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Updated: December 2025
How to Register a Company in Indonesia: Complete Roadmap for Foreign Investors—From PT PMA Requirements to OSS-RBA Online Registration.
Indonesia's business registration framework has fundamentally transformed in 2024–2025, creating unprecedented opportunities for foreign investors. This comprehensive guide answers the most pressing questions foreign entrepreneurs ask: Can foreigners register a company in Indonesia? Yes—and it's now cheaper and faster than ever before. The minimum paid-up capital for PT PMA has dropped 75% (from IDR 10 billion to IDR 2.5 billion as of October 2, 2025), making Indonesia one of Southeast Asia's most accessible markets for foreign direct investment.
With USD 16.65 billion in foreign direct investment in 2024 and government investment realization reaching IDR 1,714.2 trillion (20.8% year-on-year growth)—according to the Ministry of Investment (BKPM) official press release—investor confidence remains strong. The streamlined OSS RBA (Online Single Submission Risk-Based Approach) system now handles company registration in 4–6 weeks standard, with expedited options available in 2–3 weeks. Over 200 business sectors are now open to 100% foreign ownership, with an additional 51 sectors available through partnerships with local cooperatives or SMEs.
Whether you're asking "What are PT PMA Indonesia requirements 2024?" or "Can I start an Indonesian company without living there?"—this guide provides verified, step-by-step answers grounded in current regulations and real-world costs.
Before establishing your business, you must understand the fundamental difference between a PT PMA (Foreign-Invested Limited Liability Company) and a PT (Local Limited Liability Company), as this choice determines your capital requirements, ownership structure, and market access.
Question:Can foreigners register a company in Indonesia?Answer: Yes, exclusively through the PT PMA structure.
What is PT PMA? A PT PMA is a limited liability company registered under Indonesian law with foreign shareholder participation. It's the only legal vehicle through which foreign investors can establish a business in Indonesia, as mandated by Law No. 25 of 2007 on Investment.
As of October 2, 2025, the Ministry of Investment (BKPM) issued Regulation No. 5 of 2025, fundamentally changing the minimum paid-up capital for PT PMA Indonesia:
| Capital Metric | Previous Requirement | NEW Requirement (2025) | USD Equivalent | Change |
|---|---|---|---|---|
| Minimum Paid-Up Capital (Current Year) | IDR 10 billion | IDR 2.5 billion | ~USD 150,000 | ↓75% reduction |
| Investment Plan (Total Commitment) | IDR 10 billion | IDR 10 billion (unchanged) | ~USD 650,000 | No change |
| Capital Hold Period | Not specified | 12 months mandatory | — | Newly clarified |
| Permissible Deductions | N/A | Working capital / investment expenses | — | New allowance |
Why This Matters: The 75% reduction in minimum paid-up capital for PT PMA Indonesia addresses a critical barrier that previously deterred startups and SMEs. The BKPM explicitly acknowledged that the IDR 10 billion requirement was disproportionate for service-based businesses, tech startups, and trading companies. The new rule aligns capital requirements with the OSS Risk-Based Approach philosophy: licensing is now based on operational risk, not arbitrary financial thresholds.
Yes. Under the current Positive Investment List (Presidential Regulation No. 10 of 2021, as amended), 100% foreign ownership companies in Indonesia are now permitted in over 200 business sectors, including:
Does it matter where your business is located? Yes and no. Whether you're registering in Jakarta, Surabaya, or Bali, the national regulatory framework is identical. However, each province has specific requirements for virtual office registration and some sectoral licensing. More on this below.
| Factor | PT Local (Biasa) | PT PMA (Foreign) | Which Should You Choose? |
|---|---|---|---|
| Foreign ownership allowed | No (0%) | Yes (up to 100%) | PT PMA if you're foreign |
| Minimum capital requirement | IDR 1–2 billion | IDR 2.5 billion (paid-up) | PT PMA costs slightly more |
| Sector restrictions | None | ~200 sectors open, 51 with partnership | Depends on your business |
| Capital hold period | Flexible | 12 months required | PT PMA is stricter |
| Registration timeline | 4–6 weeks | 4–6 weeks standard, 2–3 weeks expedited | Same |
| Tax obligations | Same as PT PMA | Same as PT Local | Identical |
| Example use case | Indonesian co-founder business | Foreign investor in tech, trading, consulting | — |
Under Law No. 25 of 2007 on Investment (Indonesia's foundational investment law), a foreign investor is defined as:
All foreign investment in Indonesia must be conducted through a Limited Liability Company (PT) incorporated and domiciled in Indonesia. There is no alternative legal structure for foreign investors—not even a branch office or representative office can conduct business operations.
