Opening and running a company in Indonesia as a foreigner (PT PMA)

Which structure foreigners use

A foreigner who wants to own a business in Indonesia normally uses a PT PMA (Perseroan Terbatas Penanaman Modal Asing), a foreign-investment limited liability company. A PT PMA allows foreign shareholders. A local PT (PT PMDN) is limited to Indonesian shareholders. Other options exist, such as a representative office, but they are narrower in what they can do. Check them with the investment authority before relying on them.

Capital requirements

Capital rules changed recently, so confirm the current figures with the Ministry of Investment/BKPM or the OSS system before you commit funds.

A commercial corporate-services provider (Cekindo, not an official source) reports the following figures for 2026:

• Minimum paid-up capital is IDR 2.5 billion (about USD 150,000). It was IDR 10 billion before BKPM Regulation No. 5 of 2025.
• The total investment plan must be more than IDR 10 billion per business activity code (KBLI) and per project location. This excludes land and buildings. It is realized progressively as the business operates, not deposited on day one.
• Special Economic Zones, such as tech start-ups, are reported as exempt from the minimum investment threshold.

The investment plan is tied to each KBLI code and each location. A business with several activities or sites can therefore face the threshold more than once.

Practical steps and common mistakes

• Choose KBLI codes carefully. The codes you register define what the company may legally do. Some sectors are closed or capped for foreign ownership under Indonesia's investment rules, so check your sector before you plan on 100% foreign ownership.
• Register through OSS. The company deed, the registration with the Ministry of Law and a business identification number (NIB) are all handled through the government's online OSS system. Some activities need extra licences on top of the NIB.
• Do not operate before licences are in place. Invoicing or hiring before the NIB and any sector licence are issued carries a risk of administrative sanctions.
• Keep the capital real. The paid-up capital and investment plan are meant to be actually injected and then spent on the business. Regulators monitor this through reporting.
• Visas must match the company. A foreigner who works in or manages the company needs the right permit (for example an investor or work permit). A tourist or visa-on-arrival stay does not allow work or running a business.

Ongoing reporting and compliance

Verify the details with the tax office (DJP) and the investment authority. Typically expect the following:

• Periodic investment activity reports (LKPM) submitted through OSS.
• A tax number (NPWP) for the company, with monthly tax filings and an annual corporate tax return.
• Annual financial statements and shareholder-meeting approvals, as required by company law.
• Updates to the deed and licences when directors, shareholders, capital or business activities change.

Missed reports and filings can lead to fines, warnings and, in serious cases, licence suspension or revocation. A local accountant or licensed consultant usually handles the monthly routine.

Costs and timelines

Beyond the capital itself, budget for notary fees, a registered office address, accounting services and tax compliance. Fees and timelines vary widely between providers, so ask for itemized quotes. Be wary of offers that promise shortcuts or a company with no real capital.