What does it take for a foreign investor to open a company in Indonesia, and how much capital must be ready on day one?
Foreign company registration in Indonesia means setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing), a foreign-owned limited liability company. It is a separate legal entity that can sign contracts, hire staff and repatriate profits.
This guide answers four questions: which structure suits your plans, what the PT PMA requirements are, how the minimum capital rules work, and how registration runs from company name to licence.
In short: since 2 October 2025, the minimum paid-up capital for a PT PMA is IDR 2.5 billion (about USD 150,000), down from IDR 10 billion. Foreign company registration in Indonesia is cheaper to start than before, but the investment plan of more than IDR 10 billion per business activity still applies.
Is a PT PMA the Right Structure for Foreign Company Registration in Indonesia?
A PT PMA is the only structure that lets foreigners own equity and trade commercially in Indonesia. Ownership depends on the sector. The Positive Investment List under Presidential Regulation No. 10 of 2021 sorts activities into three groups: open to 100% foreign ownership, open with a local partner, and closed. The sector follows the five-digit business classification code (Klasifikasi Baku Lapangan Usaha Indonesia, or KBLI) you register, not how you describe the business.
Two alternatives exist, both with limits. A representative office suits market research and liaison, but it cannot earn revenue. An Employer of Record arrangement lets you hire Indonesian staff without setting up an entity. If you plan to invoice clients, a PT PMA is the realistic route.
What Are the PT PMA Requirements Before You Start?
The core PT PMA requirements are the same for every sector:
• Shareholders: at least two, who can be individuals, companies or a mix of both.
• Management: at least one director and one commissioner. A director can be a foreign national holding a limited stay permit (KITAS}.
• Address: a registered commercial address in Indonesia. Residential addresses are generally not accepted, and virtual offices suit only some low-risk service activities.
• Activities: declared under specific KBLI codes. Broad or generic codes are no longer accepted, and any revenue-earning supporting activity must be listed in the Articles of Associati on.
Listing the full set of activities before incorporation avoids a deed amendment later. For the complete document checklist for individual and corporate shareholders, see this detailed breakdown of PT PMA requirements from Business Hub Asia.
What Is the PT PMA Minimum Capital in 2026?
The PT PMA minimum capital changed in October 2025, and two different figures are often confused. The table separates them.
The investment plan is not a deposit. It is spent over time on salaries, rent, equipment and professional fees, and progress is reported quart erly. Each additional KBLI code needs its own plan, so two unrelated activities mean a larger commitment. Exceptions to the lock-up cover asset purchases, construction and verified operating costs.
How Does PT PMA Registration Work Step by Step?
PT PMA registration runs through the Online Single Submission system with a risk-based approach (OSS RBA}. Most investors follow this order :
- Define activities. Confirm your KBLI codes, ownership eligibility and risk level.
- Reserve the company name. A notary submits it through the Ministry of Law’s AHU Online system.
- Sign the deed. A licensed notary drafts the deed of establishment and Articles of Association.
- Obtain legal entity approval. The Ministry of Law issues the decree granting legal entity status.
- Register the tax ID. The Nomor Pokok Wajib Pajak (NPWP) is issued through the Coretax system.
- Obtain the business licence. The Nomor lnduk Berusaha (NIB}, or Business Identification Number, is the core licence. The capital lock-up and expected start of operations are declared here.
- Open the bank account and deposit the capital. The IDR 2.5 billion goes into a corporate account, and the 12-month lock-up starts from this deposit .
- Add sector permits. Medium and high-risk activities need standard certificates or ministry permits before operations begin.
Allow roughly 10 working days for PT PMA registration once documents are complete (an estimate, not a government service standard). Most new businesses are expected to start operations within a year of declaring their start date. For a wider view of structures beyond a PT PMA, see C2Z Advisory’s overview of company incorporation in Indonesia .
Where Do Foreign Investors Lose Time?
