Indonesia Company Resident Director of Services
Every company incorporated in Indonesia, whether a local PT or a foreign-owned PT PMA, is legally required to appoint at least one director who is physically and legally resident in the country, as specified under Indonesia Company Law No. 40 of 2007. A company in Indonesia must have at least one director, one commissioner, and two shareholders.
Package Fee for Indonesia Resident Director | Nominee Director Service.
| Package | Annual Fee | Security Deposit |
| Local Resident Director Services (Indonesia PT / PT PMA) | IDR 25 million year* | IDR 25 million (fully refundable upon termination) |
Note: A discounted security deposit of IDR25 million only applies if the company is in good standing status based on a detailed company search. We will perform the search free-of-charge. The principal must fulfil our initial Know Your Customer (KYC) requirements.
We conduct thorough Know Your Customer (KYC) verification for all Resident Director and Nominee Director engagements. The principal must fulfil our KYC requirements before we can provide this service. We are unable to act as your Indonesia Company Resident Director if you are a citizen of, connected to, or born in any country listed under international sanctions or monitored lists.
Requirements for Resident Director or Nominee Director
A resident director (some call Nominee Director) can be one of the following:
| Director Type | Required Documents |
| Indonesian Citizen | Valid national ID (KTP) + Tax ID (NPWP) |
| Foreign National (Temporary Resident) | Valid KITAS (work permit) + Tax ID (NPWP) |
| Permanent Resident Expatriate | Valid KITAP (permanent stay permit) + Tax ID (NPWP) |
Note: A foreign national visiting Indonesia on a tourist or business visa does not qualify as a resident director. They must possess a valid work permit and proof of permanent residency.
The appointment of a resident director or nominee director is required to meet legal requirements but they tend to have a passive role and do not need to be involved in the business day-to-day operations. However, they may perform certain duties such as:
- Signing the statement letter regarding the execution of the deed of establishment with the Notary Public (this is during the company establishment process)
- They are responsible for signing the Board Resolution after the foreign executive director(s) has/have approved it, and if the company requires this for certain conditions
- The signing of submission forms, such as business license submission forms (if necessary)
- The signing of submission forms for bank account opening or any other requirements (if necessary)
- They may serve as the company’s representatives by upholding the views and positions as outlined by the company. They are also eligible to sign documents on behalf of the company.
PT PMA Companies: Why a Local Resident Director Is Practically Essential?
For foreign-owned limited liability companies (PT PMA), Indonesian law permits all directors and commissioners to be foreign nationals. However, in practice, every foreign director must hold a valid Indonesian work permit (KITAS or KITAP) and a personal Tax ID (NPWP) to function effectively.
Without at least one locally resident director, a PT PMA faces the following operational barriers:
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Corporate Bank Account
Indonesian banks require at least one locally resident director to open and operate a corporate bank account. Without this, your company cannot receive payments or pay suppliers.
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EFIn Registration
To register for Indonesia’s Electronic Tax Filing system (EFIn), a director needs a personal NPWP, and an EFIn ID can only be obtained with a valid work permit.
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CoreTax Registration
Since Indonesia introduced the CoreTax integrated tax administration system, every company must have a director with an active CoreTax account linked to their NPWP. A foreign director without a local tax ID cannot fulfil this requirement.
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Business Licenses
Many business license applications in Indonesia require a locally authorised signatory.
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Tax Rate Penalty
A foreign director without an NPWP is subject to a 20% income tax surcharge on their personal income in Indonesia. Once a tax ID is obtained, the standard local rate applies.
Appointing a local resident director through 3E Accounting resolves all of these barriers immediately.
What Are 3E Accounting Indonesia’s Requirements to Provide Resident Director Services?
We will provide the local Resident Director or Nominee Director Service for your Indonesia company, provided the followings conditions are met:
KYC & Legal
- Pass our initial and ongoing KYC (Know Your Customer) verification
- Execute the Nominee Director Indemnity Agreement before appointment
Mandatory Annual Service Subscriptions
- Corporate secretarial service
- Accounting service (compilation of financial statements)
- Annual tax filing service
- VAT review and filing service (if VAT-registered)
- Payroll and immigration service (if employing staff in Indonesia)
Banking & Compliance Controls
- Pre-sign the board resolution approving 3E’s resident director’s resignation
- Transfer your company’s bank correspondence address to 3E’s Jakarta office for routine compliance review of monthly bank statements
- Maintain one Indonesia corporate bank account only; a second account requires a valid reason and is subject to resident director approval
- Opening any overseas foreign bank account requires 3E’s prior approval, while this service is active
We require a refundable security deposit of IDR 25 million to provide the Resident Director Service. The service can be terminated at any time at your request, and the deposit will be refunded upon proper termination and handover. Contact our team for further information or to begin the KYC process.
