pt pma establishment

September 5 2026

How to Establish a Foreign-Owned Company (PT PMA) in Indonesia

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Establishing a foreign investment company in Indonesia—commonly known as a PT PMA (Perseroan Terbatas Penanaman Modal Asing) allows foreign investors to establish a legal business presence and conduct permitted business activities in Indonesia, subject to applicable investment, licensing, and sector-specific requirements.

The incorporation process involves several important steps, from determining the appropriate business classification to obtaining the necessary registrations and business licenses.

## Step 1: Determine Your KBLI Classification and Foreign Ownership Requirements

Before establishing a PT PMA, you need to determine the appropriate KBLI (Indonesian Standard Industrial Classification) for your intended business activities.

The applicable foreign ownership requirements depend on the business sector and the current investment regulations. While some business activities may allow full foreign ownership, others may be subject to ownership restrictions, specific requirements, or sector-specific licensing.

It is therefore important to confirm the applicable KBLI and foreign investment requirements before proceeding with incorporation.

## Step 2: Review Investment and Capital Requirements

PT PMA structures are subject to minimum investment and capital requirements.

As a general rule:

Minimum investment value: More than IDR 10 billion, excluding land and buildings, subject to applicable sector and KBLI requirements.

Minimum issued and paid-up capital: IDR 2.5 billion per company, unless a different requirement applies under specific regulations.

The applicable requirements may vary depending on the business activity and sector. A proper review should therefore be conducted before establishing the company.

## Step 3: Reserve the Company Name and Prepare the Deed of Establishment

The proposed company name must comply with Indonesian company naming requirements and be processed through the relevant Ministry of Law system.

A licensed Indonesian Public Notary then prepares the Deed of Establishment (Akta Pendirian), which sets out important information such as the company’s shareholders, capital structure, management, and business activities.

## Step 4: Obtain Legal Entity Approval and Tax Registration

After the Deed of Establishment has been executed, the company proceeds with the legal entity registration process through the Ministry of Law.

Once the company has obtained its legal entity status, the company proceeds with the relevant tax registration, including its Tax Identification Number (NPWP).

## Step 5: Obtain the NIB Through OSS

The company then registers its business activities through the Online Single Submission (OSS) system and obtains its Business Identification Number (NIB).

The NIB serves as the company’s primary business identification number and is also connected to several government registration and licensing functions. Depending on the business activity, additional requirements may apply, including customs, social security, and other sector-specific registrations.

## Step 6: Fulfill Spatial Planning and Business Licensing Requirements

Depending on the location, business activity, and risk level, the company may need to fulfill additional basic requirements and obtain the relevant business licenses or supporting licenses through OSS.

These may include spatial planning requirements such as KKPR, risk-based business licensing, and PB UMKU (Business Licensing to Support Business Activities) where applicable.

The required licenses depend on the company’s KBLI, location, business scale, and risk classification.

## Step 7: Start Operations and Maintain Compliance

Once the required registrations and licenses have been obtained, the company can commence its permitted business activities, subject to fulfillment of all applicable operational requirements.

After establishment, a PT PMA must also maintain ongoing corporate, tax, employment, and business compliance obligations.

Need Help Establishing a PT PMA?

Every business has different KBLI, ownership, licensing, and compliance requirements.

Our team can help you assess your business activities, determine the appropriate structure, and guide you through the PT PMA establishment process in Indonesia.

September 5 2026

Can You Work in Indonesia With a KITAS?

One of the most frequent points of confusion among foreign professionals and corporate investors is the relationship between holding a KITAS (Kartu Izin Tinggal Terbatas / Temporary Stay Permit Card) and the legal right to work in Indonesia.

The short answer is: Holding a KITAS alone does not automatically grant you the right to work in Indonesia. Whether you can legally work depends strictly on the type of KITAS you hold.

1. Work KITAS (E23) – Permitted to Work

A Work KITAS is the only stay permit designed for foreign employees seeking active employment and remuneration in Indonesia. However, securing the Work KITAS card is only half the battle. To work legally, your sponsoring employer must also secure a government-approved foreign manpower utilization plan—known as RPTKA (Rencana Penggunaan Tenaga Kerja Asing)—and pay the mandatory government DKP-TKA development fund fees.

2. Investor KITAS (E28A / E28B) – Restrictive Working Rules

An Investor KITAS is issued to foreign individuals who hold substantial equity shares in an Indonesian foreign-owned company (PT PMA).

Director-Investors: Foreign nationals holding the title of Director and owning shares can engage in high-level executive management and strategic operations of their own company.
Non-Executive Investors: Investors holding Commissioner or silent shareholder roles are not permitted to perform operational daily tasks or engage in general workforce duties unless a separate Work KITAS and RPTKA are issued.

3. Family / Spouse KITAS – Not Permitted to Work Directly

Foreigners holding a Family KITAS (sponsored by an Indonesian spouse or a foreign primary KITAS holder) are strictly prohibited from working for an employer. If a spouse wishes to work, an Indonesian company must sponsor them separately for a Work KITAS and RPTKA.

Consequences of Illegal Work in Indonesia

Engaging in unauthorized employment or violating the conditions of your specific KITAS category is taken seriously by Directorate General of Immigration (Direktorat Jenderal Imigrasi). Penalties for illegal work include:

Severe administrative fines for both the foreign individual and the employer.
Immediate deportation and inclusion on the official immigration blacklisting database (cekal).

September 5 2026

What Is an Indonesia Business Visa?

Navigating corporate expansion or commercial opportunities in Southeast Asia’s largest economy often starts with a simple business trip. If you are a foreign investor, executive, or consultant planning to enter Indonesia for non-working commercial activities, the Indonesia Business Visa (C2)—formerly known under code 211A—is the primary legal entry permit designed for your needs.

Understanding the Purpose of the C2 Visa

The C2 Business Visa is a Single-Entry permit specifically tailored for foreign nationals conducting short-term corporate activities. It provides a legal bridge for international professionals to explore the Indonesian market without triggering local employment tax obligations or violating immigration laws.

Allowed Activities:

Attending corporate meetings, conferences, and negotiations.
Conducting market research, feasibility studies, and site visits.
Inspecting goods, factories, or supplier production facilities.
Signing commercial contracts, MoUs, and partnership agreements.

Strict Prohibitions:

Holding formal employment or taking up a job role in an Indonesian company.
Receiving local salary, wages, or direct remuneration from an Indonesian entity.
Selling goods or services directly to local retail consumers.

Validity and Extension Structure

Upon entering Indonesia on a C2 visa, you are granted an initial stay period of 60 days. If your business engagements require a longer presence, the C2 visa can be extended up to two times, with each extension adding 60 days. This grants a maximum continuous legal stay of 180 days (approximately 6 months).

Because it is a single-entry visa, departing Indonesia at any point during your stay will automatically void the permit.