A PT PMA is Indonesia’s limited liability company structure for a business with foreign investment. Incorporation is only one part of the work: the company must also have the right KBLI activities, capital plan, registrations, premises permissions and ongoing compliance for what it will actually do.
Step 1: Decide whether a PT PMA fits your business
PT PMA means an Indonesian limited liability company with foreign investment. Foreign shareholders can be individuals or legal entities. Even partial foreign ownership brings the company within the PMA framework.
For someone planning to own and operate an eligible Indonesian business, it is the usual company structure to investigate. PMA businesses generally fall within the large-business investment framework, so a small physical operation does not necessarily qualify for small-business capital rules.
Before spending money, establish:
- What will the company sell, and who will pay for it?
- Will it own assets, operate premises, provide services, or manage another business?
- Where will each activity take place?
- Will you personally live or work in Indonesia?
That last question matters because incorporation and immigration permission require separate assessments. A company certificate does not itself grant a residence permit or permission to perform every job.
Step 2: Choose the correct KBLI activities
KBLI is Indonesia’s business classification system. Your selected activities help determine foreign-ownership eligibility, investment requirements, licensing and operating standards.
Start with a plain-English description of how the business earns money. Then have an adviser match that description to the appropriate classifications and their detailed scope. Developing villas, renting accommodation, managing someone else’s property and arranging tours should not be treated as interchangeable activities.
Check ownership restrictions before choosing shareholders
Review each proposed activity against the investment business list and applicable sector rules. Some activities allow full foreign ownership; others carry restrictions, partnership conditions or reservations for domestic businesses. A broadly “open” sector does not mean every activity inside it is open.
Use the current OSS classifications. Indonesia introduced KBLI 2025, with implementation and conversion guidance issued during 2026. Older articles listing KBLI 2020 codes should be checked against the updated system.
Step 3: Understand the capital requirements
The most important distinction is between the company’s investment plan and its paid-up share capital.
| Requirement | General position | Practical meaning |
|---|---|---|
| Total investment | More than IDR 10 billion, generally excluding land and buildings, per five-digit KBLI per project location | The qualifying investment scale of the business project |
| Issued and paid-up capital | At least IDR 2.5 billion per PT PMA, unless another applicable rule requires more | Share capital subscribed and paid into the company |
Regulation 5/2025 reduced the general paid-up-capital minimum from IDR 10 billion to IDR 2.5 billion. It did not remove the separate investment requirement.
Special calculation rules apply to activities including wholesale, food and beverage, construction, accommodation and property. Land and buildings are included in some calculations, with further distinctions for property projects. Have an adviser calculate the actual case.
Step 4: Agree on shareholders and management
A standard PT PMA generally requires at least two shareholders, who may be individuals or companies. An Indonesian shareholder is not automatically required where the selected activities permit full foreign ownership.
The company also needs directors to manage it and commissioners to supervise management, ordinarily at least one of each. Share ownership and management appointments are distinct decisions; advisers should also check any sector-specific requirements.
Do more than agree on percentages. Discuss:
- Who contributes money, assets or expertise?
- Who can sign contracts and authorise payments?
- Which decisions require shareholder approval?
- What happens if one partner stops contributing?
- How will shares be valued and transferred on exit?
A properly drafted shareholders’ agreement can address deadlock, funding commitments and disputes. It should work alongside the articles of association. Avoid nominee arrangements designed to conceal the real investor or bypass ownership restrictions.
Step 5: Check the address and prepare incorporation documents
You need a genuine, suitable registered address. An address accepted for correspondence does not necessarily authorise your planned activity at that location.
If you intend to operate from leased premises, investigate permitted use before committing to a long lease. Consider making the transaction conditional on satisfactory legal and licensing checks.
Your preparation checklist
- Proposed company names and registered-office details.
- Passport or identity documents for shareholders and management.
- Corporate documents and authorisations for company shareholders.
- Share allocations, capital figures and management appointments.
- Business descriptions, KBLI selections and project locations.
- Beneficial-owner information and contact details.
- Powers of attorney, translations, and apostilles or legalisation where required.
An Indonesian notary prepares the incorporation deed and articles of association and handles the legal-entity registration process through AHU, the Ministry of Law’s administration system. Read the final documents before signing and check names, ownership, business purposes and signing powers carefully.
Step 6: Confirm tax registration and obtain the NIB
Register the company for tax
The company needs an NPWP, its taxpayer identification number. Registration can connect with incorporation systems, but confirm that the number has been issued and the company details are correct.
Set up usable access to Coretax DJP, which handles tax registration, filing, payments and related administration. Make sure the responsible person and authorised users can access the account with working email addresses and telephone numbers.
Ask an accountant to assess income tax, withholding obligations, VAT registration where applicable and local taxes. For Lombok accommodation and restaurant businesses, clarify the treatment of each revenue stream rather than applying one assumption to everything.
