PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia that allows up to 100% foreign ownership in most business sectors.

How long does it take to register a company in Indonesia?

Company registration typically takes 4-8 weeks for PT PMA and 3-6 weeks for local PT companies, depending on the complexity and requirements.

What is the minimum capital requirement for PT PMA?

The minimum capital requirement for PT PMA varies by business sector, generally starting from 2.5 billion IDR for investment-based KITAS eligibility.

Can foreigners own 100% of an Indonesian company?

Yes, foreigners can own 100% of a PT PMA in most business sectors, with some exceptions in restricted sectors that require local partnership.

What is NIB and why do I need it?

NIB (Nomor Induk Berusaha) is a Business Identification Number that serves as your company's official business license. It's mandatory for all businesses in Indonesia and is obtained through the OSS system.

Foreign Investment Guide

PT PMA Indonesia: The Complete Foreign Investment Setup

Establish 100% foreign-owned operations safely. Comprehensive guide to company formation requirements, step-by-step timelines, and local compliance kits.

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What is a PT PMA Indonesia?

A **PT PMA** (Perseroan Terbatas Penanaman Modal Asing) is a legal entity specifically designed for foreign investors looking to establish a business presence in Indonesia. Governed by the Indonesian Investment Coordinating Board (**BKPM**), this structure grants foreigners the right to hold equity shares in local companies, enabling global operators to fully own and manage corporate setups.

This makes the PT PMA the gold standard for doing business safely in Indonesia. Without resorting to risky nominee structures or setup loopholes, investors gain absolute legal protection, multi-year visa stays via Investor KITAS setups, and full financial control with seamless corporate banking facilities.

100% Foreign Ownership

Depending on your business classification (KBLI), setting up a PT PMA allows up to 100% foreign equity ownership without local partner requirements.

Investor KITAS Sponsorship

Once incorporated, your PT PMA can sponsor your Investor KITAS (Work/Residency Permit), granting multi-year stays and tax residency benefits.

Full Legal Compliance

Operate safely without the risks associated with nominee structures. Own property leases, open corporate bank accounts, and invoice clients directly.

Is a PT PMA Right For You?

Establishing a foreign company requires answering legal requirements focused on high intent actions. A PT PMA structure is ideal for:

Foreign nationals looking to establish hotels, villas, or real-estate holding companies in Bali.
International software and digital enterprises relocating teams or setups to Indonesia.
Restaurateurs and hospitality groups investing in local venue developments.
Business owners offering Consulting services operating directly on Indonesian soil.
High net-worth individuals requiring legal frameworks for Sponsor Asset holding safeguards.

PT PMA Legal Requirements

Capital Requirements

Foreign investment thresholds mapped under BKPM regulations:

Minimum Investment Plan: IDR 10,000,000,000 (approx. USD 650,000)
Paid-up Capital: IDR 2,500,000,000 (minimum layout threshold injection)
Minimum share value allotment: IDR 10,000,000 per share holding

Structural Requirements

Mandated compliance tiers for board composition:

Shareholders: Minimum of 2 individuals or corporate entities total.
Director: At least 1 Director (can be foreign, resides in Indonesia).
Commissioner: At least 1 Commissioner (can be foreign, manages supervisor oversight).
Address: A legal registered address located within corporate-zoned provinces.

Step-by-step PT PMA Setup Process

Your timeline and sequence from name lock to full active trading:

Name Approval & Reservation

We reserve 3 potential company names via the Ministry of Law and Human Rights (Kemenkumham). Names must consist of three words and avoid illegal or generic terms.

Deed of Establishment (Akta)

A local Indonesian notary drafts the Deed of Establishment defining the company structure, capital allocation, and governance frameworks.

Ministry Approval (SK)

The Ministry officially approves the deed, granting the company its status as a legal entity (Badan Hukum).

Tax ID & Corporate Accounts

We register the company Tax ID (NPWP) and establish corporate banking accounts in IDR/USD for operational investment injections.

NIB generation via OSS

The Single Business Number (NIB) is generated via the OSS system providing full active licensing to begin general operations immediately.

Timeline & Budget Allocation

Standard Timeline

2 - 4 Weeks

*Dependant upon document verification and notary triggers. Advanced fast-track setups can clear standard triggers inside 10 operative banking days.

Estimated Budget

Contact for Quote

Standard setups starting at market rates covering BKPM coordination, deed triggers, notary, and NIB coordination with transparent inclusive margins.

Common Pitfalls to Avoid

Using Nominee Structures

Nominee setups carry severe financial risks because the asset ownership legally remains with the local title holder. Safely hold triggers via accurate share definitions directly.

Incorrect KBLI codes

Mapping incorrect business scopes forces audit rejections and voids banking compliance checks. Map accurate business profiles from day one.

Frequently Asked Questions

PT PMA Common Questions

Address compliance checklists and setup definitions before locking operations structures.

Have more questions? Contact our team for personalized assistance.