{"id":3578,"date":"2021-05-19T08:42:14","date_gmt":"2021-05-19T08:42:14","guid":{"rendered":"https:\/\/samconsulting.co.id\/?p=3578"},"modified":"2024-07-12T01:58:20","modified_gmt":"2024-07-12T01:58:20","slug":"joint-venture-indonesia","status":"publish","type":"post","link":"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/","title":{"rendered":"Joint Venture Indonesia: How to Set Up?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">A <a href=\"https:\/\/samconsulting.co.id\/\">joint venture Indonesia<\/a>\u00a0(JV) combines two or more businesses&#8217; expertise and resources to reach particular goals or pursue specific projects. The joint venture is not only combining different resources but also shares its rewards and risks. Since it is a big decision, many considerations involve before entering into a <strong>joint venture Indonesia<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-67ef31bce8e21\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #18407c;color:#18407c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #18407c;color:#18407c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-67ef31bce8e21\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#Things_Need_to_Consider_before_Setting_up_a_Joint_Venture\" title=\"Things Need to Consider before Setting up a Joint Venture\">Things Need to Consider before Setting up a Joint Venture<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#1_Determine_the_Business_Sector\" title=\"1. Determine the Business Sector\">1. Determine the Business Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#2_Negative_Investment_List_and_Foreign_Ownership\" title=\"2. Negative Investment List and Foreign Ownership\">2. Negative Investment List and Foreign Ownership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#3_Determine_the_Locations\" title=\"3. Determine the Locations\">3. Determine the Locations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#4_Taxation\" title=\"4. Taxation\">4. Taxation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#Types_of_Joint_Venture_in_Indonesia\" title=\"Types of Joint Venture in Indonesia\">Types of Joint Venture in Indonesia<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#Corporate_JVs\" title=\"Corporate JVs\">Corporate JVs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#A_firm_firma_or_venootschap_onder_firma\" title=\"A firm (firma\u00a0or\u00a0venootschap onder firma);\">A firm (firma\u00a0or\u00a0venootschap onder firma);<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#A_komanditer_partnershipassociation_commanditaire_vennotschap_or_%E2%80%9CCV%E2%80%9D\" title=\"A komanditer partnership\/association (commanditaire vennotschap\u00a0or\u00a0&#8220;CV&#8221;).\">A komanditer partnership\/association (commanditaire vennotschap\u00a0or\u00a0&#8220;CV&#8221;).<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/#Contractual_JVs\" title=\"Contractual JVs\">Contractual JVs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Things_Need_to_Consider_before_Setting_up_a_Joint_Venture\"><\/span>Things Need to Consider before Setting up a Joint Venture<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">It is easier to start a new joint venture company in Indonesia than buying shares in an existing one. Other Things you need to consider while setting up a joint venture in Indonesia are as follow:<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Determine_the_Business_Sector\"><\/span><strong>1. Determine the Business Sector<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">First of all, it is vital to determine the business sector of Indonesian joint ventures. It is because not all sectors are open to foreign ownership.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Negative_Investment_List_and_Foreign_Ownership\"><\/span><strong>2. Negative Investment List and Foreign Ownership<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Under the Negative Investment List (DNI), regulate the maximum percentage of foreign ownership. This list keeps updated from time to time.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Determine_the_Locations\"><\/span><strong>3. Determine the Locations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">After determined the joint venture company&#8217;s business sector and foreign ownership, it is also necessary to decide where the JV will operate.<\/p>\n<p style=\"text-align: justify;\">This is because certain business sectors do not allow a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Joint_venture\">joint venture<\/a> to operate in certain Indonesian regions. Therefore, certain business sectors only allow a joint venture to operate in specific regions in Indonesia.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Taxation\"><\/span><strong>4. Taxation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The major taxation matters for a joint venture company are the withholding and income tax payable.<\/p>\n<p style=\"text-align: justify;\">In most cases, foreign shareholders are responsible for 20% of the final withholding tax on dividends from an Indonesian joint venture company.