SW NIHAO Newsletter E.5 – September 2022

MULTINATIONAL

Multinational Companies Pass Through Investment Gateway Including Establishment, Compliance & Corporate Actions

01. FOREIGN INVESTMENT IN INDONESIA

OSS is a platform managed by BKPM to simplify the business licensing process, including for foreign investors. Through this platform, companies register by fulfilling the requirements and obtaining various documents for the company’s establishment.

02. JOINT OPERATION (JO) IN INDONESIA SCHEME

Various types of joint operation schemes in Indonesia have become different partnerships in multiple industries. Accounting for joint operation in Indonesia similar with accounting treatment that be required by international statutory reporting.

03. CROSS-BORDER FUNDING STRATEGY: DUAL LISTING

Dual Listing provides a wider variety of benefits compared to an IPO only on regional exchanges. Dual Listing opens opportunities for companies to obtain wider funding, increasing liquidity and company image in the eyes of the international community.

04. TRANSFER PRICING DOCUMENTATION

A company that performs domestic or cross-border transactions with its related party needs to do the transaction according to the arm’s length principle. Indonesia’s tax authority requires taxpayers to maintain the Master File and Local File with certain criteria. The taxpayer also must provide a summary of the Master File and Local File along with the tax return that also confirms the date of the availability of the Master File and Local File.