Setting up a company in Indonesia is one of the most strategic business decisions you can make in Southeast Asia today. Indonesia’s growing economy, large consumer base, and streamlined digital registration system make it an attractive destination for both local entrepreneurs and foreign investors. However, company registration in Indonesia involves a structured legal process, from selecting the right business entity to securing licences through the OSS system.
Navigating these requirements without expert guidance can lead to costly delays. This guide covers every step required to set up your company in Indonesia quickly, correctly, and in full compliance with current regulations.
Why Should You Set Up a Company in Indonesia?
Indonesia ranks fourth globally by economic size in Asia, behind only China, Japan, and India. Its strategic position between the Indian Ocean and the Pacific Ocean, combined with a domestic consumer base of over 280 million people, makes the company’s setup in Indonesia an exceptional opportunity for both regional and global businesses.
Key advantages include:
- Free Trade Access: As a founding ASEAN member, Indonesia benefits from zero or reduced tariffs across agreements, including ASEAN-China (ACFTA), ASEAN-Australia-New Zealand (AANZFTA), ASEAN-India (AIFTA), ASEAN-Japan (AJFTA), and the CEPA with the European Free Trade Association (EFTA), giving registered companies access to over 667 million regional consumers.
- Positive Investment List: Indonesia’s Presidential Regulation No. 10 of 2021 replaced the former Negative Investment List, clearly defining sectors open to full or conditional foreign ownership, reducing ambiguity and streamlining investment decisions.
- Streamlined Digital Registration: The OSS-RBA (Online Single Submission – Risk Based Approach) platform centralises all business licensing, enabling faster company setup in Indonesia.
- Strong Investment Growth: Total investment realisation in 2025 reached IDR 496.9 trillion, exceeding the government’s annual target, confirming Indonesia’s position as the region’s top emerging market.
What Business Structures Are Available for Company Registration in Indonesia?
Selecting the correct entity is the most critical decision when planning your Indonesia company setup. The structure you choose determines ownership rights, liability exposure, capital requirements, and operational scope. Understanding each option ensures you register your company in Indonesia under the most suitable and compliant framework.
1. PT PMA: Foreign-Owned Limited Liability Company
The PT PMA is the only structure that allows foreign investors to directly own shares, hold operating licences, and repatriate profits. It is governed by Investment Law No. 25 of 2007 and the Omnibus Law No. 11 of 2020. Under BKPM Regulation No. 5 of 2025 (effective October 2025), the minimum paid-up capital is IDR 2.5 billion (approx. USD 160,000), with a minimum total investment plan of IDR 10 billion per KBLI business classification.
2. PT: Local Limited Liability Company
A locally-owned private limited company, fully or majority-owned by Indonesian nationals, offering limited liability and full legal entity status. It is suitable for domestic businesses or foreign investors operating through a compliant shareholder arrangement. Setup costs for a local PT company in Indonesia start from approximately USD 1,500.
3. CV: Limited Partnership
A partnership structure with no minimum capital requirement, designed for small Indonesian-owned businesses seeking a straightforward legal form. It is not available to foreign investors as a primary business entity. This option carries unlimited liability for active partners.
4. Representative Office (KPPA / KP3A)
Allows a foreign company to establish a presence in Indonesia for market research and promotional activities only, with no minimum capital requirement. Revenue-generating and commercial transactions are strictly not permitted under this structure. It is best suited for companies testing the Indonesian market before full incorporation.
5. Subsidiary Company
Established as a separate legal entity under Indonesian law and fully owned by a foreign parent company. It operates independently and is subject to the same regulatory requirements as a PT PMA. This structure is preferred by multinationals seeking clear operational and legal separation from the parent entity.
What Are the Legal Requirements for Foreign Investors Starting a Business in Indonesia?
Foreign investors must satisfy the following requirements to legally register a company in Indonesia:
- Minimum paid-up capital: IDR 2.5 billion (approx. USD 160,000) as per BKPM Regulation No. 5 of 2025.
- Minimum total investment plan: IDR 10 billion per KBLI business activity, excluding land and buildings
- Shareholders: Minimum two shareholders (individuals or legal entities)
- Directors and Commissioners: At least one director and one commissioner; the director must be a resident of Indonesia (or hold a valid KITAS)
- Registered business address: A physical address in Indonesia is mandatory; certain regulated sectors cannot use virtual offices
- KBLI classification: Your business activities must be mapped to the correct classification code under the Indonesian Standard Business Classification (KBLI)
- Compliance with the Positive Investment List: Verify your sector’s foreign ownership cap or current BKPM guidance, as caps are subject to regulatory amendment
- Tax Registration (NPWP & PKP): A Tax Identification Number (NPWP) must be obtained; companies meeting VAT thresholds must also register as a Taxable Entrepreneur (PKP)
What Are the Step-by-Step Procedures to Set Up a Business in Indonesia?
Company registration in Indonesia follows a structured, government-mandated process. Below is the complete step-by-step guide as of 2026:
Step 1: Reserve Your Company Name
Submit your preferred company name to the Ministry of Law and Human Rights (MOLHR) for approval. The name must be unique, not resemble an existing entity, and comply with Indonesian naming conventions.
Step 2: Prepare and Notarise the Deed of Establishment (DOE)
Draft the Articles of Association, specifying the company name, registered address, business objectives, capital structure, and details of directors and commissioners. This document must be notarised by a licensed Indonesian notary in Bahasa Indonesia (with an English translation for foreign parties).
Step 3: Obtain MOLHR Approval
Submit the Deed of Establishment to the Ministry of Law and Human Rights within 60 days of execution. The MOLHR reviews and issues a signed decision electronically upon approval, granting the company legal entity status.
