How to Register a Company in Jakarta and Other Cities in Indonesia

For foreign businesses, company registration in Indonesia requires navigating a significantly updated framework established by two key regulations: BKPM Regulation No. 5/2025 and Government Regulation No. 28/2025 on risk-based business licensing.

This guide explains the current rules, entity options, timelines, capital requirements, and compliance obligations every foreign investor needs to understand before entering the Indonesian market in 2026.

Key Takeaways

• Company registration in Indonesia changed significantly with the BKPM Regulations No. 5/2025, GR 28/2025, KBLI 2025 alignment, SABH annual report filing, and CoreTax integration.
• PT PMA is the main legal structure for foreign investors who want to operate commercially in Indonesia, while a Representative Office is suitable only for market research and promotion.
• The PT PMA paid-up capital requirement is now IDR 2.5 billion, but companies still need an investment plan of more than IDR 10 billion per 5-digit KBLI and per location.
• KBLI 2025 selection affects ownership, licenses, OSS risk level, and compliance obligations.
• After setup, PT PMA companies must continue to manage LKPM reports, tax filings, BPJS, annual reports, KBLI alignment, and OSS updates.

What’s New in 2026: Regulatory Quick Reference

Regulation	What Changed	Effective Date
BKPM Reg. No. 5/2025	PT PMA’s minimum paid-up capital is reduced to IDR 2.5 billion. A 12-month capital lock-up applies, and KBLI selection is reviewed more strictly.	2 October 2025
Government Reg. No. 28/2025 (OSS-RBA)	OSS-RBA applies a risk-based licensing system. Business permits depend on the company’s risk level, and LKPM non-compliance may trigger sanctions.	5 June 2025
Permenkum No. 49/2025	PT and PT PMA companies must submit annual reports through SABH/AHU Online. Filing is no longer only internal.	17 December 2025
KBLI 2025 Reclassification	Companies using older KBLI codes may need to align their business activities with the updated KBLI 2025 codes.	2025
CoreTax Integration	Tax registration, VAT/PKP status, and corporate tax obligations are now more digitally connected with DJP systems.	2026

Which Legal Entity is Right for Your Business?

Foreign investors can enter the Indonesian market through three principal structures. The right choice depends on commercial intent, sector, and timeline.

Entity Type	Foreign Ownership	Revenue Generation	Minimum Capital	Best For
PT PMA (Foreign-Owned Company)	Up to 100% in eligible sectors	Yes — full operations	IDR 2.5B paid-up; IDR 10B investment plan per KBLI	Commercial operations, export/import, manufacturing, tech, services
Representative Office (KPPA)	100% foreign-owned	No — market research and promotion only	None	Market entry scouting before PT PMA commitment
PMA Holding Company	100% foreign-owned	Via subsidiaries	IDR 2.5B paid-up	Multi-investment structures; KBLI 64200 pathway clarified under GR 28/2025

PT PMA for Foreign Investment in Indonesia

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the only legal structure that allows a foreign individual or corporation to hold shares directly and operate commercially in Indonesia. Without a PT PMA, foreign parties cannot generate local revenue, hold equity, or obtain Indonesian operating licenses.

PT PMA registration is governed by Investment Law No. 25/2007 and the Omnibus Law No. 11/2020, with all licensing now processed through the OSS-RBA (Online Single Submission — Risk-Based Approach) system.

PT PMA Requirements Under BKPM Regulation No. 5/2025

A PT PMA must meet requirements for capital, ownership, management, business activity, and reporting. The minimum paid-up capital is IDR 2.5 billion, deposited into the company bank account. This capital must stay in the account for 12 months, but it can still be used for operations.

A PT PMA must also have an investment plan exceeding IDR 10 billion per 5-digit KBLI, excluding land and buildings. Other key requirements include:

• Minimum 2 shareholders
• Minimum 1 director and 1 commissioner
• Correct the 5-digit KBLI for each business activity
• Compliant business address based on zoning rules
• Annual report submission through SABH/AHU Online
• Quarterly LKPM reporting through OSS

The selected KBLI is important because it affects licensing, foreign ownership, and required permits under OSS-RBA.

