How Much Does It Cost to Register a Company in Indonesia?
Published 23 September 2026 · 9 minute read · The Indonesian Lawyer
Registering a PT PMA in Indonesia generally costs between USD 2,500 and USD 6,000 in notary, legal and government fees, separate from the capital you must place in the company. A local PT for Indonesian citizens costs less, often USD 1,000 to USD 2,500, because it carries no foreign investment requirements. The bigger number people miss is not the setup fee, it is the paid-up capital rule for a PT PMA, which the Investment Coordinating Board (BKPM) sets at a minimum project value of IDR 10 billion per business line, excluding land and buildings, with at least IDR 10 billion typically required as paid-up capital too. Fees also depend on the city, since notaries in Jakarta and Surabaya charge differently than notaries in smaller towns.
Table of Contents
- Which company type do you actually need
- Full cost breakdown for a PT PMA
- Capital requirements nobody explains clearly
- What it costs in Surabaya, as a worked example
- Local PT costs for Indonesian-owned businesses
- How long registration takes and what delays it
- The costliest mistake foreign founders make
- Frequently asked questions
Which company type do you actually need
The entity you pick determines almost every cost that follows, so get this decision right before quoting yourself a budget. There are three realistic options for a foreign founder.
- PT PMA (Penanaman Modal Asing): a foreign-owned or foreign-partnered limited liability company. Allows 100% foreign ownership in most sectors listed as open in the Positive Investment List, subject to the capital rules below.
- Local PT: a company owned entirely by Indonesian citizens or Indonesian legal entities. No minimum capital tied to foreign investment law, though notaries usually recommend a sensible working capital figure for credibility with banks.
- Representative Office (KPPA): lets a foreign company research the market or promote its products without billing Indonesian customers directly. It cannot generate local revenue, so most founders outgrow it within a year or two.
If you plan to invoice clients, hire staff, sign leases, or hold a business licence in your own name, you need a PT PMA or a local PT with a trusted Indonesian partner. A representative office is a market-testing tool, not a business.
Full cost breakdown for a PT PMA
The setup fee for a PT PMA is not one number, it is a stack of smaller charges that vary by province and by how many licences your business line requires. Here is what a typical stack looks like in 2026.
| Item | Typical range (USD) | Notes |
|---|---|---|
| Notary deed of establishment | 400 to 900 | Fixed by notary tariff, varies slightly by province |
| Ministry of Law and Human Rights approval | 150 to 300 | Government fee for legal entity status |
| NIB and OSS registration | 0 to 300 | The NIB itself is free through OSS, cost here is usually agent or lawyer handling time |
| NPWP (tax ID) and initial tax registration | 0 to 200 | Free from the tax office, cost is for assisted filing |
| Legal and advisory fees (full setup package) | 1,500 to 4,000 | Covers document drafting, submissions, follow-up with authorities |
| Domicile and virtual office (first year) | 300 to 1,500 | Required in most cities for the NIB address |
| Sector-specific licence (if applicable) | 500 to 3,000+ | Tourism, F&B, construction and manufacturing licences cost more than trading or consulting |
Add these up and a straightforward trading or consulting PT PMA usually lands between USD 2,500 and USD 5,000 all in. A restaurant, hotel, or manufacturing business with extra permits can run to USD 8,000 or more once you include the sector licence and any environmental or building compliance work. These figures cover the legal and administrative cost, not the capital you must inject into the company, which is a separate and much larger figure explained below.
Capital requirements nobody explains clearly
This is where most first-time founders get their budget wrong, because the capital requirement is often quoted as one flat number online when it actually depends on your KBLI business classification code.
The general BKPM benchmark is a total investment value of more than IDR 10 billion per five-digit KBLI code per location, excluding the value of land and buildings. Of that, the paid-up capital placed into the company's bank account is typically expected to be at least IDR 10 billion as well, though some business lines and some regions have different thresholds, and micro and small enterprises reserved for Indonesian nationals are exempt because foreigners cannot hold those codes at all. Confirm the exact figure for your specific KBLI code before you commit funds, because BKPM regulations get revised and a code that required IDR 10 billion two years ago may sit under a different rule now.
The capital does not need to sit untouched. Once it clears into the company account you can spend it on rent, salaries, equipment and stock, the requirement is about proving the investment exists, not freezing it forever. But the bank will ask for supporting documents when the transfer lands, so keep your investment plan and shareholder agreement ready.
