PMA & PT Local

What is a Foreign Company in Indonesia?

In Indonesia, a company is classified as a foreign entity if any portion of its shares—even just 1%—is owned by a foreign investor. Such companies operate under the PT PMA (Foreign Investment Company) license, allowing foreign direct investment in the country.

If you only plan to represent your foreign business in Indonesia without generating income locally, you can opt to set up a Representative Office instead.

Restrictions for Foreign Companies

Indonesian law regulates the level of foreign ownership allowed in businesses, which depends on the company’s activity. For some industries, 100% foreign ownership is permitted, while others may have stricter limits (e.g., 10%). These rules are outlined in the Negative Investment List (DNI).

Benefits of Establishing a PT PMA

Starting your business in Indonesia comes with several key advantages:

  • Legal Compliance: Operate under a recognized business structure in Indonesia.
  • Financial Operations: Open a local bank account to manage transactions easily.
  • Investor Visa Eligibility: Secure an Investor KITAS to live and work in Indonesia.
  • Healthcare Access: Enjoy access to local medical insurance options.

Requirements to Set Up a PT PMA

Below are the essentials needed to establish a Foreign Investment Company in Indonesia:

1. Shareholders

  • Minimum of two shareholders:
    • One foreign national or entity.
    • One Indonesian citizen or entity.

2. Identification Documents

  • For Indonesians: KTP (ID card) and NPWP (Tax ID).
  • For Foreigners: Valid passport.
  • For Companies:
    • Articles of Establishment.
    • MOLHR (Ministry of Law and Human Rights) approval.
    • Domicile Letter.
    • Tax ID and relevant business licenses.

3. Directors’ Information

  • For Indonesian Directors: KTP, NPWP, email, and phone number.
  • For Foreign Directors: Valid passport, email, and phone number.

4. Office Lease Agreement

  • A valid lease agreement with the property manager.

5. Business Type

  • Applies to large-scale enterprises only.

6. Foreign Ownership Rules

  • Allowed for specific business activities based on regulations.

7. Capital Requirements

  • Minimum Investment: IDR 10 billion (or as specified for your industry).
  • Paid-Up Capital: At least IDR 10 billion.

How to Register a PT PMA in Indonesia

While setting up a PT PMA may seem daunting, it’s a straightforward process when done correctly. Key steps include:

  1. Reserving your company name.
  2. Preparing draft Articles of Association.
  3. Completing other required documentation.

With the help of our professional legal team, you can rest assured that every step will be handled with precision and efficiency.

Why Choose Us?

At our firm, we make the process of establishing your PT PMA smooth and stress-free. With over a decade of experience, our dedicated consultants will assist you with:

  • Answering all your inquiries.
  • Providing guidance on complex regulations.
  • Ensuring your application is completed without delays.

Start your consultation today and let us turn your business vision in Indonesia into reality!

For more detail of this service, feel free to contact us below

Terms & Conditions

  • The prices listed on this website are subject to change without prior notice.
  • Visa processing will only commence once full payment is received in our company account.
  • All submitted documents must be original and valid.
  • The visa processing time begins only after the documents have been uploaded to the Indonesian Immigration online system.
  • Processing delays may occur due to technical issues within the immigration online system, and such delays will not be counted as working days.
  • Additional requirements may be requested by immigration officers during the visa application process.
  • The Immigration Headquarters and the Indonesian Immigration online visa application system operate Monday to Friday, from 08:00 to 15:00, excluding national holidays.
  • Applicants must adhere to the terms of their visa during their stay in Indonesia.
  • Any issues or costs arising from visa violations are the sole responsibility of the traveler.
  • We are not liable for rejections or unsuccessful applications due to changes in government regulations, and visa payments are non-refundable.