Apply through OSS
The NIB, or Business Identification Number, is obtained through the Online Single Submission system. Company data, activities, project locations, investment information and required declarations must be consistent with supporting records.
Incorporation, tax and OSS work can overlap. Follow the sequence required by the live systems rather than assuming every application is entirely independent. After issuance, download the NIB and accompanying documents, check every listed project and retain company-controlled access to OSS.
Step 7: Complete the permissions needed to operate
An NIB identifies the business, but additional licensing requirements depend on risk classification.
| Business risk | General licensing requirement |
|---|---|
| Low | NIB |
| Medium-low | NIB and a standard certificate based on the required declaration |
| Medium-high | NIB and a verified standard certificate |
| High | NIB and a business licence, with additional standards where required |
Applicable spatial, environmental, building and sector requirements still need attention. Check the status of each approval rather than assuming every downloaded certificate permits commercial operations. For premises, review spatial-use compatibility or KKPR, environmental requirements, building approval or PBG and building fitness certification or SLF where applicable.
What changes when your project is in Lombok?
The PMA framework is national, but location affects practical coordination. Kuta and Mandalika are in Central Lombok, Senggigi is in West Lombok, and Gili Trawangan, Gili Meno and Gili Air are in North Lombok.
Ask the relevant DPMPTSP licensing office to clarify the responsible authority for each approval. For a PMA Lombok hospitality project, investigate road access, water supply, wastewater, coastal restrictions and permitted building use before committing major funds. If a project is marketed as being in Mandalika’s special economic zone, verify the actual boundary and eligibility with the zone administrator.
Step 8: Open the bank account and organise ongoing compliance
Banks carry out their own checks. Confirm requirements for corporate documents, beneficial owners, authorised signatories, addresses and any in-person attendance before scheduling travel.
Document capital contributions and shareholder loans separately. Keep company transactions separate from personal spending and start bookkeeping with the first expense.
Your post-incorporation calendar
- LKPM investment reports: PMA businesses generally report quarterly through OSS. Follow the reporting calendar and record actual investment and project progress.
- Tax compliance: prepare applicable periodic returns and the annual corporate income-tax return, generally due four months after the tax year ends.
- Corporate administration: maintain shareholder records, beneficial-owner information, resolutions and required annual corporate approvals.
- Employment: arrange compliant contracts, payroll, applicable BPJS enrolment and labour reporting.
- Licensing: fulfil operating standards and update records when activities, addresses, ownership or management change.
- Immigration: check appropriate permissions before foreign personnel begin their intended duties.
Do not assume that a company with no revenue has no reporting obligations. Ask your accountant and licensing adviser what must still be submitted during preparation or inactivity.
Common pitfalls and professional help worth paying for
The costliest mistakes often happen before incorporation: choosing the wrong activity, signing an unsuitable lease or agreeing to an unclear partnership.
Other avoidable problems include confusing paid-up capital with project investment, treating an unverified certificate as an operating licence and allowing one agent to control every company login.
When comparing proposals for opening a PMA in Indonesia, request a written scope separating incorporation and notarial work, tax and OSS registration, sector and premises approvals, property due diligence and contracts, immigration work and ongoing compliance.
Questions & answers
Can a foreigner own 100% of a PMA?
Yes, where the selected activities permit full foreign ownership. Full foreign ownership does not remove the standard requirement for at least two shareholders.
Can I set up a company as a foreigner without living in Indonesia?
Often, ownership does not require residence. However, signatures, banking checks, management arrangements and any work performed in Indonesia need separate planning.
Does getting an NIB mean I can open immediately?
Not necessarily. Confirm that all approvals and operating conditions applicable to the activity and premises are satisfied before operating.
Is setting up a PMA in Lombok different from Bali?
The national company framework is the same. Project locations, local approvals, property conditions and practical coordination differ, so a Bali checklist should be checked against the actual Lombok project.
Do I need an Investor KITAS to own a PMA?
Company ownership and immigration permission are separate assessments. If you plan to live in Indonesia or undertake specific duties, confirm the appropriate stay and work permissions before proceeding.
Sources
- Ministry of Law: limited liability company FAQ
- Ministry of Investment/BKPM Regulation 5/2025
- IIPC Sydney, Ministry of Investment/BKPM: investment procedures
- BPS: KBLI 2025 implementation and licence continuity ; OSS: KBLI conversion guide
- Rödl & Partner: Investment Guide Indonesia, corporate governance structure
- Directorate General of Taxes: Coretax implementation
- Ministry of Marine Affairs and Fisheries: risk-based licensing and basic requirements
- BKPM: LKPM reporting, first quarter 2026
- Directorate General of Taxes: corporate annual return deadlines
Framework checked in October 2026. Regulations, OSS classifications and local implementation can change; confirm the current requirements for your specific activity, location and transaction.