Indonesia Business Setup Services: What They Cover and Cost
Published 23 September 2026. Reading time: 9 minutes. The Indonesian Lawyer, Jakarta.
Indonesia business setup services normally cover four things: choosing the right legal entity, notarizing the deed of establishment, registering through the OSS system to get an NIB and business licenses, and setting up tax and reporting so the company stays compliant after it opens. For a foreign-owned company, or PT PMA, expect the full process to take four to eight weeks from a complete document set to an active NIB, and total government and professional fees typically landing somewhere between Rp 15 million and Rp 50 million depending on the sector and how many licenses your KBLI codes require.
Table of contents
- What counts as business setup in Indonesia
- PT PMA vs local PT: which one you actually need
- The registration process, step by step
- What it costs, realistically
- How long it takes, and what slows it down
- What happens after the company is registered
- FAQ
What counts as business setup in Indonesia
Business setup is not just filing a deed. It is a chain of approvals that has to happen in a specific order, and if one link is wrong the whole chain has to be redone. The chain runs: name reservation, notarial deed of establishment, Ministry of Law and Human Rights approval (Kemenkumham), tax registration (NPWP), and then the NIB and sector licenses through the OSS system (Online Single Submission, run by BKPM). Miss a step or get the KBLI code wrong at the start and you often have to re-notarize the deed, which costs time and a second notary fee.
Most people searching for this term are trying to work out one of three things: whether they need a PT PMA or can use a local structure, what it actually costs beyond the headline number a consultant quotes, and how long they have to wait before they can invoice a client or sign a lease legally. We answer all three below.
PT PMA vs local PT: which one you actually need
If any shareholder is a foreign individual or foreign company, you need a PT PMA. There is no workaround that is legal: using an Indonesian nominee to hold shares on paper for a foreigner is not recognized by Indonesian law and carries real risk, including the nominee arrangement being void and the underlying asset or shares being exposed. A PT local, by contrast, requires at least two Indonesian shareholders and is closed to foreign ownership.
PT PMA does not mean 100% foreign ownership is automatic in every sector. Indonesia's Positive Investment List (the successor to the old Negative Investment List) sets a maximum foreign ownership percentage per KBLI code, sector by sector. Some sectors are fully open, some cap foreign ownership at 49% or 67%, and a small number remain closed to foreign capital entirely or reserved for small and medium enterprises. This is checked at the KBLI code level, not the company level, so a company with three business lines can have three different ownership ceilings.
PT PMA also carries a minimum investment plan threshold that most local PTs do not have. As of current regulation this is generally set at more than Rp 10 billion in planned investment per business line, per location, excluding land and buildings, though this figure is set by government regulation and should be confirmed against the current BKPM rule before you commit to a structure. Paid-up capital requirements sit separately from this and are usually a minimum of Rp 10 billion as well, though this can vary by sector.
| Feature | PT PMA | PT Local |
|---|---|---|
| Foreign ownership | Up to 100%, depending on KBLI | Not permitted |
| Minimum shareholders | 2 (individuals or entities) | 2 Indonesian nationals |
| Typical investment threshold | Above Rp 10 billion per line, per location (confirm current rate) | No fixed minimum |
| Can sponsor KITAS work permits | Yes | Yes, but foreign director role is less common |
| Typical setup timeframe | 4 to 8 weeks | 2 to 4 weeks |
A Representative Office (KPPA) is worth mentioning because people confuse it with a PT PMA. It lets a foreign company research the market or promote its products, but it cannot issue invoices, sign local sales contracts, or generate revenue directly. If your plan involves billing Indonesian clients from day one, a representative office is the wrong structure and you will need a PT PMA regardless of how small the operation starts.
The registration process, step by step
The sequence below is what actually happens, in order, for a PT PMA. A local PT skips the investment plan and BKPM sector checks but otherwise follows the same shape.
- Structure and KBLI review. We confirm the entity type and map your intended activities to the correct KBLI codes, because the ownership cap and license requirements are set per code.
- Name reservation. The company name is checked and reserved with Kemenkumham. It has to be unique and follow the naming rules (three words minimum for a PT, no reserved terms).
- Deed of establishment. A notary drafts and signs the Articles of Association, or Akta Pendirian, in front of the shareholders or their power of attorney holders.
- Kemenkumham approval. The deed is submitted for legal entity status (Surat Keputusan). This is where an incorrect capital structure or shareholder document most often causes a rejection and a resubmission.
- Tax registration. The company gets its NPWP (tax number) and, where relevant, is confirmed for PKP (VAT-registered) status.
- NIB and OSS licensing. The Business Identification Number is issued through OSS. Depending on the KBLI risk classification, this alone may finish the process, or it may trigger a further requirement for standard certification or a full operational license before you can legally trade.
- Domicile, bank account, operational setup. A registered address, a corporate bank account, and any building or location-specific permits (see below) come last.
The OSS risk classification matters more than most first-time applicants expect. Low-risk KBLI codes get an NIB that doubles as their operating license. Medium and high-risk codes require additional certificates or a full license before the business can legally operate, which is why two companies with the same paperwork timeline can have very different actual go-live dates. For the mechanics of this from a foreign investor's perspective, our guide on how to set up a PT PMA in Indonesia walks through the OSS steps in more detail.
