How to Open a Foreign-Owned Company (PT PMA) in Indonesia – 2026 Guide

Indonesia remains one of Asia’s most promising markets for foreign entrepreneurs — a G20 economy with over 280 million consumers, rapid digital adoption, and strong investment incentives. But navigating its legal and administrative landscape requires precision.

This guide explains how to open a PT PMA (Perseroan Terbatas Penanaman Modal Asing) in 2026 — step by step — covering ownership structure, capital requirements, OSS-RBA registration, and practical timelines.

1. Understanding the PT PMA Structure

A PT PMA is Indonesia’s foreign-owned limited liability company, the only legal vehicle that allows foreign individuals or corporations to own shares directly. It provides limited liability protection, full profit repatriation rights, and access to work permits and business licences.

A PT PMA must have:

• Minimum of one Director and one Commissioner (can be foreign or local).
• At least one foreign shareholder, individual or corporate.
• Registered business address in Indonesia.
• Clear KBLI (Business Activity) classification, defining permitted operations and ownership limits.
  
  

Foreign ownership percentages depend on the Positive Investment List (Presidential Regulation 10/2021) — many service sectors allow 100 % ownership, while some remain restricted or require local participation.

Key takeaway:
The PT PMA is not a “shelf company.” Each entity is uniquely established with its own charter, capital, and KBLI codes. Getting these right at incorporation saves months of corrective work later.

2. Key Legal & Capital Requirements

Under BKPM (Investment Coordinating Board) and MoLHR regulations, every PT PMA must demonstrate adequate capitalisation to qualify as a foreign investment company.

• Minimum paid-up capital :
• • IDR 2.5 billion (≈ USD 160,000)
• Minimum investment plan:
• • IDR 10 billion per KBLI per project location (excluding land and buildings)

This capital must be shown in the notarial deed and deposited once the company’s bank account is active.

Documents required for incorporation:

1. Passports or corporate legal documents of shareholders
2. Proof of investment plan (capital structure statement)
3. Draft Articles of Association in bilingual format
4. Registered office address
5. Power of Attorney for notarial submission
   
   

Tip:
Capital and KBLI alignment is verified during OSS-RBA processing. If the declared capital does not meet the threshold for the chosen activity, the licence will be delayed or frozen.

3. The OSS-RBA Process – Step by Step

All new PT PMAs register through OSS RBA (Online Single Submission – Risk-Based Approach), Indonesia’s national business licensing platform.

Step 1 – Name reservation & notarial deed
​ ​ Choose a unique company name (three words minimum) and execute a ​ ​ ​        ​ ​      billingual Deed of Establishment before a notary.

Step 2 –  Ministry of Law & Human Rights (MoLHR) approval
​ ​   The deed is submitted electronically to obtain the legal-entity number and ​ ​        ​ ​       Articles Association approval.

Step 3 –  OSS registration & NIB issuance
​ ​   ​Through OSS RBA, apply for a Nomor Induk Berusaha (NIB) — your unique 
  ​ ​   Business Identification Number.

​ ​   The OSS system automatically assigns risk classification:

• • • Low risk         : NIB only
    • Medium risk : NIB + Standard Certificate
    • High risk        : NIB + Standard Certificate + Permit

Step 4 –  Tax registration
​ ​   ​Obtain a NPWP (Tax ID) and EFIN from the Directorate General of Taxes (DJP)  ​ ​        ​ ​   for online filing access.

Step 5 –  Bank account opening
​ ​   ​Open a corporate bank account in Indonesia to deposit the paid-up capital
​ ​   and begin transactions.

Step 6 –  Beneficial ownership reporting
​ ​   Declare Ultimate Beneficial Owner (UBO) information in the AHU Online portal
​ ​   (Perpres 13/2018; Permenkumham 2/2025).

Once these steps are complete, your company legally exists and can sign contracts, invoice clients, and hire staff. However, operational licences may still be required depending on sector and risk level.

4. Common Incorporation Mistakes to Avoid

1. Selecting incorrect KBLI codes
   Leads to rejection or partial approval in OSS.
2. Declaring insufficient capital
   BKPM may downgrade the company and block foreign ownership.
3. Using an unregistered virtual office address
   OSS verification fails; licence suspended.
4. Not reporting beneficial ownership
   Triggers non-compliance flags with MoLHR.
5. Skipping local registration (NPWPD)
   Limits ability to operate or invoice within districts (especially for F&B, hospitality).
   
   

Pro tip:
Always confirm KBLI codes and shareholding structure before signing lease agreements or hiring staff.

 

5. Estimated Timeline & Costs (2026 Update)

Stage	Process	Typical Duration	Indicative Cost Range*
Feasibility & KBLI review	Determine structure & activities	3–5 days	—
Incorporation & MoLHR approval	Deed + legal entity number	1–2 weeks	IDR 10–15 million
OSS RBA registration	NIB + licensing	3–5 days	—
Tax ID + EFIN	DJP Online	3–5 days	—
Bank account & capital deposit	Local bank processing	1 week	Varies by bank
BO reporting	AHU Online	2–3 days	—

Many consultancies exclude hidden costs from their quotes - such as notary fees, translation, and professional service fees. We include those fees as part of our quotes at SatuSolusi and can start from as low as 50mil IDR. Average total setup time for a well-prepared PT PMA: 8–12 weeks.

6. Next Steps: Licensing & Local Registration

After incorporation, many businesses may require sector-specific licences or regional registration before operating: 

• Tourism / F&B:
  TDUP Tourism Licence, Halal & Health Certificates, Environmental Docs (UKL-UPL / AMDAL)
• Construction / Engineering:
  PUPR qualification certificate
• Professional Services:
  Industry association registration
• Local tax registration:
  NPWPD (local tax file number) at the district revenue office (Bapenda)
  
  

All licences are attached to your NIB through the OSS-RBA platform.
Registration for NPWPD is mandatory wherever your company has a physical operating address.

7. How SatuSolusi Can Help You Launch Smoothly

At SatuSolusi Consultancy, we specialise in helping foreign founders launch and secure compliant businesses in Indonesia. Our team of legal, tax and HR experts ensures every stage of your PT PMA journey — from KBLI selection to OSS registration — is executed correctly, saving time and avoiding costly rework.

We provide:

• Feasibility, due diligence & ownership review
• Deed of establishment and legal document preparation & notarial coordination
• OSS RBA licensing & NPWP registration
• HR compliance, BPJS registration and employment agreement drafting
• Tax and Accounting system setup and configuration 
• Post-incorporation compliance guidance
  
  

Ready to start?

Contact us to discuss your structure or download the PT PMA Setup Checklist (2026 Edition) to prepare your documentation.