Enter the Indonesian Market with Confidence

For foreign investors planning to conduct commercial activities and generate revenue in Indonesia, a PT PMA is generally the main foreign-investment company structure. A representative office may be more suitable for limited non-commercial activities such as market research or liaison work, while a local PT is intended for Indonesian-owned businesses. The appropriate structure depends on the planned activities, ownership, and applicable sector regulations.

A PT PMA can generally conduct commercial activities and generate revenue, while a representative office is normally restricted to specific non-commercial or preparatory activities permitted for its representative-office category. Businesses should assess their intended operations before choosing between the two structures.

A foreign company typically needs to confirm its foreign ownership eligibility, KBLI classification, legal entity, NIB and applicable OSS-RBA licences, tax setup, employment and immigration requirements, sector-specific approvals, and ongoing reporting obligations before becoming fully operational in Indonesia.

Depending on the business, additional requirements may include product registration, environmental approvals, construction licences, or technical certifications.

The KBLI code defines the company’s registered business activity and affects its licensing requirements, investment threshold, foreign ownership eligibility, and sector-specific approvals. Choosing the correct KBLI before incorporation is therefore important because it determines which activities the company can legally perform through the OSS-RBA system.

Yes. Businesses operating in Indonesia generally require a Business Identification Number (NIB) issued through the OSS-RBA system. Depending on the risk classification and business activity, the company may also need a Standard Certificate, business licence, or other sector-specific approvals before commencing certain operations.

Not always. Incorporating a PT PMA does not automatically mean the company is ready to conduct every planned business activity. The company may still need to complete OSS-RBA licensing, tax registration, employment and immigration requirements, product or sector-specific approvals, and other operational licences before starting regulated activities.

Foreign companies should prepare for corporate tax registration and reporting, accounting and payroll requirements, Indonesian employment obligations, and immigration approvals for foreign personnel where applicable. Companies planning to employ expatriates may also need the appropriate manpower approvals and stay permits before the individual begins work.

After establishment, companies may need to maintain tax filings, corporate records, OSS licensing data, LKPM investment reports, employment compliance, annual corporate approvals, and sector-specific licence obligations. The exact requirements depend on the company’s legal structure, KBLI activities, investment status, workforce, and regulated operations.

The appropriate structure depends on the company’s planned activities and ownership. A PT PMA is generally used by foreign investors that want to conduct commercial activities and generate revenue in Indonesia. A representative office is more suitable for limited non-commercial activities such as market research, liaison, or permitted preparatory work, while a local PT is intended for Indonesian-owned businesses.