What it costs, realistically
Quoted setup fees vary widely because they often exclude things clients later discover they need. Ask any provider for a written breakdown before you sign, not a single lump figure.
| Item | Typical range (IDR) | Notes |
|---|---|---|
| PT PMA legal setup and notary fees | Rp 15,000,000 to Rp 35,000,000 | Varies by number of KBLI codes and shareholder complexity |
| PT Local setup | Rp 8,000,000 to Rp 18,000,000 | Simpler, no BKPM investment review |
| NPWP and PKP registration | Often bundled into setup fee | Confirm if separate |
| Sector-specific license (e.g. food and beverage, tourism) | Rp 3,000,000 to Rp 15,000,000 | Depends on inspection and certification requirements |
| Registered virtual or physical office address | Rp 6,000,000 to Rp 30,000,000 per year | Some KBLI codes require a physical, not virtual, address |
| Annual LKPM and tax compliance | Rp 3,000,000 to Rp 10,000,000 per year | Ongoing, not a one-time cost |
These are indicative ranges, not quotes. Actual fees depend on the region, the number of business lines, whether foreign directors need KITAS sponsorship at the same time, and whether the sector requires a physical office inspection before licensing. Jakarta providers often quote at the higher end of these ranges because of office and staffing costs, but the government fees themselves are set nationally and do not change by province.
The most expensive mistake: choosing a KBLI code that does not match what the business will actually do, to save time or avoid a higher capital threshold. Tax officers, immigration, and OSS auditors all cross-check declared activity against invoices, bank transactions, and what the office actually looks like. A mismatch discovered later can mean the NIB is suspended, KITAS sponsorship is invalidated, and the company has to redo licensing from the deed stage, at full cost, while already trading. Get the KBLI code right before the deed is signed, not after.
How long it takes, and what slows it down
A clean PT PMA with straightforward, low-risk KBLI codes and complete documents on day one can be registered and NIB-active in around four weeks. Add a medium or high-risk activity, a sector license requiring physical inspection, or an incomplete power of attorney from an overseas shareholder, and eight to twelve weeks is more realistic.
The three delays we see most often: shareholder identity documents from overseas that are not legalized or apostilled correctly, a registered address that does not meet the zoning requirement for the intended KBLI code, and applicants who try to self-file on OSS without understanding which risk tier their code sits in, which produces rejected or stalled submissions that then need professional correction anyway. In practice, using a firm that handles the notary, Kemenkumham, and OSS stages together avoids most of the back-and-forth, because each stage is prepared with the next one already in mind.
What happens after the company is registered
Getting the NIB is the start, not the finish. Every PT PMA has to file an LKPM (Investment Activity Report) quarterly, reporting realized investment and employment figures to BKPM, regardless of whether the company has started trading. Missing LKPM filings is one of the most common compliance failures we see in companies that were set up by a provider who disappeared after registration.
Beyond LKPM, an active company needs monthly or periodic tax filing depending on its PKP status, an annual financial report, and, if it employs foreign staff, KITAS renewals tied to the company's continued good standing. If the business will operate from owned or leased premises, building-related permits (PBG, and SLF for existing buildings) need to be in order separately from the company registration itself. None of this is optional, and none of it is covered by a one-off setup fee, so ask any provider what happens after month one before you sign with them.
If your setup also involves buying property, taking a long-term lease, or developing a site, that due diligence runs on a separate track from company registration and should be checked independently. See our page on property due diligence for foreigners in Indonesia before signing anything tied to land.
FAQ
Can a foreigner own 100% of a company in Indonesia?
Yes, in most sectors, through a PT PMA. The exact percentage allowed depends on the KBLI code assigned to the business activity, which is checked against Indonesia's Positive Investment List. Some sectors allow full foreign ownership, others cap it at 49% or 67%, and a small number are closed to foreign capital or reserved for Indonesian small and medium enterprises.
How much does it cost to set up a company in Indonesia?
A PT PMA typically costs Rp 15 million to Rp 35 million in setup and notary fees, plus separate costs for sector licenses, a registered office, and ongoing annual compliance such as LKPM reporting. A PT Local, available only to Indonesian shareholders, usually costs Rp 8 million to Rp 18 million. Government fees are set nationally and do not vary by province.
How long does company registration take in Indonesia?
A PT PMA with complete documents and a low-risk business activity usually takes four to eight weeks from signing to an active NIB. Medium or high-risk sectors requiring additional certification or a physical inspection can take eight to twelve weeks. A PT Local, without the BKPM investment review, is usually faster, around two to four weeks.
Do I need a local partner to start a business in Indonesia?
Not for a PT PMA. A PT PMA can be 100% foreign-owned in most sectors, subject to the Positive Investment List. A PT Local requires at least two Indonesian shareholders and is not available to foreign nationals. Using an Indonesian nominee to hold shares for a foreigner in a PT Local structure is not legally recognized and carries significant risk.
What is the minimum capital to set up a PT PMA?
Current regulation generally sets the investment plan threshold at more than Rp 10 billion per business line, per location, excluding land and buildings, with paid-up capital usually required at a minimum of Rp 10 billion as well. These figures are set by government regulation and can be revised, so confirm the current threshold before finalizing your investment plan.
What licenses does a business need after getting an NIB?
It depends on the OSS risk classification of the KBLI code. Low-risk activities often need nothing further, since the NIB itself functions as the operating license. Medium and high-risk activities, including food and beverage, tourism, health, and construction-related sectors, typically require an additional standard certificate or full license, sometimes tied to a physical site inspection, before the business can legally start trading.
What happens if I use the wrong KBLI code?
If declared business activity does not match actual operations, tax authorities, immigration, or OSS auditors can suspend the NIB and invalidate any KITAS sponsorship linked to the company. Correcting it usually means amending the deed and re-running parts of the licensing process, at additional cost, often while the business is already operating. Getting the KBLI code confirmed before the deed is signed avoids this entirely.
If you are weighing up a PT PMA against a local structure, or you already have a KBLI code picked and want it checked before you commit to a notary, send the details on WhatsApp at +62 877-9626-0478 or through our contact page. The first consultation is free, and it is a lot cheaper than fixing a company structure after it has been registered wrong.