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Set Up an Investment Fund in Indonesia

Set Up an Investment Fund in Indonesia

Foreign investors have various options of entering the Indonesian market. One of the most popular ones is by establishing investment funds under the requirements of the Indonesian legislation. Compared to other jurisdictions, Indonesia provides for special requirements for foreigners who want to create investment funds in Indonesia.

Below, our Indonesia company incorporation consultants have prepared a guide on how to create an investment fund in this country. We can also provide essential information to those who wish to immigrate to Indonesia.

Types of investment funds in Indonesia

Foreign investors who want to set up investment funds in Indonesia can choose between the following types:

  • mutual funds which can be established as corporations of collective investment contracts;
  • open-ended and closed-ended investment funds, which must be set up under specific conditions;
  • retail and non-retail investment funds which are subject to various licensing criteria;
  • hedge funds are also available for registration with the Indonesian authorities.

It must be noted that all types of investment funds can be created as limited liability companies or as collective investment contracts, which are not legal entities.

Foreign investors can choose to both invest in asset management instruments and immigrate to Indonesia. We can provide more details.

Requirements for establishing an investment fund in Indonesia

The requirements related to setting up an investment fund in Indonesia will depend on the type of fund and the structure used to create it. The following requirements apply to all the Indonesian investment funds:

  • all funds must submit registration statements issued by the Indonesian Trade Register;
  • funds are also required to file share specimens and information about the first issuance of the shares;
  • a preliminary prospectus must be prepared, followed by the issuance of the final prospectus;
  • information about the manager of the fund must also be included in the prospectus;
  • the tax identification number and information about the board of managers of the investment vehicle;
  • a due diligence report must also be prepared – it must contain the legal opinion on the launch of the fund.

These documents must be submitted with the Financial Service Authority in Indonesia. The same authority could request additional documentation to be filed.

For assistance in setting up an investment fund or starting a business in Indonesia, please contact us.