Why does the company setup cost foreigners face in Indonesia often surprise even seasoned investors? Many confuse the paid-up capital deposit with government fees, not realising that one is the investor's own money placed in the company account and the other is a sunk cost.
Indonesia remains Southeast Asia's largest economy and continues to attract foreign direct investment across sectors from manufacturing to digital services. Setting up a PT PMA — the recognised legal structure for foreign-owned companies — requires navigating multiple regulatory layers, each carrying its own cost implications.
The 2026 tariff update under Government Regulation No. 30 of 2026 has revised the official PNBP charges for company establishment, while a separate lower paid-up-capital threshold introduced in 2025 has reshaped the cash-flow planning horizon. These two changes mean that budgets prepared even twelve months ago may already be outdated.
For foreign investors, getting the cost breakdown right matters because under-budgeting triggers delays at the notary stage and can stall bank-account opening. Over-budgeting, meanwhile, ties up capital unnecessarily and signals poor financial planning to local regulators reviewing the file.
In this blog, we discuss the company setup cost foreigners can expect in Indonesia, covering government fees, notary work and typical professional service charges for 2026. We also explain how the lower paid-up-capital threshold and 2026 tariff update affect the total budget.
What Is the Company Setup Cost Foreigners Face in Indonesia?
Four distinct outlays appear: official government tariffs, notary and legalization charges, corporate-services-provider fees, and the separate paid-up capital deposit.
Each category serves a different purpose and is paid to a different party. Government tariffs go directly to the state. Notary fees compensate the public official who drafts the deed. Corporate-service-provider fees cover coordination, document preparation and post-incorporation filings. The paid-up capital is the investor’s own money placed in the company bank account.
Understanding the split prevents under-budgeting and later disputes with service providers.
1. Official Government Fees
These non-tax state-revenue charges are collected by the Directorate General of Legal Administration and related agencies. They vary with authorized capital and are updated periodically by government regulation.
2. Notary and Legalization Charges
A licensed notary must execute the deed of establishment. Foreign documents often require apostille or consular legalization before they can be used, adding translation and authentication costs.
3. Professional Coordination Fees
A corporate services provider handles name reservation, OSS filings, tax registration and liaison with the notary. These fees reflect the time and expertise needed to keep the file compliant.
How Do Government Fees Break Down After the 2026 Tariff Update?
New PNBP rates under Government Regulation No. 30 of 2026 apply from 1 August 2026 and are scaled according to authorized capital.
The Directorate General of Legal Administration publishes the current schedule on its portal. For a typical PT PMA whose authorized capital exceeds IDR 5 billion the establishment tariff is IDR 5 million. Lower bands apply to smaller authorized-capital figures. Name checking itself is free. Additional modest charges cover publication in the State Gazette and stamp duty.
These amounts are paid via official vouchers before the notary can submit the deed. They are therefore unavoidable and should be treated as fixed line items. Any realistic estimate of what foreign investors pay to establish a company in Indonesia must treat these tariffs as the baseline.
1. Establishment and Approval Tariff
The principal PNBP fee is calculated on the authorized-capital band chosen in the deed. Most foreign-owned companies fall into the highest band.
2. Gazette Publication and Stamp Duty
A separate but smaller payment covers the official announcement and the revenue stamp affixed to the deed.
2026 Government PNBP Bands for Company Establishment
| Authorized Capital Band | PNBP Tariff (IDR) |
|---|---|
| Up to 25 million | 300,000 |
| Above 25 million to 1 billion | 600,000 |
| Above 1 billion to 5 billion | 1,500,000 |
| Above 5 billion | 5,000,000 |
What Professional Service Fees Typically Accompany Company Registration in Indonesia?
Notary fees plus corporate-services-provider coordination usually range from IDR 20 million to IDR 60 million depending on complexity and location.
Notary fees are set by the individual notary and reflect the length of the deed and any extra clauses required by the business sector. Corporate-services-provider fees cover project management, document collection from overseas shareholders, OSS-RBA filings and obtaining the NIB and NPWP.
When you set up a company in Indonesia, these professional fees cover the entire coordination sequence and form a significant part of the overall incorporation outlay for foreign investors. We help clients by bundling these tasks so that a single point of contact tracks every deadline. Additional charges may arise for certified translations or for a virtual-office address if the investor has not yet secured physical premises.
