If you are planning to open business as multi finance (giving loan by non-bank institution. The loan directly comes from you), this permission only issued by Financial Services Authority or Otoritas Jasa Keuangan (OJK). If in this case you are a foreign investor, then the maximum limitation for foreign to invest in this business is in the amount of 85% shares.
Besides such requirement, there are following general requirements to do such business:
- First Minimum Paid Up Capital when the Company established in the amount of IDR 100.000.000.000,00. Such paid up capital shall be paid in full cash in form of Terms Deposit (Deposito Berjangka) under the Company name in one of general bank or sharia bank in Indonesia. Minimum consists of 2 shareholders.
- The submission to OJK shall be attached with product that you wish to be marketed, analysis of business prospectus, mechanism or way to financing, rights and obligations of the parties, and the example of financing agreement.
- The Company’s Director shall possess expert certificate in financing from appointed institution by the association along with convey the notification to OJK along with the reason of appointment. This Director also shall pass the fit and proper test by OJK. If the shares of foreign more than 50% then the composition between local and foreign director shall at least 50:50.
- The Company’s commissioner shall possess basic certificate in financing from appointed institution by the association along with convey the notification to OJK along with the reason of appointment. This Commissioner also shall pass the fit and proper test by OJK. If your asset is more than 200 Million Rupiah then the company shall have minimum 2 commissioner and 1 independent commissioner
- OJK will analyze your document and will issue the rejection or acceptation, in maximum period of 30 calendar days since your submission has received completely in correct manner. However, the common practice is different with the regulation which is the estimation of the approval or the rejection will be issued by OJK around 2 – 3 months since the submission has been received in correct manner. In order the document is incomplete then OJK will inform and Company shall complete it within 15 days.
- In order the OJK has approved the submission, then within 2 months the Company shall start the activity.
If this seems complicated and you need us to help you to process the license, FMB Consultant offers you multidimensional services in management as to company legal establishment for cross-industries. With a team of professionals and experienced, allow us to support your business in accelerating legal requirement fulfillment, get you more time to focus on growing your business.
Send us an e-mail of your business needs and we will send our proposal followed by detail requirements if we have come in agreement. Also check our Foreign Company / PMA Establishment series for more details!
This article is written by FMB Consultant’s Legal Team.
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