Yes, PT PMA (Foreign Investment Limited Liability Company) companies can conduct IPOs in Indonesia. As Indonesian legal entities, they are entitled to list on the Indonesia Stock Exchange (IDX) under the same framework that applies to domestic companies. The 2023 IPO of PT Koka Indonesia Tbk, a Chinese-owned firm, is proof that PT PMA companies can successfully access Indonesia’s capital markets.
Legal Framework and Eligibility
Under Indonesian law, only companies established as Perseroan Terbatas (PT) under Indonesian jurisdiction may go public. A PT PMA qualifies since it is formed as an Indonesian entity with at least two shareholders, one director, and one commissioner.
For an IPO, PT PMA companies must comply with:
- A minimum investment value of IDR 10 billion (approx. USD 700,000).
- Three years of audited financial statements for Main Board listings.
- Free float requirements of at least 300 million shares and 1,000 shareholders.
- Approval from the Financial Services Authority (OJK) and IDX.
Successful Case: PT Koka Indonesia Tbk
In October 2023, PT Koka Indonesia Tbk became the first Chinese PT PMA to list on IDX, as reported by Antara. Its IPO was oversubscribed 134 times, raising IDR 91.5 billion with a market capitalization of IDR 366 billion. This success highlights strong investor confidence in foreign-invested companies operating in Indonesia.
Also read: Nationalization of Foreign Companies in Indonesia: What Investors Need to Know
Government Support for PT PMA IPOs
President Jokowi has openly invited foreign businesses to list on the IDX, stressing that companies producing and operating in Indonesia should also raise capital locally. The Investment Coordinating Board (BKPM) promotes IPOs in priority sectors like mining, infrastructure, and plantations.
In addition, government incentives, including tax holidays and SEZ privileges, make the IPO route even more attractive.
Also read: How Long Is the PT PMA Permit Valid for in Indonesia?
IPO Process for PT PMA Companies
The process mirrors that of local firms:
- Preparation with advisors and underwriters.
- Submission to IDX and OJK for approval.
- Public Offering during subscription.
- Listing and trading commencement.
Once listed, PT PMA firms must meet continuous reporting obligations, including quarterly financial disclosures and material fact reporting.
Also read: Complete Guide to Divestment of Foreign Company Shares in Indonesia
Why It Matters for Foreign Investors
Conducting an IPO in Indonesia allows PT PMA companies to raise capital, expand operations, and build credibility. With government encouragement, robust investor appetite, and equal legal standing, Indonesia offers a fertile ground for foreign-owned companies to grow through public listings.
Smooth Path to Establishing PT PMA
Before a foreign company can pursue an IPO, it must first be properly registered as a PT PMA. This process can be complex, involving strict compliance with Indonesian investment laws.
That’s where InvestinAsia becomes essential. Our complete PT PMA registration services simplify incorporation, ensure compliance, and set up a strong foundation for future growth, including IPO readiness.
You can also enjoy special package prices for PT PMA and KITAS services.
Ready to start your business and investment in Indonesia? Chat with us now for FREE consultation!
FAQs
Can a PT PMA list on the IDX?
Yes. PT PMA companies are Indonesian legal entities and may list shares publicly.
What is required for a PT PMA IPO?
Audited financials, shareholder minimums, free float shares, and OJK approval.
Has any PT PMA successfully conducted an IPO?
Yes. PT Koka Indonesia Tbk, a Chinese-owned firm, listed in 2023.
Does the government support PT PMA IPOs?
Yes. The Indonesian government encourages foreign-owned firms to list locally, especially in strategic sectors.
How can foreign investors establish a PT PMA?
By registering under Indonesian law. Services like InvestinAsia help navigate regulations and compliance.
