What are the functions and responsibilities of a PMA company’s board and management?

Frequently Asked Questions

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.

Is there limited responsibility for shareholders in a PMA company?

In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors.

Can Investors 100% own a PT PMA Company?

According to Presidential Regulation No. 10/2021 and the amended version, all businesses are open for domestic and foreign investment with these limitations and classifications:

• Eight businesses are closed to foreign investment and may be operated by the central government.
• Designated business sectors or joint ventures with cooperatives (koperasi) and micro, small, and medium enterprises
• Open businesses are subject to specific conditions, such as those that are exclusively available to 100% local investors, those with restricted foreign shareholding, and investments requiring special licenses

Certain sectors are closed to foreign investment, including narcotics cultivation, gambling, and environmental conservation activities.

What is the minimum shareholder requirement to incorporate a PT?

The minimum number of shareholders to incorporate a PT is two