Company Incorporation in Indonesia

Yes, foreigners can set up a business in Indonesia as a foreigner by registering a PT PMA (Foreign-Owned Limited Liability Company), provided their intended business activity is open to foreign participation under Indonesia’s Positive Investment List (OSS-RBA framework). Many sectors now allow up to 100% foreign ownership following the Omnibus Law reform, though certain strategic industries retain ownership caps. As a trusted foreign company registration Indonesia consultant, InCorp conducts a KBLI sector analysis during the initial consultation to confirm your eligibility and recommend the optimal ownership structure before incorporation begins.

In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. While there is no blanket rule requiring all PT PMA companies to hire local staff, certain KBLI classifications and sectoral licenses do impose local workforce ratios. InCorp advises clients on these requirements as part of the overall PT PMA registration service Indonesia process to avoid compliance gaps post-incorporation.

A minimum of 2 shareholders is required to incorporate a PT in Indonesia, whether a PT PMA or PT local. For a PT PMA, at least one shareholder must be a foreign individual or foreign legal entity. Shareholders can be a combination of individuals and corporate entities, and their details, including apostilled passport copies or corporate documents, must be submitted as part of the foreign company registration Indonesia process. InCorp assists in structuring the shareholding arrangement to ensure it complies with the applicable foreign ownership limits for your sector.

Under BKPM Regulation No. 5 of 2025, the minimum paid-up capital for PT PMA registration has been reduced from IDR 10 billion to IDR 2.5 billion (~USD 150,000). This is a significant update for investors planning PT PMA setup cost Indonesia 2026, as it substantially lowers the entry threshold for mid-size foreign investors and SMEs looking to set up a business in Indonesia as a foreigner. Note that regulated or restricted sectors, such as banking, mining, or telecommunications, may still require higher capital thresholds as specified by the relevant sectoral authority.

Yes, in many sectors a foreigner can own 100% of a PT PMA in Indonesia, depending on the business activity and its classification under the Positive Investment List. Indonesia has significantly expanded the number of sectors open to full foreign ownership following the Job Creation Law (Omnibus Law) reform. However, certain strategic sectors still impose ownership caps, typically between 49% and 67%. A KBLI sector analysis is a mandatory first step in the PT PMA setup process, and InCorp’s consultants conduct this as part of the initial consultation for every foreign company registration Indonesia engagement.

The typical timeline for PT PMA registration service Indonesia with InCorp is 4–6 weeks from the point all required documents are verified and submitted. This covers KBLI classification, notarization, Ministry of Law and Human Rights approval, and NIB issuance via the OSS-RBA portal. The actual duration depends on your business sector’s risk classification and document readiness — sectors classified as High Risk under OSS-RBA, or those requiring additional sectoral permits, may extend beyond this window. InCorp provides regular progress updates throughout the entire foreign company registration Indonesia process so clients always know exactly where their application stands.

A PT PMA is the only structure that allows foreigners to directly own shares, generate revenue, sponsor foreign staff under KITAS, and legally repatriate profits in Indonesia. A PT local (PMDN) is restricted to Indonesian national shareholders only. Foreigners who attempt to operate through a PT local using nominee arrangements face serious legal risk, as such structures are unenforceable under Indonesian law and offer no investor protection. For anyone looking to set up a business in Indonesia as a foreigner, the PT PMA is the only compliant, transparent, and legally protected path available.

PT PMA registration requires apostilled and notarized passport copies and proof of address for all shareholders, corporate incorporation documents if any shareholder is a legal entity, director and commissioner passports along with their NPWP (tax IDs), a registered Indonesian office address, KBLI business activity descriptions, and a proposed company name. If a foreign director will reside in Indonesia, a KITAS is also required. InCorp provides a tailored document checklist as part of our PT PMA registration service Indonesia, ensuring all materials are complete and correctly certified before OSS submission to avoid delays.

BKPM Regulation No. 5 of 2025 reduced the minimum paid-up capital for PT PMA registration from IDR 10 billion to IDR 2.5 billion (~USD 150,000) — a 75% reduction that makes foreign company registration Indonesia significantly more accessible to a wider range of investors. The regulation also clarified that sector-specific capital minimums from relevant ministries take precedence when they exceed the general IDR 2.5 billion threshold. Any reference to IDR 10 billion as the current requirement is now outdated. InCorp keeps all client guidance aligned with the latest BKPM circulars to ensure your PT PMA is structured correctly from the start.

To provide accurate pricing for our PT PMA registration service Indonesia, we assess the specific complexities of your business activity, sector classification, and document requirements, as these directly affect the scope of work involved. The dynamic nature of regulations in Indonesia also means costs can vary depending on whether additional sectoral licenses or permits are needed. For a detailed and transparent cost breakdown tailored to your situation, please contact our consultants directly — we are happy to walk you through the full PT PMA setup cost Indonesia 2026 and our for foreign company registration indonesia services and estimates during a free initial consultation.