A PMA (Penanaman Modal Asing) company in Indonesia can operate across most sectors of the economy. Since the implementation of the Positive Investment List in 2021, the country has opened doors wider to foreign direct investment.
The general principle is clear: all business fields are open to 100% foreign ownership unless explicitly restricted or closed.
Priority Sectors for Foreign Investment
Indonesia has designated more than 245 business lines as priority sectors, offering incentives for foreign investors. These include:
- Telecommunications
- Renewable energy (including geothermal and solar)
- Transportation and logistics
- Distribution and construction services
- Manufacturing (automotive, pharmaceutical, textiles, cosmetics, food processing)
- Digital economy (data centers, hosting, e-commerce platforms)
- Oil and gas refinery projects
Business Fields with Specific Conditions
Some sectors remain open but require investors to follow special conditions. For instance, foreign ownership in construction services is capped at 67% (or up to 70% for ASEAN-based investors), while real estate development also has set limits.
In hospitality, hotels rated two stars and above allow 100% foreign investment, but certain tourism activities like travel agencies remain restricted.
MSME Partnership Requirements
Indonesia protects small and medium-sized enterprises (MSMEs) by requiring foreign investors to partner with them in more than 100 business fields. Partnerships can take the form of subcontracting, distribution, or profit-sharing agreements. This ensures foreign investment supports domestic economic development.
Also read: Can a PMA Company Become a Distributor in Indonesia?
Fully Open Sectors
The following industries are fully open for foreign investors with no restrictions:
- Oil and gas construction services
- Electricity generation and installation
- Geothermal energy production
- Hospitals and healthcare facilities
- Supermarkets under 1,200 sqm
- Department stores between 400–2,000 sqm
- Ports and airports
- Maritime cargo handling
- E-commerce and digital services
- Pharmaceutical manufacturing
Closed and Restricted Sectors
Despite liberalization, some business fields remain off-limits or reserved for the government and MSMEs:
Completely Prohibited for Foreign Investment
- Cultivation and manufacturing of Class I narcotics
- All forms of gambling and casinos
- Fishing of protected species (CITES listed)
- Extraction of coral for building materials
- Chemical weapons manufacturing
- Production of ozone-depleting substances
- Alcoholic beverage production (KBLI 11010, 11020, 11031)
Reserved for the Government
- Public services and essential infrastructure
- Strategic defense and security sectors
- Certain national security-related projects
Reserved for MSMEs
- Traditional medicine production
- Traditional crafts (batik, woodcraft, shipbuilding)
- Traditional food processing (rendang, local snacks)
- Hajj and Umrah services
Recent Developments
By 2025, Indonesia has further opened renewable energy, electric vehicle manufacturing, and digital healthcare to foreign ownership. President Prabowo has also invited foreign hospitals and universities to establish branches, especially within Special Economic Zones, where 100% ownership may be allowed.
Also read: How to Set Up PMA Company in Indonesia: Guide for Foreigner
Why Choose Professional Assistance
Navigating Indonesia’s constantly evolving investment regulations can be challenging for foreign investors. From sector restrictions to capital requirements, compliance demands careful planning. This is where expert guidance becomes critical.
InvestinAsia PMA Company Registration Service
If you’re considering entering Indonesia’s growing economy, InvestinAsia’s Indonesia PMA Registration Service provides a streamlined, reliable solution. Our team handles incorporation, licensing, and regulatory compliance so you can focus on scaling your business. With expertise in multiple sectors, we ensure your company is set up correctly from day one.
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
What is a PMA company in Indonesia?
A PMA is a type of limited liability company owned by foreign investors, enabling them to legally conduct business in Indonesia.
Is it possible for a PMA company to have 100% ownership of a business?
In most cases, yes. Unless the industry is specifically restricted, the Positive Investment List allows full foreign ownership in many sectors.
Which sectors are closed to foreign investment?
Prohibited fields include narcotics, gambling, alcohol manufacturing, chemical weapons, and activities tied to national defense.
What is the minimum investment required to set up a PMA?
Foreign investors must allocate a minimum of IDR 10 billion, with the same amount required as paid-up capital. Check: The Minimum Capital for Establishing PMA Company in Indonesia
Are partnerships with Indonesian companies mandatory?
Only in certain sectors where MSME partnerships are required by law.
