PT PMA Company Registration in Indonesia: Costs and Steps
Published 23 September 2026. Reading time: 9 minutes. By The Indonesian Lawyer.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company that allows a foreigner to own and run a business in Indonesia, either fully or partly, depending on the sector. Registration runs through the OSS system (Online Single Submission) and typically takes two to four weeks once documents are ready. Most sectors require a minimum planned investment of IDR 10 billion per business line, excluding land and buildings, and a paid-up capital of at least IDR 10 billion, though this varies by sector and by risk classification under the KBLI code you choose.
Table of Contents
- What a PT PMA is and who needs one
- Capital requirements for PT PMA in Indonesia
- The registration steps in order
- Documents you need before you start
- Timeline and costs
- What happens after registration
- The mistake that costs the most
- FAQ
What a PT PMA is and who needs one
A PT PMA is the only company vehicle that lets a foreign individual or foreign entity hold shares directly in an Indonesian company. If you are not Indonesian and want to invoice locally, hire staff on a work permit, sign a lease as a company rather than as a person, or open a business bank account under a company name, you need a PT PMA or you need to work under someone else's license, which is the arrangement Indonesian law calls nominee structuring and which carries real legal risk for the foreign party.
A PT PMA can be 100% foreign owned in most sectors following the 2021 shift to the Positive Investment List, which replaced the old Negative Investment List. Some sectors still cap foreign ownership at a percentage, some require a local partner, and a short list is closed to foreign investment entirely. The cap depends on your KBLI code, the five digit classification that describes exactly what your business does, so the first real decision in any PT PMA registration is choosing the right KBLI code, not the company name.
Capital requirements for PT PMA in Indonesia
The standard threshold nationwide is a planned investment value of more than IDR 10 billion per KBLI business line, excluding the value of land and buildings. Of that, paid-up capital of at least IDR 10 billion must actually be placed in the company's bank account and reported, not just written into the deed. This threshold applies whether you register in Jakarta, Surabaya, Medan or anywhere else; it is a national rule set by BKPM, not a regional one.
Some KBLI codes carry a higher threshold or additional conditions, particularly in construction, trading, and certain manufacturing sub sectors. A few micro and small business classifications allow a lower capital figure, but foreign investors are routed toward the standard PT PMA threshold in almost all cases. Confirm the figure for your specific KBLI code before you commit to a structure, because getting this wrong after the deed is signed is expensive to fix.
| Requirement | Standard PT PMA figure | Notes |
|---|---|---|
| Minimum planned investment | Above IDR 10 billion per KBLI line | Excludes land and buildings |
| Minimum paid-up capital | IDR 10 billion | Must be deposited and reported, not just declared |
| Minimum shareholders | 2 | Individuals or entities, foreign or mixed |
| Minimum directors | 1 | Can be foreign, needs a KITAS if resident and active |
| Minimum commissioner | 1 | Supervisory role, no daily management required |
The registration steps in order
PT PMA registration in Indonesia follows a fixed sequence. Skipping ahead, for example applying for licenses before the deed is finalised, usually means redoing a step.
- Choose the KBLI code and check the ownership cap. This decides how much foreign ownership is allowed and what the capital threshold is.
- Reserve the company name through OSS or via notary, following the naming rules (three words minimum, no offensive or reserved terms, not identical to an existing PT).
- Draft and sign the deed of establishment before a notary, setting out shareholders, share split, directors and commissioners.
- Obtain the Ministry of Law approval (SK Kemenkumham) confirming the company's legal entity status.
- Register for a tax ID (NPWP) and a company domicile confirmation.
- Apply for the Business Identification Number (NIB) through OSS, which doubles as your import license and various basic permits depending on risk level.
- Apply for sector-specific licenses if your KBLI code is medium or high risk under the OSS risk-based approach.
- Open the corporate bank account and deposit the paid-up capital.
In Jakarta this whole sequence, from a signed KBLI decision to a working NIB, typically runs two to four weeks for a low-risk business line where documents are complete and the bank account opens without delay. Medium and high risk sectors, which need additional technical approvals, commonly take six to ten weeks.
Documents you need before you start
For a foreign individual shareholder you need a passport valid at least six months beyond the planned registration date, and increasingly, a tax ID number (NPWP) if you already hold one from prior activity in Indonesia. For a foreign corporate shareholder you need the parent company's certificate of incorporation, articles of association, and a board resolution authorising the Indonesian investment, all legalised or apostilled and then translated into Indonesian by a sworn translator.
You also need a registered business address. A virtual office is accepted for many low and medium risk KBLI codes in Jakarta, but some sectors and some risk levels require a physical office lease, and building permit compliance (PBG, and SLF for the building's function certificate) matters if the address is later inspected. Confirm what your specific KBLI code requires before signing a lease.
