Types of business entities in Indonesia
Every way a foreign investor can set up in Indonesia, from a fully foreign-owned PT PMA to a representative office. We check what your activity allows under the Positive Investment List, recommend the structure that fits, and register it.
Choosing a structure in Indonesia
Only one company type in Indonesia accepts foreign shareholders: the PT PMA. Almost every foreign business is built on it. A representative office is the alternative for a foreign company that wants a presence without earning revenue, and the remaining forms are open to Indonesian owners only.
Foreign ownership is set by sector under the Positive Investment List, and every company registers through the OSS system run by the Ministry of Investment.
Compare business entities in Indonesia
The PT PMA, the representative offices, and the local forms side by side.
| Entity | Best for | Foreign ownership | Can earn revenue | Registered with |
|---|---|---|---|---|
| PT PMA | A foreign-owned company that can trade | Up to 100% * | Yes | OSS / Ministry of Law |
| General rep office (KPPA) | Liaison and market research | Foreign, no local company | No | OSS / BKPM |
| Foreign trade rep office (KP3A) | Promotion for a foreign trading company | Foreign, no local company | No | OSS |
| Yayasan | Non-profit and foundations | Can involve foreigners | No, non-profit | Ministry of Law |
| PT (local) | An Indonesian-owned company | Local only | Yes | OSS / Ministry of Law |
| CV | A local partnership | Local only | Yes | OSS |
* Foreign ownership is set by activity under the Positive Investment List. See Foreign ownership and capital.
Entities for foreign investors
The PT PMA is the vehicle for a foreign business that will trade in Indonesia. The representative offices below are for a foreign company that needs a registered presence, for liaison, sourcing, or promotion, but not to earn revenue.
Your own Indonesian company
Representative offices
General representative office (KPPA)
Represents the parent company and runs liaison and market research, without earning revenue in Indonesia. A way to establish a presence before committing to a PT PMA.
KPPA guideForeign trade representative office (KP3A)
For a foreign trading company, to run promotion and market research without making direct sales in Indonesia.
KP3A guideOil and gas representative office (KPPA MIGAS)
For foreign companies in the oil and gas sector, to carry out sector activities and partnerships through a registered presence.
Talk to our teamConstruction representative office (BUJKA)
For foreign construction firms, to run feasibility studies, prepare tenders, and partner on construction projects in Indonesia.
BUJKA guideNot sure your activity is open, or what ownership the KBLI code allows? It is the first thing we check. Tell our Jakarta team your plans and we will confirm the structure and the capital.
Entities for local owners
These are open to Indonesian shareholders only. A PT and a PT PMA are the same legal entity; the only difference is whether the owners are local or include foreigners.
PT (local limited liability company)
A limited liability company with 100 percent Indonesian shareholders. It is the same legal entity as a PT PMA; the only difference is who owns it. Classified by capital into micro, small, medium, and large.
Talk to our teamCV (Commanditaire Vennootschap)
A partnership with active partners who manage and carry full liability, and silent partners whose liability is limited to their contribution. Open to Indonesian owners only.
Talk to our teamKoperasi (cooperative)
A cooperative owned by its members and run on mutual assistance, suited to communities and small businesses.
Talk to our teamYayasan (foundation)
A non-profit foundation for social, religious, or humanitarian purposes. Foreigners can be involved, but it cannot distribute profit to its founders.
Talk to our teamFirma and Persekutuan Perdata (civil partnership) cover personal-liability partnerships, while BUMN and BUMD are state and regional government enterprises. All are for Indonesian owners.
Foreign ownership and capital
The Positive Investment List, which replaced the old negative list in 2021, sets how much of a company a foreigner can own. Most of the economy is open to full foreign ownership; some sectors are capped, some require a local partner, and a few are closed. Your five-digit KBLI business code decides which applies to you.
