How to Set Up a PT PMA in Indonesia
Published 23 September 2026. Reading time: 9 minutes. The Indonesian Lawyer, Jakarta.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is Indonesia's foreign-owned limited liability company, the only legal structure that lets a foreigner hold shares directly, sign contracts, sponsor KITAS visas and open a business bank account in the company's name. Setup runs through the OSS system based on a KBLI business classification code, needs a minimum of two shareholders, one director and one commissioner, and requires an investment plan of more than IDR 10 billion per business line, excluding land and buildings. Most straightforward applications take four to eight weeks from name reservation to a working NIB.
Table of contents
- What is a PT PMA and who actually needs one
- PT PMA minimum capital requirement in 2026
- Choosing the right KBLI code and checking foreign ownership limits
- Step by step: the PT PMA registration process
- How long it takes and what actually causes delays
- After incorporation: the obligations people forget
- Frequently asked questions
What is a PT PMA and who actually needs one
A PT PMA is not a special visa category or a shortcut for freelancers. It is a full Indonesian legal entity, subject to Indonesian corporate law, tax law and reporting obligations, that happens to allow foreign shareholders. If you are running any kind of ongoing commercial activity in Indonesia, whether that is a consulting business in Jakarta, a villa rental operation, an import business, or a software company billing local clients, and you are not doing it through a properly licensed entity, you are operating illegally regardless of what visa you hold.
People who do not need a PT PMA: someone doing remote work for a foreign employer with no Indonesian clients or income source, someone testing an idea before committing capital, or someone whose activity fits comfortably inside a representative office license instead. People who do need one: anyone signing local contracts, invoicing Indonesian companies, employing local staff formally, leasing commercial premises under the company name, or sponsoring their own KITAS.
The alternative structure, a PT local (domestic company, 100% Indonesian-owned), is sometimes suggested to foreigners using a nominee arrangement. We do not set these up and do not recommend them. Nominee structures are not recognised as valid ownership under Indonesian law, and if the relationship sours there is no enforceable claim to the shares.
PT PMA minimum capital requirement in 2026
The standard rule under the current investment regulations is an investment value above IDR 10 billion per KBLI business line, excluding the value of land and buildings. This is not cash sitting untouched in a bank account, it is a total investment commitment that can include equipment, working capital, leasehold improvements and operational spend over time.
Separate from the investment value, there is a paid-up capital requirement, commonly cited at IDR 2.5 billion, which must be reflected in the deed of establishment as issued and paid-up share capital. Some sectors carry higher thresholds, and some, notably certain trading and retail activities, have specific rules that differ from the general figure. Confirm the exact number for your KBLI code before drafting the deed, because getting the capital structure wrong at incorporation means amending the deed later, at extra notary cost and extra time.
A common misunderstanding: clients think the IDR 10 billion has to be wired into Indonesia before the company can be registered. It does not. The figure is stated in the company's investment plan and built up over the following one to two years as the business operates, though the paid-up portion does need to be deposited into the corporate account.
Choosing the right KBLI code and checking foreign ownership limits
Every PT PMA is registered against one or more KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes, five-digit classifications that describe exactly what the company is licensed to do. The KBLI code you choose determines three things: whether foreign ownership is allowed at all, whether it is capped at a percentage, and what minimum capital and licensing applies. Most business sectors now allow 100% foreign ownership following the 2021 investment law reforms, but a meaningful list of sectors still carry restrictions or require a local partner, particularly in areas touching media, certain transport activities, and some categories of retail trade. This changes periodically, so the sector list has to be checked against the current positive investment list at the time you incorporate, not against something read on a forum from two years ago.
The mistake we see most often, in Jakarta and everywhere else, is a company registered under a KBLI code that is close to what the business actually does but not accurate. A marketing agency registered under a generic consulting code, for example, may find it cannot issue certain invoices or apply for a specific license later because the activity was never properly declared. Fixing this after the fact means amending the NIB and sometimes the deed. Get the code right the first time.
Step by step: the PT PMA registration process
The process below is the same wherever in Indonesia the company is registered, since OSS and the Ministry of Law are national systems. Jakarta, Surabaya, Medan and Batam all follow identical steps; the differences are local, such as which regional office issues certain permits and how quickly.
| Step | What happens | Typical duration |
|---|---|---|
| 1. Name reservation | Company name checked and reserved with the Ministry of Law and Human Rights. Must be in Roman letters, at least three words, not already registered. | 1 to 2 days |
| 2. Deed of Establishment | Notary drafts and executes the deed: articles of association, shareholders, capital structure, directors and commissioners. | 2 to 5 days |
| 3. Ministry approval | Deed submitted to the Ministry of Law and Human Rights for legal entity status (SK Pengesahan). | 3 to 7 days |
| 4. NIB and licensing via OSS | Company registered in the Online Single Submission system, generating the NIB (Business Identification Number), which doubles as import license and business registration. | 1 to 2 weeks |
| 5. Domicile confirmation | Registered office address verified, either through a commercial lease or a virtual office arrangement accepted under the KBLI code. | Runs in parallel |
| 6. Tax registration (NPWP) | Company tax ID issued, corporate tax obligations begin from this point regardless of whether the business is trading yet. | 2 to 5 days |
| 7. Bank account and paid-up capital | Corporate account opened, paid-up capital deposited as evidence of compliance. | 1 to 3 weeks, bank-dependent |
| 8. Sector licenses | Any additional permits required by the specific KBLI: tourism licenses, health permits, building certifications (PBG, SLF) for physical premises. | Varies, weeks to months |
Note the typo risk in that last row of many templates online: it is PBG and SLF, the current building permit and building worthiness certificate regime, not the older IMB system which was phased out. If your business involves a physical premises, a restaurant, a clinic, a factory, or a retail space, confirm the building already holds valid PBG and SLF before signing a lease, since the previous tenant's paperwork does not automatically transfer.
