here we will focus on Foreig n Direct in vestme nt (FDI) and will not deal with foreig n in direct in vestme nt. Matters that have concerned with FDI is han dled by the In vestme nt Coordin ati ng Board (Bada n Koord in asi Penan ama n Modal) or better known as BKPM. Please no te, however , that in vestme nt in mining, forestry, oil, banking and in sura nee are not un der the exclusive purview of BKPM. These sectors are han dled also by releva nt min istries. B LEGAL ASPECT Foreign In vestme nt Law No. 1 of 1967 Foreig n Direct In vestme nt (FDI), further referred to as PMA (Pe nan ama n Modal Asing-Foreign Investment), is governed primarily by the Foreign Investment Law No. 1 of 1967, as ame nded. A PMA compa ny is gran ted a period of 30 years to operate after its legal formation and can be expanded for another 30 years. Share Ownership A PMA compa ny is gen eral established as a joi nt ven ture betwee n foreig n and Indon esia partn ers. The part nership may in volve legal en tities (Corporati ons) or in dividual pers ons. A joi nt ven ture en tity shall take the form of a Limited Liability compa ny, which is subject to Indon esia n Compa ny Law (No. 1, year 1995), denoted as PT (Perseroan Terbatas) and its implementary Regulation. A PMA compa ny may be established as a straight in vestme nt, n amely with 100 % foreig n own ership. TAXATION Income T ax In come tax in Indon esiais progressive and applies to both in dividualandcorporate taxpayers.In order to provide more facilities for taxpayers,the In come tax in Indon esia is progressive and applies to bo