Establish a Business on Energy and A/C Supply in Indonesia

Updated on Friday 01st February 2019

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Foreign entrepreneurs interested in doing business in Indonesia have various industries to choose from. They can decide for large industries, such as manufacturing and energy, or for smaller ones, such as e-commerce and IT.

Those interested in opening businesses in large economic sectors can establish companies on energy and air conditioning supply in Indonesia, which imply smaller investment and the possibility of fully own a local company when it comes to foreign businesspersons.

Our company formation consultants in Indonesia can offer more information on the requirements related to starting a business as foreign investors in this country, including when creating a business on energy and air conditioning supply. We can also assist with the incorporation procedure for such company.
 

Activities which can be set up in the energy sector in Indonesia


It should be noted that foreign-owned companies can engage in the following types of activities in the energy sector:
 
  •           generating energy;
  •           distributing energy;
  •           selling energy;
  •           installing energy and air conditioning equipment;
  •           offering consulting services in the energy and air conditioning sector;
  •           building, operating and maintenance of energy and air conditioning equipment;
  •           research and development activities in the energy sector;
  •           selling energy and air conditioning appliances.

The licenses to be obtained will depend on the activity or activities undertaken by the Indonesian company.
 

Requirements for opening a business on energy and air conditioning in Indonesia


As a foreign investor, one can set up a company with or without a local partner. The main business form used by investors is the limited liability company, which can also take the form of a foreign-owned limited liability company for overseas entrepreneurs who want to have full control over the business.

The following aspects need to be considered when establishing a business on energy and air conditioning supply in Indonesia:
 
  •           an investment plan must be filed with the Investment Coordinating Board in Indonesia;
  •           for foreign-owned companies, the minimum share capital to be deposited depends on the project to be completed;
  •           the main documents which need to be prepared for company registration are the Articles of Association;
  •           the company must register with the Trade Register and the tax authorities, but also with specialized associations in Indonesia.

Once the company is registered, it must apply for a business permit which enables it to offer energy and air conditioning supply services.
 

Obtaining a license for operating an Indonesian business on energy and air conditioning supply


In 2017, the Indonesian Government in collaboration with the Ministry of Energy have created a law through which energy companies could obtain the license to operate through a simplified procedure. Once the paperwork is ready, it can be submitted with the one-stop shop in Jakarta and the provisional license will be issued within 3 hours.

Later, the Indonesian company will obtain the permanent license.

Our company formation agents in Indonesia can offer more information on the licenses to be obtained for setting up a business on energy and air conditioning supply.
 

Legislation on energy in Indonesia


All companies supplying energy and air conditioning services in Indonesia are required to comply with several laws, among which:
 
  •           the Energy Law which was last amended in 2007;
  •           the Energy Efficiency Labeling Law;
  •           the National Energy Policy;
  •           the Electricity Supply Business Plan Regulations.

Indonesia also provides for several tax laws related to the supply of energy services.

In the case of companies supplying air conditioning services, these must respect specific energy efficiency regulations. The appliances installed must bear the efficiency class.
 

Why open a company on energy and air conditioning supply in Indonesia?


Indonesia is a very rich country from an energy point of view, most of the sources for energy production relying on renewable sources. With the new fast business licensing procedure, the government hopes to attract a greater number of foreign investors in the energy sector.

Foreign investors who want to set up businesses on energy and air conditioning supply in Indonesia will have access not only to the resources but also to a skilled and English-speaking workforce. Moreover, they have the option of setting up small or medium-sized businesses which are very profitable at this moment.

For full information and assistance in establishing a business on energy and air conditioning supply in Indonesia, feel free to contact our local company registration experts.