A PT PMA cannot own freehold land under Hak Milik, but it can hold the right to build, Hak Guna Bangunan, and other use rights, which is how a foreign-owned company holds property in Indonesia. Once running, a medium or large PT PMA files quarterly LKPM investment reports to the Ministry of Investment.
Both the capital and the ownership follow your KBLI code. Have our team confirm yours before you commit to a structure.
How registration works
Five stages from the KBLI code to a licensed company.
| Stage | What it involves | Typical timing |
|---|---|---|
| KBLI and Positive Investment List | Choose the business classification and confirm the ownership and capital it allows | First step |
| Deed of establishment | A notary draws up the deed, and the Ministry of Law approves the legal entity | About 1 week |
| Tax and OSS | Register for an NPWP, then obtain the NIB and business licenses through the OSS-RBA system | 1–2 weeks |
| Bank account and capital | Open the company bank account and deposit the paid-up capital | Around incorporation |
| Investor KITAS | Arrange the Investor KITAS for foreign directors or investors who will work in Indonesia | As needed |
A straightforward PT PMA is incorporated in roughly one to two weeks, with full licensing taking around four to eight weeks.
Set up the right entity with Emerhub
One team for the structure, the licensing, and everything after.
KBLI and ownership check
We map your activity to the right KBLI code and check the Positive Investment List, so you know your ownership and capital before you file.
Incorporation through OSS
The deed of establishment, Ministry of Law approval, NPWP, and the NIB and business licenses through the OSS-RBA system.
Director, address, and KITAS
A registered office address, support with the resident director requirement, and the Investor KITAS for your team.
Tax and compliance
NPWP and VAT registration, the quarterly LKPM reports, and the annual filings once the company is running.
Business entity questions
What foreign investors ask most.
Can a foreigner own 100% of an Indonesian company?
Yes, in most sectors, through a PT PMA. The Positive Investment List sets the cap by KBLI code: much of the economy is fully open, while some sectors are capped, reserved for a local partnership, or closed. Checking your KBLI is the first step.
What is the minimum capital for a PT PMA?
Since October 2025, the paid-up capital is IDR 2.5 billion, down from IDR 10 billion under the old rule. The total investment plan must still exceed IDR 10 billion per five-digit KBLI code per location, but only the IDR 2.5 billion has to be paid in, and it is locked for 12 months.
What is the difference between a PT and a PT PMA?
They are the same legal entity type, a limited liability company. A PT PMA has foreign shareholders; a PT is 100 percent Indonesian-owned. Even a small foreign stake makes a company a PT PMA, with the capital and reporting that come with it.
Can a representative office earn revenue?
No. A KPPA or KP3A is for liaison, market research, and promotion only, funded by the parent. The moment you need to invoice or trade in Indonesia, you need a PT PMA instead.
Which entities can foreigners own?
Only the PT PMA accepts foreign shareholders. A foreign company can also set up a representative office for a non-revenue presence. The CV, Koperasi, Firma, local PT, and the state-owned forms are all reserved for Indonesian owners.
How many shareholders and directors does a PT PMA need?
At least two shareholders, one director, and one commissioner. At least one director must be resident in Indonesia, and a foreign director who will work in Indonesia needs a KITAS. The director cannot also be the commissioner.
Can a PT PMA own land?
Not freehold land under Hak Milik. A PT PMA can hold the right to build, Hak Guna Bangunan, and other use rights, which is how foreign-owned companies hold and develop property in Indonesia.
How long does it take to set up a PT PMA?
Incorporation takes roughly one to two weeks once the documents are ready, with full licensing through OSS taking around four to eight weeks. The exact timing depends on the KBLI, the licenses your activity needs, and the bank account.
Talk to our Indonesia team
Our Jakarta team maps your activity to the right KBLI code, checks what the Positive Investment List allows, and registers your PT PMA or representative office through the OSS system. Tell us what you plan to do in Indonesia and we will set it up.
RT.7/RW.2, Kuningan
Jakarta 12950, Indonesia