Question:Are there business sectors foreigners cannot operate in?Yes.
Indonesia uses a unique regulatory approach: the Positive Investment List (instead of a Negative List). This means only sectors explicitly listed are open to foreign investment; all others are closed by default.
Understanding the Positive Investment List (PR 10/2021):
The current Positive Investment List (PR 10/2021) - available through BKPM categorizes business sectors into four tiers:
| Tier | Sectors | Foreign Ownership | Examples |
|---|---|---|---|
| Open 100% Foreign | 200+ | 100% | Tech, consulting, e-commerce, telecom |
| Open with MSME Partnership | 51 | 100% (with local partner) | Select manufacturing, retail |
| Reserved for Cooperatives/MSMEs | 112 | 0% foreign | Small-scale agriculture, retail |
| Closed/Strategic Sectors | — | 0% | Defense, certain media, nuclear energy |
How to verify if YOUR sector is open: Use the BKPM's official OSS Portal (https://oss.go.id/) to access the KBLI (Indonesian Standard Business Classification) database. Search your 5-digit industry code to confirm your sector's classification and any partnership requirements.
Question:Can I start an Indonesian company without living there?Yes. You can own shares and hold a director position without a physical presence. However, if you will actively manage the business day-to-day, obtain an Investor KITAS Indonesia requirements documentation. Many foreign business owners designate a local director for compliance purposes.
Indonesia requires a commercial office or officially registered domicile address. Residential addresses are prohibited in most zones, particularly in Jakarta, Surabaya, and Bandung.
What's a Virtual Office? A virtual office for company registration Jakarta (and other cities) provides:
Virtual offices are widely used and fully compliant. Ensure the provider delivers a properly notarized domicile letter; without it, your registration will be rejected.
Every PT must declare 5-digit KBLI codes (Klasifikasi Baku Lapangan Usaha—Indonesian Standard Industrial Classification). This code determines:
Common Mistake: Selecting an incorrect KBLI code Indonesia 2020 list entry. Consequences include license rejection, operating restrictions, or inability to secure required sectoral permits. Before registering, verify your KBLI code with a legal consultant.
The OSS RBA (Online Single Submission Risk-Based Approach) system, implemented via Government Regulation No. 28 of 2025 (effective June 5, 2025), streamlines company registration through an integrated digital platform managed by the Ministry of Investment (BKPM).
The OSS RBA system Indonesia guide: OSS is a single online portal where you apply for company registration, business identification, and operational licenses simultaneously. The "RBA" (Risk-Based Approach) means your licensing requirements depend on your business's operational risk level, not bureaucratic categories. Access the official OSS portal at https://oss.go.id/ to begin your registration.
OSS 2025 Updates:
Question:What is the Indonesia company registration timeline? Here's the actual step-by-step:
| Step | Activity | Days | Cumulative | Responsible Party |
|---|---|---|---|---|
| 1 | Name approval via AHU Online (https://ahu.go.id/) | 1 | 1 day | You/Notary |
| 2 | Document prep (articles, capital statements) | 2–3 | 3–4 days | Legal consultant/Notary |
| 3 | Notarization: Making a Deed of Establishment Indonesia | 3–5 | 6–9 days | Licensed notary |
| 4 | Ministry of Law & HR approval (SK Kemenkumham) | 1–2 | 7–11 days | Notary submits |
| 5 | NPWP tax registration | 1–3 | 8–14 days | Tax office |
| 6 | OSS RBA NIB registration + business license | 4–8 | 12–22 days | BKPM/OSS portal |
| STANDARD TOTAL | — | 4–6 weeks | — | |
| EXPEDITED (with consultancy) | — | 2–3 weeks | Professional support | |
| HIGH-RISK SECTOR | + permits | 8–12 weeks | Multiple agencies |
Your first action: Reserve your company name through the Ministry of Law and Human Rights (AHU Online) at https://ahu.go.id/
Name Requirements:
Process:
The Deed of Establishment is the foundational legal document. It must be drafted and notarized by a licensed Indonesian notary (foreign notaries are not recognized).
