The classic definition of a foreign direct investment (FDI) company is a company from one country making a physical investment in a factory or a business expansion in another country and can be extended to include investments made to acquire a lasting interest in enterprises operating outside of the national economy of the investor. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a Multinational Corporation (MNC). The intricate process required to set up a multinational corporation for the purpose of foreign direct investment is detailed.
To begin the process of foreign direct investment, many companies choose a Representative Office, referred to as a PMA (Penanaman Modal Asing) in the Indonesian language. The Representative Office is your first line of interaction with all of the various Ministries involved in setting up a Foreign Direct Investment (FDI). The following is a list of the various offices involved and their purpose:
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