PT PMA Requirements: Start Your Indonesia Setup Right

Setting up a business in Indonesia starts with understanding the PT PMA requirements. While the process may appear straightforward, the structure can become restrictive if it does not align with your intended activities. Understanding these requirements early helps ensure your setup supports your operations from the start. 

What is A PT PMA in Indonesia? 

A PT PMA (Penanaman Modal Asing) is an Indonesian limited liability company with foreign ownership, used as the main vehicle for foreign investment companies in Indonesia. 

Even a small percentage of foreign shares is enough for a company to be classified as a PT PMA. This structure allows businesses to: 

• Operate commercially in Indonesia 
• Generate revenue and invoice locally 
• Hire employees and enter contracts 

At the same time, businesses must align with key PT PMA requirements, including: 

• Foreign ownership restrictions based on sector 
• Licensing under the OSS risk-based system 
• Requirements tied to KBLI (business classification) 

A PT PMA is a legal entity framework that governs how your business operates within Indonesia’s regulatory system.

READ MORE:

• PT PMA Guide to Indonesia’s Coretax Reporting System
• Everything You Need: Documents for Setting Up a PT PMA in Indonesia
• How to Meet PT PMA Minimum Capital Requirements in Indonesia

Can Foreign Investors Own A PT PMA in Indonesia? 

Foreign investors can own a PT PMA in Indonesia, but ownership restrictions vary by business sector. Indonesia regulates foreign ownership through the Positive Investment List: 

• Fully Open Sectors: Up to 100% foreign ownership 
• Partially Restricted Sectors: Require a local partner 
• Conditional Sectors: Subject to additional requirements 

Since these rules are tied to business classification, aligning ownership structure with PT PMA requirements in Indonesia is critical. Misalignment can lead to: 

• Misaligned shareholding structures 
• Delays in PT PMA registration 
• Restructuring after incorporation 

Ownership planning should be aligned early with business classification and licensing to avoid operational setbacks, approval delays, and costly restructuring later. 

PT PMA Indonesia Requirements 

Understanding PT PMA requirements is essential before proceeding with setup. These are: 

Minimum Capital Requirement for PT PMA 

One of the most critical PT PMA requirements is capital. The standard benchmark is: 

• Minimum Investment Plan: More than IDR 10 billion per KBLI and project location (excluding land and buildings) 
• Minimum Paid-Up Capital: IDR 2.5 billion 

These are based on BKPM Regulation No. 5 of 2025, which governs foreign investment requirements. 

Company Structure Requirements for PT PMA 

To meet PT PMA requirements in Indonesia, your company must have: 

• Minimum of 2 shareholders (individual or corporate) 
• At least 1 director and 1 commissioner 
• A registered business address in Indonesia 

These are in accordance with Law No. 40 of 2007 on Limited Liability Companies. 

How to Set Up A PT PMA in Indonesia 

Meeting PT PMA requirements also involves following the correct registration process under the OSS system. These are: 

Step-by-Step PT PMA Registration Process 

This process follows Government Regulation No. 28 of 2025. 

• Business classification review (KBLI) 
• Deed of establishment (notary) 
• Legal entity approval 
• Tax registration (NPWP) 
• NIB issuance through OSS 
• Business license based on risk level 

Key Documents for PT PMA Registration

To fulfill administrative PT PMA requirements, you will need: 

• Proposed company name 
• Identification documents of shareholders and management 
• Shareholding structure 
• Appointment of director and commissioner 
• Registered business address 

Is PT PMA Registration Done Online? 

PT PMA online registration is partially facilitated through OSS, allowing businesses to: 

• Apply for NIB 
• Submit licensing requirements 
• Track application status 

However, meeting full PT PMA requirements still requires coordination, especially for documentation and classification.

Can A PT PMA Own Land in Indonesia? 

A PT PMA cannot own land under Hak Milik (Freehold Title), which is restricted to Indonesian individuals. Instead, a PT PMA can obtain: 

• Right to Build (Hak Guna Bangunan / HGB): Allows the company to construct and own buildings on the land for a specific period. 
• Right of Use (Hak Pakai): Typically used for certain operational or commercial purposes. 
• Long-Term Lease Agreements: Commonly used in sectors like hospitality and property development. 