Timeline and costs
Costs for PT PMA registration vary by notary, by how many licenses your KBLI code requires, and by whether translation and apostille work is needed for foreign corporate documents. As a rough national range, expect government and notary fees, translation, and the first year of a registered address to run from the low tens of millions of rupiah upward for a single, low-risk business line, with medium and high risk sectors costing more because of the extra technical licenses.
| Stage | Typical duration | What can delay it |
|---|---|---|
| KBLI selection and name reservation | 1 to 3 days | Ambiguous business activity, name already taken |
| Deed signing and Kemenkumham approval | 3 to 7 days | Missing shareholder documents, unclear share split |
| NPWP and domicile | 2 to 5 days | Address not yet confirmed or leased |
| NIB via OSS | 1 to 3 days for low risk | KBLI mismatch with actual business activity |
| Sector licenses (medium/high risk) | 2 to 6 weeks | Additional ministry approvals, site inspection |
| Bank account and capital deposit | 1 to 2 weeks | Bank compliance checks on foreign shareholders |
What happens after registration
Getting the NIB is not the end of the obligation. Every PT PMA must file LKPM (Investment Activity Report) quarterly or, for smaller companies, twice a year, to BKPM, reporting realised investment and headcount. Failing to file LKPM is one of the more common reasons a company's NIB gets flagged or suspended, and it is entirely avoidable with a calendar reminder and a competent local accountant.
You will also need monthly and annual tax filings once the company is active, even with zero revenue. And if a foreign director or commissioner intends to live and work in Indonesia, they need a KITAS work permit tied to the company, which is a separate application from the company registration itself and has its own document set and timeline.
The most expensive mistake: choosing a KBLI code that does not accurately match what the business actually does, to fit a lower capital threshold or a simpler license path. When an inspection or a bank compliance check reveals the mismatch, the fix usually means amending the deed, reapplying for the NIB, and in some cases repaying benefits or fees claimed under the wrong classification. It is far cheaper to spend an extra hour with a lawyer confirming the correct KBLI code before the deed is signed than to correct it afterward.
FAQ
How much does PT PMA company registration cost in Indonesia?
Government and professional fees for a single low-risk business line typically start in the low tens of millions of rupiah and rise from there depending on how many KBLI codes you register, whether foreign corporate documents need apostille and translation, and whether your sector requires additional technical licenses. Get a fixed quote against your specific KBLI code rather than relying on a generic figure, since the cost range is wide.
Can a foreigner own 100% of a PT PMA in Indonesia?
Yes, in most sectors under the current Positive Investment List a foreigner can hold 100% of the shares in a PT PMA. Some sectors cap foreign ownership at a set percentage or require an Indonesian partner, and a short list of sectors is closed to foreign investment entirely. The cap is tied to the KBLI code you register under, so confirm it before drafting the deed.
What is the minimum capital for a PT PMA?
The standard nationwide threshold is planned investment above IDR 10 billion per business line, excluding land and buildings, with paid-up capital of at least IDR 10 billion actually deposited in the company account. Some KBLI codes carry different thresholds, so this figure should be confirmed against the exact business activity before registration begins.
How long does PT PMA registration take?
For a single low-risk business line with complete documents, the deed, Ministry of Law approval, tax ID and NIB typically take two to four weeks in total. Medium and high risk sectors that require additional technical licenses commonly take six to ten weeks, and delays are usually caused by incomplete shareholder documents or a KBLI code that does not match the intended activity.
Do I need a local partner to set up a PT PMA?
Not for most sectors. Since the shift to the Positive Investment List in 2021, the majority of business classifications allow full foreign ownership. A local partner or a foreign ownership cap only applies to specific KBLI codes, mostly in areas the government treats as strategic or sensitive, so this depends entirely on which business activity you register.
What is LKPM and why does it matter for a PT PMA?
LKPM is the Investment Activity Report every PT PMA must submit to BKPM, either quarterly or twice yearly depending on company size, covering realised investment, headcount and progress against the business plan. Missing LKPM filings is a common cause of an NIB being flagged or suspended, and it applies from the reporting period after the company receives its NIB, regardless of whether the business has started earning revenue.
If you are weighing up a PT PMA against a local PT, or need the KBLI code and capital threshold confirmed for your specific business before you sign anything, our guide on how to set up a PT PMA in Indonesia walks through the decision in more detail, and our corporate lawyer in Indonesia page covers ongoing compliance once the company is running. If a director or shareholder also needs to live in Indonesia, see our page on work permit and residence visa requirements.
You can send your business plan and KBLI question directly on WhatsApp at +62 877-9626-0478, or reach us through our contact page. The first consultation is free.