How to Register a Foreign-Owned Company as PT PMA in Indonesia

Indonesia offers exceptional business opportunities for both local and foreign entrepreneurs. To operate legally and profitably as a foreigner, you need to establish a foreign-owned limited liability company — known in Indonesia as a PT PMA (Penanaman Modal Asing).

The incorporation of a limited liability company is governed by Company Law No. 40 of 2007. Once a business decides to expand and take advantage of Indonesia’s growing market, it will need expert guidance on registering a company in compliance with current regulations.

Advantages of a Foreign-Owned Company (PMA) in Indonesia

Most foreign-owned companies establish an Indonesian Limited Liability Company (LLC), known as a PMA (Penanaman Modal Asing). It can take the form of a 100% foreign-owned entity or a joint venture with Indonesian partners.

The key advantages of a PT PMA include:

• Full control over the direction and operations of the company
• No restriction on where a PMA can operate within Indonesia
• Reduced risk compared to relying on a local partner
• Eligibility for an Investor KITAS (stay permit) for foreign shareholders

Certain business sectors require a local partner and limit the permitted foreign ownership percentage. These restrictions are defined in Indonesia’s Positive Investment List (Presidential Regulation No. 10 of 2021), which replaced the old Negative Investment List. Some activities remain fully closed to foreign ownership and must be set up as local Indonesian companies.

Investment Plan and Minimum Capital Requirements for PT PMA in 2026

As of October 2025, the minimum paid-up capital for a PT PMA has been revised to IDR 2.5 billion (~USD 150,000) under BKPM Regulation No. 5 of 2025, down from the previous IDR 10 billion threshold. The total investment plan per KBLI business activity code must still exceed IDR 10 billion. An investment plan can consist of cash or fixed assets such as machinery, but excludes land and buildings.

Paid-up capital need not be deposited at the time of registration. A capital declaration letter is accepted, with the actual deposit made after the corporate bank account is opened, following company establishment. A company must achieve investment realizations of USD 1 million or more to obtain a Business License as its permanent license, an import license, and other sector-specific licenses.

The PT PMA Indonesia setup cost and timeline vary by sector. For standard sectors without special licensing, total government fees are typically below IDR 5 million. Professional service fees vary by service provider. See the timeline section below for a breakdown by stage.

Step-by-Step: How to Register a PT PMA in Indonesia in 2026

The following table outlines each registration stage, the responsible institution, and the estimated processing time for each. The full foreign company incorporation process in Indonesia is managed through the Online Single Submission – Risk-Based Approach (OSS-RBA) platform.

Note: *The timelines below are indicative and may vary depending on document completeness, business sector, and regulatory review at the time of submission.

Step / Procedure	Responsible Institution	Estimated Duration
Company Name Approval	Ministry of Law and Human Rights (AHU Online)	1–2 days*
Deed of Incorporation (Akta Pendirian) via Notary	Licensed Indonesian Notary	2–3 days*
Legal Entity Approval (SK Kemenkumham)	Ministry of Law and Human Rights	3–5 days*
Tax ID registration (NPWP + SKT)	Local Tax Office (KPP)	1–2 days*
Domicile Letter / SKDP (if required outside Jakarta)	Building Landlord + Kelurahan	1–3 days*
NIB Issuance via OSS-RBA	BKPM / OSS-RBA System	1 day*
Sector-Specific Licenses (if required)	Relevant Ministry or Agency	Varies by Sector*

How Does PT PMA Registration Work in Indonesia?

PT PMA registration in Indonesia is completed through the OSS-RBA system, starting from company name approval to obtaining a Business Identification Number (NIB) and any required licenses. The process involves the Ministry of Law and Human Rights for legal setup and BKPM for licensing.

Company Name Approval

The company name is submitted via AHU Online by a licensed notary. The Ministry of Law and Human Rights may reject names that are already registered, too similar, or inappropriate. A valid company name must consist of at least three words.

Deed of Incorporation

A notary prepares the Deed of Incorporation (Akta Pendirian), which includes the company’s structure, shareholders, business activities (KBLI), and management. This can be executed via Power of Attorney and no physical presence required.

READ MORE:

• How to Meet PT PMA Minimum Capital Requirements in Indonesia
• Everything You Need: Documents for Setting Up a PT PMA in Indonesia
• KPPA vs PT vs PMA Indonesia 2026: Which Company Type Do You Need?
• Starting A Business in Indonesia (Foreign-owned Setup): FAQ

Legal Entity Ratification (SK Kehakiman)

The Deed is submitted to the Ministry of Law and Human Rights for approval. Once approved, the SK Kemenkumham is issued, confirming the company as a legal entity.

Tax Registration (NPWP & SKT)

The company registers with the local Tax Office (KPP) to obtain NPWP and SKT. These are required for banking, licensing, and tax compliance.

NIB Issuance via OSS-RBA

The NIB is issued through OSS-RBA, managed by BKPM. It serves as the company’s main identification number and may include initial business licensing, depending on risk level. To finalize PT PMA company registration, the company must arrange a company identity number from Provincial Government to officially register the company in the region.

Engaging professional assistance helps companies navigate local regulations and understand the culture of business in Indonesia. Check more for a complete overview of business services in Indonesia.

Domicile Requirement (If Applicable)

A registered business address is required. Outside Jakarta, a domicile letter (SKDP) may still be needed. Jakarta-based companies are generally exempt.

Sector-Specific Licenses

Additional licenses may be required depending on the business sector (e.g., healthcare, fintech, F&B). These are processed after NIB issuance and vary by industry.

The process is more streamlined under OSS-RBA, but delays often stem from incomplete or misaligned documentation. Ensuring accuracy from the start helps avoid setbacks and keeps your setup on track.

Common Mistakes to Avoid When Registering a PT PMA in Indonesia

Knowing how to register a foreign company in Indonesia step by step reduces the risk of costly delays. These are the most common errors investors make during PT PMA registration:

• Invalid Company Name: Must meet the 3-word rule or will be rejected by the AHU system.
• Incorrect KBLI Code: Determines licensing, sector eligibility, and foreign ownership—errors can disrupt the entire setup.
• Misunderstanding Capital Requirements: Paid-up capital (IDR 2.5 billion) and total investment plan (above IDR 10 billion) are separate.
• Ignoring Foreign Ownership Limits: Some sectors restrict ownership to 49%–67% under the Positive Investment List.
• Skipping OSS-RBA Risk Classification: Risk level determines required licenses before operations.
• Operating Without NIB: Starting business activities before NIB issuance may lead to penalties or closure.

Register Your Foreign-owned Company in Indonesia

Setting up a PT PMA in Indonesia involves multiple government agencies, strict documentation requirements, and sector-specific licensing rules. A single error in your KBLI selection, capital declaration, or document submission can delay your entire registration by weeks.

InCorp Indonesia (an Ascentium Company) has helped hundreds of foreign investors establish their companies across Indonesia — including in Jakarta, Bali, Surabaya, Semarang, Batam, and Lombok. Our team manages the entire process remotely on your behalf through a signed Power of Attorney. You do not need to travel to Indonesia.

Fill in the form below to get a free initial consultation. Our team will respond within 1 business day with a customized assessment of your setup timeline, capital requirements, and licensing needs, based on your specific business sector and KBLI code.

Frequently Asked Questions