What the Deed Must Include:
Notary Fees for Making a Deed of Establishment Indonesia:
| Capital Range | Notary Fee |
|---|---|
| Up to IDR 25 million | IDR 500,000 |
| IDR 25–500 million | IDR 2,000,000 |
| IDR 500 million–1 billion | IDR 4,000,000 |
| IDR 1–10 billion+ | IDR 4,000,000+ |
Notary meeting: typically 3–5 days to complete.
After notarization, your notary submits the Deed to Kemenkumham for approval. Upon approval, you receive a SK (Surat Keputusan — Government Decree).
This is the critical moment: Your company legally exists as a distinct entity with registered shareholders and board members.
Processing time: 1–2 days
Government fees:
Submit a NPWP application at your local tax office or online via the Indonesian Tax Service website (https://www.pajak.go.id/)
Documents needed:
Processing:Same-day issuance (free); physical card arrives in 1–3 days
Your NPWP is mandatory for:
Now register on the official OSS portal (https://oss.go.id/) managed by the Ministry of Investment (BKPM). You will receive a NIB (Nomor Induk Berusaha — Business Identification Number).
What is the NIB registration Indonesia? The NIB (Business Identification Number) is a single unified registration number that serves as:
OSS RBA Processing (as of June 5, 2025):
Your application is automatically assessed into one of four risk categories:
| Risk Level | Processing Time | Approval Type | Sector Examples |
|---|---|---|---|
| Low Risk | 1–3 days | Automatic | Consulting, software, trading |
| Medium-Low Risk | 5–7 days | Technical review | General manufacturing |
| Medium-High Risk | 10–15 days | Environmental + technical | Food processing, light chemicals |
| High Risk | 20–30 days | Full sectoral review | Pharmaceuticals, mining, finance |
Important Note: Even "low-risk" automatic approvals remain subject to post-approval audits. BKPM reserves the right to verify compliance and may revoke licenses if violations are discovered.
Your business license type depends on your risk classification:
Question:What is the cost of incorporating a company in Indonesia? Here's the transparent breakdown:
| Fee Item | Amount (IDR) | USD Equivalent |
|---|---|---|
| Company name reservation (AHU Online) | 100,000 | ~$6 |
| PNBP legal services validation | 500,000 | ~$30 |
| Gazette publication & registration | 430,000 | ~$27 |
| NPWP issuance | 0 (free) | — |
| OSS-RBA NIB issuance | 0 (free) | — |
| Total Government Fees | ~1–1.5 million | ~$60–90 |
You technically can handle some steps yourself, but this isn't recommended:
| Expense | Estimated Cost (IDR) | Annual? | Notes |
|---|---|---|---|
| Virtual office/registered address | 2–5 million | Yes | Covers notarized domicile letter + mail service |
| Corporate bank account | 500,000–2 million | No | One-time setup; some banks waive |
| Company seal & official documents | 500,000–1 million | No | Required for official transactions |
| Accountant (tax filing, LKPM reports) | 5–15 million | Yes | Quarterly LKPM filing + monthly tax compliance |
| Investor KITAS (if foreign director in Indonesia) | 5–10 million | Yes | Per expatriate, covers visa & permits |
| Compliance audit fee | 2–5 million | As needed | For regulatory compliance review |
Important: Your company must file tax returns even in the first year, even with zero income. Reference the Indonesian Tax Service for current rates.
Penalty for late filing: 2% per month (up to 24% per year)
| Category | Cost (IDR) | Cost (USD) |
|---|---|---|
| Government fees | 1–1.5 million | ~$90 |
| Professional services | 25–60 million | $1,600–4,000 |
| Minimum paid-up capital (required in bank) | 2,500,000,000 | $150,000 |
| Virtual office (annual) | 2–5 million | $120–300 |
| Accountant (annual) | 5–15 million | $300–900 |
| SUBTOTAL (Setup + First Year) | 2,533–2,581 million | ~$152,000–155,000 |
Note: This assumes low-risk business. High-risk sectors (pharmaceuticals, mining, financial services) add IDR 10–50 million+ for sectoral permits.
This comprehensive overhaul of the OSS RBA system Indonesia guide introduces key changes. For official details, visit the BKPM website:
What Changed:
Migration Requirement: All companies registered under the previous OSS 1.1 system must migrate to GR 28/2025 by October 5, 2025. Failure to update your company profile may result in your license being classified as invalid. Access the OSS portal to complete your migration.
