Indonesia remains one of Southeast Asia’s most attractive destinations for foreign investors. With a large domestic market, strategic location, growing digital economy, and expanding industrial zones, many international businesses choose Indonesia as a base for regional growth.
For foreign investors who want to operate legally, hire employees, generate revenue, sign contracts, and obtain business licenses in Indonesia, the most common legal structure is a Perseroan Terbatas Penanaman Modal Asing, commonly known as a PT PMA.
A PT PMA is a foreign-owned limited liability company established under Indonesian law. Depending on the business sector, it may be owned partially or fully by foreign shareholders. However, before establishing a PT PMA, investors must understand the applicable foreign ownership rules, minimum investment requirements, paid-up capital obligations, business licensing process, and post-incorporation compliance.
This guide explains how PT PMA formation works in Indonesia in 2026 and how Accura can help you set up your company correctly from the beginning.
What Is a PT PMA?
A PT PMA is an Indonesian limited liability company with foreign ownership. It can be owned by foreign individuals, foreign companies, Indonesian shareholders, or a combination of foreign and local shareholders.
This structure is commonly used by foreign investors who want to:
- operate a business directly in Indonesia;
- legally generate income from Indonesian customers;
- hire local and foreign employees;
- apply for business licenses through OSS;
- open a corporate bank account;
- sponsor investor or working permits;
- enter into contracts with clients, vendors, and government-related institutions.
A PT PMA is different from a representative office. A representative office is generally limited to non-commercial activities, while a PT PMA can conduct commercial business activities, subject to the approved business classification and licensing requirements.
Foreign Ownership Rules in Indonesia
Foreign ownership in Indonesia depends on the selected business activity, which is classified under the Indonesian Standard Industrial Classification, commonly referred to as KBLI.
Indonesia currently applies a Positive Investment List approach. Under Presidential Regulation No. 10 of 2021, business fields are categorized into priority business fields, business fields allocated to or requiring partnership with cooperatives and MSMEs, business fields with certain requirements, and business fields open to all investors.
Presidential Regulation No. 49 of 2021 further confirms that commercial business fields are generally open for investment, except for business fields that are declared closed or activities that may only be carried out by the central government.
This means that before establishing a PT PMA, investors should first check:
- whether the intended KBLI is open to foreign ownership;
- whether 100% foreign ownership is allowed;
- whether a local shareholder or partnership is required;
- whether sectoral approval is needed;
- whether the business activity has special licensing obligations.
Choosing the wrong KBLI may delay the licensing process or cause issues when applying for NIB, standard certificates, sectoral licenses, tax registration, bank account opening, or LKPM reporting.
PT PMA Requirements in Indonesia
In general, a PT PMA requires the following structure:
Minimum shareholders:
At least two shareholders, which may be individuals or legal entities.
Management structure:
At least one Director and one Commissioner.
Business address:
A registered office address in Indonesia. Depending on the business activity, certain sectors may require a physical office, operational location, warehouse, factory, or specific zoning approval.
Business classification:
The company must select the correct KBLI based on its actual business activities.
Investment plan:
A PT PMA is generally categorized as a large-scale business and must meet minimum investment requirements.
Paid-up capital:
A PT PMA must also meet the applicable paid-up capital requirement.
Business licensing:
The company must obtain its NIB and other required business licenses through the OSS system.
Minimum Investment vs Paid-Up Capital
One of the most common mistakes foreign investors make is assuming that the “minimum investment” and “paid-up capital” are the same. They are different.
Minimum investment
Under Minister of Investment and Downstreaming/Head of BKPM Regulation No. 5 of 2025, PMA companies are categorized as large-scale businesses and must generally have a total investment value of more than IDR 10 billion, excluding land and buildings, per 5-digit KBLI business field per project location.
Some business activities have different calculation methods. For example, wholesale trading is calculated per first 4 digits of KBLI, food and beverage services are calculated per first 2 digits of KBLI per location point, and construction services are calculated per first 4 digits of KBLI.
Paid-up capital
In addition to the investment value requirement, a PT PMA in the form of a limited liability company must have minimum issued and paid-up capital of at least IDR 2.5 billion per company, unless otherwise regulated by specific laws or sectoral regulations.
The paid-up capital may not be transferred out of the company’s bank account for at least 12 months after being deposited, except for asset purchases, building construction, or company operational purposes. This commitment is made through a self-declaration when applying for business licensing through OSS.
For investors, this means capital planning should be prepared carefully before incorporation, especially when the company has multiple KBLI codes, several locations, or sector-specific licensing requirements.
Business Licensing Through OSS RBA
Indonesia applies a risk-based business licensing system through the Online Single Submission Risk-Based Approach, commonly known as OSS RBA.
