PT PMA (Penanaman Modal Asing) is the standard legal vehicle for foreign direct investment in Indonesia. This guide covers everything a foreign investor needs to understand before proceeding.
This guide is for general informational purposes only. It reflects publicly available regulatory requirements as of mid-2026. Requirements may change — always verify current requirements before making business decisions.
A PT PMA is a limited liability company (Perseroan Terbatas) that is partially or wholly owned by foreign investors. It is the primary legal structure through which foreign entities can directly invest in, operate, and generate revenue from business activities in Indonesia.
Most foreign investors doing business in Indonesia do so through a PT PMA. The alternative — a representative office — cannot conduct commercial transactions or generate revenue directly.
| Requirement | Standard Rule | Notes |
|---|---|---|
| Minimum authorized capital | Rp 10 billion (~USD 615,000) | Set by Government Regulation (GR) No. 8/2021 |
| Minimum paid-up capital | 25% of authorized capital | ~Rp 2.5 billion (~USD 154,000) |
| Minimum shareholders | 2 (individual or legal entity) | One can be a foreign entity |
| Directors & commissioners | Minimum 1 director, 1 commissioner | At least 1 director must be domiciled in Indonesia |
| Business Identification Number (NIB) | Required via OSS portal | Issued by BKPM / OSS system |
| Foreign ownership limit | Varies by sector | Governed by Positive Investment List (Presidential Regulation No. 10/2021) |
Before incorporating, verify that your intended business sector is open to foreign investment and determine the maximum foreign ownership percentage. Some sectors require a local partner with a minimum ownership stake. Check the Positive Investment List guide →
Reserve your company name through the Ministry of Law and Human Rights (Ministry of Law and Human Rights) online system. The name must consist of at least 3 words and must not conflict with existing registered names.
A public notary drafts the deed of establishment (Akta Pendirian) containing the articles of association, shareholder structure, and management appointments. This is a required legal step — a licensed Indonesian notary must be engaged.
The notary submits the deed for ratification by the Ministry of Law and Human Rights. This formally establishes the company as a legal entity. Processing typically takes 1–3 business days if documents are complete.
Register on the Online Single Submission (OSS) portal to obtain the Business Identification Number (NIB). The NIB serves simultaneously as the company registration number, taxpayer registration indicator, and customs ID. See the OSS Licensing Guide →
Depending on your sector and risk classification, you may need additional business licenses beyond the NIB — sector-specific permits from relevant ministries, environmental approvals, or location permits. High-risk sectors require verification from the relevant technical ministry.
Register for a Taxpayer Identification Number (Tax Identification Number (NPWP)) and, if turnover exceeds the threshold, register as a VAT-taxable entrepreneur (VAT-registered entrepreneur (PKP)). Corporate income tax in Indonesia is 22%.
| Stage | Estimated Time | Estimated Cost |
|---|---|---|
| Name reservation | 1–2 days | Rp 200,000 (gov fee) |
| Notarial deed | 3–7 days | Rp 5–15 million (notary fee) |
| MoLHR ratification | 1–3 days | Included with notary |
| OSS / NIB issuance | 1–3 days | No government fee |
| Sector licensing (if required) | 7–30 days | Varies by sector |
| Total (standard case) | 2–6 weeks | Rp 15–50 million + paid-up capital |
Foreign investors must maintain the minimum paid-up capital in a dedicated bank account. BKPM (the Investment Coordinating Board) may request capital proof during licensing or reporting processes.
PT PMA companies are required to submit investment activity reports to BKPM on a quarterly and annual basis through the Investment Activity Report (LKPM) (Investment Activity Report) system. Non-compliance can result in licensing sanctions.
If the EU-Indonesia Comprehensive Economic Partnership Agreement (EU-CEPA) is finalized, EU investors may benefit from improved market access conditions in certain sectors. Companies from EU member states should monitor this development, particularly in services, manufacturing, and professional sectors.
This guide covers the standard PT PMA process. Requirements can vary significantly by sector, investment size, and location (including special economic zones). A dedicated Market Entry Brief provides sector-specific analysis for your situation.
A structured research brief tailored to your sector, ownership structure, and investment size. Covers requirements, timeline, ownership limits, and key risks. Delivered within 5 business days.
Order a Brief — from $149 →