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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
PT PMA (Perseroan Terbatas Penaman Modal Asing) is a limited liability company in Indonesia with any foreign investment or ownership. It is specifically designed for foreign investors who wish to establish a business presence in Indonesia, enabling you to operate and generate revenue in the country.
In this article, we will walk you through the essentials of setting up a PT PMA in Indonesia including legal requirements, and the process.
Understanding Foreign Business Ownership and Allowed Sectors in Indonesia
Before you proceed to set up your PT PMA in Indonesia, it is important to ensure that your intended business activity is open to 100% foreign investment under Indonesia’s current Positive Investment List.
As per Presidential Regulation Number 10 of 2021, amended by Presidential Regulation Number 49 of 202, 200+ business sectors in Indonesia are now fully open to foreign investors.
However, there are certain sectors that are prohibited or restricted. For example, sectors involving narcotics, gambling, or some hazardous materials remain closed to any investment, while some other fields require partnering with local small businesses or have ownership caps.
Additionally, sectors that are considered critical for national security, defense, or public services, which must be carried out by the government are also closed to any investments.
Here’s an overview of restricted, and prohibited industries for PT PMA in Indonesia:
| Fully Restricted Industries | Partially Restricted Industries | Sectors with Conditional Foreign Ownership |
|---|---|---|
| – Narcotics Industry – Gambling Activities and Casinos – Coral Extraction – Chemical Weapons Manufacturing – Alcoholic Beverages Industry | – Mining and Energy – Agriculture – Tourism and Hospitality – Small-Scale Retail and Services | – Healthcare and Pharmaceuticals – Education – Telecommunications and Broadcasting |
Key Requirements to Register a PT PMA
To set up a PT PMA in Indonesia, you must meet several key requirements as per Investment Coordinating Board (BPKM) regulations. Here’s an overview of requirements to incorporate a PT PMA company in Indonesia:
- Minimum Paid-Up Capital: According to Article 26, paragraph (10) of BKPM No 5 of 2025, the minimum paid-up capital for a PT PMA is at least IDR 2.5 billion (~USD 150,000).
- Shareholders and Company Structure: A PT PMA must have at least two shareholders (who can be individuals or corporations), at least one resident director, and one commissioner as per Indonesian company law. The required resident director can be an Indonesian citizen or a foreigner holding the appropriate work and stay permits (KITAS).
- Proof of Registered Business Address: Every PT PMA must have a registered business address in Indonesia and must provide proof of it during registration.
- Business Classification Number/KBLI: Choose the correct KBLI
- To determine maximum percentage of foreign ownership
- To prepare you with the additional requirement to activate your NIB if it is not a Low-Risk Business classification
- To validate whether you can use your chosen registered address for the KBLI:
- I.e if you choose KBLI or Web Portal (63122), you must be located in an industrial zone. An exception can be applied for, but require extra documentations, processing fee, time and subject to verification by Ministry of Industrial
*USD amount may vary depending on current conversion rate
How to Register a PT PMA in Indonesia
Setting up a PT PMA involves a series of legal and administrative steps that must be done in the correct order. The process is now centralized through the government’s Online Single Submission (OSS) system, which has streamlined many aspects of registration.
Here’s how Emerhub guides you through the process from start to finish:
Step 1: Documents Preparation and Reservation of Your Company Name
This initial phase is about getting all your information and legal groundwork in place. You can securely upload all required documents from your mobile device to the Emerhub App. From there:
- We help you reserve a unique and compliant company name with the Ministry of Law and Human Rights.
- We work with you to draft the Deed of Establishment, a crucial document containing your Articles of Association, business activities (with the correct KBLI classification), and shareholder details.
- The Deed of Establishment is then notarized by an Indonesian public notary, which we arrange on your behalf.
You can simplify the initial phase by using the Emerhub App to securely upload all required documents directly from your mobile device.
Step 2: Obtain Approval from the Ministry of Law and Human Rights (MOLHR)
With the notarized Deed of Establishment, the next step is to submit it to the MOLHR for approval. The Ministry thoroughly reviews your company’s founding documents.
Upon approval, the MOLHR issues a formal decree, which ratifies your company’s legal entity status. This is the step that officially brings your PT PMA into legal existence.
