Foreign investors in Indonesia can own between 51% and 100% of a PT PMA (foreign investment company), depending on the sector and government regulations. Since the introduction of the Positive Investment List in 2021, the majority of industries are now open to full foreign ownership, but strategic and sensitive areas remain subject to limits or prohibitions.
100% Foreign Ownership Opportunities
Many industries are fully open to foreign investors. This includes oil and gas construction, telecommunications, digital health, renewable energy, pharmaceuticals, e-commerce, and logistics. Indonesia is deliberately prioritizing these sectors to attract foreign direct investment (FDI) and accelerate infrastructure, digital transformation, and energy transition.
Check the article for further details: Can a Foreigner Own 100% of a Business in Indonesia?
Restricted Sectors and Ownership Caps
Not all industries are completely liberalized. For example:
- 49% cap applies to alcoholic beverage trading, postal services, and private broadcasting.
- 67% cap applies to some telecommunications and healthcare sub-sectors.
- Sector-specific caps apply across several regulated industries.
These restrictions are intended to protect sensitive industries and give opportunities to local businesses.
Also read: What Fields Can a PMA Company Operate in Indonesia?
Prohibited Sectors
Some activities remain completely off-limits to foreign ownership. Examples include defense and security, public administration, land administration, casino operations, and marine salvage. These prohibitions reflect national security priorities and cultural considerations.
Also read: Indonesia Negative Investment List (DNI): Latest Update
Structural and Capital Requirements
Every PT PMA must have at least two shareholders, which can be individuals, corporations, or a mix of both. This requirement applies even when the company is 100% foreign-owned.
The minimum investment value for PT PMA is IDR 10 billion (around USD 660,000), excluding land and buildings. Paid-up capital is usually the same, though in some cases it can be set at 25% of the total plan. This ensures that only serious foreign investors with long-term commitments enter the Indonesian market.
Also read: Does a PT PMA Company Need Indonesian Shareholders and Employees?
Ownership limits are not just determined by broad industry categories. Instead, they depend on KBLI (business classification codes), which can be highly specific. Two companies in similar sectors may face different ownership caps based on their KBLI classification. For this reason, investors must verify their intended business activity with the Ministry of Investment (BKPM).
Also read: Can PT PMA Companies Conduct IPOs in Indonesia?
Why These Rules Matter for Investors
The rules may sound straightforward, but in practice, navigating ownership caps, shareholder structures, and KBLI codes is complex. Misinterpretation can delay incorporation, lead to non-compliance, or force restructuring.
How InvestinAsia Can Help
Successfully setting up a PT PMA in Indonesia requires more than just understanding the laws. It requires practical experience, regulatory navigation, and compliance expertise. InvestinAsia offers end-to-end services for PT PMA registration in Indonesia, from shareholder structuring and KBLI classification to capital compliance and licensing.
With local expertise and international standards, InvestinAsia ensures your investment aligns with Indonesian regulations while maximizing ownership opportunities.
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 foreign investor own 100% of a PT PMA?
Yes, in most sectors under the Positive Investment List. However, some sectors are restricted or prohibited.
What is the minimum capital requirement for PT PMA?
At least IDR 10 billion (~USD 660,000), excluding land and buildings.
Do investors need a local partner to establish a PT PMA?
Not necessarily. Many sectors allow 100% foreign ownership. However, you must have at least two shareholders, which can be both foreign entities.
What is KBLI, and why does it matter?
KBLI is Indonesia’s business classification system. Your specific KBLI code determines ownership caps and licensing requirements.
Who regulates PT PMA ownership?
The Indonesian Ministry of Investment / BKPM oversees all PT PMA regulations and approvals.
