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Setting Up a Local PT Company

Posted 5.10. 2016 by Cekindo / Last update on 15.01. 2019

Setting Up a Local PT Company Review by Michal Wasserbauer on 5. 10. 2016 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Set Up A Local PT Company in Indonesia

PT is the most popular company type in Indonesia. In fact, this type is fully intended for Indonesian only, but for a certain situation, it can be setting up for the foreign investors. For Local PT Company there are more options how to get it – read more about Local nominee company or Shelf company.

Why foreigners need to establish a local PT company in Indonesia where there are PT PMA and Representative types available?

According to the business activities, there are several business fields which are closed for foreign ownership. Check the updated negative investment list to see what are the forbidden business fields for foreigners. Thus the alternative solution is foreign investors can establish a local PT company to start a business in Indonesia.

The general minimum requirement to establish a local PT company are as follows:

  • 2 shareholders
  • 1 local Director
  • 1 Commissioner


This type of company only allowed 100% Indonesian citizen ownership, hence you will need Local Nominee for setting up this local PT company. Local nominee company is a solution for foreign investors who want to expand the business in Indonesia but hampered by limited ownership for specific business areas. So they can get a local shareholder nominee to represent a partial ownership for a certain number, but in real condition, the foreign investors get a full ownership. Cekindo can help you to provide a local shareholder nominee with notarized nominee agreement, contact us for details.


Size of Local PT Company

To set up a local PT company you have to invest some amount of money, the range is from IDR 50,000,000 up to more than IDR 10,000,000,000. Based on the amount of paid-in capital, local PT company divided into 3 sizes:

  • Small : above IDR 50,000,000 – 500,000,000
  • Medium : above IDR 500,000,000 – 10,000,000,000
  • Large : above IDR 10,000,000,000


Can a local PT company hire a foreign employee?

Yes, it can. For the local nominee company (foreign ownership) the required company size is medium at least, with paid-in capital above IDR 1,100,000,000. Find out how to get a business visa and work permit in Indonesia.

The Process of Setting Up a Local PT in Indonesia

Establishing a local PT company will take about 47 working days. You can check the detail process below:

Obtain Deed of Establishment at the Ministry of Law and Human Rights3Obtain Certificate of Domicile at the local government office15Obtain Taxpayer registration number (NPWP) and VAT number at the tax office (Check out tax reporting deadlines, warnings, and recommendations in Indonesia)

No. Procedure Duration (working days)
1. Approval of company name at the Ministry of Law and Human Rights 2
2. Preparation of Association Article by Notary 4
3. Obtain Deed of Establishment at the Ministry of Law and Human Rights 3
4. Obtain Certificate of Domicile at the local government office 15
5. Obtain Tax payer registration number (NPWP) and VAT number at the tax office (Check out tax reporting deadlines, warnings, and recommendations in Indonesia) 3
6. Obtain Trading Business License (SIUP) 10
7. Obtain Company Registration Certificate (TDP) at the local government 10

If you are not sure what type of company which is suitable for your business, feel free to contact us. Cekindo will assist you to establish your business from the start in Indonesia based on your customized needs. You can subscribe our newsletter to get the updated information regarding business in Indonesia, once a month.

Contact Us

Please send your question by filling in this form below. Our consulting team will quickly answer you via E-mail. You can visit our office to know more details about our Company Registration service.

11 Responses to “Setting Up a Local PT Company”

  1. Kevin Jude says:

    Cost to register a PT company

  2. mohd shahvez khan says:

    i want to start my bussiness in indonesia .

  3. Libor Uhlík says:

    Dear Kevin,

    thank you for contacting Cekindo. Our consultant will contact you very soon or if you have further questions, ask them directly on info@cekindo.com.

    If we can help you with something else, just let us know.
    Thank you

    Libor Uhlík

  4. Libor Uhlík says:

    Dear Mohd,

    thank you for contacting Cekindo. You need to think what fits best for you – check here possibilities of registering of company in Indonesia.
    Our consultant will contact you with more information very soon or if you have further questions, ask them directly on info@cekindo.com.

    If we can help you with something else, just let us know.
    Thank you

    Libor Uhlík

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  8. sarnah says:

    selamat sore
    Saya ingin buka PT capital 50 juta atau kurang dan mau buka business hanya barang2 online dibutuhkan proses berapa hari dan berapa biayanya, berapa kali sampai dapat surat2 semua?

  9. Johan Maulana says:

    Dear Ms. Sarnah,

    Terima kasih telah menghubungi Cekindo.

    Cekindo dapat membantu klien dalam memberikan konsultasi dan mendirikan perusahaan di Indonesia. Berdasarkan dari pertanyaan Ibu, perusahaan dengan modal yang Ibu tuliskan akan tergolong ke dalam jenis perusahaan kecil. Akan tetapi, ada sedikit koreksi dimana disarankan modal minimal yaitu IDR 60.000.000 sesuai ketentuan notaris. Ketentuan yang dibutuhkan untuk mendirikan PT lokal dengan modal tersebut diatas yaitu seperti dibawah :
    Minimal 2 Shareholder (Corporate atau Individual), 1 lokal Direktur dan 1 Komisaris.
    100 % shareholder dan komisaris harus lokal dan sedikitnya memiliki 1 direktur lokal.

    Harap dicatat bahwa dalam pendirian perusahaan, Anda harus memiliki alamat lengkap diawal untuk dicantumkan di dalam AKTA. Cekindo dapat memberikan paket pendirian perusahaan dan juga alamat perusahaan selama 1 tahun denagn biaya IDR 20.000.000. Harga ini sudah paket lengkap hingga dokumen perusahaan keseluruhan sampai Tanda Daftar Perusahaan (TDP), termasuk biaya notaris, dan alamat terdaftar (Virtual) di kantor utama kami yang berlokasi di Grand Slipi Tower Lantai 9 Unit G. Apabila hanya ingin pendaftaran perusahaan saja, harga kami yaitu USD 1.500 yang akan di convert ke IDR sesuai tanggal invoice dikeluarkan.

    Untuk referensinya, berikut kami lampirkan proposal umum Cekindo termasuk pendirian perusahaan dan servis lainnya.

    Apabila ada pertanyaan, dapat menghubungi kami.

    Terimakasih, kami tunggu kabar selanjutnya.



  10. Nirmal Joshi says:

    I plan to open a local office (IT sales) for my company based in USA/ India. Not sure under which category will it fall, what will be the cost and timelines to make it happen.

  11. deborahutajulu says:

    Hello Nirmal, thank you for your comment.
    We will be happy to help you with opening a local office in Indonesia. For further information regarding our services, do not hesitate to contact us at +6221 806 60999 or send us email through info@cekindo.com. We wishing you all the best and much success.

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