Step 3: Register for a Tax Identification Number (NPWP)
Once your company is a legal entity, it must be registered with the Directorate General of Taxes. We handle this registration with your local tax office to obtain your company’s Tax Identification Number (NPWP), which is essential for all financial transactions and tax compliance.
NPWP is also a pre-requisite for securing additional licenses for your business.
Step 4: Acquire Your Business Identification Number (NIB)
We manage the entire submission to the government’s Online Single Submission (OSS) system on your behalf. Upon successful submission, you will receive your company’s Business Identification Number (NIB).
A NIB is a unique number that identifies your company profile in Indonesia. It also serves as:
- Primary business license (for low-risk KBLI companies)
- Your import license
- Customs Identification Number (NIK)
- Your business registry number
The NIB also automatically enroll your PT PMA in Indonesia’s Health and Social Security System (BPJS Kesehatan dan BPJS Ketenagakerjaan).
Step 5: Open a Corporate Bank Account
After your PT PMA is fully registered with MOLHR and has its NIB and NPWP, you can open a corporate bank account in Indonesia.
It is critical to note that Indonesian banks require the company to have a resident director to open an account. If your appointed director is a foreigner, they must first secure their KITAS before the bank will allow you to open the account.
We assist with this process and guide you on making the initial paid-in capital injection as per your investment plan.
Step 6: Secure Additional Industry-Specific Licenses and Permits
The NIB serves as a general business license, but depending on the nature and risk level of your business activities, you will need additional operational or commercial licenses.
It is critical to secure these before you begin commercial operations. Common examples include:
- Construction Services Business License (IUJK).
- BPOM approval for any food, beverage, cosmetic, or pharmaceutical products.
- PSE License for electronic transaction
- Other sector-specific permits from relevant ministries.
From initial document preparation to navigating the OSS system and liaising with notaries and government ministries, Emerhub handles all the legal and regulatory requirements for your PT PMA setup in Indonesia.
Our end-to-end service ensures a streamlined process so you can start your business operations without any complexities and in full compliance of local laws.
You can request a no-obligation consultation with our experts by filling out the form below.
FAQs about PT PMA registration in Indonesia
Registering a PT PMA provides foreign investors with the same rights and responsibilities as a local company in Indonesia. This includes:
- Build on and use land
- Join government tenders
- Sponsor visas for foreign employees
- Buy property and other assets on behalf of your company
- Register products and obtain industry licenses
- Start operations such as hiring staff and preparing office spaces
There is no legal requirement for your directors or commissioners to be Indonesian citizens; a PT PMA can have an all-foreign board.
However, the key requirement is that your company must appoint at least one resident director. This person is responsible for the day-to-day management of the company. A resident director can be either:
- An Indonesian citizen; or
- A foreigner who holds a valid work and stay permit (KITAS).
This is an important operational requirement, as tasks like opening a corporate bank account often necessitate the valid permits of a resident director.
A virtual office is acceptable for some, but not all, business registrations. Eligibility is determined by your business classification (KBLI), as activities that legally require a specific physical location (like manufacturing, restaurants, or clinics) are prohibited from using one.
It is crucial to confirm the address requirements for your specific KBLI before registering. Emerhub can help you verify this to ensure your setup is compliant and provide a virtual office address.
PT PMA companies in Indonesia must comply with several reporting and compliance requirements. They are required to register for taxes and file monthly and annual tax returns, adhering to Indonesian tax regulations. Additionally, PT PMAs must submit annual activity reports and investment realisation to the Indonesian Investment Coordinating Board (BKPM). They must also comply with local labor laws, including minimum wage and employee benefits. Larger companies may be subject to audits to ensure compliance with these regulations.
For a PT PMA in Indonesia, several licenses and permits are necessary. These include:
- Sector-Specific Licenses: Depending on the business type, additional permits such as environmental permits, health department permits (for food and beverage), or other industry-specific licenses may be required.
- Business Registration Number (NIB): Obtained through the Online Single Submission (OSS) system, which also issues business licenses and location permits.
- Tax Identification Number (NPWP): Essential for tax compliance and banking transactions.
