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PT PMA (Foreign Direct Investment) • Timeline: 10 - 20 business days (subject to KBLI verification and OSS approvals)

Establishment of a Foreign Direct Investment Company (PT PMA)

Comprehensive legal pathway for foreign entrepreneurs, international enterprises, and multinational corporations to establish a legally compliant 100% or partially foreign-owned Limited Liability Company in Indonesia.

Step-by-Step Formation Process

Step 1: Name Reservation at Ministry of Law and Human Rights (AHU Online) via an Indonesian Notary. Step 2: Execution of Notarial Deed of Establishment (Akta Pendirian PT PMA) in bilingual format. Step 3: Ratification by Minister of Law and Human Rights (SK Kemenkumham Pengesahan Badan Hukum). Step 4: Corporate Tax Registration (NPWP & SKT Perusahaan) via the Directorate General of Taxes (DJP). Step 5: Registration on OSS RBA to obtain NIB (Nomor Induk Berusaha), which functions as API-U (Import Identification) and Customs Access. Step 6: Compliance with Sectoral Standard Certificates or Operational Licenses based on risk tier. Step 7: Mandatory registration with BPJS Ketenagakerjaan (Employment) and BPJS Kesehatan (Healthcare). Step 8: Opening corporate bank account and injection of paid-up capital.

Mandatory Documents Required

1. Certified copies of Passports of foreign shareholders or Articles of Incorporation for corporate shareholders (apostilled/legalized). 2. Domicile Address / Lease Agreement in an authorized commercial zoning area (Kawasan Komersial/Perkantoran). 3. Tax ID (NPWP) and KTP of Indonesian directors/shareholders (if applicable). 4. Proposed company name (composed of at least 3 Latin words, not resembling existing trademarks). 5. Share capital breakdown and board structure (Minimum 1 Director and 1 Commissioner).

Key Benefits

Enables direct commercial activities in Southeast Asia's largest economy, allows employment of expatriate workers (KITAS/ITAS sponsorship), full legal protection under Indonesian corporate law, and the right to lease land/property under Hak Guna Bangunan (HGB) or Hak Pakai.

Pitfalls to Avoid

Using nominee arrangements (illegal under Article 33 of Investment Law No. 25/2007; declared null and void by operation of law), choosing residential zoning for company domicile, and missing quarterly LKPM reports.

Statutory Summary

Capital Requirement:
Minimum total investment of IDR 10 Billion (excluding land and buildings) per 5-digit KBLI code, with minimum issued and paid-up capital of IDR 10 Billion.
Estimated Timeline:
10 - 20 business days (subject to KBLI verification and OSS approvals)
Shareholder Restrictions:
Foreign equity ownership is permitted up to 100% unless restricted by the Positive Investment List (Presidential Regulation No. 10/2021 as amended by No. 49/2021). Certain sectors require domestic partnerships or are closed.

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Other Corporate Entities

Local Limited Liability Company (PT Biasa / PT Domestik) Individual Company (PT Perorangan) for Micro and Small Enterprises Commanditaire Vennootschap (CV - Limited Partnership) Foreign Company Representative Office (KPPA / KP3A)