Frequently Asked Questions: #foreigndirectors

Yes, foreigners can serve as directors or commissioners in Indonesian companies, including PMA (foreign-owned) companies. However, there are some important considerations:

Directors: * Foreigners can be appointed as directors in Indonesian companies. * At least one director must be an Indonesian resident (not necessarily an Indonesian citizen). * Foreign directors require a valid work permit (KITAS) and stay permit to reside and work in Indonesia.

Commissioners: * Foreigners can also serve as commissioners in Indonesian companies. * There is no residency requirement for commissioners. * If a foreign commissioner performs active duties in Indonesia, they will need a work permit.

Key points to note: * The composition of the board of directors and commissioners must comply with the company’s Articles of Association. * Some business sectors may have specific requirements or restrictions on foreign directors or commissioners. * The appointment of directors and commissioners must be approved by shareholders and properly documented. * Foreign directors and commissioners must have a tax identification number (NPWP) in Indonesia.

Work permit considerations: * Foreign directors working in Indonesia need to obtain: * Limited Stay Visa (VITAS) * Limited Stay Permit (KITAS) * Work Permit (IMTA) * The company must sponsor these permits for the foreign director.

Tax implications: * Foreign directors and commissioners may have tax obligations in both Indonesia and their home country. * It’s advisable to consult with a tax professional to understand the specific tax implications.

Professional support: * Due to the complexities of Indonesian corporate law and regulations, it’s recommended to seek professional assistance when appointing foreign directors or commissioners. * Okusi Associates can provide guidance on compliance requirements and assist with the necessary documentation and permit applications.

Remember to always check the latest regulations, as requirements may change over time.

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