ESTABLISHMENT OF FLIGHT SCHOOL

  

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 prior to preparations of articles of association of the company.

Both the joint venture agreement and the articles of association shall be lodged together with the foreign investment application to BKPM. Once BKPM has issued an approval, applications for the permits (business permit and additional permits such as business permit in the field of aviation education and/or training and permit for non-commercial air transport activities) can be submitted to BKPM through the Online Single Submission (OSS) system.

To carry out the business, the company must own at least one aircraft and in possession of another aircraft by way of lease. Import of light aircraft may also be done once the relevant approval and permits have been obtained from the Ministry of Transportation and the Ministry of Finance.  

______________________

Said, Sudiro & Partners

Indonesian Legal Consultants

Sampoerna Strategic Square

South Tower, Level 30

Jl. Jend. Sudirman Kav. 45 - 46

Jakarta 12930 Indonesia

Phone: (62-21) 575.0983

Fax: (62-21) 575.0803

Website: www.ssplegal.com

Emails: mail@ssplegal.com

           sdsdp@cbn.net.id


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