Published September 7, 2021 · Updated November 2, 2026
How long does company setup take for a foreign investor in Indonesia? A straightforward foreign-owned company can be registered in four to eight weeks if the notary receives complete documents.
In this guide, we discuss entity options, paid-up capital thresholds, and the seven registration steps. We also cover the 2026 government tariff revision. We outline the compliance calendar that begins once the Business Identification Number is issued.
Why Do Global Investors Target Company Setup in Indonesia?
A consumer base of more than 280 million, a published foreign-ownership list and one digital licensing system explain why investors keep choosing Indonesia.
Indonesia is the world's fourth most populous country, with a domestic consumer base of more than 280 million people. Its position between the Indian and Pacific Oceans also makes it a practical base for regional distribution.
Foreign investment is administered by the Ministry of Investment and Downstream Industry/BKPM, and most licensing now runs online. The main advantages for new companies include:
- Consumer scale: a young, growing population supports demand across consumer and digital sectors.
- Clear ownership rules: the Positive Investment List sets out which business lines are open to full or partial foreign ownership.
- Digital licensing: the Business Identification Number consolidates basic company and tax registration, while risk-based sector licences are issued separately through the same OSS platform.
- Trade access: as a founding ASEAN member, Indonesia plugs registered companies into regional supply chains.
In practice, we help clients test their sector against these rules before any document is signed.
Which Entity Should You Choose for Business Registration in Indonesia?
Foreign investors typically register a PT PMA, local founders use a local PT, and market researchers start with a representative office.
The structure determines ownership limits, liability exposure, capital rules and the licensing path, so choosing correctly at the outset avoids costly restructuring later. Investors ready to proceed usually begin with our foreign company (PT PMA) setup service after checking their sector. Founders comparing structures in more detail can review the types of business entities to set up in Indonesia. Our guide to Indonesia company registration covers the wider landscape.
1. Local PT (Perseroan Terbatas)
A limited liability company with 100 percent Indonesian shareholding. It suits local founders, requires no foreign investment approvals and carries modest minimum capital compared with foreign-owned structures.
2. PT PMA (Foreign Investment Company)
A limited liability company that permits any level of foreign ownership, up to 100 percent, in sectors open to foreign investment. Under BKPM Regulation No. 5 of 2025, the paid-up capital threshold is IDR 2.5 billion, down from the previous IDR 10 billion benchmark.
Paid-up capital is distinct from authorized capital, which is the maximum equity stated in the deed. The paid-up capital is separate from setup fees. Under Regulation No. 5 of 2025, it generally cannot be transferred from the company account for at least 12 months after deposit, except for asset purchases, building construction or business operations. The general minimum investment is more than IDR 10 billion per five-digit business classification per project location, excluding land and buildings; exceptions apply.
3. Representative Office (KPPA)
A non-trading presence for market research, promotion and liaison. A KPPA cannot earn Indonesian-source revenue or conduct commercial sales or purchase transactions, but it offers a way to evaluate Indonesia before committing capital.
Entity Options for Business Registration in Indonesia
| Entity | Foreign Ownership | Key Capital Rule | Best Suited For |
|---|---|---|---|
| Local PT | 100% Indonesian shareholding | No foreign investment approvals; modest capital requirements | Local founders and domestic businesses |
| PT PMA | Up to 100% in open sectors | IDR 2.5 billion paid-up capital under BKPM Regulation No. 5 of 2025 | Foreign investors entering permitted sectors |
| Representative Office (KPPA) | Non-trading foreign presence | No revenue-generating activities | Market research before committing capital |
What Are the Steps to Register a Company in Indonesia?
Registration runs from name reservation through notarization, legal-entity approval, tax registration and NIB issuance, typically across four to eight weeks.
The sequence runs through an Indonesian notary, the Ministry of Law's legal administration system and the Online Single Submission (OSS) platform's risk-based module. Each step feeds the next, so document gaps are the main cause of delay.
Step 1: Reserve the company name
Name checking with AHU (Administrasi Hukum Umum, the Ministry of Law's general legal administration system) is free. The name must use approved corporate wording, avoid restricted terms and not duplicate an existing entity. Approval usually takes one to three working days, so see our guide to select your Indonesia company names before shortlisting.
Step 2: Execute the deed of establishment
An Indonesian notary drafts and executes the deed of establishment, covering shareholding, capital structure, business activities and articles of association. Foreign documents such as powers of attorney may require sworn translation and legalization, adding several days.
Step 3: Obtain legal-entity status
The notary files the deed with the Ministry of Law for legal-entity approval. Once the decree is issued, the company exists as a legal entity and can proceed to licensing and the capital deposit.