HGB is the most used structure for commercial activities. 

How Foreigners Can Legally Operate a Business in Indonesia 

In general, there are two common approaches for foreigners to operate a business legally in Indonesia: establishing a PT PMA for full commercial operations or setting up a representative office for limited, non-revenue-generating activities. 

PT PMA vs Representative Office 

A PT PMA is required for revenue-generating activities, while a representative office is more suitable for early-stage market exploration. Here is the comparison: 

Aspect	PT PMA	Representative Office
Business activity	Full operations	Liaison & research
Revenue	Allowed	Not Allowed
Contracts	Allowed	Restricted
Hiring	Allowed	Limited
Licensing	Required	Minimal
Scalability	High	Limited

Key Challenges in Setting Up A PT PMA in Indonesia 

While setting up a PT PMA in Indonesia is structured, support services are available to help you navigate challenges and ensure your setup aligns with your operations, fostering confidence in your investment journey. 

Business Classification (KBLI) 

Your KBLI code determines: 

• Whether foreign ownership is allowed 
• What licenses are required 
• The level of regulatory scrutiny 

A misaligned classification can lead to: 

• Incorrect licensing 
• Operational limitations 
• The need to revise your setup after incorporation 

Ownership Structure 

Foreign ownership rules vary by sector. Without proper planning, your structure may: 

• Exceed the allowed foreign ownership limit 
• Require adjustment after submission 
• Delay approval and licensing 

This is why ownership should be defined alongside business classification rather than separately. 

Licensing Requirements 

Licensing in Indonesia follows a risk-based approach under OSS. In practice, this means: 

• Some activities require additional verification 
• Certain licenses must be obtained before operations begin 

If your business activities expand beyond what is initially registered, additional licensing may be required. 

Investment Realization 

Declared investment must align with: 

• Actual operations 
• Financial reporting 
• LKPM reporting obligations 

Mismatch can create compliance exposure under evolving PT PMA requirements in Indonesia. 

Compliance Alignment 

Indonesia’s regulatory systems are becoming more integrated, particularly across: 

• OSS licensing 
• Tax reporting (Coretax) 
• Immigration and employment data 

This makes early alignment with PT PMA requirements even more important. 

Temporary Stay Permits and Visas Under PT PMA 

A PT PMA Indonesia allows foreign shareholders and employees to obtain stay permits, depending on their role and the nature of their activities. 

Investor Stay Permit (KITAS) 

Foreign shareholders in a PT PMA can apply for an Investor KITAS, which allows them to stay in Indonesia without a separate work permit, provided they are not involved in day-to-day operational roles. This type of permit is commonly used when: 

• You are listed as a shareholder in the company 
• Your role is supervisory or strategic 
• You are not receiving a salary as an employee 

Work Permit and Working KITAS 

If you are actively involved in operations, a different approach is required. Foreign professionals working under a PT PMA must obtain: 

• RPTKA approval (Foreign Worker Utilization Plan) 
• Work permit notification 
• Working KITAS 

This applies when your role includes:

• Managing daily operations 
• Holding an executive or technical position 
• Receiving income from the company in Indonesia 

Choosing the correct permit depends on your role within the company. Misclassification can lead to compliance issues, especially as immigration and employment regulations are more closely monitored.

Is PT PMA the Right Structure for Your Business? 

A PT PMA is suitable for businesses planning long-term commercial operations in Indonesia. Understanding PT PMA requirements early allows you to structure your business correctly and avoid unnecessary adjustments later. 

InCorp Indonesia (an Ascentium Company) supports foreign investors across: 

• Business Setup: Establishing your PT PMA with the right structure and documentation 
• Business Licensing: Managing OSS registration and required permits based on your activity 
• Investor and Working KITAS: Supporting investor and working KITAS applications 
• Business Process Outsourcing: Handling ongoing compliance, reporting, and administrative functions 

This allows your PMA company registration to run in a structured, compliant manner as your business grows. Fill out the form below to get started.

Frequently Asked Questions