What it costs in Surabaya, as a worked example
Surabaya is Indonesia's second largest city and a genuinely different market to Jakarta, with lower office rents, a strong manufacturing and logistics base, and notaries who are used to PT PMA work around the port and industrial estates in Rungkut, Margomulyo and the SIER area. A consulting or trading PT PMA registered through a Surabaya notary typically costs close to the national range above, USD 2,500 to USD 5,000 in setup fees, but the ongoing operational costs run noticeably lower than Jakarta.
| Cost item | Surabaya (typical) | Jakarta (typical, for comparison) |
|---|---|---|
| Virtual office or small serviced office, per month | USD 80 to 250 | USD 150 to 500 |
| Notary and setup package | USD 2,500 to 5,000 | USD 3,000 to 6,000 |
| Basic staff monthly salary (admin level) | USD 250 to 400 | USD 350 to 600 |
Cities like Medan, Semarang, Makassar and Yogyakarta sit in a similar band to Surabaya for office and staffing costs, while island tourism hubs including Bali often run higher on office rent because of demand from foreign-owned hospitality businesses. Wherever you register, the notary fee and government charges do not change much by city, since those are largely set by national tariff. What changes is your monthly overhead once the company exists.
Local PT costs for Indonesian-owned businesses
A local PT, owned by Indonesian citizens or an Indonesian legal entity, is a genuinely cheaper vehicle because it sits outside the foreign investment capital rules entirely. Typical costs:
- Notary and Ministry approval: USD 500 to 1,200
- NIB and licensing through OSS: usually free, agent handling USD 100 to 300
- Declared capital: no fixed minimum by law, though most notaries suggest at least IDR 50 million as a credible starting figure for a real trading company
- Total setup, including basic legal support: USD 1,000 to 2,500
Foreigners sometimes ask about using a local PT with a nominee Indonesian shareholder to avoid the PT PMA capital requirement. This arrangement is not protected by Indonesian law and the nominee structure has no legal standing if the relationship breaks down, so we do not recommend it and most reputable firms will decline to set one up for you.
How long registration takes and what delays it
A clean PT PMA registration, where the shareholders' documents are complete and the KBLI code is straightforward, takes roughly two to four weeks from signed deed to active NIB. Add another two to six weeks if your business line needs a sector licence, since those go through a separate ministry after the NIB is issued. Delays almost always come from one of three places: incomplete shareholder identification documents, a KBLI code that turns out to be closed or restricted for foreign ownership once checked properly, or a domicile address that does not match zoning rules for the intended activity. None of these are hard to fix if caught early, which is why the initial KBLI and zoning check should happen before you sign anything, not after.
The costliest mistake: choosing a KBLI code without checking whether it is open to foreign investment or whether it triggers a higher capital threshold. Founders who pick a code based on a rough description of their business, rather than the exact five-digit classification, sometimes discover months later that their actual activity needs a different code with a different licence, a different minimum investment, or no foreign ownership allowed at all. Reworking a company's legal structure after incorporation costs far more, in both money and lost time, than a proper KBLI review before the deed is signed.
Frequently asked questions
How much does it cost to register a company in Indonesia?
A PT PMA typically costs USD 2,500 to USD 6,000 in notary, legal and government fees, depending on the sector and city. A local PT for Indonesian-owned businesses usually costs USD 1,000 to USD 2,500. Neither figure includes the paid-up capital a PT PMA must place in its bank account, which is a separate and larger requirement.
What is the minimum capital for a PT PMA in Indonesia?
The general benchmark is a total investment above IDR 10 billion per KBLI business line per location, excluding land and buildings, with paid-up capital typically also expected around IDR 10 billion. The exact figure depends on your specific business classification code, and some sectors have different thresholds, so confirm the current rule for your activity before transferring funds.
Can a foreigner own 100% of a company in Indonesia?
Yes, through a PT PMA a foreigner can own 100% of a company in most business lines listed as open in the Positive Investment List. Some sectors carry foreign ownership caps or require a local partner, so the correct answer depends on your specific KBLI code, which should be checked before incorporation begins.
How long does it take to register a PT PMA?
A straightforward PT PMA with complete shareholder documents typically takes two to four weeks from signing the notary deed to receiving an active NIB. Businesses needing a sector-specific licence, such as tourism, construction or food and beverage, should budget an extra two to six weeks for that separate approval process.
Do I need to be in Indonesia to register a company?
No. Shareholders and directors can sign incorporation documents remotely through power of attorney, and a notary can complete the deed of establishment without every party present in Indonesia. You or a representative will eventually need to be present, or send a local proxy, for tasks like opening the company bank account and completing biometric steps for KITAS applications if staff need visas.
Is a local PT cheaper than a PT PMA?
Yes. A local PT costs roughly USD 1,000 to USD 2,500 to set up because it has no foreign investment capital requirement, compared to USD 2,500 to USD 6,000 for a PT PMA. A local PT must be owned by Indonesian citizens or entities, so it is only an option for foreigners if they are willing to hold shares through a properly structured, legally sound arrangement, not an informal nominee.
If you want an exact cost for your specific business activity and city, send your business plan and target KBLI code through WhatsApp at +62 877-9626-0478 or through our contact page, and we will give you a real figure rather than a general range. For the full registration process see our guide on how to set up a PT PMA in Indonesia, or read more about our PT PMA company registration service. The first consultation is free.