PT PMA Registration Timeline

Process	Estimated Time
Reserve the company name through the Ministry of Law and Human Rights. The name must be unique and contain 3 words	1 working day
Prepare the Deed of Establishment through an Indonesian notary, including Articles of Association, shareholders, and KBLI codes	2–3 working days
Obtain electronic ratification from the Ministry of Law and Human Rights. This confirms the company’s legal entity status	1–2 working days
Obtain the company NPWP through the tax authority	2 working days
Confirm business address and zoning compliance through OSS spatial data	1–3 working days
Register through OSS-RBA to obtain NIB, business permit, and required sector licenses based on the company’s KBLI risk level	1–2 working days
Inject capital into the Indonesian corporate bank account. The 12-month lock-up period starts from this point	3–7 working days

Note: All estimated timelines above may vary depending on document readiness, KBLI classification, business activity, OSS processing, bank requirements, and whether additional sectoral licenses or VAT/PKP activation are needed.

PT PMA and Investor KITAS for Foreign Founders

Foreign shareholders who serve as a director or commissioner in a PT PMA may qualify for an Investor KITAS (Index E28A) if they hold at least IDR 10 billion in shares.

Key points to note:

• The Investor KITAS applies to eligible foreign shareholders who hold at least IDR 10 billion in shares.
• It is generally valid for 1 or 2 years, depending on the application.
• It allows multiple-entry access and can be renewed.
• The PT PMA acts as the sponsor for the KITAS application.
• The application is usually processed after the company obtains its NIB.

If the shareholder’s investment is below the required threshold, a work-based stay permit may be needed instead, depending on their role as director or commissioner.

Representative Office KPPA for Initial Market Entry

A Representative Office allows a foreign company to establish a presence in Indonesia for market research, promotions, and relationship development, without generating local revenue. All commercial transactions must flow through the overseas parent company.

Feature	Representative Office
Foreign ownership	100%
Minimum capital	None
Revenue generation	Not permitted — cannot invoice or sell in Indonesia
Shareholders / directors	Not required
Typical use case	Pre-entry market research, brand awareness, long-term PT PMA preparation
Setup timeline	Approximately 4–6 weeks

A Representative Office is a staging structure, not a substitute for a PT PMA when commercial operations are intended. Many foreign investors use it to develop market knowledge and relationships while preparing a full PT PMA incorporation.

Ongoing Compliance Obligations After Incorporation

Company registration is the beginning of a continuous compliance obligation. Foreign-owned companies in Indonesia must meet the following recurring requirements to maintain legal standing:

Obligation	Frequency	Regulator / Platform	Consequence of Non-Compliance
LKPM (Investment Activity Report)	Quarterly	OSS portal (BKPM/Ministry of Investment)	Automatic administrative sanction after 4 consecutive zero-realization quarters; NIB suspension risk
Corporate Income Tax (PPh Badan)	Annual (monthly instalments)	DJP / CoreTax system	Fines, interest, potential tax audit
VAT (PPN) reporting	Monthly if PKP-registered	DJP / CoreTax system	Fines, late payment interest
BPJS Ketenagakerjaan & Kesehatan	Monthly per employee	BPJS portals	Administrative sanctions; cannot obtain immigration documents for foreign staff
Annual Report (Laporan Tahunan)	Annual — by 30 June	SABH / AHU Online (Kemenkumham)	Administrative penalty; risk to legal standing of the PT / PT PMA
KBLI alignment (existing companies)	One-time — deadline 18 June 2026	OSS portal	Existing licenses may be classified as invalid

Register Your Company in Indonesia with InCorp Indonesia

InCorp Indonesia (an Ascentium Company) is a licensed corporate services and market-entry firm with offices in Jakarta, Bali, Semarang, and Batam.

We provide end-to-end PT PMA incorporation services, including:

• KBLI code mapping aligned to GR 28/2025 risk classification
• Deed of Establishment preparation with a licensed Indonesian notary
• OSS-RBA registration: NIB, Business Permit, and sector-specific licenses
• NPWP / tax registration and VAT (PKP) activation
• Virtual office arrangement and domicile compliance (if required)
• Investor KITAS application coordination
• LKPM reporting and ongoing compliance support

InCorp Indonesia has supported hundreds of foreign companies and entrepreneurs across industries in establishing PT PMA entities throughout Indonesia. Fill out the form below to begin your registration.

Frequently Asked Questions