Is there limited responsibility for shareholders in a PMA company?

Frequently Asked Questions

Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required?

A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party.

How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities?

A PMA company in Indonesia must obtain an NIB, which also functions as:

• Importer Identification Number (Angka Pengenal Impor or API)
  Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production.
  General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System.
• Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process.

Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals.

How do investors choose a holding jurisdiction for a PMA firm in Indonesia?

Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.

How to conduct a company registration in Indonesia for a foreigner?

A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.