How long it takes and what actually causes delays
A clean application, correct KBLI, no sector restrictions, straightforward shareholder structure, typically clears from name reservation to a working NIB in four to six weeks. Add sector licensing and it can run two to four months. The delays we see repeatedly are not government bureaucracy, they are avoidable client-side issues: shareholders sending scanned passports with expired pages, a proposed company name that turns out to already exist under a slightly different spelling, or a KBLI code chosen without checking the ownership restriction first and having to restart the sector review. Foreign shareholder documents, if the shareholder is a company rather than an individual, also need to be legalised or apostilled in the country of origin, and this step alone can add two to three weeks if not started early.
The most expensive mistake: registering under the wrong KBLI code to save time or avoid a foreign ownership restriction, intending to "fix it later." This is not a paperwork inconvenience. Operating outside your registered business classification can invalidate contracts, block tax invoices, and in a due diligence review or dispute, expose the company and its directors to the position that the business has been trading illegally since incorporation. The correct code, checked properly at the start, costs nothing extra. Correcting it later costs a deed amendment, a fresh OSS submission, and lost time while licenses are reissued.
After incorporation: the obligations people forget
Getting the NIB is the start of the paperwork, not the end of it. Every PT PMA, whether it has started trading or not, has ongoing obligations from day one:
- LKPM investment activity reports, filed quarterly with BKPM, reporting on capital realisation and operations. Required even in a quarter with zero activity. Missed filings are one of the most common reasons companies face licensing problems later.
- Corporate tax registration and monthly filings, regardless of revenue.
- Annual financial statements and, depending on size, an audit requirement.
- KITAS sponsorship obligations if the company employs or brings in foreign staff, including reporting to the Ministry of Manpower.
- Renewal of sector licenses tied to the NIB, some of which expire and require reactivation.
We set up companies for clients in Jakarta and route the same structure and process for clients incorporating out of Surabaya, Bandung, Medan, Makassar, Batam and elsewhere. The registration mechanics do not change by city. What does change is the practical side: which notary is local enough to execute the deed in person if that is preferred, and which regional building or trade office issues sector permits fastest.
If you are also planning to bring in foreign staff or move yourself to Indonesia to run the business, it is worth reading through the work permit and residence visa process alongside company setup, since the KITAS application depends on the company already being properly licensed as sponsor.
Frequently asked questions
How much does it cost to set up a PT PMA in Indonesia?
Government and notary fees for a standard PT PMA typically run from a few million to around IDR 15 to 25 million depending on the notary, the number of KBLI codes and whether sector licensing is involved, separate from the capital deposit itself. Legal and setup service fees vary by firm and complexity. Ask for a fixed quote covering deed, NIB, tax registration and domicile before starting, since some quotes exclude sector-specific licenses.
Can a foreigner own 100% of a PT PMA?
Yes, in most business sectors following Indonesia's investment law reforms, a foreigner can hold 100% of the shares in a PT PMA. Certain sectors, including parts of media, transport and specific retail categories, still carry foreign ownership caps or require a local partner. The rule depends entirely on the KBLI code the company registers under, so this needs checking sector by sector, not assumed.
What is the minimum capital for a PT PMA in 2026?
The general rule requires an investment plan above IDR 10 billion per business line, excluding land and buildings, with a commonly cited paid-up capital figure of IDR 2.5 billion deposited into the corporate bank account. Some sectors carry different thresholds. This is a planned investment figure realised over time, not cash required in full before registration can proceed.
Do I need to be in Indonesia to set up a PT PMA?
No. The deed of establishment can often be signed under power of attorney, and much of the OSS registration is handled digitally by a licensed notary or legal representative. Opening the corporate bank account and, later, applying for a KITAS if you intend to work in the company, generally does require in-person steps, so most foreign investors do plan at least one visit during the process.
How long does it take to register a PT PMA?
A straightforward application with a correct KBLI code and no sector restrictions typically takes four to eight weeks from name reservation to a working NIB. Add sector-specific licensing, foreign shareholder document legalisation, or a business location requiring PBG and SLF building certification, and the realistic timeline extends to two to four months.
What is the difference between a PT PMA and a local PT?
A PT local is 100% Indonesian-owned and cannot legally hold foreign shareholders. A PT PMA is the entity structure that allows foreign individuals or foreign companies to hold shares directly, sponsor foreign staff for KITAS, and operate under the foreign investment licensing regime. Using a PT local with a nominee arrangement to disguise foreign ownership is not legally enforceable and is not something we set up for clients.
If you are weighing up whether your business needs a PT PMA, which KBLI code fits your activity, or what the capital and licensing requirements look like for your specific sector, send the details through WhatsApp at +62 877-9626-0478 or through our contact page. The first consultation is free, and we can tell you early whether your plan needs adjusting before you commit capital.