Question 5. What is a Pananaman Modal Asing?

A PMA is the Indonesian term for a company that is fully owned by a non-native investor. Under the terms of the Indonesian Foreign Investment Programme, such a company can purchase and hold title to a piece of Indonesia property for 20 to 30 years. At the end of that time, if the company wishes to retain control of the real estate, it must apply to the government for an extension of the license.

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