Setting up a conventional finance company in Bali, Indonesia, as a PT PMA (foreign-owned company) can be a lucrative business opportunity.
Navigating the process requires understanding the specific requirements, particularly KBLI Code 64911.
This code encompasses financial services companies that provide financing for goods and/or services, including investment financing, working capital financing, and multipurpose financing.
Additionally, conventional finance companies under this code may engage in operating leases and/or fee-based activities, as long as they comply with the prevailing laws and regulations in the financial services sector.
In this blog post, we will guide you through the essential steps to setting up your conventional finance company in Bali.
Overview
This category covers conventional financing companies whose business activities include financing goods and/or services such as investment financing, working capital financing, multipurpose financing, and other financing activities approved by the Financial Services Authority (Otoritas Jasa Keuangan – OJK).
Besides these activities, conventional financing companies in this group can engage in operating leases and/or fee-based activities as long as they do not contravene financial services sector regulations.
Legal Basis
The operations of conventional financing companies are regulated under Indonesian financial services law, primarily overseen by the OJK.
These regulations ensure that all financial activities are conducted in a controlled and secure manner, adhering to the standards set by the government to protect both the businesses and their clients.
Type of License
The business license for a conventional financing company is a general business license issued under the authority of the Financial Services Authority (OJK), provided that the company meets the specified regulatory requirements.
Coverage of Service
Conventional financing companies are involved in financing activities that cover a wide range of services including investment financing, working capital financing, multipurpose financing, operating leases, and other fee-based services as approved by the OJK.
Business Scale, Land Area, and Risk Level
The conventional financing companies operating under KBLI Code 64911 are classified as large enterprises, emphasizing their significant operational scope and financial capabilities.
There are no specific regulations mandating a minimum land area for these companies, which provides flexibility in choosing office locations.
However, the risk level associated with these businesses is high due to the financial nature and potential liabilities of financing services.
This high risk necessitates robust risk management practices and regulatory compliance to ensure sustainable operation.
Authorities Granting Licenses
The OJK is the primary authority responsible for the issuance and regulation of licenses for conventional financing companies.
The ministry mentioned provides the legal framework, while the OJK enforces compliance and operational standards.
Requirements and Obligations for Business Licensing
To operate legally, conventional financing companies must first obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system.
Following this, they need to apply for a business license from the Financial Services Authority (OJK).
The OJK issues this license once all regulatory requirements are met.
The timeline for fulfilling these requirements and obligations is specified by the OJK and is crucial for maintaining the license and lawful operation of the business.
Frequently Asked Questions
- What types of financing can my PT PMA Conventional Finance Company offer in Bali?
Your company can offer a variety of financing services including investment financing, working capital financing, and multipurpose financing, as well as engaging in operating leases and other fee-based services approved by the OJK.
- Can a foreign-owned company (PT PMA) engage in conventional financing activities in Bali?
Yes, a foreign-owned company can engage in conventional financing activities under KBLI Code 64911, provided it meets the requirements set by the OJK and adheres to Indonesian financial services law.
- Are there any specific operational risks associated with running a conventional finance company in Bali?
Yes, due to the nature of financial activities, these companies face high operational risks, requiring stringent risk management practices and regulatory compliance to ensure sustainable operation.
- How does the OJK influence the operation of conventional finance companies in Bali?
The OJK sets the regulatory framework and enforces compliance and operational standards, ensuring that all financial activities are secure and adhere to national laws.
Contact Us for Setting Up PT PMA Conventional Finance Company.
