Registering a company in Indonesia means incorporating a limited liability company (PT), obtaining Ministry of Law approval for its deed, then registering on the OSS platform to receive a business identification number (NIB) and any risk-based licences. Foreign investors use a PT PMA, which carries minimum capital and investment rules.
What does company registration in Indonesia involve?
It involves three layers: legal-entity status from the Ministry of Law, business registration through OSS, and sector licences matched to the activity's risk level.
A PT is the standard vehicle for foreign investors. Under Law 40 of 2007 on Limited Liability Companies, a PT is established by at least two founders through a notarial deed, so a PT PMA needs at least two shareholders, which can be individuals or companies. Business licensing now runs under Government Regulation 28 of 2025 on risk-based licensing, which revoked Government Regulation 5 of 2021 (see the JDIH BPK record).
If you are comparing structures first, read our overview of foreign companies in Indonesia and the representative office route.
What are the steps to register a PT PMA?
The sequence is business-field check, name and deed, legal-entity approval, OSS registration, licences, then post-registration set-up.
| Step | What happens | Who acts |
|---|---|---|
| 1. Business-field check | Confirm KBLI codes and whether foreign ownership is open or conditional | Investor with adviser |
| 2. Name and deed | Name check, then a notarial deed of establishment in Indonesian | Notary |
| 3. Legal-entity approval | Ministry of Law issues the approval decree for the PT | Notary via AHU Online |
| 4. OSS registration | Company data, investment plan and KBLI entered; NIB issued | Company |
| 5. Risk-based licences | NIB alone, Standard Certificate or Licence, depending on risk | Company, sector agencies |
| 6. Post-registration | Tax account, BPJS enrolment, bank account, capital deposit, reporting | Company |
The business classification now follows KBLI 2025, issued under BPS Regulation 7 of 2025. BPS states that licences issued before the change remain valid and that businesses adjust through OSS or AHU only where their business purpose changes (see the BPS announcement). Our guide to describing business activities in OSS covers the fields that most often cause rejections.
What capital does a PT PMA need?
Under Minister of Investment and Downstreaming/BKPM Regulation 5 of 2025, a PT PMA needs at least IDR 2.5 billion in issued and paid-up capital, plus a total investment above IDR 10 billion.
The investment figure excludes land and buildings and applies per five-digit KBLI per project location. The regulation carves out exceptions for some activities, such as wholesale trade, so confirm which test applies to your KBLI. Paid-up capital must stay in the company account for at least 12 months, except for buying assets, constructing buildings or funding operations. The text is in the regulation PDF and the JDIH BPK record.
These are minimums. Capital should be sized for the business plan, since under-capitalisation shows up later in banking, licensing and tax reviews.
How is the NIB issued, and what does it cover?
The NIB is issued by the OSS Institution after registration and acts as proof of business registration, not as permission to run every activity.
Higher-risk activities need further licensing on top of the NIB. The NIB also functions as the importer identification number (API) and customs access, and it links the company to employment and health social security registration. Our article on the company registration number in Indonesia explains the NIB, the AHU decree number, the 16-digit NPWP and the BPJS employer number, and how to verify each. Applications are made on oss.go.id.
What must a new PT PMA do after registration?
Complete tax and social security registration, open the bank account, deposit capital, and plan for periodic investment activity reporting (LKPM).
- Tax. Activate the company's tax account and confirm that the 16-digit NPWP appears on invoices and vendor records. The general corporate income tax rate is 22 per cent, as explained by the Directorate General of Taxes.
- People. Enrol employees with BPJS. Foreign staff need work and stay authorisation; see our guides on investor KITAS and hiring foreign workers under RPTKA.
- Capital. Pay in capital and keep evidence of the lock-in conditions.
- Reporting. Calendar LKPM and annual tax filings from the first quarter.
How does a PT PMA compare with other entry options?
A PT PMA allows commercial operations with foreign ownership; a representative office cannot earn revenue, and a local-owned entity restricts foreign control.
For liaison or market research only, a representative office may be enough. For trading, services or production with foreign shareholders, a PT PMA is the usual route. If you are weighing the decision, see start a business in Indonesia and the pros and cons of establishing a business in Indonesia.
For hands-on support with incorporation, OSS filings and licensing, see our PT PMA setup service.
Frequently asked questions
What is the first step in registering a company in Indonesia?
Confirm that your business activity, expressed as KBLI codes, is open to foreign investment and note any conditions or licences attached. This check determines the capital rules, the licence type and whether a PT PMA is feasible, so it should come before the notary prepares the deed.
Do I need two shareholders to set up a PT PMA?
Yes. Law 40 of 2007 provides that a PT is established by two or more persons, so a PT PMA needs at least two shareholders. They may be individuals or legal entities, foreign or local, subject to the sector's foreign ownership conditions.
What is the minimum capital for a PT PMA?
Under Minister of Investment and Downstreaming/BKPM Regulation 5 of 2025, issued and paid-up capital must be at least IDR 2.5 billion, and total investment must exceed IDR 10 billion excluding land and buildings per five-digit KBLI per location, subject to exceptions for certain activities.
Is the NIB enough to start operating?
For low-risk activities the NIB alone may be sufficient. Medium-risk activities need a Standard Certificate and high-risk activities need a licence in addition to the NIB. Always check the licence level for each KBLI code in OSS before trading, hiring or importing.
Can a foreigner register a company without a local partner?
Foreign investors may hold a PT PMA with foreign shareholders only, provided the business field is open to foreign investment, with conditions for some sectors. Two shareholders are still required, but both can be foreign entities or individuals.
This article is general information, not legal or tax advice. Confirm current requirements with the notary, OSS and the relevant agency before filing.
General information only, not legal or tax advice for your specific facts. Regulations change; confirm the current position with JCSS Indonesia before acting.