1. Notary Deed Preparation
The notary drafts, reads and executes the articles of association. Fees commonly sit between IDR 5 million and IDR 15 million.
2. Full-Service Coordination
A corporate services provider manages the entire sequence from name check through to bank-account opening. Packages start around IDR 15 million and rise with extra licences or immigration support.
Typical Professional Fees for PT PMA Setup
| Service Item | Typical Range (IDR) | Notes |
|---|---|---|
| Notary deed and AHU filing | 5–15 million | Varies with deed length |
| Corporate services coordination | 15–40 million | Includes OSS and NPWP |
| Translations and legalization | 2–8 million | Depends on number of foreign documents |
| Virtual office (first year) | 5–15 million | Optional if no physical premises yet |
How Does the Minimum Paid-Up Capital Affect the Overall Budget?
The IDR 2.5 billion paid-up capital is the investor's own funds, not a government fee, and may be spent on documented operational expenses during the first twelve months but cannot be withdrawn as dividends or profit.
BKPM Regulation No. 5 of 2025 lowered the previous IDR 10 billion threshold. The pt pma minimum capital requirement is a key factor in the overall budget. The amount must be deposited after the company obtains its legal-entity status and before certain licences can be activated. It may be used for genuine operating expenses or asset purchases, but it cannot be freely withdrawn during the lock-up period.
This capital is therefore a cash-flow item rather than a sunk cost. Investors should plan the timing of the transfer so that it coincides with the opening of the corporate bank account.
1. Deposit Timing and Proof
The bank issues a confirmation letter that is uploaded to the OSS system. The lock-up declaration is also lodged electronically.
2. Permitted Uses During Lock-Up
Verified operational spending, land or building purchases and construction costs are allowed. Ordinary inter-company loans or dividends are not.
Estimated Total Setup Outlay Excluding Paid-Up Capital
| Cost Group | Low Estimate (IDR) | High Estimate (IDR) |
|---|---|---|
| Government tariffs and gazette | 6 million | 10 million |
| Notary and legalization | 7 million | 23 million |
| Professional coordination | 15 million | 40 million |
| Total cash outlay | 28 million | 73 million |
How Long Does the Entire Incorporation Process Usually Take?
Most straightforward PT PMA files reach legal-entity status and NIB issuance within four to eight weeks once all documents are complete.
- Notary and AHU stages occupy the first two to three weeks.
- OSS-RBA processing and tax-number issuance follow quickly thereafter.
- Delays most often arise from incomplete foreign shareholder documents or from sector-specific licences that require extra technical review.
For those wondering how long to register a company in Indonesia, the answer depends on document completeness and sector requirements. A well-prepared file that uses a corporate services provider experienced with the current OSS-RBA rules tends to stay at the shorter end of the range.
Conclusion
Setting up a foreign-owned company in Indonesia involves a predictable sequence of government tariffs, notary work and professional coordination. The largest single cash item remains the investor’s own paid-up capital, which is not a fee. Clear budgeting and a single experienced coordinator reduce both cost overruns and timeline slippage.
3E Accounting Indonesia assists clients at every stage, from the free name check through to NIB issuance and bank-account opening. Our technology-enabled process and 24/7 support let overseas investors concentrate on their business rather than on paperwork.
Contact the team to receive a tailored estimate based on the specific KBLI codes and shareholder structure of the planned company.
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Frequently Asked Questions
No. It is the investor's own money placed in the company bank account. Under current BKPM rules, the funds may be used for genuine operating expenses during the first twelve months but cannot be withdrawn as dividends or inter-company loans.
Technically yes, but foreign shareholders must still engage a notary and navigate AHU and OSS systems in Indonesian. Most investors prefer professional coordination to avoid delays.
Annual corporate secretarial filings and any later changes to the articles attract separate, smaller PNBP charges. The large establishment tariff is a one-time cost.
Yes. High-risk KBLI codes may require additional technical licences or environmental approvals that carry their own government and consultant charges.
Once the SK from AHU and the NIB are issued, most banks will open the account within a few working days provided the capital-deposit documents are ready.
Abigail Yu
Author
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.