Step 4: Register for the NPWP
The company obtains its tax identification number (NPWP) electronically through the integrated process. Registration data must be complete before the NIB can be issued.
Step 5: Secure the NIB through OSS-RBA
The company then registers on the OSS-RBA platform and receives its Business Identification Number (NIB). Business activities are classified by risk through OSS; any required sector permit or standard certificate may need separate verification after the NIB is issued. The NIB also serves as the company's import and customs identifier where relevant. For a detailed walkthrough, read our guide on how to obtain a company registration number NIB in Indonesia.
Step 6: Deposit the paid-up capital
Arrange the corporate account and confirm the applicable timing and evidence for the capital contribution with the notary and bank. Under BKPM Regulation No. 5 of 2025, the capital generally cannot be transferred from the company account for at least 12 months after deposit, except for asset purchases, building construction or business operations. For account-opening requirements, our guide to individual and corporate bank account opening in Indonesia covers the documents banks request.
Step 7: Apply for PKP and sector licences
Businesses that will issue tax invoices or claim VAT credits apply for PKP (Pengusaha Kena Pajak) status. Registration is mandatory once taxable supplies exceed IDR 4.8 billion in a year. Smaller businesses may register voluntarily. Verification is risk-based: low-risk applications undergo desk review, while medium- and high-risk applications may require a site visit. Sector licences complete the process.
Typical Timeline for Registering a Company in Indonesia
| Stage | Typical Duration |
|---|---|
| Name approval with AHU | 1 – 3 working days |
| Notarized deed and AHU legalization | 1 – 2 weeks |
| NPWP registration | Within the same week |
| NIB issuance through OSS-RBA | Within the same week |
| Capital deposit and PKP application | 1 – 2 weeks |
| Overall, straightforward PT PMA | 4 – 8 weeks |
How Much Does Business Registration in Indonesia Cost in 2026?
Official establishment tariffs range from IDR 300,000 to IDR 5 million. The indicative IDR 28 million to IDR 73 million setup-fee range excludes paid-up capital and the optional office. Adding the listed office range gives IDR 33 million to IDR 88 million.
Two cost layers apply: official government charges and professional service fees. As of 2 November 2026, the official PNBP (Penerimaan Negara Bukan Pajak, or Non-Tax State Revenue) tariffs are those revised by Government Regulation No. 30 of 2026, effective from 1 August 2026 and scaled to authorized capital. Name checking itself is free, with modest additional charges for State Gazette publication and stamp duty.
The Directorate General of General Legal Administration publishes the current tariff schedule on its AHU portal. For a typical PT PMA with authorized capital above IDR 5 billion, the establishment tariff is IDR 5 million.
Professional fees are set individually. Notary deed and AHU filing typically cost IDR 5 to 15 million, translations and legalization IDR 2 to 8 million, and corporate services coordination IDR 15 to 40 million. A virtual office for the first year adds IDR 5 to 15 million where physical premises are not yet needed.
A budget prepared even twelve months ago may already be outdated. For a deeper breakdown, see our full company registration in Indonesia checklist for 2026.
2026 Government Tariffs for Company Establishment (PNBP)
| Authorized Capital Band | PNBP Tariff (IDR) |
|---|---|
| Up to IDR 25 million | 300,000 |
| Above IDR 25 million to 1 billion | 600,000 |
| Above IDR 1 billion to 5 billion | 1,500,000 |
| Above IDR 5 billion | 5,000,000 |
Indicative PT PMA Setup Costs in 2026
| Service Item | Typical Range (IDR) | Notes |
|---|---|---|
| Government tariffs and gazette | 6 – 10 million | Includes publication and stamp duty |
| Notary deed and legalization | 7 – 23 million | Varies with deed length and foreign documents |
| Professional coordination | 15 – 40 million | OSS-RBA filings, NIB and NPWP |
| Optional virtual office (first year) | 5 – 15 million | May not satisfy PKP location evidence |
| Total cash outlay (excluding paid-up capital and optional office) | 28 – 73 million | Straightforward PT PMA files |
What Compliance Obligations Begin After Registration?
Applicable monthly tax filings depend on the company's tax obligations, the annual corporate return is due by April 30 for calendar-year entities, and PT PMAs file quarterly investment reports through OSS.
Registration day one starts a compliance calendar, not a finish line. The obligations below are the ones new companies most often miss in their first year. One VAT point deserves attention: the statutory rate is 12 percent under PMK No. 131 of 2024, though most business-to-business transactions are billed at an effective 11 percent.
