A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company that enables investors to operate legally in Indonesia under full or partial foreign ownership.
Registered through the Online Single Submission (OSS) platform and supervised by the Indonesia Investment Coordinating Board (BKPM), a PT PMA provides foreign investors equal legal rights as local companies. It allows business activities such as land leasing, property ownership, participation in government tenders, and sponsorship of work and stay permits for expatriate staff.
Establishing a PT PMA requires a minimum investment plan of IDR 10 billion and compliance with specific shareholder, capital, and licensing requirements.
This guide explains the PT PMA registration process, requirements, capital structure, and procedures to help foreign investors successfully start a company in Indonesia.
Also read: What is a PMA Company in Indonesia? Guide for Foreigner
Requirements for PT PMA Registration in Indonesia
Before starting the registration process, foreign investors must meet several legal and structural requirements set by the Indonesian government.
Minimum Capital Requirement
The minimum investment plan for establishing a PT PMA is IDR 10 billion (approximately USD 700,000).
Each shareholder must sign a Capital Statement Letter confirming sufficient funds to meet this paid-up capital.
After company incorporation and bank account creation, the funds must be deposited as paid-up capital.
Tip: The higher the capital, the broader your operational license scope and eligibility for business permits.
Also read: Advantages of Establishing a PMA Company in Indonesia
Company Structure
A PT PMA must have the following structure to comply with the Indonesian Company Law (Law No. 40 of 2007):
| Position | Requirement | Notes |
|---|---|---|
| Shareholders | Minimum 2 (individuals or entities) | Can be fully foreign-owned depending on the business classification. |
| Director(s) | Minimum 1 | Responsible for day-to-day management. One director should have an Indonesian Tax ID (NPWP). |
| Commissioner(s) | Minimum 1 | Oversees the board of directors. Can be a non-resident foreigner. |
Example: A technology startup may have two shareholders (a Singapore-based parent company and an Indonesian partner), one foreign commissioner, and one local director.
Also read: Corporate and Company Structure in Indonesia
Business Location
Your business address must comply with local zoning and permit regulations:
- In Jakarta, the office must be in a building with a valid IMB (Building Permit) authorizing office operations.
- Virtual offices are permitted in certain zones and can reduce setup time and overhead costs.
- Ensure your chosen location aligns with your KBLI (Indonesian Business Classification) category.
Also read: How to Register a Company in Indonesia: Guide for Foreigner
Procedures for Setting up a Foreign Company (PMA) in Indonesia
Setting up a PT PMA involves several administrative steps under the OSS (Online Single Submission) system.
Decide on a Company Name
Prepare at least three name alternatives following the Ministry of Law and Human Rights guidelines.
The name must be unique and not identical to existing entities.
Draft the Deed of Establishment
A notary drafts the deed in Bahasa Indonesia.
It includes company details: name, address, shareholders, business classification (KBLI), capital amount, and management structure.
The deed is submitted electronically to the Ministry of Law and Human Rights (Kemenkumham) for approval.
Obtain Tax Identification (NPWP)
Register for a Tax ID Number (NPWP) at the local tax office.
This enables compliance with corporate tax obligations in Indonesia.
Also read: PMA (Foreign Company) Taxation in Indonesia
Apply for a Business Identification Number (NIB)
Register through the OSS system to obtain your NIB, which serves as:
- Business registration number
- Import license
- Customs identification number (NIK)
- Automatic registration with BPJS Kesehatan and Ketenagakerjaan (social security systems)
Secure Operational or Commercial License
Depending on your business sector, additional permits may be required (e.g., Ministry of Trade, Tourism, or Energy).
Many licenses are automatically issued through OSS after obtaining NIB.
Open a Company Bank Account
Once incorporated, open a corporate bank account in the company’s name to deposit the paid-up capital.
All the setup processes mostly go through the so-called OSS (One Single Submission) and may take about ten weeks (1 or 2 weeks for OSS registration without any additional licenses). In addition, you may need to open a company bank account upon incorporation.
Why You Need Professional Assistance
Navigating the OSS and BKPM processes can be complex for first-time investors.
Working with experienced corporate service providers ensures compliance with all regulations and faster setup times.
Professional advisors can help draft legal documents, apply for licenses, and establish banking arrangements.
InvestinAsia provides comprehensive PT PMA company registration services, including PT PMA formation, business visas, and ongoing compliance support.
So, are you ready to take the chance? Contact us and join other foreign investors and businesses who have made their marks in this country.
Not only that, InvestinAsia also provides Indonesian business visa services for you!
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