Yes, foreigners can own 100% of a company in Indonesia. The legal vehicle is a PT PMA (Perseroan Terbatas Penanaman Modal Asing). Under Presidential Regulation No. 10 of 2021, more than 200 business sectors are open to full foreign ownership. Some sectors still impose ownership caps. A small number are closed entirely. Whether you can own 100% depends on your specific business activity, not your nationality.
This article focuses on the ownership question specifically: which sectors allow 100%, which ones cap you at 49% or 67%, and what happens if your sector is restricted. If you want a full structural overview of what a PT PMA is and how it works, this complete PT PMA guide covers the legal definition, capital requirements, corporate structure, and ongoing compliance obligations in detail.
The Rule Change Most Foreign Investors Still Don’t Know About
Before 2021, Indonesia ran a Negative Investment List (Daftar Negatif Investasi, or DNI). That list told investors what they could not do. Restrictive by default, updated sporadically, and widely known for being difficult to read without a local lawyer.
The Omnibus Law on Job Creation (Law No. 11 of 2020) reversed this logic. Through Presidential Regulation No. 10 of 2021 (amended by Presidential Regulation No. 49 of 2021), Indonesia replaced the Negative Investment List with a Positive Investment List. The new framework specifies which sectors are open and to what degree, rather than cataloguing what is blocked.
In practice, over 200 sectors that were previously restricted or partially closed to foreigners are now open to 100% ownership. It was a genuine policy shift. Plenty of investors and advisors are still operating on the pre-2021 assumptions, which is one reason this question keeps coming up.
Sectors Open to 100% Foreign Ownership
The following industries are among those where foreign investors can hold all shares without an Indonesian co-owner.
Digital Technology and E-Commerce
Software development, IT services, e-commerce platforms, digital health, and fintech are broadly open to 100% foreign investment. The government has deliberately kept this space accessible to attract global operators, and the regulatory treatment reflects that priority.
Manufacturing
Most manufacturing sub-sectors, including textiles, electronics, automotive components, and consumer goods production, allow full foreign ownership. Export-oriented manufacturing has been a consistent target for foreign direct investment, and the rules are structured to match that goal.
Logistics and Warehousing
Freight forwarding, warehousing, courier services, and cold-chain logistics are open to 100% foreign ownership. Indonesia’s supply chain infrastructure has lagged behind its trade volumes for years, and the government needs private capital to close the gap.
Renewable Energy and Infrastructure
Solar, wind, geothermal, and hydroelectric power generation are open to full foreign investment. Indonesia has ambitious energy transition targets and actively seeks foreign operators who can move faster than state-owned entities.
Pharmaceuticals and Healthcare Services
Pharmaceutical manufacturing and distribution, medical device production, and certain health service facilities allow 100% foreign ownership, subject to licensing from the relevant sectoral ministries.
Tourism and Hospitality
Hotel development, resort operations, and tourism services broadly allow full foreign ownership. Specific activities in cultural or heritage zones may carry additional local requirements worth verifying before you commit.
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Sectors with Foreign Ownership Caps
Some industries are open to foreign investment but cap how much of the company you can own. The government keeps these restrictions to maintain local participation in sensitive or strategic areas. For a full breakdown of ownership percentages across all PT PMA categories, that article covers every KBLI-level detail.
The table below shows common restricted sectors and their maximum foreign shareholding under the current Positive Investment List.
| Sector | Max. Foreign Ownership | Notes |
|---|---|---|
| Broadcasting and media | 20% | Applies to free-to-air TV and radio; digital and OTT rules differ |
| Domestic scheduled air transport | 49% | International routes have different treatment |
| Retail trade (below scale thresholds) | Restricted or closed | Small-format and traditional retail reserved for MSMEs |
| Certain financial services | Varies by sub-sector | OJK-regulated entities have separate ownership rules |
| Smallholder plantations and fisheries | 0% (reserved for locals) | Large-scale agriculture and export-oriented fisheries differ |
| Certain transportation infrastructure | 49% to 67% | Depends on sub-sector and asset type |
Also read: What Fields Can a PMA Company Operate in Indonesia?
