How to Set Up a Foreign-Owned Company (PT PMA) in Indonesia

Setting up a Foreign-Owned Company (PT PMA) in Indonesia: A Complete Guide

Indonesia is one of the most attractive destinations for foreign investors due to its large consumer base, growing middle class, and strategic location in Southeast Asia. If you’re a foreign investor seeking to legally operate a business in Indonesia, forming a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the ideal choice.

1. What is a PT PMA?
A PT PMA is a legal entity that allows foreign individuals or companies to conduct commercial activities in Indonesia. It offers 100% foreign ownership in many sectors, although some are subject to ownership restrictions based on the Positive Investment List.

2. Requirements to Establish a PT PMA

• Minimum paid-up capital of IDR 10 billion (approx. USD 650,000), unless otherwise stated.

• At least 2 shareholders (can be individuals or companies)

• A local office address (virtual offices are accepted in some sectors)

• Indonesian director and commissioner (foreigners may qualify with KITAS)

3. The Registration Process

• Name Reservation

• Deed of Establishment via Notary

• Legalization by Ministry of Law and Human Rights

• Business Identification Number (NIB) via OSS

• Sectoral Licenses (if required)

4. Timeline & Considerations
Typically, PT PMA setup takes 3–6 weeks depending on the sector and complexity of permits. A solid understanding of OSS and government processes is key. Partnering with an experienced consultant like StartIn can streamline this.

5. Final Thoughts
Having a PT PMA gives you full legal rights to do business in Indonesia, open bank accounts, hire local staff, and enter contracts. It is the foundation for a long-term and compliant presence in Indonesia.