Step 4: Obtain a Tax Identification Number (NPWP)
Register the company with the local Tax Office to obtain an NPWP. This number is required for all tax obligations and is a prerequisite for the business licence. Companies exceeding the VAT threshold must also register as a Taxable Entrepreneur (PKP).
Step 5: Register via the OSS-RBA System and Obtain NIB
Register your company through Indonesia’s Online Single Submission – Risk Based Approach (OSS-RBA) platform to obtain your Business Identification Number (NIB). The NIB functions as a single identifier for trading, opening bank accounts, sponsoring foreign employees, and registering with Indonesia’s social security systems (BPJS).
Step 6: Secure Business Licences
Depending on your KBLI classification and risk category, you will need to obtain the relevant operational licences through OSS. High-risk sectors require additional permits, such as a trading licence (SIUP), import licence (API), manufacturing licence, or OJK approval for financial services.
Step 7: Open a Corporate Bank Account
Open a corporate bank account in Indonesia to deposit the required paid-up capital. Bring your company documents, NIB, NPWP, and identity documents for the bank’s verification process.
Step 8: Apply for Work Permits and KITAS (if applicable)
Foreign directors or employees require a KITAS (Limited Stay Permit/Kartu Izin Tinggal Terbatas). Foreign directors holding at least IDR 1 billion in shares may apply for a Director Investor KITAS. Work permits (IMTA) must be secured before KITAS applications are filed.
What Documents Are Required for Company Registration in Indonesia?
The following documents must be prepared and submitted during the company registration process in Indonesia:
- Deed of Establishment (DOE) notarised by a licensed Indonesian public notary
- Capital Statement Letter signed by all shareholders (PT PMA requirement)
- MOLHR Approval Letter confirming legal entity status
- Tax Identification Number (NPWP and PKP) from the local tax office
- NIB (Business Identification Number) issued via OSS-RBA
- Valid lease agreement or ownership proof for the registered business address
- Valid passports or corporate documents for all shareholders and directors
- Business Licence issued through the OSS portal
How Long Does Company Registration in Indonesia Take?
| Procedure | Estimated Timeline |
| Company Name Reservation | 1 business day |
| Deed of Establishment (Notarisation) | Approximately 2 days |
| MOLHR Approval | 10-14 days |
| Tax Registration (NPWP / PKP) | 5 days |
| OSS Registration and NIB Issuance | 1-5 days |
| Business Licence Issuance | 5-10 days |
| Corporate Bank Account Opening | 1-3 days |
| Total (PT PMA) | Approximately 4-8 weeks |
Note: Timelines may vary based on business sector, document completeness, and regulatory review at the time of submission. 3E Accounting Indonesia manages the entire process to ensure no unnecessary delays.
What Does It Cost to Set Up Your Company in Indonesia?
Registration costs for a PT PMA in Indonesia typically range from USD 1,500 to USD 5,000 in professional fees, excluding statutory capital requirements. Costs vary based on entity type, business sector, and location.
Incorporation and Legal Fees
- Consultant or agency fees: USD 1,500-USD 5,000
- Notary fees for Articles of Association: IDR 5 million-IDR 25 million (approx. USD 300-USD 1,500)
Registered Office and Business Address
- Virtual office (South Jakarta, Bali): USD 500-USD 1,200 per year
- Physical office lease: USD 3,000-USD 10,000+ per year
Capital Requirements
- Minimum paid-up capital for PT PMA: IDR 2.5 billion (approx. USD 160,000)
- This is committed business capital, not a government fee
Licensing and Ongoing Compliance
- Sector-specific permits: IDR 1 million-IDR 15 million (approx. USD 65-USD 1,000+)
- Monthly accounting and tax compliance: IDR 5 million-IDR 20 million annually
- KITAS and work permit per foreign director: IDR 15 million-IDR 25 million (approx. USD 900-USD 1,500)
Conclusion
Indonesia’s investment landscape in 2026 presents an unparalleled opportunity for entrepreneurs and international businesses seeking growth in Southeast Asia. With a streamlined OSS-RBA registration system, updated capital requirements, and a government committed to attracting foreign investment, the process of setting up a company in Indonesia has never been more accessible, provided you have the right guidance.
3E Accounting Indonesia has supported hundreds of businesses through the complete company registration process in Indonesia, from initial entity selection to full operational compliance. Our specialists handle every legal, regulatory, and administrative step so you can focus on building your business.
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Frequently Asked Questions
Begin by reserving a company name with the Ministry of Law and Human Rights (MOLHR), then notarise a Deed of Establishment, obtain MOLHR approval, register for an NPWP, and complete licensing through the OSS-RBA platform at oss.go.id to obtain your NIB. The full process typically takes 4–8 weeks.
Foreign investors must establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing). This involves meeting minimum capital requirements (IDR 2.5 billion paid-up, IDR 10 billion investment plan), notarising Articles of Association, obtaining MOLHR approval, registering via OSS-RBA, and securing the required business licences and KITAS for foreign directors.
The key steps are: (1) reserve a company name, (2) notarise the Deed of Establishment, (3) obtain MOLHR approval, (4) register for NPWP tax ID, (5) obtain NIB via OSS-RBA, (6) secure business licences, (7) open a corporate bank account, and (8) apply for KITAS if foreign directors are involved.
The primary platform is OSS-RBA, Indonesia’s government portal for NIB issuance and business licensing. Company name reservation is handled via the MOLHR AHU system, and tax registration is processed through DJP Online. 3E Accounting Indonesia manages all platform submissions on your behalf.
Foreign investors must establish a PT PMA with a minimum paid-up capital of IDR 2.5 billion and a total investment plan of IDR 10 billion per KBLI code. At least two shareholders, one resident director, one commissioner, and a registered Indonesian business address are mandatory under current BKPM regulations.
