In Indonesia, every company—whether local or foreign—must have a legally registered business address. This address is not just a formality; it determines your tax jurisdiction, enables government correspondence, and ensures that your business complies with zoning and licensing laws. For foreign investors, address regulations are stricter and often confusing.
This guide explains everything you need to know about company address rules in Indonesia, from zoning restrictions to virtual office eligibility.
General Requirements for All Companies
A registered business address in Indonesia is used for:
- Opening corporate bank accounts
- Tax registration and NPWP issuance
- Receiving legal correspondence
- Applying for business licenses and permits
You cannot simply use a residential property unless the zoning allows it. Most businesses must operate from addresses located in commercially zoned areas.
Also read: The Complete Checklist Before You Open a Business in Indonesia (Local and Foreign)
Zoning Compliance in Indonesia
Zoning is the most common hurdle investors face. If your business address is in a residential area, your application can be rejected or even lead to fines. Indonesia categorizes commercial zones into neighborhood, general, central business, and industrial areas. Always verify your building’s IMB (Building Permit) before signing a lease.
Entity-Specific Address Rules
PT PMA (Foreign Investment Company)
Foreign companies face stricter address rules:
- Must be located in commercial office buildings
- Virtual offices are allowed in Jakarta and select cities with proper documentation
- IMB (Building Permit) is mandatory
- Minimum paid-up capital: IDR 10 billion (~USD 635,000)
Representative Offices (KPPA)
Here are some things to consider regarding representative offices in Indonesia:
- Must be in provincial capital cities
- Cannot use virtual offices
- Must lease or own physical office space in a commercial building
- Activities are limited to research, liaison, and promotion
Also read: Business Activities Allowed for Foreign Representative Offices in Indonesia
Local PT (PT PMDN) and Branch Offices
Unlike PT PMA, PT PMDN is intended for local Indonesian businesspeople and investors. Here are some things to know:
- Allowed to use physical or virtual offices (if in compliance)
- Branch offices must be in commercial zones and can use virtual offices
- Full commercial operations are allowed with BKPM approval
Also read: How to Set Up a PT Company in Indonesia: Guide for Foreigner
Virtual Office Regulations
Virtual offices are a popular solution, especially in Jakarta. Legally recognized since 2014, they allow companies to:
- Register PT PMA or PT PMDN
- Receive mail, legal documents, and tax correspondence
- Operate service-based or digital businesses without needing a physical office
Restrictions:
- Not valid for manufacturing or high-risk activities
Also read: Forbidden Business Sectors for Virtual Office in Indonesia
Address Change Procedures
If you change your company address:
- Same district: 1–2 weeks, lower cost (IDR 2–5 million)
- Different district: Requires amendments to company documents, BKPM notification, and tax transfer (IDR 15–25 million, 1–2 months)
Common Compliance Issues
There are several issues and mistakes that must be avoided when managing a company address, including:
- Using residential addresses without approval
- Registering without a valid IMB
- Misusing virtual offices for restricted businesses
- Failing to notify tax and banking authorities after address changes
Penalties include heavy fines, license revocation, and potential business shutdown.
Best Practices
Here are some tips for those of you who want to manage your company address in Indonesia:
- Always confirm zoning and building permits before leasing
- Consider tax implications of your business district
- Use professional service providers to avoid costly mistakes
How InvestinAsia Can Help You
Navigating Indonesia’s address regulations is challenging, especially for foreign investors. Our team at InvestinAsia’s Indonesia Company Registration Services provides end-to-end support to ensure compliance and smooth setup:
- Representative Office Setup – Assistance with KPPA requirements in provincial capitals.
- PMA Registration for Foreigners – Full compliance for foreign-owned businesses.
- Local PT (PMDN) Setup – Simplified registration for Indonesian entrepreneurs.
- Virtual Office Services – Legally recognized office solutions in Jakarta and beyond.
You can also enjoy special package prices for PT PMA and KITAS (Stay Permit) services.
With our expertise, you can focus on running your business while we handle compliance.
Contact us now for a FREE consultation and start your investment journey with confidence.
FAQs
Can I use my home address for company registration in Indonesia?
Generally no, unless the zoning permits it and you have approval.
Is a virtual office legal for foreign-owned companies?
Yes, PT PMA can use virtual offices in Jakarta and certain areas with proper documentation.
Do I still need a domicile letter (SKDP) in Jakarta?
No, the SKDP was abolished in 2019. However, banks may still request proof of domicile.
Can a representative office use a virtual office?
No, representative offices must maintain a physical office in a provincial capital.
What happens if I don’t comply with address regulations?
Penalties include fines, business closure, and license revocation.
