Setting up a company in Indonesia as a foreigner requires establishing a limited liability company with foreign ownership, known as a PT PMA (Perseroan Terbatas Penanaman Modal Asing).
It requires a minimum total investment of IDR 10 billion (excluding the value of land and buildings) and a minimum paid-up capital of IDR 2.5 billion.
Key steps include securing a business visa, reserving a company name, obtaining a Tax ID (NPWP), and registering for a Business Identification Number (NIB) via the Online Single Submission (OSS) system.
PT PMA stands for Foreign Direct Investment Company in Indonesia. It is the legal entity used by foreign individuals or foreign companies to conduct business activities in Indonesia.
Foreign investment can take different forms:
Not every foreign individual can automatically invest in Indonesia. To qualify as a foreign investor and establish a PT PMA, you must meet several legal requirements:
Your business activity must be registered under the latest KBLI (Indonesian Standard Industrial Classification). The KBLI code determines:
A PT PMA must have at least two shareholders, which can be:
These shareholders can be fully foreign-owned, partially foreign-owned, or joint ventures with Indonesian partners, depending on the sector rules.
The standard requirement is:
This amount refers to the investment plan, not only the paid-up capital.
IDR 2.5 billion is commonly required as minimum paid-up capital.
The capital must be deposited into an Indonesian bank account under the company’s name.
Read more: Capital Requirements for PT PMA in Indonesia
Foreign investors are only allowed to operate large-scale businesses. PT PMA companies cannot operate in micro, small, or medium enterprise (MSME/UMKM) categories unless specific partnership arrangements apply.
Indonesia regulates foreign ownership through the Positive Investment List, issued under Presidential Regulation No. 10 of 2021 concerning Investment Business Fields as amended by Presidential Regulation No. 49 of 2021
The Positive Investment List determines:
Before proceeding, it is crucial to check your KBLI code against the Positive Investment List.
Under the Law Number 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation into Law and related regulations, certain sectors are fully closed to PT PMA, including:
These sectors cannot be operated by foreign investors.
Read more: Limitation for Foreign Investors in Indonesia
Some sectors are open but subject to restrictions, such as:
For example, rental activities without an operator for land transportation (KBLI 77311) require partnership with cooperatives or MSMEs.
However, ownership limitations may not apply if:
The IDR 10 billion minimum investment requirement does not fully apply to:
In these cases, the investment value may be equal to or less than IDR 10 billion (excluding land and buildings), depending on specific regulatory provisions.
Foreign investors must establish a Limited Liability Company (PT PMA) through:
A registered business address is mandatory. Certain sectors cannot use virtual offices and must comply with local zoning regulations.
You will need:
After incorporation, the company must obtain a NIB (Nomor Induk Berusaha) through the OSS system. The NIB functions as:
Depending on your business sector, additional operational licenses or standard certificates may be required.
Read more: Important Information Contained in an NIB for a PT PMA in Indonesia
Under the current OSS system, a formal presentation to Badan Koordinasi Penanaman Modal (BKPM) is not a standard requirement when establishing a PT PMA.
Company registration and licensing are now processed through the OSS risk-based system.
However, for certain strategic or highly regulated sectors, authorities may request supporting documents such as:
This is usually a document submission only, not an in-person presentation. Most PT PMA establishments do not require additional review beyond the OSS process.
Before proceeding, foreign investors should carefully evaluate:
Proper structuring from the beginning is essential to avoid regulatory issues later.
Before incorporation, several essential elements must be prepared.
The Ministry of Law and Human Rights requires:
Naming Rules
Approval of the company name is mandatory before moving to incorporation.
A limited liability company (PT) in Indonesia must have:
For PT PMA:
Shareholders, Directors, and Commissioners may be foreign nationals, subject to capital and licensing requirements.
If a company does not have eligible Indonesian-resident officers, professional service providers may be appointed in accordance with Indonesian regulations.
While not legally mandatory, many companies appoint a Company Secretary to strengthen governance, ensure regulatory compliance, and manage daily administration.
Shareholding Structure
Before incorporation, shareholders must determine:
Certain sectors may be:
Some sectors require local Indonesian participation or impose maximum foreign ownership percentages.
Capital Contribution (PT PMA)
For foreign-owned companies:
Total Investment Requirement (PT PMA)
As a general rule:
This reflects the requirement that PT PMA must operate as a large-scale enterprise.
After completing pre-registration requirements, the formal incorporation process begins.
The Articles of Association must be prepared before a notary and include:
All shareholders must sign the Articles. Any amendment to the Articles of Association may be made if there are changes to its contents, and such amendments must be executed before a notary in the form of a notarial deed.
The document is then executed as a notarial deed and submitted to the Ministry of Law for approval.
Once approved, the Ministry issues a decree confirming the company’s legal entity status.
The Deed of Establishment includes:
After incorporation, the company must obtain a Taxpayer Identification Number (NPWP).
The NPWP is required to:
Registration can be completed:
Online
Documents may also be mailed within 14 working days of online registration.
The tax office will:
Walk-in Registration
Applicants may visit the local tax office to:
Once incorporated, ongoing compliance obligations must be maintained.
The NIB is issued through Indonesia’s Online Single Submission (OSS) system.
The NIB functions as:
The NIB must remain active. It may be suspended or revoked if:
Any changes in:
must be updated in OSS to maintain compliance.
All companies must:
Tax obligations include:
Timely filing and payment are essential to avoid penalties and maintain operational licenses.
Companies must register employees with:
Monthly contributions are mandatory and demonstrate compliance with Indonesian labor regulations.
Depending on the industry, additional permits may be required, such as:
Many of these are integrated into the OSS system and linked to the NIB.
Operating without required permits can result in suspension or revocation of business licenses.
Companies must:
Certain companies may require:
PT PMA and qualifying PT PMDN companies must submit Investment Activity Reports (LKPM) to the Ministry of Investment / BKPM, in accordance with their business classification and licensing terms.
Some regions require:
These elements support formal legal communication.
Changes to:
must be reported and updated through OSS, and any changes to the Articles of Association (AD/ART) may be made through a notarial deed in accordance with applicable regulations.
Failure to update company information may result in:
Certain sectors require additional approvals, including:
Companies must maintain ongoing compliance to operate legally.
Establishing a PT PMA in Indonesia requires careful planning, regulatory understanding, and accurate documentation. BaliEasy provides structured assistance to ensure your company is formed in full compliance with current Indonesian regulations.
Our services include:
BaliEasy provides 24/7 human customer support, so you are always assisted by a real team, not automated responses. We operate with transparent pricing and no hidden fees, ensuring clarity from the beginning of your investment process.
We help ensure your investment is legally structured from the start, minimizing delays and regulatory risks.
If you are planning to establish a PT PMA in Indonesia, understanding these requirements is the first and most important step.
Understanding the Key Differences The Indonesian government continues to encourage foreign investors to invest in Indonesia. Foreign investment plays an
Indonesia has become one of the most attractive investment destinations in Southeast Asia. The reasons for setting up a business
📌 How It Works:
