PT PMA Assets in Indonesia are not an uncommon topic for most foreign entrepreneurs looking to tap into the largest Southeast Asian economy. Most entrepreneurs prefer to shop their assets as a company for tax reduction purposes. By doing that, entrepreneurs can engineer the finances to reduce the operations tax. Whereas as an individual, there are no particular tax incentives. It proves to be beneficial as the tax in Indonesia can be rather complicated.
Nonetheless, depending on the situation, owning a property in Indonesia can be very beneficial for entrepreneurs. PT PMA assets in Indonesia can acquire properties as long as they have a legal and running company. If companies acquire assets, the company can add depreciation costs of the assets and any other maintenance costs to the company expenses. The higher the expenses, the lower the income tax. This tax reduction scheme is not applicable for individual purchases.
Benefits of PT PMA Assets in Indonesia
In terms of the purchasing benefits of PT PMA assets in Indonesia, it is easier to separate them into two categories. The first category is for operations efficiency, where the assets serve as a supporting tool to streamline operations costs. On the other hand, the second category is for profitable purposes, where the asset serves as an investment for the company.
For operations efficiency purposes, an asset can help reduce certain operations costs. The easiest examples are transportation and rental costs. Considering the inefficiency of Jakarta’s public transportation and the challenging traffic condition, getting a company car might be a better option. As for rental expenses, if the company operates in small numbers, it may not be worth investing in a property. Alternatives like a serviced office are the better option. However, if the company operates in large numbers, investing in a property may be better than paying the rental fee.
As for investment purposes, a car may not be a good long term investment as the value depreciates. However, investing in a property (land) can be very beneficial for the company. This is especially true if the company can acquire land in the suburbs at a lower price. With the trend of rural developments continuing, the property can be a future gold mine for the company. Furthermore, if the company cannot utilize the land due to its remote location, they can make a simple plantation to showcase land utilization.
Establishing a Company in Indonesia
To get the benefits of PT PMA Assets in Indonesia, entrepreneurs must first establish a company. The company establishment process may take roughly a month or two. It heavily depends on the document readiness and the type of company they are applying for. General companies like trading are usually simpler and quicker. However, for companies in the energy industries, heavy machinery or construction, the company establishment process may take more time.
The time-consuming process is due to the complicated permits and regulations that entail the industry. Therefore, to ensure minimal error, it is highly recommended for entrepreneurs to seek professional assistance. In this case, MESO Serviced and Virtual Office have had almost 10 years of experience in assisting both local and foreign company establishments. Entrepreneurs can engage with the in-house legal team to gain information surrounding the company establishment process.
Once the company setup is done and all the required documents are ready, entrepreneurs will be able to make purchases and reap the benefits of PT PMA assets in Indonesia.
For more information on company establishment with MESO Serviced and Virtual Office, visit www.meso.co.id, or contact us via our Whatsapp number at +62812 1315 4189.
