Foreign investors who want to operate in Indonesia are allowed to explore the possibilities offered by the agricultural industry, one of the most prolific economic sectors at the moment. Foreigners must comply with the Right to Cultivate Act under which they can lease private or state-owned land plots and cultivate various crops on them. These leases are granted for a period of 35 years.
Below, our company formation agents in Indonesia explain how foreign investors can open agricultural businesses in this country.
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In order to be allowed to operate businesses in agriculture, foreign citizens must first register a company with the Indonesian Trade Register. The most employed business form which allows foreign ownership is the PT PMA (limited liability company with full foreign ownership).
Our Indonesia company incorporation consultants can assist with this procedure. We can also help you if you wish to immigrate to Indonesia to start a business in this field.
Once the agricultural company is registered, the business owner must comply with several other requirements, among which:
We can also offer information on how to establish a trading company in Indonesia.
Under the Farmer Protection and Empowerment Law, all agricultural companies are required to ensure their business. They must conclude special types of insurances which will protect their production with respect to:
Farmers are required to pay a certain amount of money as a premium in accordance with the type of insurance concluded. If you want to relocate to the country and engage in agricultural activities, we can help you during the process needed to immigrate to Indonesia.
For full information on the rights of foreign investors to open agricultural companies in Indonesia, please feel free to contact our company registration advisors.