Home Blog If investors intend to conduct business in Indonesia, what kind of organization must they establish? Uncategorized If investors intend to conduct business in Indonesia, what kind of organization must they establish? InCorp Editorial Team 16 June 2025 1 minutes reading time Table of Contents Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways: Set up a PMA (Perusahaan Modal Asing) PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons Set up a RO (Representative Office) According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two How many incorporation types exist in Indonesia? In Indonesia, there are three company types that you can establish based on your business nature, requirements, and preferences. Local Company (PT): 100% local ownership. Foreign Company (PT PMA): can be entirely owned by foreigners; however, restrictions in business sectors apply Representative Office: a branch of the parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits What needs to be included in an employment background check? These are a few things you need to examine while performing an employee background check: Criminal record Educational background, qualifications, and professional certifications Work and employment history Sexual offense record Alcohol and drug tests Credit and financial background Should a foreigner deposit the minimum paid-up capital in a bank account to start a business in Indonesia? It is advisable to make a minimum paid-up capital deposit after the company completes its establishment process. Another option is after the company receives the Articles of Association and Deed of Establishment. Get in touch with us. 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