The Game-Changing Capital Reduction:
This regulation fundamentally alters PT PMA Indonesia requirements 2024–2025 by reducing the minimum paid-up capital for PT PMA Indonesia from IDR 10 billion to IDR 2.5 billion—a 75% reduction. For official details and updates, consult the BKPM:
Key Provisions:
Why This Matters: The BKPM explicitly stated this reduction removes barriers for startups, SMEs, and service-based businesses. The new structure aligns with OSS Risk-Based Approach philosophy—regulation based on operational risk, not arbitrary capital thresholds.
The numbers prove investor confidence: According to the official BKPM press release:
| Source Region/Country | FDI Amount (USD) | % of Total |
|---|---|---|
| Asia (Regional Total) | $48.56 billion | 73% |
| Singapore (largest single source) | $20.07 billion | — |
| Hong Kong | $8.21 billion | — |
| China | $8.10 billion | — |
| Europe | $4.59 billion | — |
| United States | $3.69 billion | — |
This geographic distribution confirms that 100% foreign ownership companies in Indonesia attract both Asian and Western capital.
How does the Omnibus Law affect foreign investors in Indonesia? The Job Creation Law (Law No. 11 of 2020) — informally called the "Omnibus Law" — fundamentally liberalized Indonesia's investment framework. Key impacts:
Question:What's the difference between PT vs CV Indonesia?
| Factor | PT (Limited Liability) | CV (Commanditaire Vennootschap) | KPPA (Representative Office) |
|---|---|---|---|
| Legal entity type | Limited liability company | Partnership (general/limited partners) | Non-independent branch |
| Foreign ownership | Allowed (PT PMA structure) | Not typically used for foreign investors | Not allowed (cannot be foreign-owned) |
| Minimum capital | IDR 2.5 billion (PT PMA) | Minimal/flexible | N/A |
| Liability | Shareholders protected by liability cap | General partners have unlimited liability | Parent company liable |
| Tax rate | 21% corporate tax | Partnership pass-through (partners taxed) | Same as parent company |
| Best for | Foreign investors, startups, corporations | Indonesian partnerships only | Temporary market exploration |
| Common use case | Tech companies, trading, consulting | Indonesian family businesses | Market research / liaison office |
Foreign investors should always use PT PMA, not CV or KPPA.
Question:What is the difference between a Representative Office and a PT PMA?
| Aspect | KPPA (Representative Office) | PT PMA (Limited Liability Company) |
|---|---|---|
| Primary function | Market research, liaison, non-revenue activities | Active business operations, revenue generation |
| Legal authority | Cannot sign contracts independently | Can sign contracts, own property, hire employees |
| Foreign ownership | 0% (subsidiary of foreign parent only) | 100% permitted |
| Revenue activities | Prohibited | Permitted |
| Capital requirement | None (funded by parent) | IDR 2.5 billion paid-up capital |
| When to use | Temporary market exploration (1–2 years) | Permanent business establishment |
| Conversion to PT PMA | Must close KPPA and register new PT PMA | N/A |
Most foreign investors skip the KPPA stage and register PT PMA directly.
Question:Can I buy a shelf company in Indonesia? Yes, but should you?
Recommendation: Register a new PT PMA through a qualified consultant. The 4–6 week timeline and transparency benefits outweigh shelf company shortcuts.
Question:Is it illegal to use a local nominee for my Indonesian company?
Answer: Yes, absolutely. The practice of using a "nominee shareholder agreement Indonesia" — where you own shares but a local person holds them "for and on behalf" of you—is explicitly prohibited and legally invalid under Law No. 25 of 2007 on Investment.
Why it's dangerous:
The legal alternative: Own shares directly in your own name as a foreign shareholder. This is fully permitted.
The Issue: Selecting an incorrect KBLI code Indonesia 2020 list entry.
Consequences:
Solution (5-Step Process):
What you must do:
Consequences of non-migration: License classified as invalid; potential NIB suspension.
Question:Do I really need to file quarterly LKPM reports?
Answer: Yes. Even if you haven't deployed the full IDR 10 billion investment plan, quarterly LKPM (Laporan Kegiatan Penanaman Modal — Investment Activity Report) filing is mandatory through the BKPM system.
Consequences of non-filing:
Filing deadlines: March 31, June 30, September 30, December 31
The Issue: Many new company owners underestimate Indonesia's tax filing requirements.
Mandatory obligations:
Penalties for non-compliance:
Solution: Hire a local accountant specializing in corporate tax (cost: IDR 5–15 million annually).
