Guide to Register an Investment Holding Company in Indonesia

An IHC allows you to consolidate your assets, optimize your tax exposure, and maintain a clear governance structure over multiple subsidiaries. However, Indonesia’s regulatory landscape is unique. Recent updates in 2024 and 2025, including the implementation of BKPM Regulation No. 5 of 2025, have shifted the requirements for capital and licensing.

In this article, we will guide you on how to register an investment holding company in Indonesia. We will cover legal requirements, key considerations, and the step-by-step incorporation process. 

Understanding the IHC Structure in Indonesia

An investment holding company (IHC) primarily exists to own shares in other companies.  In Indonesia, an investment holding company is officially categorized under KBLI 64200 (Activities of Holding Companies). It allows you to manage multiple investments by pooling resources and investments into one umbrella. 

However, you cannot engage directly in the business operations of your own portfolio companies. For example, if your holding company owns a hotel and a tech startup, the holding company itself cannot sell hotel rooms or write code for clients. It simply manages the investments.

Compliance with local laws with an IHC in Indonesia is also easier thanks to centralized reporting and governance structures. You can easily adapt to market opportunities and challenges through direct capital injection towards your subsidiaries as needed. 

Through your Investment holding company, you can invest in any business entity and non-profit organization in Indonesia as long as there is no limitation on foreign ownership. This includes:

• Real Estate 
• Mining 
• Media 
• Tourism (such as in hotels and hospitality management)
• Industry and Manufacturing

Benefits of Investing Holding Company in Indonesia

Establishing an investment holding company in Indonesia has plenty of benefits from an operation and fiscal standpoint. Here are benefits of establishing an IHC in Indonesia:

• Corporate Income Tax Benefits – IHCs in Indonesia with over IDR 500 billion (~USD 33.3 million) with investments can enjoy CIT tax benefits for 5 to 20 years, depending on the sector. For companies with investments between IDR 100 billion (~USD 6.6 million) and IDR 500 billion for a period of 5 years. 
• Tax allowances – IHCs have a 30% reduction in taxable income based on the total investment in fixed assets, spread equally over six years, starting from the fiscal year. You can benefit from accelerated depreciation allowances of up to 100% for tangible and intangible assets, allowing quicker recovery of capital costs. 
• Withholding Tax (WHT) Benefits – withholding tax rate on dividends paid can be reduced from 10% (tax residents) from the typical 15% (non-tax residents). Non-residents face a standard rate of 20%, which may also be reduced under treaties. IHCs can carry forward tax losses for up to 10 years, which can help offset future taxable income and reduce overall tax liability.
• Investments in Special Economic Zones – If your IHC is located in If your IHC is located in Special Economic Zones (SEZs), not only will you have access to highways, ports, and communication systems but you also benefit from exemptions on import duties for goods brought into the area. 

Key Requirements to Establish an Investment Holding Company in Indonesia

Registering a holding company is a bit different from a standard trading company. Because IHCs often involve foreign capital, they must be established as a PT PMA (Foreign Direct Investment Company). 

New PT PMA Minimum Capital

For years, the "magic number" for PT PMA capital was IDR 10 billion. As of BKPM Regulation No. 5 of 2025, the government has introduced more flexibility, but you must be careful not to misinterpret it. 

• Paid-Up Capital: This has been reduced to IDR 2.5 billion (approx. USD 155,000). This is the amount you actually need to transfer to the company bank account.
• Total Investment Value: This remains at more than IDR 10 billion (approx. USD 620,000) per KBLI code. This includes your paid-up capital, plus any loans, equipment, and working capital.
• The 12-Month Lock: A new requirement in 2025 is the capital retention rule. Shareholders must commit that the paid-up capital stays in the company bank account for at least 12 months, unless it is being used for legitimate business expenses like purchasing assets or building construction.

Foreign Ownership Limits

While most sectors are now 100% open to foreign ownership under the "Positive Investment List," holding companies (KBLI 64200) are generally open. However, your ownership in the subsidiary still depends on that specific sector's rules. If the subsidiary is in a restricted sector (like certain media or small-scale retail), the IHC must comply with those specific caps.

How to Register an Investment Holding Company in Indonesia?

The registration process is now strictly centralized through the OSS RBA (Online Single Submission Risk-Based Approach) system. Under Government Regulation No. 28 of 2025, the system has been upgraded to bridge the gap between regional and central licensing, ensuring that an IHC can manage assets nationwide from a single digital dashboard.

Since KBLI 64200 is classified as Low Risk, the system bypasses the rigorous verification and technical approvals required for high-risk industries like mining or heavy manufacturing. 

1. Register a Company Name for your IHC

According to Government Regulation No. 43 of 2011, a PT PMA must have a name consisting of at least three words, each with a minimum of three letters in the Roman alphabet. The name cannot include terms that imply legal status, such as "Company," "Limited," or abbreviations like "Ltd" and "GmbH," nor can it mislead about the business activities. For instance, a tourism company should not use "trading." 

Emerhub can assist in conducting thorough research to ensure your preferred name does not infringe on existing trademarks or company names.

2. Application Submission and Approval

After choosing a name for your investment holding company, the next step is to register the company with the Ministry of Law and Human Rights. 

Moreover, you need to secure a Tax Identification Number (NPWP) from the Directorate General of Taxes (DGT) under the Ministry of Finance and apply for a Business License. 

Emerhub’s incorporation experts will prepare necessary documentation to start the company registration process and secure relevant licenses and registrations on your behalf. 

3. Open a Corporate Bank Account for your IHC

After the incorporation, you must open a corporate bank account to facilitate transactions related to your investment holding company. This account will be necessary for managing funds and conducting business operations. 

Most banks require an initial deposit to open the account, which is typically around IDR 1 million (approximately USD 100). Some banks may have different minimum deposit requirements.

The process can take anywhere from one day to several weeks, depending on the completeness of your documentation and the specific bank's procedures.

Start Your Investment Holding Company in Indonesia with Emerhub 

To help you start your investment holding company in Indonesia, our team of experienced consultants provides end-to-end services from document preparation to company registration and opening your corporate bank account.

After registration, our experts will help your company maintain compliance with ongoing regulatory requirements. This includes regular reporting and updates to ensure your IHC adheres to all legal requirements and obligations. Our expertise across multiple industries allows us to provide specialized support for sectors that require additional requirements and licensing procedures. 

Want to register your investment company in Indonesia? Talk to our local experts by filling out the form below!