Why Does Every Investor Need a PT PMA Pre-Incorporation Checklist?
Because filing without checking ownership, capital, zoning, and licensing first leads to rejections, delays, and avoidable setup costs.
Since 2 October 2025, every new PT PMA must deposit IDR 2.5 billion in paid-up capital. In this guide, we outline the eight checks in a PT PMA pre-incorporation checklist that together shape the total PT PMA setup cost in Indonesia.
How Do You Check the Positive Investment List?
Match your activity to its 5-digit KBLI code, then confirm the ownership cap and attached licenses.
Hundreds of business sectors in Indonesia now allow 100% foreign ownership. Under Presidential Regulation No. 10 of 2021, the Positive Investment List sets the rules per 5-digit KBLI code. Some sectors, such as small-scale retail, broadcasting, and certain agricultural activities, cap foreign shares or require a local partner. Verifying the KBLI code first confirms permissible ownership and the licenses attached before any deed is signed.
What Are the Minimum Capital Thresholds for a PT PMA?
Budget above IDR 10 billion per business activity and deposit IDR 2.5 billion in paid-up capital locked for 12 months.
Every 5-digit KBLI code requires an investment plan above IDR 10 billion. This total, set under BKPM Regulation No. 5 of 2025, excludes land and buildings except in property, agriculture, and accommodation. Separately, IDR 2.5 billion in paid-up capital must be deposited and locked for 12 months. Our guide to PT PMA paid-up capital rules explains how both thresholds work in practice.
How Do You Validate Corporate Name Availability?
Reserve a distinctive 3-word name early and clear it on the AHU Online portal, usually within 1–2 business days.
Indonesian law requires at least 3 words in every company name, each with 3 or more Latin-alphabet characters. The Ministry of Law and Human Rights clears availability through the AHU Online portal, typically within 1–2 business days. Reserving a distinctive, compliant name early prevents the deed of establishment from stalling later at the legalisation stage.
How Do You Determine Board and Ownership Structure?
Appoint at least 2 shareholders, 1 director, and 1 commissioner, with at least one shareholder allowed to be foreign.
A minimum of 2 shareholders is required for every PT PMA. Individuals and corporate entities both qualify, and at least one may be a foreign national or entity. The company also needs 1 director and 1 commissioner. Foreign director appointees must hold a valid KITAS, and the commissioner oversees management on the shareholders' behalf. Confirming this structure early avoids re-drafting the deed.
PT PMA Pre-Incorporation Checklist: 8 Checks at a Glance
| Check | Key Requirement | Figure |
|---|---|---|
| Positive Investment List | 5-digit KBLI code sets foreign-ownership rules | 100% ownership in many sectors |
| Minimum capital | Investment plan per KBLI code | Above IDR 10 billion |
| Paid-up capital | Deposit locked at incorporation | IDR 2.5 billion for 12 months |
| Company name | Latin-alphabet words cleared on AHU Online | 3 words, 1–2 business days |
| Board structure | Shareholders plus director and commissioner | 2 shareholders, 1 director, 1 commissioner |
| Business address | Commercially zoned and KKPR-verified | IDR 3–20 million yearly in Jakarta |
| Risk-based licensing | Risk level decides the NIB licensing path | 4 risk levels |
| Shareholder documents | Apostille plus Bahasa Indonesia translation | In force since 4 June 2022 |
| Tax and social security | Corporate tax, NPWP, PKP, and BPJS enrolment | 22 percent corporate rate |
How Do You Secure a Compliant Business Address?
Choose a commercially zoned address that passes KKPR verification, such as a Jakarta virtual office at IDR 3–20 million yearly.
Domicile solutions such as virtual offices in Jakarta typically cost IDR 3–20 million yearly. The address must sit in a commercially zoned location and pass KKPR spatial-planning verification during NIB registration. Location choice also feeds directly into the setup cost foreigners face in Indonesia. Zoning and premises affect the licenses attached to the business.
How Do You Assess Risk-Based Licensing Needs?
Check your KBLI code's risk level: Low risk needs only the NIB, while High risk requires a sector-specific license.
The OSS RBA system sorts business activities into 4 risk levels. Under Government Regulation No. 5 of 2021, Low-risk activities receive the NIB alone and can operate immediately. High-risk ones need a sector-specific license before any commercial activity. Knowing the classification upfront tells investors which certificates, verifications, or ministry approvals the timeline must include. Because licensing criteria are updated periodically, verify current OSS/BKPM rules before filing.
Prepare apostilled passports, powers of attorney, and parent-company records, then translate them into Bahasa Indonesia.
Since 4 June 2022, Indonesia has accepted apostilled foreign documents under the Hague Apostille Convention. Passports, powers of attorney, and parent-company records need an apostille rather than full consular legalisation. All documents must then be translated into Bahasa Indonesia by a certified translator for the deed of establishment. Translation costs typically run into several million rupiah.
How Do You Plan Tax and Social Security?
Budget for the 22 percent corporate tax, register for VAT above the PKP threshold, and enrol every employee in BPJS.
Indonesia's corporate income tax rate for PT PMAs is 22 percent. Beyond the NPWP tax identification number obtained after incorporation, companies with annual taxable turnover above IDR 4.8 billion must register as a PKP for VAT purposes. Every employee must also be enrolled in the mandatory BPJS programmes. Mapping monthly tax obligations for Indonesia PT PMAs early keeps the company compliant from day one. This final step closes the PT PMA pre-incorporation checklist.
Ready to Start Your PT PMA?
Our Indonesia team runs every check on this list for you, from KBLI codes to BPJS.
Frequently Asked Questions
Under BKPM Regulation No. 5 of 2025, effective 2 October 2025, every PT PMA must deposit at least IDR 2.5 billion in paid-up capital, locked for 12 months except for operational or capital expenditure.
Yes. Under Presidential Regulation No. 10 of 2021, hundreds of business sectors permit 100% foreign ownership, although some sectors impose caps or require a local partner.
A minimum of two shareholders is required, supported by at least one director and one commissioner. At least one shareholder may be a foreign national or foreign entity.
Straightforward, low-risk applications in Jakarta take roughly 10 working days, while higher-risk sectors or applications needing additional licensing can take 4–8 weeks.
Identity documents and parent-company corporate records must be apostilled—possible since June 2022—and translated into Bahasa Indonesia by a certified translator for the deed of establishment.
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.
