PT PMA Requirements: Steps to Start Your Business in Indonesia

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.

To establish a PT PMA (Foreign-Owned Limited Liability Company) in Indonesia, foreign investors need at least two shareholders, a minimum paid-up capital of IDR 2.5 billion (~USD 150,000), at least one director and one commissioner, a registered business address in Indonesia, and a notarized Deed of Incorporation. The registration is processed through Indonesia’s OSS-RBA (Online Single Submission) system and typically takes 4–6 weeks.

As of 2026, the minimum paid-up capital for PT PMA has been reduced from IDR 10 billion to IDR 2.5 billion under BKPM Regulation No. 5 of 2025, making Indonesia more accessible to foreign investors than ever before.

What is A PT PMA in Indonesia? 

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

Importantly, 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 Requirements: The Complete List

Understanding PT PMA requirements is essential before proceeding with setup. These are in accordance with Law No. 40 of 2007 on Limited Liability Companies.

Shareholders

A PT PMA must have at least two shareholders, who can be individuals or corporate entities of any nationality.

• Minimum of 2 shareholders (individuals or corporate entities)
• Shareholders can be fully foreign — no local partner required in most sectors.
• Shareholders do not need to be Indonesia residents.
• Liability is limited to the value of shares held.

Capital Requirements

The paid-up capital need not be injected immediately, a capital statement letter from shareholders is accepted during the initial registration stage. The actual deposit to a corporate bank account occurs after the company is established.

Capital Type	Requirement
Minimum paid-up capital	IDR 2.5 billion (~USD 150,000)
Total investment plan	IDR 10 billion per KBLI business activity code
Special Economic Zones (tech startups)	Exempt from minimum investment threshold

Board Structure

Your PT PMA must have at a minimum:

• 1 Director: Can be foreign, but must hold or be applying for an Investor KITAS (stay permit) if managing day-to-day operations from Indonesia
• 1 Commissioner: Oversees the director; can be foreign; does not manage daily operations

There is no requirement to include Indonesian citizens on the board, though it is common for compliance purposes in certain sectors.

Registered Business Address

To operate legally, a PT PMA must have a registered address at a commercial or office building in Indonesia. In contrast, residential addresses are not permitted. The available options include:

• A physical office lease
• A virtual office or serviced office (accepted in most sectors and cities, including Jakarta)

InCorp provides compliant virtual office addresses for PT PMA registration across Jakarta, Bali, Semarang, Batam, and Surabaya.

Business Activity (KBLI Code)

Every PT PMA must declare its business activities using Indonesia’s business classification system (KBLI — Klasifikasi Baku Lapangan Usaha Indonesia). The KBLI code determines:

• Whether your sector is open to 100% foreign ownership
• Your minimum capital requirement
• Which licenses and permits do you need beyond the NIB

Choosing the wrong KBLI code is one of the most common reasons for registration delays. InCorp verifies your KBLI classification before submitting any documentation.

Required Documents for PT PMA Registration

To complete the registration, you will need to prepare the following:

From shareholders and directors:

• Passports (for foreign nationals) or national ID cards (for Indonesian nationals)
• Power of Attorney (signed by each shareholder, authorizing the notary or consultant to act on their behalf)
• Legalized documents were required (varies by country of origin)

For the company:

• Chosen company name (must consist of at least 3 words; approved by the Ministry of Law and Human Rights)
• Business address documentation: rental agreement, domicile letter from building management, and photos of the office (reception, signage, workspace)
• Articles of Association (Deed of Incorporation), prepared and notarized by an Indonesian notary
• Company letterhead and stamp design sample

For the business address:

• Building and land tax receipt (PBB) with payment approval for the current year
• IMB (Building Permit) or certificate of ownership if the building is owned
• Domicile statement verified by building management

Not sure which documents apply to your situation? Our consultants will tell you exactly what you need in your first call — at no charge. Book your free consultation →

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. 

READ MORE:

• KPPA vs PT vs PMA Indonesia 2026: Which Company Type Do You Need?

Temporary Stay Permits and Visas Under PT PMA 

In addition, 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.

Ongoing Compliance After Registration

Setting up the PT PMA is just the beginning. Once registered, your company must:

• File quarterly LKPM reports to BKPM on investment activity
• Submit annual tax returns and monthly tax reports to the tax authority
• Maintain accounting records in compliance with Indonesian financial reporting standards
• Renew licenses before expiry (NIB is permanent; sector-specific licenses vary)
• Report any company changes (directors, shareholders, address, business activities) through OSS

InCorp provides ongoing compliance, tax reporting, and LKPM reporting services to keep your PT PMA in good standing after setup.

Ready to Set Up Your PT PMA in Indonesia? 

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. 

With extensive cross-border experience, InCorp Indonesia (an Ascentium Company) has helped companies from over 40 countries establish PT PMAs across Jakarta, Bali, Semarang, Batam, and Surabaya. We manage the entire process, from your first consultation to NIB issuance and post-registration compliance.

• 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 

Most PT PMA setups start within 48 hours of your first call. Get a free PT PMA consultation →

Or speak to our team directly: indonesia@incorp.asia | +62 21 5010 1510

Also planning to sell products in Indonesia? We can register your company and products simultaneously — saving you weeks of additional setup time. Learn about our product registration services →

Frequently Asked Questions