How Do Foreigners Register a PT PMA in Indonesia in 2026?
BKPM Regulation No. 5 of 2025, introduced in October 2025, governs the 2026 registration process. It dropped the paid-up capital floor for foreign investment companies from IDR 10 billion to IDR 2.5 billion. This cut the barrier to entry by three quarters for foreigners setting up a company in Indonesia.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the only legal vehicle for a foreign business that intends to invoice customers, trade, and earn revenue locally. Foreign investors whose plans are limited to market research or brand promotion may use a Representative Office (KPPA), but that structure cannot carry out commercial activities. This infographic walks through each stage of a PT PMA registration in Indonesia under the 2026 rules. It covers everything from KBLI verification through to operational licences and KITAS sponsorship. Before committing funds, work through the pre-incorporation due diligence checks and confirm your chosen sector is open to foreign ownership.
Verify KBLI and Ownership Limits
Indonesia's Positive Investment List opens 245 priority sectors to investment, but every PT PMA application still begins with a five-digit KBLI code. This classification, drawn from Indonesia's KBLI 2025 system, defines the exact business activities a company may conduct. Investors must then verify that the chosen sector allows foreign ownership, noting any equity caps or ministerial conditions. Confirming this first prevents costly rejections later on the OSS platform, where ineligible sectors are blocked from registration.
Reserve Approved Company Name
30 days is the approval window granted for a reserved PT PMA name, extendable once for another 30 days. A PT PMA application opens with a company name check: submit the proposed name in Roman letters to the Ministry of Law and Human Rights. Approval typically takes about one working day, provided the name is not similar to any other registered company.
Execute Deed of Establishment
2 shareholders are the minimum required for a PT PMA. One director and one commissioner are also required under Indonesian company law. Any residency expectations for foreign directors are handled separately through immigration arrangements such as the KITAS rather than at incorporation. Shareholders sign the Deed of Establishment (Akta Pendirian) before a licensed Indonesian notary, drafted in Bahasa Indonesia. This deed defines the shareholding structure, paid-up capital, articles of association and registered office address. Shareholders may be individuals or corporate bodies of any nationality.
Obtain Ministry Legalization Approval
Within 60 days of signing, the notary must submit the deed to the Ministry of Law and Human Rights for legalization. The Ministry reviews the documents and issues the Decree of Approval (SK Kemenkumham), converting the company into a recognized legal entity (Badan Hukum). A signed statement of the investor's commitment to inject the IDR 2.5 billion capital accompanies the submission. The bank deposit itself is completed once the NIB is issued. Without this decree, the company cannot obtain its NIB or operate commercially.
PT PMA Registration at a Glance (2026)
| Step | Key Figure | What It Means |
|---|---|---|
| 1. KBLI and ownership check | 5-digit code | Defines permitted activities and foreign ownership limits |
| 2. Name reservation | 30 days | Approval window, extendable once |
| 3. Deed of Establishment | 2 shareholders | Plus one resident director and one commissioner |
| 4. Ministry legalization | 60 days | Deadline to submit the signed deed |
| 5. Tax registration | 22 percent | Corporate income tax; NPWP issued automatically |
| 6. NIB via OSS | 13 digits | Business identity; typically 4-6 weeks for lower-risk sectors |
| 7. Capital deposit | IDR 2.5 billion | Locked for 12 months; investment plan above IDR 10 billion |
| 8. Licenses and visas | 2 years | Maximum investor KITAS validity |
Register for Corporate Tax
22 percent corporate income tax and 20 percent dividend withholding apply to a PT PMA. Tax registration follows Ministry legalization. The Directorate General of Taxes (DJP) issues the company Tax Identification Number (NPWP) automatically through the integrated AHU-DJP system once the deed is legalized. This step comes before the OSS application. The NPWP is entered into the NIB submission in the next step. There, the NIB is generated and the bank deposit of the paid-up capital is unlocked. The director then activates the EFIN at the local tax office (KPP). All filings go through Coretax, mandatory since 2025. Monthly tax obligations begin once operations start.
Secure NIB via OSS
The 13-digit Business Identification Number (NIB) is issued through the OSS-RBA platform managed by the Ministry of Investment and BKPM. The Online Single Submission portal at oss.go.id issues the NIB after founders enter:
- deed data
- KBLI codes
- the investment plan
- KKPR spatial planning compliance
The NIB itself is generated once the submission is complete. Risk-based operational licences and sectoral approvals take longer, typically four to six weeks for low-to-medium-risk sectors. The NIB doubles as the import identification number and BPJS social security registration. Securing the NIB marks a decisive step for any foreigner registering a PT PMA in Indonesia, as the number unlocks licensing and immigration downstream.
Deposit Paid-Up Capital
IDR 2.5 billion is the minimum paid-up capital a PT PMA must place, and the deposit is unlocked only after the NIB is issued. Founders open the company's own bank account using the NIB and NPWP, then transfer the funds into it. Alternatively, shareholders may furnish a Capital Statement Letter confirming they have sufficient funds to inject the capital. The actual transfer is completed before commercial operations begin.
Required evidence includes the bank deposit slip or account statement and an updated capital report to the notary. The funds remain locked for 12 months, except for genuine business expenses such as equipment purchases, employee salaries, and office lease payments. The wider investment plan must still exceed IDR 10 billion per KBLI code per project location. Budget the full plan before committing the initial deposit.
Obtain Operational Licenses and Visas
2 years is the maximum validity for investor KITAS stay permits. The final step covers operational licenses and immigration. Sector-specific operational licenses are issued through OSS-RBA based on the risk level of each KBLI code. Foreign directors and commissioners use the NIB to sponsor their KITAS through the e-Visa system. A corporate secretary then keeps the company compliant with recurring filings and license renewals. With licences and visas in place, the actual steps to register a PT PMA in Indonesia as a foreign investor are complete.
Ready to Start Your Indonesian Company?
3E Accounting Indonesia guides foreign investors through every step, from KBLI verification to operational licenses and KITAS sponsorship.
Frequently Asked Questions
IDR 2.5 billion, set by BKPM Regulation No. 5 of 2025 and deposited after the NIB is issued. The deposit is locked for 12 months except for genuine business expenses, and the total investment plan must still exceed IDR 10 billion per KBLI code per project location.
Registration through the OSS-RBA platform typically takes four to six weeks for low-to-medium-risk KBLI sectors, assuming complete documentation. Sectors requiring additional ministerial approvals may take longer.
A PT is a locally owned limited liability company, while a PT PMA is a foreign investment company that allows up to 100 percent foreign shareholding and requires foreign investment capital under the Positive Investment List.
Yes. A Representative Office (KPPA) suits market research and brand promotion but cannot invoice, earn revenue, or enter into contracts on its own behalf. A PT PMA is required for full commercial operations.
A PT PMA pays 22 percent corporate income tax on taxable profits, and dividends distributed to foreign shareholders attract 20 percent withholding tax. Monthly tax filings run through the Coretax platform.
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.