If you plan to personally manage your company in Indonesia:
You must obtain:
If you don't plan to reside in Indonesia: You can own and hold board positions remotely, and don't need KITAS.
Not as easy as it sounds. Major banks (BCA, Mandiri, BRI) require:
Timeline: 1–2 weeks
Cost: IDR 500,000–2 million setup fee (some banks waive)
For a hypothetical tech consulting company establishing a PT PMA in Jakarta:
| Timeline | Activity | Days | Cumulative | Status |
|---|---|---|---|---|
| Week 1 | Name approval via AHU Online | 1 | 1 day | ✓ Name reserved |
| Week 1 | Document preparation (articles, capital statement) | 2–3 | 3–4 days | ✓ Documents ready |
| Week 2 | Notary meeting; Deed of Establishment drafted | 3–5 | 6–9 days | ✓ Deed notarized |
| Week 2 | Notary submits to Kemenkumham; receive SK | 1–2 | 7–11 days | ✓ Company legally exists |
| Week 3 | NPWP registration at tax office | 1–3 | 8–14 days | ✓ Tax ID issued |
| Week 3–4 | OSS portal registration + NIB application | 4–8 | 12–22 days | ✓ Business license issued |
| Week 4–5 | Optional: Sector-specific permits (if required) | Varies | +0–30 days | ✓ Ready to operate |
| TOTAL (Standard) | — | 4–6 weeks | OPERATIONAL | |
| TOTAL (Expedited with consultancy) | — | 2–3 weeks | OPERATIONAL |
A: Yes, exclusively through the PT PMA structure (foreign-invested limited liability company). This is the only legal vehicle for foreign investors under Law No. 25 of 2007. Foreigners cannot register a Local PT (which requires 100% Indonesian ownership).
A: Not necessarily. The Positive Investment List categorizes sectors as:
Verify your specific business sector on the BKPM website to confirm whether a local partner is required.
A: Yes, absolutely illegal. Any nominee shareholder agreement Indonesia where you own shares but a local person holds them "for and on behalf" of you violates Article 10(1) of Law No. 25 of 2007. Such agreements are legally invalid, and you risk:
The legal option: Own shares directly in your name as a foreign shareholder—this is fully permitted.
A: Yes. You can:
However, if you will physically manage the company day-to-day, obtain an Investor KITAS Indonesia requirements documentation. Many foreign owners designate a local director for day-to-day management.
A: The Job Creation Law (Law No. 11 of 2020) — the "Omnibus Law" — fundamentally opened Indonesia's economy:
Bottom line: The Omnibus Law made Indonesia more competitive and accessible for foreign investors.
A:
Foreign investors typically skip the KPPA stage and register PT PMA directly via the OSS portal.
A: As of October 2, 2025, under BKPM Regulation No. 5 of 2025 (available through the BKPM website):
This represents a major shift in making Indonesia more accessible to startups and SMEs.
A:
Additional costs apply if you require sector-specific permits or expatriate visas.
A: The OSS RBA (Online Single Submission Risk-Based Approach) is Indonesia's unified digital platform for business registration. Access it at https://oss.go.id/. Launched via GR 28/2025 (June 5, 2025):
You apply once; the system coordinates all approvals simultaneously.
For official information and support, contact these government agencies directly:
Indonesia presents unprecedented opportunities for foreign investors in 2025. The convergence of three major transformations—the 75% capital reduction (BKPM Reg 5/2025), the expanded OSS-RBA system (GR 28/2025), and the Omnibus Law's continued sector liberalization—creates a historically favorable environment.
The data supports this assessment:
Whether you're:
The answer is now clearer and more achievable than ever: Yes.
The regulatory framework is transparent, the timeline is realistic, and the government has demonstrated commitment to attracting foreign capital through continuous modernization. The OSS RBA system, the Positive Investment List, and the reduced capital requirements collectively represent a genuine shift toward investor-friendly policies.
Take action today. Access the OSS portal or contact the BKPM to begin your registration. The 4–6 week registration timeline means you can establish a PT PMA and begin operations within a month and a half. With minimum paid-up capital now at IDR 2.5 billion (USD 150,000), Indonesia is accessible to startups and SMEs that previously faced the IDR 10 billion barrier.
Your Indonesian expansion starts now.
Disclaimer: This guide is for informational purposes and does not constitute legal advice. Indonesian regulations are subject to change. For the most current information, consult:
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