Most foreign investors notice PT PMA requirements only when something delays the setup process, such as an incorrect KBLI code, capital issues, or an Investor KITAS rejection. PT PMA setup is now governed by BKPM Regulation No. 5 of 2025 and Government Regulation No. 28 of 2025 on risk-based licensing. The company's structure still complies with Law No. 40 of 2007 on Limited Liability Companies.
To establish a PT PMA in Indonesia, foreign investors generally need at least two shareholders, IDR 2.5 billion in paid-up capital (a 75% reduction from the previous IDR 10 billion requirement), one director, one commissioner, a registered commercial address, and a notarized Deed of Incorporation. Registration is done through the OSS-RBA system and usually takes around 4–8 weeks.
| Requirement | Detail |
| Shareholders | Minimum 2 (individuals or companies, any nationality) |
| Paid-Up Capital | IDR 2.5 billion |
| Total Investment Plan | Over IDR 10 billion per 5-digit KBLI code, per location |
| Capital Lock-Up | 12 months (unless spent on operations or assets) |
| Board | Minimum 1 director + 1 commissioner |
| Business Address | Commercial/office only (residential not allowed) |
| Licensing | NIB + risk-based licenses via OSS-RBA |
| Setup Time | 4–8 weeks |
| Governing Rules | Law No. 40/2007; BKPM Reg. 5/2025; GR 28/2025 |
A PT PMA (Penanaman Modal Asing) is an Indonesian limited liability company with foreign ownership. Even 1 foreign-owned share is enough to classify a company as a PT PMA. This structure allows foreign investors to operate legally in Indonesia, issue local invoices, generate revenue, hire employees, and enter into contracts.
Foreign ownership depends on the company's business sector under Indonesia's Positive Investment List. In general, sectors may fall into three categories:
| Sector Category | Foreign Ownership Rule |
| Open Sectors | Up to 100% foreign ownership |
| Partially Restricted Sectors | Foreign ownership is capped, often requiring a local partner |
| Closed Sectors | Foreign investment is not allowed |
Since ownership limits are linked to the company's KBLI business classification, investors should review the KBLI and ownership structure together before preparing the Deed of Incorporation.
BKPM Regulation No. 5/2025 reduced the minimum paid-up capital requirements for PT PMA but did not remove other investment and structuring requirements. Foreign investors still need to understand how paid-up capital, total investment value, and Investor KITAS eligibility work under the updated rules.
Under BKPM Regulation No. 5/2025, the minimum paid-up capital for PT PMA requirements is now IDR 2.5 billion. However, the total investment plan must still exceed IDR 10 billion for each 5-digit KBLI code and project location. This amount generally excludes land and buildings, except for property and certain asset-heavy sectors.
Paid-up capital cannot be withdrawn within the first 12 months unless used for valid operational needs or capital expenses. This means investors should prepare the capital with proper cash flow planning, not only for incorporation purposes.
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The lower paid-up capital requirement does not automatically change Investor KITAS eligibility. To qualify for an Investor KITAS, an individual investor must still hold shares valued at IDR 10 billion. This distinction is important because a misunderstanding can lead to an immigration application being rejected.
PT PMA registration is processed through the OSS-RBA system. Before applying, foreign investors should ensure that the company's structure, business activities, and licensing plan are aligned with the latest PT PMA requirements. The process generally includes:
PT PMA registration may seem straightforward, but small mistakes in the early stages can delay the entire process. Many issues arise from choosing the wrong business classification, misunderstanding capital rules, or failing to meet post-incorporation obligations.
Common pitfalls include:
Still unsure how PT PMA requirements apply to your business?
Ascentium Indonesia can help review your KBLI, capital structure, licensing requirements, and reporting obligations so your PT PMA setup gets off to the right start. Talk to our team ->
Yes. Foreign investors do not always need to establish a PT PMA from the start. If the goal is still to explore the Indonesian market, a Representative Office (RO) may be an alternative. However, it comes with important limitations, as it cannot generate revenue or engage in full commercial activities.
| Factor | PT PMA | Representative Office |
| Revenue | Allowed | Not allowed |
| Activities | Full operations | Liaison & research |
| Hiring | Allowed | Limited |
| Scalability | High | Limited |
A PT PMA is the right structure for foreign investors who want to operate commercially, issue invoices, hire employees, sign contracts, and generate revenue in Indonesia. A Representative Office is more suitable for early-stage market exploration before deciding whether to establish a full legal entity.
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Once registered, a PT PMA must continue meeting several compliance obligations, including:
Setting up a PT PMA is not only about incorporation. The right KBLI code, capital structure, and Investor KITAS planning must be aligned from the beginning to avoid costly amendments later.
With Ascentium Indonesia, you can get support for: