A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company registered under Indonesian law. It is the standard legal entity that allows foreign investors to conduct business activities and earn revenue directly in Indonesia, subject to sector-specific ownership rules.

In many sectors, yes — foreign investors can hold up to 100% of shares in a PT PMA. However, certain industries are subject to foreign ownership caps or are fully reserved for domestic investors. The applicable limits depend on the business classification (KBLI code) and are defined by Indonesia’s Positive Investment List.

The standard minimum investment for a PT PMA is IDR 10 billion, with a minimum paid-up capital of IDR 2.5 billion. Specific sectors or business activities may carry different thresholds. Learn more in our detailed guide on minimum capital investment in Indonesia.

Sectors such as small-scale retail, traditional media, certain agricultural activities, and some professional services are restricted or closed to foreign investment. The definitive reference is Indonesia’s Positive Investment List, which specifies maximum foreign ownership percentages by business classification code.

The PT PMA registration process typically takes 1–2 weeks through the OSS (Online Single Submission) system. Additional time may be needed for sector-specific licenses, opening a corporate bank account, and post-registration compliance steps. Working with an experienced partner can significantly reduce delays.

PT PMA requirements include valid passports of all shareholders and directors, proof of residential address, a company deed drafted by a notary, a registered office address in Indonesia, and the company’s articles of association. Additional documents may apply depending on the industry and the nationalities of the shareholders.

Yes, in most cases. The registration process can be handled remotely through a power of attorney, allowing a local representative to sign documents and liaise with authorities on your behalf. Physical presence may only be required at specific stages, such as director verification or bank account opening.

No local director or shareholder is legally required for a PT PMA in fully open sectors. However, a PT PMA must have at least one President Director — who can be a foreign national — and at least one Commissioner. In restricted sectors, a local shareholder may be necessary. After registration, the company is also required to file regular LKPM reporting activity reports.

A PT PMA is a fully operational company that can generate revenue, hire local staff, and sign contracts in Indonesia. A Representative Office (KPPA) is a non-commercial presence limited to market research, promotion, and liaison activities — it cannot earn income. A PT PMA is the right choice when you plan to conduct commercial operations in-country.

After registration, you will need to open a corporate bank account, obtain any sector-specific business licenses, register for tax (NPWP), and comply with ongoing obligations — including monthly tax reporting, annual financial statements, and quarterly LKPM investment reports to BKPM. InCorp can support all post-registration compliance requirements.