<\/p>\n<p style=\"text-align: justify;\">Once JV is established, it is always advisable to outsource taxation matters to an expert to ensure compliance and seamless operations in Indonesia.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-4221\" src=\"https:\/\/samconsulting.co.id\/wp-content\/uploads\/2021\/05\/Things-Need-to-Consider-before-Setting-up-a-Joint-Venture-640x453.jpg\" alt=\"Things Need to consider before setting up joint venture\" width=\"640\" height=\"453\" srcset=\"https:\/\/samconsulting.co.id\/wp-content\/uploads\/2021\/05\/Things-Need-to-Consider-before-Setting-up-a-Joint-Venture-640x453.jpg 640w, https:\/\/samconsulting.co.id\/wp-content\/uploads\/2021\/05\/Things-Need-to-Consider-before-Setting-up-a-Joint-Venture-768x544.jpg 768w, https:\/\/samconsulting.co.id\/wp-content\/uploads\/2021\/05\/Things-Need-to-Consider-before-Setting-up-a-Joint-Venture-320x227.jpg 320w, https:\/\/samconsulting.co.id\/wp-content\/uploads\/2021\/05\/Things-Need-to-Consider-before-Setting-up-a-Joint-Venture.jpg 940w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Joint_Venture_in_Indonesia\"><\/span>Types of Joint Venture in Indonesia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before setting up a JV, you need to know about the types of JV in Indonesia. There are two types of joint ventures in Indonesia: corporate JVs and contractual JVs.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Corporate_JVs\"><\/span><strong>Corporate JVs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">There are two kinds of Corporate JVs which are incorporated JVs and partnerships.<\/p>\n<p style=\"text-align: justify;\">An incorporated JV is a legal entity that has limited liability status, commonly referred to as a limited liability company (<em>Perrseroan Terbatas<\/em> or &#8220;PT&#8221;). PTs are organized under the Company Law.<\/p>\n<p style=\"text-align: justify;\">A partnership is a business entity that does not have limited liability status. Common forms of partnerships in Indonesia include:<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"A_firm_firma_or_venootschap_onder_firma\"><\/span><strong>A firm (<em>firma\u00a0<\/em>or<em>\u00a0venootschap onder firma)<\/em>;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"A_komanditer_partnershipassociation_commanditaire_vennotschap_or_%E2%80%9CCV%E2%80%9D\"><\/span><strong>A komanditer partnership\/association (<em>commanditaire vennotschap\u00a0<\/em>or<em>\u00a0&#8220;CV&#8221;<\/em>).<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The main difference between a firm and a CV lies in the contribution of the partners. In a CV, there are two types of partners, namely active partners, who manage the business of the CV, and passive partners, who merely make capital contributions to the CV. Above all, the liability of a CV&#8217;s passive partners is limited to the amount of their capital contribution. In contrast, there are no distinct categories of partners in a firm.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contractual_JVs\"><\/span><strong>Contractual JVs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">A contractual JV does not require the establishment of a legal entity since it&#8217;s formed by agreement between the JV partners.<\/p>\n<p style=\"text-align: justify;\">The typical JV founding documents for a corporate JV are the:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Deed of establishment, which contains the entity&#8217;s articles of association and\u00a0a list of the members of the board of directors and board of commissioners, for a limited liability company (PT), or<br \/>\na list of the partners, for a partnership.<\/li>\n<li>JV\/shareholders&#8217; agreement entered into by the JV partners, which is a private agreement documenting the relationship between the JV partners.<\/li>\n<li>The deed of the establishment must be in the form of a notarial deed.<\/li>\n<li>A decree from the Ministry of Law and Human Rights (MOLHR) approving the establishment of the PT (MOLHR decree).<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Want to know more about Joint Venture in Indonesia? Please contact us<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; A joint venture Indonesia\u00a0(JV) combines two or more businesses&#8217; expertise and resources to reach particular goals or pursue specific projects. The joint venture is not only combining different resources but also shares its rewards and risks. Since it is a big decision, many considerations involve before entering into a joint venture Indonesia. &nbsp; Things&#8230;<\/p>\n","protected":false},"author":1,"featured_media":4220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[41],"tags":[],"class_list":["post-3578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Joint Venture Indonesia: How to Set Up? - Sam Consulting<\/title>\n<meta name=\"description\" content=\"A joint venture in Indonesia combines two or more businesses&#039; expertise and resources to reach particular goals or pursue specific projects\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/samconsulting.co.id\/joint-venture-indonesia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Joint Venture Indonesia: How to Set Up? 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