Sectors Completely Closed to Foreign Investment
A small number of sectors are fully off-limits. No PT PMA can operate in these areas regardless of capital, structure, or BKPM approval. Closed sectors include narcotics cultivation and distribution, gambling and casino operations, trade in endangered wildlife, defense and national security activities, public and land administration functions, and marine salvage in restricted zones.
These closures reflect national security and cultural considerations. Most foreign investors planning a legitimate commercial operation will not encounter any of them.
The KBLI Problem: Why Industry Labels Are Not Enough
Here is the part that catches many investors off guard, and it is important enough to explain properly.
Ownership restrictions in Indonesia are not applied at the broad industry level. They are applied at the level of the KBLI code: the Klasifikasi Baku Lapangan Usaha Indonesia, or Indonesia Standard Industrial Classification. Every business activity has a KBLI code, and that code determines your ownership cap, minimum capital, and licensing requirements.
Two companies that both call themselves “technology companies” can face completely different ownership limits depending on which KBLI code actually governs their specific activity. A software development company under one KBLI code may allow 100% foreign ownership. A “technology consulting” company under a different code may cap foreign ownership at 67%. The industry label on your pitch deck means nothing. The KBLI code in your OSS registration is what matters.
In practice, the wrong KBLI code at incorporation is one of the most common structural mistakes foreign investors make in Indonesia. It can surface months or years later during tax audits, permit renewals, or when a new business activity requires a different license. Fixing it is possible but slow and costly.
Confirming your KBLI code with the Ministry of Investment (Kementerian Investasi/BKPM) before you begin incorporation is not optional. It is the foundation everything else is built on. For a comprehensive view of which sectors are restricted and how the Indonesia Negative Investment List (DNI) evolved into the current framework, that article covers the full regulatory history.
Do I Need a Local Partner? A Practical Decision Guide
This is the question behind the headline, and the honest answer is: it depends on your KBLI code.
If your business activity falls under a fully open sector, no local partner is required. You can own 100% of the shares with one other foreign individual or entity as the second shareholder. No Indonesian name needs to appear on the shareholder register.
If your sector has a foreign ownership cap, you need an Indonesian co-shareholder who holds at least the minimum required local percentage. This is a genuine partnership requirement, not a formality. The Indonesian shareholder must hold real shares with real rights. Agreements that try to work around this through side contracts or power of attorney arrangements are known as nominee structures, and they are illegal under Indonesian law.
The nominee path is worth addressing directly because it still circulates as advice in some circles. A nominee arrangement is one where an Indonesian national holds shares on paper but is secretly committed to transferring them or following the foreign investor’s directions. Indonesian courts do not recognise these arrangements, and BKPM actively looks for them. A company discovered to be using a nominee structure can have its licenses revoked and its registration cancelled. The consequences fall on the foreign investor, not the nominee.
If your sector is restricted, the real options are: find a genuine Indonesian business partner whose stake and role in the company are real and meaningful; restructure your business activity to a KBLI code that allows higher foreign ownership, where that is legally possible; or explore whether a Representative Office (KPPA) meets your near-term goals without requiring a commercial structure at all. The comparison between PT, PT PMA, and KPPA covers those trade-offs in detail.
One Thing Most Articles Get Wrong About 100% Ownership
A PT PMA that is 100% foreign-owned still requires at least two shareholders. This surprises a lot of investors who assume “100% foreign ownership” means a single person holds all the shares.
It does not. Indonesian Company Law (Law No. 40 of 2007) requires a minimum of two shareholders for any limited liability company. In a 100% foreign-owned PT PMA, both shareholders can be foreign: two individuals, two foreign entities, or a combination. There is no Indonesian shareholder requirement in open sectors. But there must be two distinct parties on the register.
A single-person foreign investor needs to structure the shareholding accordingly, typically by including a spouse, business partner, holding company, or other foreign entity as the second shareholder. Getting this structure right at the start matters more than most investors realize. The shareholder composition affects banking relationships, dividend distribution, and what happens when one party exits later. It is not a detail to sort out after registration.
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Setting Up a 100% Foreign-Owned PT PMA: What You Need to Know
The baseline requirements for a PT PMA apply regardless of ownership percentage. The minimum investment plan is IDR 10 billion (roughly USD 660,000 to USD 700,000 at current exchange rates), excluding land and buildings. Paid-up capital is typically set at 25% of that figure at incorporation. The company needs at least one resident director, a foreign national with a valid KITAS qualifies, and at least one commissioner. A registered business address in Indonesia is required, and virtual offices are accepted in most business classifications.