The official OSS platform explains that the Business Identification Number, or NIB, is the official identity required to start and operate a business in Indonesia. OSS also classifies business activities into four risk levels, which determine the licenses and obligations that must be fulfilled.
Government Regulation No. 28 of 2025 regulates Indonesia’s risk-based business licensing framework. It covers basic requirements, business licenses, supporting business licenses, standards, OSS services, supervision, evaluation, funding, problem resolution, and administrative sanctions.
Depending on the risk level of the selected KBLI, a PT PMA may need:
- NIB only;
- NIB and Standard Certificate;
- NIB, Standard Certificate, and sectoral verification;
- NIB and specific business license;
- environmental approval;
- location suitability confirmation;
- technical licenses from relevant ministries or agencies.
Because of this, PT PMA formation should not only focus on deed establishment. The licensing strategy must be planned from the beginning.
Step-by-Step PT PMA Formation Process in Indonesia
1. Business activity and KBLI review
The first step is to identify the company’s actual business activities and match them with the correct KBLI. This stage is important because KBLI affects foreign ownership, investment value, business licensing, risk level, and future compliance.
2. Foreign ownership check
After the KBLI is selected, the next step is to check whether the business is fully open to foreign ownership or subject to certain limitations.
3. Company name reservation
The proposed company name must be checked and reserved through the relevant legal administration system. The name should comply with Indonesian company naming rules.
4. Deed of establishment
The deed of establishment is prepared before an Indonesian notary. It includes the company’s name, domicile, business activities, capital structure, shareholders, Director, Commissioner, and articles of association.
5. Approval from the Ministry of Law
After the deed is signed, the company must obtain approval from the Ministry of Law to become a legal entity.
6. Tax registration
The company must obtain its Taxpayer Identification Number, commonly known as NPWP, and tax registration certificate.
7. OSS registration and NIB issuance
The company must be registered in the OSS system to obtain its NIB and other relevant business licensing documents.
8. Business license and supporting permits
Depending on the KBLI and risk classification, the company may need additional licenses, standard certificates, environmental approval, location-related approval, or sectoral permits.
9. Corporate bank account opening
After incorporation documents and tax registration are completed, the company can proceed with corporate bank account opening.
10. Post-incorporation compliance
After the company is established, it must continue to comply with tax, accounting, licensing, employment, investment reporting, and corporate secretarial obligations.
Required Documents for PT PMA Formation
The required documents may vary depending on whether the shareholders are individuals or companies.
For foreign individual shareholders, the common documents include passport copies, personal information, address details, shareholding structure, and tax-related information where applicable.
For foreign corporate shareholders, the common documents include certificate of incorporation, articles of association, latest company profile or registry extract, board resolution, identity documents of authorized representatives, and legalized or apostilled documents where required.
For Indonesian shareholders, documents usually include identity card, tax number, address details, and supporting corporate documents if the shareholder is a legal entity.
Additional documents may be required depending on the sector, location, licensing risk level, and bank account opening requirements.
Estimated Timeline for PT PMA Formation
The timeline for PT PMA formation depends on document readiness, shareholder structure, business field, licensing risk level, and sectoral requirements.
In general, the incorporation process may take several working days after all documents are complete. However, additional business licenses, standard certificates, sectoral verifications, environmental approvals, or technical permits may require more time.
Investors should avoid assuming that the company is fully operational immediately after receiving the deed and legal entity approval. In many cases, the company still needs to complete OSS licensing and sector-specific requirements before starting commercial activities.
Common Mistakes Foreign Investors Should Avoid
Many PT PMA applications face delays because of avoidable mistakes. The most common issues include choosing a KBLI that does not match the actual business model, ignoring foreign ownership restrictions, misunderstanding the difference between investment value and paid-up capital, using an address that is not suitable for the selected business activity, submitting inconsistent data across incorporation and OSS documents, and starting operations before the required licenses are complete.
A proper setup process should align the company deed, KBLI, capital structure, shareholder documents, tax registration, OSS licensing, and operational plan from the beginning.
How Accura Can Help
Accura helps foreign investors establish and operate their PT PMA in Indonesia with a structured and compliant process.
Our PT PMA formation assistance includes:
- business activity and KBLI review;
- foreign ownership eligibility check;
- investment and paid-up capital planning;
- company name reservation;
- deed of establishment preparation;
- Ministry of Law approval;
- NPWP and tax registration assistance;
- OSS registration and NIB issuance;
- business license and standard certificate assistance;
- corporate bank account opening support;
- LKPM investment reporting assistance;
- ongoing corporate, tax, accounting, and licensing support.
With local expertise and practical experience, Accura helps investors reduce regulatory risk, avoid licensing delays, and start their business in Indonesia with greater confidence.