Three patterns cause most delays:
• Using a nominee: holding shares through a local nominee on behalf of a foreign investor is prohibited under Investment Law No. 25 of 2007, and such arrangements are void.
• Mismatching address and activity: an address outside the zoning for the declared KBLI can block spatial approval and delay licensing.
• Treating registration as the finish line: once the NIB is issued, quarterly investment activity reports (LKPM), tax filings and licence conditions begin. Missed reports can lead to warnings and, in serious cases, licence revocation.
How Do C2Z Advisory and Business Hub Asia Work Together?
C2Z Advisory supports clients in more than 80 countries from the UAE, working with trusted local partners wherever on-the-ground expertise is needed. In Indonesia, Business Hub Asia is part of that network: the two firms collaborate to extend each other’s services in their regions, so a Gulf-based investor can plan the structure with C2Z Advisory while the Indonesian filings, licences and ongoing compliance are handled locally by Business Hub Asia’s PT PMA incorporation team. If you want to talk through the options before committing to a structure, either team can start the conversation .
What Should You Decide Before Starting Foreign Company Registration in Indonesia?
Start with three decisions: which activities you will run, which codes describe them, and how the capital will be deployed over the first twelve months. The lower PT PMA minimum capital reduces the cash you commit on day one, but it does not remove the investment plan, the KBLI discipline or the reporting that follows. Get those right and foreign company registration in Indonesia becomes a sequence of filings rather than a series of surprises.
To discuss your plans for Indonesia, contact the team at C2Z Advisory. This guide is general information, not legal or tax advice, so confirm the details for your own structure with qualified professionals before you commit .
Frequently Asked Questions
What Is the Difference Between a PT PMA and a PT PMDN?
A PT PMDN is owned entirely by Indonesian shareholders, while a PT PMA has at least some foreign owner shi p. The difference comes from the Investment Law (Law No. 25 of 2007) . A PT PMA follows foreign investment rules on capital, sector eligibility and reporting, which a PT PMDN does not.
Can a Foreigner Set Up a PT PMA Without Being in Indonesia?
Often yes, because much of the process runs online. The notary and the OSS system handle most filings, and shareholders abroad can usually sign through a power of attorney or legalised docu ments. A director who will work on site still needs the right KITAS. Confirm the signing and immigration arrangements with your notary before you start.
What Tax Rate Does a PT PMA Pay?
A PT PMA pays the standard corporate income tax rate of 22% on taxable profit, the same as a domestic company. This rate comes from Law No. 7 of 2021 on the Harmonization of Tax Regulations. Dividends to foreign shareholders are generally subject to withholding tax, which can vary by tax treaty, so confirm the rate for your country.
Sources
• Law No. 25 of 2007 on Investment. Government of Indonesia. htt ps:/ / perat u ran. bpk.go.id/ Det ails/ 39903
• Law No. 7 of 2021 on Harmonization of Tax Regulations. Government of Indonesia. htt ps:/ / perat u ran.bpk.go.id/ Det ails/ 1851 62
• Presidential Regulation No. 10 of 2021 on Investment Business Fi elds. Government of Indonesia. htt ps:/ / perat u ran. bpk.go.id/ Det ails/ 1 61806
• Presidential Regulation No. 49 of 2021, amending Presidential Regulation No. 10 of 2021. Government of Indonesia. https:/ / perat uran .bpk.go.id/ Det ails/ 1 68534
• Ministry of Investment and Downstreaming/BKPM Regulation No. 5 of 2025 on investment implementation guidelines and facilities. Ministry of Investment and Downstreaming/BKPM. htt ps:/ / perat u ran. bpk.go.id/ Det ails/ 332573
• Business Hub Asia, “PT PMA Requirements in Indone sia” . https://businesshubasia.com/pt-pma requirements/
• Business Hub Asia, “Foreign Company Registration in Indonesia”. https://businesshubasia .com/services/foreign-company-registration-indonesia/
