What hurdles for starting a business that will hire locals

Post new topic

Member since 16 November 2017

Divers MarkMember19 November 2017 10:28:59

Hi, probably a question asked a thousand times but couldn't find any recent references.

I'm looking to move to Lombok Indonesia and start looking into a small dive centre. I would want to hire predominantly locals... Boat captain, boat crew, dive guides and equipment maintenance staff...

I've heard it's easy and some Indonesian departments provide assistance/help for establishing new business opportunities that will hire locals.

Any body heard of this? Any advice? I want to know the pitfalls of this before I take the issue of leading land for the shop.

Look forward to any replies.

Fred Indonesia Expert

Member since 02 August 2009

A smile is the universal welcome.
Max Eastman

FredIndonesia Expert19 November 2017 10:45:54

28522

You'll probably have to start a PT PMA company - think the minimum investment is about Rp10 billion or about Aus$ 978,000

Divers Mark Member

Member since 16 November 2017

Divers MarkMember19 November 2017 10:57:18

Thanks Fred,

I thought I read that elsewhere. AUD $1 Million startup equity is out of my reach. I have heard of some places that have started quite small and worked it up over a few years...

Are there other options?

Fred Indonesia Expert

Member since 02 August 2009

A smile is the universal welcome.
Max Eastman

FredIndonesia Expert19 November 2017 11:30:06

28522

Not that I'm aware of but I've never seriously looked past the PT company investment and that was only in order to answer a question on this forum some time ago.
It's done to protect local workers and local small business owners, the idea being, if a company is viable, it should be run by an Indonesian.

Ubudian Indonesia Expert

Member since 28 January 2013

UbudianIndonesia Expert20 November 2017 10:24:35

3213

You might be better off consider a partnership with an already existing dive operation in eastern Bali interested in expanding to Lombok, or to keep your eye out for an existing dive operation that might be for sale.

As a suggestion, you might consider contacting John Huxley at Eco Dive in Amed. He's been around since 1997, and he is a GREAT guy who is always willing to help others out.

Believe me, there is NOTHING easy about starting a new company here in Indonesia...even when 100% of the staff is going to be locals.

Good luck.

Divers Mark Member

Member since 16 November 2017

Divers MarkMember23 November 2017 07:06:50

I guess it's the old adage... Nothing worthwhile is ever achieved easily...

I see everyone say they'll partner with locals but I'm not about to put myself in that position... Risky at best and impoverished at worst.

I know a few operators around the Lembongan Penida and Gili Islands... I'll do some more homework as I really want to make this a reality.

Articles to help you in your expat project in Indonesia

Working in Indonesia
As one of the major regional economic powerhouses in Southeast Asia, Indonesia attracts foreign ...
Starting a business in Indonesia
Thanks to the country's large population, affordable labor force, and abundant natural resources, ...
Working in Bali
The multi-faceted island of Bali offers many opportunities for those who wish to move from tourist to ...
Working in Medan
Medan may lack obvious natural beauty, but the capital of North Sumatra makes up for it with its urban ...
Working in Jakarta
As Indonesia's major financial and commercial hub, the capital city has a wealth of ...
Working in Surabaya
Surabaya may not be the ideal city for tourism in Indonesia, but it has many job opportunities. Here are ...
Internships in Indonesia
Do you wish to acquire hands-on experience, gain new professional skills and expand your international ...
Working in Indonesia as a digital nomad
Indonesia straddles the equator, between the Indian and Pacific Oceans, and has an immense diversity with ...