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Setting Up a PT PMA In Indonesia

 

 

Expanding into Indonesia requires setting up a PT PMA (Foreign-Owned Limited Liability Company), the recognised structure for foreign businesses to operate and earn revenue locally. To maintain good standing, you should also understand what are corporate secretarial services in Indonesia for foreign investors. While the market offers strong growth potential, the incorporation process involves detailed regulatory approvals and compliance requirements. 3E Accounting simplifies this journey with end-to-end support, ensuring your business is set up efficiently, compliantly, and ready to scale.

 

Let us take the stress out of establishing your PT PMA by doing the hard work for you.

 

 Why Set Up a Foreign Company in Indonesia? 

Indonesia is Southeast Asia’s largest economy and the world’s 16th largest, with a GDP exceeding USD 1.37 trillion. For international investors evaluating a business setup in Indonesia, the fundamentals are compelling:

  • Population: 280+ million, the world’s 4th largest consumer market
  • FDI Growth: BKPM targets IDR 1,905.6 trillion in total investment for 2025
  • Regulatory Reform: The Job Creation Omnibus Law and OSS-RBA system have significantly reduced administrative barriers for foreign investors
  • Strategic Position: Gateway to ASEAN markets with established trade agreements
  • Sector Opportunities: Technology, manufacturing, tourism, infrastructure, financial services, and e-commerce are among the most active areas for foreign investment

 

What Is a PT PMA in Indonesia?

A PT PMA is the most widely used structure for foreign investors seeking company setup in Indonesia and long-term business operations in the country.

  • A PT PMA is the official structure for a foreign company in Indonesia.
  • It allows foreign ownership based on the approved business sector.
  • A PT PMA can operate commercially, hire staff, and earn revenue in Indonesia.
  • Even 1% foreign ownership classifies the entity as a PT PMA.
  • It is the preferred option for PT PMA registration and company setup in Indonesia.

 

What Are the Capital Requirements for Setting Up a PT PMA in Indonesia? 

Under the current regulatory framework, a PT PMA must satisfy a two-part capital structure:

Requirement Amount Notes
Minimum Paid-Up Capital IDR 2.5 billion (~USD 150,000) Reduced from IDR 10 billion effective Oct 2025
Total Investment Plan > IDR 10 billion per KBLI code Excludes land & buildings in most sectors

What Does Our PT PMA Company Setup Services in Indonesia Include? 

3E Accounting provides a comprehensive suite of services for foreign company registration in Indonesia:

Incorporation & Licensing

  • PT PMA Incorporation
  • Company Name Reservation and Verification
  • Deed of Establishment, notarial preparation, and MOLHR approval
  • Business Identification Number (NIB) registration via OSS-RBA
  • Sector-specific Business Licence applications
  • Positive Investment List advisory and KBLI code selection

Regulatory & Compliance

  • Foreign Ownership Advisory permitted sectors and shareholding structures
  • Nominee Structuring and Local Director/Commissioner Services
  • Registered Office Address (Virtual Office)
  • Tax Registration (NPWP & PKP) and Compliance Setup
  • Quarterly LKPM Investment Activity Reporting to BKPM

Ongoing Corporate Services

  • Accounting, Bookkeeping, and Tax Filing
  • Corporate Bank Account Opening Facilitation
  • KITAS / Work Permit Assistance for Foreign Directors
  • Payroll and HR Compliance

Indonesia’s evolving regulatory framework and OSS-RBA system have made PT PMA registration and company setup in Indonesia more efficient for foreign investors. With the right guidance, establishing a foreign company in Indonesia is now faster, clearer, and fully compliant.

Indonesia Foreign Company (PT PMA) Setup

Ready to Register Your PT PMA in Indonesia?

3E Accounting handles all legal, regulatory, and administrative requirements for your PT PMA, so you can focus on growing your business.

Frequently Asked Questions

Under BKPM Regulation No. 5 of 2025 (effective October 2025), the minimum paid-up capital for a PT PMA is IDR 2.5 billion (~USD 150,000). Additionally, foreign investors must declare a total investment plan exceeding IDR 10 billion per KBLI business activity code, excluding land and buildings. These are two distinct requirements that must both be satisfied.

Yes, a foreigner can own 100% of a PT PMA in certain business sectors. Permitted ownership percentages are determined by Indonesia’s Positive Investment List (Presidential Regulation No. 10 of 2021). Sectors not listed are generally open to full foreign ownership. Some sectors permit only partial foreign ownership and require a local Indonesian partner. Sector eligibility must be verified before incorporation.

A standard PT PMA registration in Indonesia typically takes 2 to 5 weeks, provided all documents are complete, and the business sector does not require additional approvals. The timeline covers name reservation, notarial deed preparation, MOLHR approval, NIB issuance via the OSS-RBA system, and tax registration. Complex or high-risk business classifications may take longer.

The OSS-RBA (Online Single Submission – Risk-Based Approach) is Indonesia’s centralised digital platform for business licensing. All PT PMA registrations are processed through OSS, which issues the NIB (Business Identification Number) and applicable licences based on the risk level of the declared business activities. PT PMA companies are generally classified as high-risk and require additional document verification.

A PT PMA allows partial or full foreign ownership and is required whenever any foreign shareholder holds equity in the company, even 1%. A local PT is restricted to Indonesian shareholders only. PT PMAs are subject to the Positive Investment List, minimum capital requirements, and BKPM reporting obligations. 

No. The entire PT PMA registration process can be completed remotely through a Power of Attorney (PoA). Your appointed representative or incorporation agent can manage notarial coordination, OSS submissions, and document processing on your behalf. However, at least one resident director, a foreign national holding a valid KITAS or an Indonesian citizen, must be appointed to manage day-to-day operations and open a corporate bank account.

Abigail Yu

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.