Facebook gets green light to open local unit in Indonesia

Facebook has been given the approval to set up a domestic unit in Indonesia. Currently, the social media giant operates in the country through an office in Jakarta.

According to Reuters, Facebook received an in-principle approval and the government is in the midst of the approval process. This was said by Thomas Lembong, chairman of Indonesia's investment coordinating board, Badan Koordinasi Penanaman Modal (BKPM).

Lembong added that the board and Indonesia’s ministry of communications are currently in the process of deciding the kind of business unit Facebook would be able to establish.

Currently, there are a few methods for a foreign company such as Facebook to be a locally incorporated but also receive foreign investments at the same time. This means the setting up of a Perseroan Terbatas (PT), which is a limited liability company. This means investors are liable for only the original investment amount should the company run into debt.

Marketing has reached out to the investment coordinating board and Facebook for comment.

In March last year, Facebook appointed Sri (Wido) Widowati as head of Indonesia. Widowati was tasked with leading Facebook’s business efforts in Indonesia, providing counsel and support to local and global brands and agencies in the country. She replaces Anand Tilak, who has moved into the role of global brand partner for Facebook, based in Singapore.