PT PMA Setup: 8-Week Roadmap for Foreign Investors

A practical week-by-week roadmap for foreign investors establishing a PT PMA in Indonesia — from KBLI selection through first-month compliance enrollment.

Establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) in Indonesia involves a structured sequence of legal, licensing, and regulatory steps. When executed correctly, the process takes 4–8 weeks. When executed without specialist guidance, the same process routinely takes 4–6 months and generates compliance arrears that require expensive remediation.

This roadmap reflects the process under the current OSS-RBA (Online Single Submission — Risk Based Approach) regime, effective from PP No.5/2021, and the Positive Investment List (Perpres No.10/2021).

Week 1–2: Pre-incorporation preparation

KBLI selection: Identify the correct 5-digit KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes for all intended business activities. KBLI determines the minimum investment capital, ownership restrictions, and licensing requirements. An entity may hold multiple KBLI codes but each must be accurately mapped.

Shareholder and capital structure: Determine share composition (foreign vs. local), authorized capital, issued and paid-up capital, and the director/commissioner structure. Minimum paid-up capital is IDR 2.5 billion for most activities; minimum total investment is IDR 10 billion.

Notary coordination: Engage a licensed Indonesian notary (Notaris) to prepare the deed of incorporation (Akta Pendirian). The notary requires shareholder identification documents (passport copies, legalized), a registered Indonesian address, and draft AoA in KPNB-compliant format.

Week 3–4: Incorporation

Deed of incorporation execution: Shareholder representatives must appear before the notary (or execute via PoA) to sign the Akta Pendirian. Foreign shareholders typically use a registered agent or PoA holder to execute the deed if they are not present in Indonesia.

Ministry of Law registration: The notary submits the deed to the Ministry of Law and Human Rights (Kemenkumham) for approval. Approval typically takes 5–10 business days. The SK Kemenkumham is the official proof of PT establishment.

Week 5–6: Licensing

OSS-RBA registration: The company registers on the OSS portal and submits the NIB (Nomor Induk Berusaha) application. The NIB is both the business registration number and the import-export license for eligible entities. It is issued within 1–3 business days for standard risk-level activities.

KBLI-specific business license: For medium-high and high-risk KBLI activities, additional sector licenses are required (e.g., SIUP for trading, sector-specific permits from OJK, BKPM, etc.). Timeline varies by sector.

Week 7–8: Regulatory enrollment

NPWP registration: Tax identification number registration at the local KPP (Tax Service Office). Required within 30 days of commencement of business activity. The NPWP is a pre-requisite for all tax filings and banking.

PKP status: VAT-able Entrepreneur (Pengusaha Kena Pajak) status must be applied for before issuing VAT invoices. PKP is required for entities whose taxable supplies exceed IDR 4.8 billion per year, but may be applied for voluntarily earlier.

BPJS enrollment: BPJS Ketenagakerjaan (4 programs: JKK, JKM, JHT, JP) and BPJS Kesehatan must be registered within 30 days of the first employee commencing work. Contributions are calculated on gross salary.

Bank account opening: Corporate bank account opening requires the SK Kemenkumham, NIB, NPWP, and director's identification. Allow 1–2 weeks for banking procedures.