Government Regulation No. 30 of 2026 revised Indonesia's official company establishment tariffs with effect from 1 August 2026, which means budgets prepared even twelve months ago may already be outdated. At the same time, a lower paid-up capital threshold introduced in 2025 has shortened the cash-flow planning horizon for foreign investors.
In this guide, we discuss company registration in Indonesia step by step. We cover:
- entity options and the incorporation sequence;
- current 2026 government tariffs and professional fees;
- the realistic timeline, tax registrations and follow-on compliance obligations.
What Entity Options Are Available to Investors?
Foreign investors typically register a PT PMA, local founders use a local PT, and market researchers can start with a representative office.
The entity type determines ownership limits, capital rules and licensing path. Choosing it correctly at the outset avoids costly restructuring later. Indonesia's investment framework is administered by the Ministry of Investment and Downstream Industry/BKPM and through the Online Single Submission (OSS) licensing system.
In practice, we help clients match the entity to their sector, shareholding plan and funding capacity before any document is signed.
1. Local PT (Perseroan Terbatas)
A limited liability company with 100 percent Indonesian shareholding. It suits local founders and requires no foreign investment approvals. Minimum paid-up capital requirements are modest compared with foreign-owned structures.
2. PT PMA (Foreign Investment Company)
A limited liability company with 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 now IDR 2.5 billion, below the previous IDR 10 billion benchmark, and it is distinct from authorized capital, which is the maximum equity stated in the deed. The paid-up capital is deposited after legal-entity status is granted and locked against free withdrawal.
3. Representative Office (KPPA)
A non-trading presence for market research, promotion and liaison. It cannot generate revenue or sign contracts, but it offers a fast, low-cost entry point for groups evaluating Indonesia before committing capital.
What Are the Steps to Register a Company in Indonesia?
The sequence runs from name reservation through notarization, legal-entity approval, NPWP registration and NIB issuance, typically across four to eight weeks.
Incorporation runs through a notary, the Ministry of Law's Directorate General of General Legal Administration (AHU) and the OSS-RBA platform. Each step feeds the next, so document gaps are the main cause of delay. Founders who prefer hands-off handling can engage a Corporate Services Provider through the contact page to manage the full sequence.
The Online Single Submission (OSS) system consolidates licensing into a single business identification number, the NIB, which also serves as the company's import and customs identifier where relevant.
Step 1: Reserve the company name
Name checking with the AHU is free. The name must use approved corporate wording, avoid restricted terms, and not duplicate an existing entity in the Indonesian Company Registry (AHU). Approval is usually issued within one to three working days.
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 capital deposit.
Step 4: Register for the NPWP
The company obtains its tax identification number, the NPWP, electronically through the integrated SABH or OSS process. The registration data must be complete before the NIB is issued.
Step 5: Secure the NIB through OSS-RBA
Once the NPWP has been obtained or processed, the company registers on the OSS-RBA platform and receives its Business Identification Number (NIB). Sector-specific permits and business lines are validated at the same time, based on the declared risk classification.
Step 6: Deposit the paid-up capital
The required paid-up capital is deposited after legal-entity status and before certain licences are activated. It may fund genuine operating expenses or asset purchases, but cannot be freely withdrawn during the lock-up period.
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. 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 setup.
How Much Does Company Registration in Indonesia Cost in 2026?
Government tariffs range from IDR 300,000 to IDR 5 million depending on authorized capital, while total cash outlay for a typical PT PMA runs from IDR 28 million to IDR 73 million.
Two cost layers apply: official government charges and professional service fees. The official PNBP (Penerimaan Negara Bukan Pajak, or Non-Tax State Revenue) tariffs for establishment were revised by Government Regulation No. 30 of 2026 and apply from 1 August 2026, scaled to authorized capital. Name checking itself is free, with modest additional charges for State Gazette publication and stamp duty.
Notary fees are set individually and reflect deed length and any sector-specific clauses. Corporate-services-provider fees cover project management, document collection from overseas shareholders, OSS-RBA filings and obtaining the NIB and NPWP.
1. Government tariffs
The Directorate General of General Legal Administration publishes the current tariff schedule on its portal. For a typical PT PMA with authorized capital above IDR 5 billion, the establishment tariff is IDR 5 million, with lower bands for smaller capital.
2. Professional services
Notary deed and AHU filing typically cost IDR 5 to 15 million. Corporate services coordination typically costs IDR 15 to 40 million. Translations and legalization cost IDR 2 to 8 million, depending on the volume of foreign documents.
3. Optional items
A virtual office for the first year, at IDR 5 to 15 million, suits companies without physical premises. Note that PKP registration requires evidence of a genuine business location, so a virtual office alone may not satisfy the tax office for VAT status.
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 |
Professional Cost Checklist for PT PMA Setup
| Service Item | Typical Range (IDR) | Notes |
|---|---|---|
| Government tariffs and gazette | 6 – 10 million | Inclusive of 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 | 28 – 73 million | Straightforward PT PMA files |
How Long Does the Registration Process Take?
Most straightforward PT PMA files reach legal-entity status and NIB issuance within four to eight weeks once all documents are complete.
- Prepare complete shareholder documents before the notary appointment. Foreign shareholders must supply legalized documents, and capital verification issues can add weeks.
