Establishing a successful cattle farming operation requires meticulous planning and preparation. To ensure success in the cattle business, potential business owners must carefully consider the type of investment they make. There are two types of investment for cattle farming in Indonesia: domestic and foreign.
In Indonesia, this is defined as an investment for the purpose of running and conducting business within the country. There are three types of domestic businesses in Indonesia, each providing its own set of benefits depending on the type of capital and nature of leadership:
Cooperatives provide the separation of members assets as are run in accordance with the values of the larger member group.
Limited Partnerships (CV) involve a partnership business entity formed by a group, with assets entrusted to one or more people who are fully involved with the business.
Limited Companies (PT) are legal entities that conduct business with authorized capital divided into shares.
Only one type of foreign investment is allowed in Indonesia through the legal entity Perseroan Model Asing (PT PMA). This type of investment is carefully watched by the is subject to very specific rules and regulations down to the number of local and foreign workers employed, and the type of allowed financial sourcing.
In addition to choosing the appropriate type of investment, potential business owners must also consider local considerations and regulations, including legal, financial, and social aspects. Business owners must ensure compliance with the different laws and regulations in Indonesia, proper financial sourcing and documentation, and the upliftment of the local hiring economy.
To establish and maintain a profitable and sustainable cattle farming operation, potential business owners must carefully follow these steps and invest time and effort in the pre-operational phase of their business. By doing so, they can increase their chances of success and contribute to the growth of the cattle farming industry in Indonesia. Learn more about these steps in Business Entity Establishment overview.