Registration runs through the Online Single Submission (OSS) system operated by BKPM. A straightforward case in an open sector typically completes in four to six weeks. Cases involving sector-specific permits, multi-ministry approvals, or non-standard shareholding structures take longer. For the full step-by-step process, InvestinAsia’s guide to setting up a PT PMA walks through each stage in detail.
For investors who want the structure set up correctly from the start, InvestinAsia’s PT PMA registration service covers KBLI confirmation, notarial deed, OSS registration, NIB issuance, and post-incorporation compliance obligations.
Frequently Asked Questions
Can a foreigner own 100% of a PT PMA without an Indonesian partner?
Yes, in sectors classified as fully open under the Positive Investment List. No Indonesian co-shareholder is required. The company still needs at least two shareholders, but both can be foreign individuals or entities. In restricted sectors, a minimum percentage of Indonesian ownership applies, and the exact cap is set at the KBLI code level.
Is a nominee arrangement a legal way to get around foreign ownership limits?
No. Nominee arrangements, where an Indonesian holds shares on paper for a foreign investor, are illegal under Indonesian investment law. These structures are not recognised by Indonesian courts and are actively flagged by BKPM. Companies discovered to be using nominee structures risk license revocation. The compliant options are genuine local partnerships, KBLI restructuring, or a Representative Office where commercial activity is not required.
What is the minimum capital required for a 100% foreign-owned PT PMA?
The minimum total investment plan is IDR 10 billion (approximately USD 660,000), excluding land and buildings. Paid-up capital at incorporation is typically set at IDR 2.5 billion (25% of the investment plan). This requirement applies whether the company is fully or partially foreign-owned.
Can a single foreign individual own a PT PMA alone?
No. Indonesian Company Law requires a minimum of two shareholders for any limited liability company, including PT PMAs. In a 100% foreign-owned company, both shareholders can be foreign. A solo foreign investor typically includes a spouse, foreign business partner, or holding company as the second shareholder.
What happens if I register under the wrong KBLI code?
The consequences can be serious. The wrong KBLI code can result in a non-compliant ownership structure, licenses that do not cover your actual business activities, or failed permit renewals. Correcting a KBLI code after incorporation requires going back through the notarial and ministry approval process. It is much easier to confirm the correct code before registration.
Can a PT PMA own property in Indonesia?
Yes. A PT PMA can hold Hak Guna Bangunan (HGB) title for up to 80 years and Hak Pakai (HP) title for built properties. PT PMAs cannot hold Hak Milik (freehold title), which is restricted to Indonesian citizens. This makes the PT PMA a common structure for foreigners acquiring commercial property in Bali or Jakarta.
References
1. Government of Indonesia. (2021). Presidential Regulation No. 10 of 2021 on Business Fields for Investment (Peraturan Presiden Nomor 10 Tahun 2021 tentang Bidang Usaha Penanaman Modal). Ministry of Investment / BKPM. Retrieved from
https://jdih.bkpm.go.id/bkpm/files/reg_doc/PERPRES_10_2021.pdf
2. Government of Indonesia. (2021). Presidential Regulation No. 49 of 2021, amending Presidential Regulation No. 10 of 2021. Retrieved from
https://jdih.bkpm.go.id/bkpm/files/reg_doc/PERPRES_49_2021.pdf
3. Kementerian Investasi / BKPM. (2024). PT PMA Registration Guide: Requirements and Procedures. Retrieved from
https://investindonesia.go.id/id/artikel-investasi/detail/prosedur-penanaman-modal
4. Government of Indonesia. (2020). Law Number 11 of 2020 on Job Creation (Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja). Retrieved from
https://www.dpr.go.id/dokakd/dokumen/RJ1-20201027-113605-3421.pdf
5. BKPM / OSS Indonesia. (2023). Online Single Submission: Business Licensing Guide. Retrieved from
https://oss.go.id/informasi/panduan
6. U.S. International Trade Administration. (2025). Indonesia: Licensing Requirements for Professional Services and Foreign Investment. Retrieved from
https://www.trade.gov/country-commercial-guides/indonesia-licensing-requirements-professional-services