1. Monthly tax filings
PPh (Pajak Penghasilan, Indonesian income tax) 25 corporate instalments are due on the 15th of each month. PPh 21 employee withholding and PPh 23 on services are paid by the 15th and reported by the 20th of the following month. VAT periodic returns are due by the last day of the following month.
2. Annual obligations
The annual corporate income tax return (SPT PPh Badan) is due by April 30 for calendar-year entities, with a possible two-month extension through the tax portal. The standard corporate rate is 22 percent in 2026. An Annual General Meeting of Shareholders must ratify the annual report within six months of fiscal year end.
3. Investment and manpower reporting
Medium, large and PT PMA companies file quarterly investment reports through OSS; the Quarter III 2026 window ran from 1 to 15 October. The Mandatory Manpower Report (WLKP) is filed annually; establishment, reopening and relocation also trigger reporting requirements, and planned relocation, cessation or dissolution must be reported at least 30 days beforehand. Employers generally need an approved foreign-worker utilization plan (RPTKA), and foreign personnel need the appropriate immigration permission before working locally.
Monthly and Annual Compliance Deadlines in Indonesia
| Obligation | Deadline | Notes |
|---|---|---|
| PPh 25 corporate instalment | 15th of each month | Monthly prepayment of corporate income tax |
| PPh 21 and PPh 23 withholding | Pay by the 15th, report by the 20th of the following month | PPh 23 generally applies at 2 percent to gross fees paid to qualifying domestic service providers. |
| SPT Masa PPN (VAT return) | Last day of the following month | 11 percent effective on most transactions |
| Annual corporate income tax return | April 30 of the following year | 22 percent standard rate in 2026 |
| LKPM investment report | Quarterly, e.g. 1 – 15 October for Quarter III 2026 | Filed through OSS by medium, large and PT PMA companies |
Do You Need a Physical Office for PKP Registration?
Not necessarily: a qualifying virtual office can be used for PKP registration, subject to conditions and evidence of genuine operations.
PKP status matters for any company that will issue tax invoices or claim VAT credits. Because verification is risk-based, medium- and high-risk applications may involve a site visit.
Companies without premises can start with a virtual office for correspondence, but the tax office may still ask for evidence of genuine operations. Our registered address services in Indonesia explain what the tax office accepts and how to prepare for verification.
Conclusion
Company setup in Indonesia now follows a defined, largely digital sequence:
- Pick the entity.
- Notarize the deed.
- Secure legal-entity status.
- Register for tax.
- Obtain the NIB.
- Deposit capital.
- Apply for PKP if required or if choosing to register voluntarily.
The 2026 figures above — the IDR 2.5 billion PT PMA paid-up capital threshold and the PNBP tariffs effective from 1 August 2026 — are the ones to budget against today.
The most common delays are document gaps, capital deposited at the wrong stage and PKP applications that lack genuine location evidence. Each is avoidable with a short planning session before the deed is drafted.
3E Accounting Indonesia is a Corporate Services Provider in the 3E Accounting International Network. That network spans more than 110 countries. The Indonesia team handles name reservation, deed execution, and OSS-RBA filings. It also manages NPWP and NIB issuance, capital deposit coordination, and the ongoing compliance calendar. Contact our team to plan your Indonesia market entry with current figures.
Plan Your Indonesia Company Registration
Our incorporation team can check your sector's foreign ownership rules, confirm capital planning and manage the filings from name approval to NIB issuance.
Frequently Asked Questions
A straightforward PT PMA typically takes four to eight weeks end to end. Name approval takes one to three working days, and the NIB is issued within one to three working days once documents are complete.
Generally, at least IDR 2.5 billion per company under BKPM Regulation No. 5 of 2025, unless another rule applies. The capital generally cannot be transferred from the company account for at least 12 months after deposit, except for asset purchases, building construction or business operations.
Yes, in business lines open to foreign investment under the Positive Investment List. Some sectors restrict foreign ownership or are closed to foreign investment, so the business classification should be checked first. A representative office may be an option for permitted non-trading activities, but it cannot trade.
The NIB (Business Identification Number) is issued through the OSS-RBA platform and consolidates licensing into a single number. Business activities are classified by risk through OSS; any required sector permit or standard certificate may need separate verification after the NIB is issued. It also serves as the company's import and customs identifier where relevant.
No. PKP registration is mandatory once taxable supplies exceed IDR 4.8 billion in a year; businesses below that threshold may register voluntarily if they issue tax invoices or want to claim VAT credits. Verification may require evidence of genuine operations; a qualifying virtual office can be used subject to conditions.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