- Allow additional time where sector permits require inspections. Coordinate signings across Indonesia's time zones when overseas directors travel or sign remotely.
- We help clients pre-validate shareholder documents before the notary appointment. This is the most effective way to keep the timeline inside eight weeks.
Typical Company Registration Timeline in Indonesia
| Stage | Typical Duration |
|---|---|
| Name approval with AHU | 1 – 3 working days |
| Notarized deed and AHU legalization | 1 – 2 weeks |
| NIB issuance through OSS-RBA | 1 – 3 working days after complete documents |
| NPWP registration | Within the same week |
| Capital deposit and PKP application | 1 – 2 weeks |
| Overall, straightforward PT PMA | 4 – 8 weeks |
What Compliance Obligations Start After Registration?
Companies must file monthly withholding and VAT returns, pay corporate income tax instalments, and meet annual shareholder, manpower and beneficial ownership reporting duties.
Incorporation is only the beginning. Once the NPWP is active, a calendar of monthly and annual obligations begins, administered largely through the DJP's Coretax system. Missing deadlines triggers administrative sanctions, so most companies engage professional support for bookkeeping services in Indonesia from the first month of operations.
Companies must also keep beneficial ownership data current with the AHU, filing annually or within three days of any change. Failure to update can lead to blocking of the company's administrative records.
1. Monthly tax filings
PPh 25 corporate instalments are due on the 15th of each month. PPh 21 employee withholding and the unified monthly return, including PPh 23 on services, are due on the 20th of the following month. VAT periodic returns are due on the last day of the following month.
2. Annual obligations
The annual corporate income tax return 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 AGMS (Annual General Meeting of Shareholders) must ratify the annual report within six months of fiscal year end.
3. Sector and investment reporting
Medium, large and PT PMA companies file quarterly investment reports through OSS, with the Quarter III 2026 window running from 1 to 15 October. The Mandatory Manpower Report (WLKP) is filed annually; separate reports are due within 30 days after a company is established, reopens, relocates or closes.
4. VAT rules to watch
The statutory VAT rate is 12 percent under PMK No. 131 of 2024, though most business-to-business transactions are billed at an effective 11 percent rate, with the higher rate reserved for luxury goods and certain sectors. PKPs must complete all mandatory tax invoice fields on every faktur pajak to support VAT credits.
5. Cross-border digital transactions
Under Minister of Finance Regulation No. 49 of 2026, the VAT Collection System for Cross-Border Digital Transactions (SPP-TDLN) takes effect on 25 September 2026. Where SPP-TDLN applies, foreign merchants and service providers must include Indonesian VAT in the price payable by Indonesian customers, and VAT may be collected through designated payment intermediaries; existing PMSE VAT Collectors continue under their current arrangements.
Monthly and Annual Tax Deadlines After Registration
| Obligation | Deadline | Notes |
|---|---|---|
| PPh 25 corporate instalment | 15th of each month | Monthly prepayment of corporate income tax |
| PPh 21 employee withholding | 20th of the following month | Via DJP Online or Coretax |
| PPh 23 services withholding | 20th of the following month | 2 percent domestic or treaty rates |
| 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 |
Conclusion
Registering a company in Indonesia in 2026 requires careful sequencing:
- entity choice and a notarized deed;
- AHU legalization, NPWP and NIB;
- capital deposit and PKP. Government tariffs under Government Regulation No. 30 of 2026 now scale from IDR 300,000 to IDR 5 million by authorized capital. A typical PT PMA involves a total cash outlay of IDR 28 to 73 million over four to eight weeks.
Once incorporated, the company enters a monthly and annual compliance cycle. It covers withholding tax, VAT, investment reporting and beneficial ownership updates. The SPP-TDLN changes affect cross-border digital sales from 25 September 2026.
As a technology-enabled Corporate Services Provider, we are backed by the 3E Accounting International Network across more than 110 countries. We guide clients through every stage of company registration in Indonesia. This includes incorporation and ongoing tax and secretarial support, so businesses can grow with confidence.
Ready to Launch Your Indonesian Entity?
Get a tailored cost breakdown and a step-by-step incorporation plan for your sector, prepared by our Indonesia incorporation specialists.
Frequently Asked Questions
Government PNBP tariffs range from IDR 300,000 to IDR 5 million depending on authorized capital, following Government Regulation No. 30 of 2026. Including notary, legalization and professional coordination, a typical PT PMA requires a total cash outlay of IDR 28 to 73 million.
Yes, through a PT PMA in business sectors open to foreign investment under Indonesia's investment framework. Certain sectors remain restricted or capped, so the business line must be validated before incorporation.
Most straightforward PT PMA files reach legal-entity status and NIB issuance within four to eight weeks once all shareholder documents are complete and legalized. Document gaps and sector-specific permits are the most common causes of delay.
BKPM Regulation No. 5 of 2025 lowered the paid-up capital threshold below the previous IDR 10 billion benchmark. The capital is deposited after legal-entity status is granted, may fund genuine operating expenses, and cannot be freely withdrawn during the lock-up period. The current figure for your sector should be confirmed before budgeting.
The company first obtains its NPWP tax identification number. PKP (VAT) registration is mandatory once annual turnover crosses IDR 4.8 billion and is voluntary below that threshold, though only PKPs can issue tax invoices and claim VAT credits.
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.
