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ESTABLISHMENT OF FLIGHT SCHOOL

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    ESTABLISHMENT OF FLIGHT SCHOOL Indonesia is an archipelago country that consists of more than 17 thousand islands. The need for flights to connect islands within the country, both scheduled and unscheduled, continues to increase every year. Consequently, the need for new pilots graduating from flying school is also increasing. Therefore, establishing a flight school in Indonesia can be a very promising business opportunity. The flying school business is a sector that is open for foreign direct investment. Currently, the maximum percentage of ownership allowed for foreign investment is 49% of the total shareholding. Application for the foreign investment may be lodged with BKPM (Indonesia Investment Coordinating Board). Since the percentage of ownership that is open to foreign investment in this sector is restricted, foreign investors will need to engage in a joint venture with a local company. A joint venture agreement between the foreign and local investors shall be made