How Do You Register a Local Company (PT) in Indonesia in 2026?
Indonesia stands out as one of Southeast Asia’s most attractive destinations for entrepreneurs and investors. With a rapidly expanding economy, rich natural resources, and ongoing improvements in the ease of doing business, the country presents significant opportunities for both domestic and foreign enterprises.
One of the most commonly adopted business structures is the Limited Liability Company in Indonesia, known locally as Perseroan Terbatas (PT). This corporate structure offers shareholders legal protection while supporting efficient operations in line with Indonesian regulatory requirements.
However, for first-time investors and business owners, the process of registering a company in Indonesia can be intricate. This comprehensive guide outlines each step clearly, equipping you with the knowledge and direction needed to successfully establish a Limited Liability Company (PT) in Indonesia in 2026.
What Is a Local Company (PT)?
A Local Company, or Perseroan Terbatas (PT), is Indonesia’s most widely used business structure for domestic entrepreneurs. It is a limited liability company governed by Indonesian law, meaning shareholders’ personal assets are legally protected from company liabilities. Only Indonesian citizens are permitted to register as shareholders, making it an exclusively locally owned entity.
Unlike a foreign-owned company (PT PMA), a PT is not subject to Indonesia’s Positive Investment List restrictions, giving owners the flexibility to operate across a broader range of business sectors. To establish one, you need a minimum of two shareholders, one director, and one commissioner, with the entire registration process completable within approximately 39 days.
What are the PT’s Distinguishing Traits in Indonesia?
The following are the traits that set this local company apart from all the others:
- A local PT (PMDN) is exempt from foreign ownership restrictions and operates freely under Indonesia’s Positive Investment List framework (Presidential Regulation No. 10 of 2021).
- You need two shareholders and one director to establish the company in Indonesia. Shareholders can be individuals or corporate entities, and the director is responsible for overseeing the day-to-day operations of the company.
- You need one person to act as the commissioner. Whose primary role is to supervise the director’s conduct and ensure the company operates in accordance with its Articles of Association and applicable Indonesian laws.
- Under the OSS-RBA (Online Single Submission-Risk-Based Approach) framework governed by Government Regulation No. 28 of 2025, PT registration typically completes in 2 to 4 weeks. Low-risk business activities are often processed within 10 working days.
- Every PT must declare at least one KBLI code during OSS registration. This code determines your sector classification, applicable licensing pathway, and OSS-RBA risk level. Risk level directly governs the number of business licenses required and overall processing time.
How Much Capital Is Required for the formation of Perseroan Terbatas (PT) in Indonesia?
The capital required for this local company (PT) formation depends on the size of your business:
- A Small Company – Between IDR 50 – 500 million.
- A Medium Company – Between IDR 500 – 10,000 million.
- A Large Company – More than Above IDR 10,000 million.
What is the Local Company(PT) Formation Process in Indonesia?
Establishing a company in Indonesia involves several key steps to ensure compliance with local regulations. Here’s a comprehensive overview of the process:
1. Reserve Your Company Name
Begin by selecting a unique company name that aligns with Indonesian naming conventions. The name must consist of at least three words and not resemble existing entities or government institutions. Submit your name to the Ministry of Law (MOL) for approval. This step typically takes one working day.
2. Draft the Deed of Establishment
Engage a local notary to prepare the Deed of Establishment, which includes your Articles of Association, company objectives, shareholder details, and management structure. Once notarised, submit the deed to the MOL for ratification, officially recognising your company as a legal entity.
3. Obtain a Certificate of Domicile
Secure a Certificate of Domicile (Surat Keterangan Domisili) from the local government office where your company is located. This document verifies your business address and is essential for subsequent registrations.
4. Register for a Tax Identification Number (NPWP)
Apply for a Tax Identification Number (Nomor Pokok Wajib Pajak – NPWP) at the local tax office. This number is crucial for tax reporting and compliance.
5. Obtain a Business Identification Number (NIB)
Through the Online Single Submission (OSS) system, register for a Business Identification Number (Nomor Induk Berusaha – NIB). The NIB serves as your company’s primary identification and is required for various business activities.
6. Acquire Necessary Business Licenses
Depending on your business activities, you may need to obtain specific licenses, such as:
- Trading Business License (SIUP) for general trading activities.
- Industrial Business License (IUI) for manufacturing sectors.
- Tourism License (TDUP) for tourism-related services.
- Construction Services Business License (IUJK) for construction services.
These licenses can be applied for through the OSS system.
7. Register with Social Security Agencies
Enrol your company and employees with the Social Security Administration Bodies:
- BPJS Kesehatan for health insurance.
- BPJS Ketenagakerjaan for employment benefits.Registration ensures compliance with labor laws and provides essential benefits to your employees.
8. Open a Corporate Bank Account
Finally, open a corporate bank account in Indonesia to manage your company’s financial transactions. This account is necessary for capital deposits and daily operations.
By following these steps diligently, you can establish a compliant and operational company in Indonesia.
At 3E Accounting Indonesia, we specialise exclusively in Indonesia company incorporation and corporate compliance. Our team of registered professionals has guided businesses of all sizes through PT formation in Jakarta and across Indonesia, handling every document, every submission, and every filing deadline on your behalf.
