
Complying with Tax Payments during Property Transactions

Protecting Competitive Edge: Intellectual Property for Foreign Business in Indonesia

Indonesia is one of the great coffee producers. Demand for quality beans, ready-to-drink products, and branded experiences continues to grow at home and overseas. While most foreign investment primarily focuses on raw coffee bean trading, the other value lies in processing, product development, and brand building, areas where a well-structured Foreign Investment Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing/PT PMA) can scale quickly and export.
Putranto Alliance helps foreign investors set up and operate in the coffee value chain, from incorporation and licensing to product approvals, intellectual property (IP) protection, and export preparation, enabling them to enter the coffee market with confidence.
Foreign investment is permitted under the investment framework in Indonesia, with many coffee activities allowing up to 100 percent foreign ownership when structured as a PT PMA, regulated under the Law Number 25 Year 2007 concerning Investment and Presidential Regulation Number 49 Year 2021 concerning Investment Business Sector. Foreign investors may establish a PT PMA independently or form a partnership with a local company.
While Indonesia continues to allow more foreign ownership in more investment activities, businesses must still match the exact activity with the right KBLI and permits to legally operate. Coffee may look simple, but it falls within the food manufacturing industry, where oversight and certification work closely together. Each subactivity should match the correct KBLI classification so that downstream licenses, such as Indonesian Food and Drug Authority (Badan Pengawas Obat dan Makanan/BPOM) labels, halal certificates, and Indonesian National Standards (Standar Nasional Indonesia/SNI), can be obtained without delay.
The common business paths in the coffee value chain include:
The role of legal counsel and an experienced investment support team is critical. They complete formal legal requirements, ensuring your future coffee value chain business structure aligns with the tightly regulated sector.
Key steps in establishing a coffee business are as follows:
The coffee sector offers more than bean trading. Processing, product innovation, and brand building can deliver higher value if a business structure, licenses, and product approvals are in order. A clear plan at the initial setup will reduce delays, secure the coffee brand, and open both domestic and export channels.
With structured planning and precise legal alignment, Putranto Alliance ensures your entry into the coffee sector in Indonesia can proceed with clarity, compliance, and continuity. Discuss your future venture in the coffee industry with our team to map a practical path from incorporation to production and export.
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