A PT PMA is a limited liability company established in Indonesia with foreign ownership, either partially or fully. Perseroan Terbatas Penanaman Modal Asing (PT PMA), the legally recognized corporate vehicle for foreign investment activities in the Republic of Indonesia. A PT PMA provides foreign individuals and foreign legal entities with the authority to conduct commercial, operational, and investment activities consistent with Indonesian laws and regulations.
Corporate Structure and Ownership
A PT PMA must be established by a minimum of two (2) shareholders, who may be foreign individuals, foreign corporations, or Indonesian parties. The company must appoint at least:
1. One (1) Director, who may be a foreign national; and
2. One (1) Commissioner, who may also be foreign or Indonesian.
Foreign ownership percentages are governed by the Positive Investment List, which prescribes which business sectors allow full or partial foreign ownership and which remain restricted.
Minimum Investment and Capital Requirements
In accordance with the guidelines set by the Ministry of Investment (BKPM), a PT PMA is required to demonstrate a minimum investment commitment of:
IDR 10,000,000,000 (ten billion rupiah) per 5-digit KBLI (business activity)
This figure represents total planned investment, including fixed assets, equipment, and working capital. While the law does not explicitly mandate a fixed paid-up capital amount, a minimum capital injection of IDR 2,500,000,000 is generally recommended to support operational readiness and compliance during reporting.
Establishment Procedure
The establishment of a PT PMA involves the following sequential stages:
1. Company Name Reservation through the Ministry of Law and Human Rights (AHU)
2. Execution of the Deed of Establishment before an Indonesian Notary
3. Ministerial Approval granting legal entity status
4. Tax Registration, resulting in the issuance of NPWP
5. Business Licensing via OSS RBA, including the issuance of the Business Identification Number (NIB) and sector-specific licenses
6. Investment Reporting Registration (LKPM) with the Investment Coordinating Board
Post-Establishment Obligations
A PT PMA must comply with ongoing statutory obligations, including:
✔ Quarterly Investment Activity Reports (LKPM) submitted to BKPM
✔ Monthly and annual tax reporting in accordance with Indonesian tax law
✔ Employment and immigration compliance, including RPTKA and Work KITAS for foreign personnel
✔ Maintenance of a commercial business address within Indonesia
These obligations ensure the company maintains good standing and avoids administrative sanctions.
With this Business Registration you can:
✔ Fully own a business in Indonesia as a foreign investor.
✔ Manage and operate your business under Indonesian law.
✔ Apply for a Foreign Investment KITAS (work permit) for directors and commissioners.
Prohibited Activities
❌ Engage in activities reserved for Indonesian-owned companies in certain sectors.
❌ Operate without complying with Indonesian regulations on foreign investments.