For foreigners who want to run a business in Indonesia, the legal pathway is by establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — also known as a Foreign Investment Company. This company structure gives you the legal right to own shares, operate a business, and apply for work and stay permits in Indonesia.
Without a PT PMA, you cannot officially open your own business, sign business contracts, or employ foreign workers. That’s why a PMA is the gateway for foreigners who want to build a legitimate and sustainable business in Indonesia.
What is a PT PMA?
A PT PMA is a limited liability company registered in Indonesia with foreign shareholding, either 100% owned by foreigners or as a joint venture with local partners. PMAs are regulated by the Investment Law and supervised by the Indonesian Ministry of Investment/BKPM.
With a PT PMA, you can:
Apply for official business licenses based on your industry,
Have legally recognized shareholder ownership,
Sponsor work and stay permits (KITAS & IMTA) for directors and foreign staff,
Enter into formal agreements with local and international partners.
Why Do You Need a PT PMA?
Full Legal Recognition – Your business activities are protected under Indonesian law.
Shareholding Rights – Foreign investors can officially hold shares.
Licensing Access – A PT PMA can obtain NIB (Business Registration Number) and operational licenses.
Employ Foreign Workers – Only PT PMAs can legally apply for work permits for expatriates.
Credibility – Having a PT PMA boosts your reputation with clients, partners, and investors.
How to Set Up a PT PMA in Indonesia
1. Choose Your Business Field
Check the Positive Investment List to confirm whether your business sector is open for foreign investment.
Some sectors are fully open (100%), while others require joint ventures with local investors.
2. Meet the Capital Requirement
Indonesian law requires a minimum authorized capital of IDR 10 billion,
With a paid-up capital of at least IDR 2.5 billion (in cash or assets).
3. Draft the Deed of Establishment
Prepared by a local notary in Bahasa Indonesia,
Includes shareholders, directors, and commissioners,
Forms the legal foundation of your company.
4. Ministry of Law & Human Rights Approval
The notary submits the deed for approval,
Once approved, your company gains legal entity status.
5. Online Single Submission (OSS) Registration
Apply for your NIB (Business Identification Number), which also serves as:
Company registration,
Importer identification (if needed),
Customs access,
Company tax registration.
6. Apply for Business & Operational Licenses
After obtaining the NIB, your company must apply for specific licenses depending on your industry,
Example: tourism licenses for hotels/villas, trade licenses for import/export, education permits, etc.
7. Additional Sectoral Permits (if required)
Certain industries require extra permits from related ministries,
For example: Ministry of Tourism for hospitality, Ministry of Health for healthcare, etc.
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