Questions investors ask first
Setting up a company
Can a foreigner own 100% of a company in Indonesia?
In many sectors, yes. A PT PMA can be fully foreign-owned when its business lines (KBLI codes) are open to foreign investment. Some activities are capped, reserved for local businesses or require a local partner, so the ownership limit is checked code by code before incorporation.
What is the minimum capital for a PT PMA?
Under BKPM Regulation No. 5 of 2025, the minimum issued and paid-up capital for a new PT PMA is IDR 2.5 billion. The total planned investment is generally expected to exceed IDR 10 billion per business line per location, excluding land and buildings. Paid-up capital is not a fee: it stays in the company for its business.
How much does it cost to set up a company in Indonesia?
Our PT PMA incorporation fee starts at US$1,610 (IDR 29,250,000). Notary and government charges, and your capital commitment, are separate and set out in your written proposal. The Ready to Enter package combines incorporation, a registered office for one year, a two-year investor KITAS and agreement drafting for US$3,380 (IDR 61,500,000).
How long does it take to set up a PT PMA?
Incorporation and the business identification number (NIB) usually take a few weeks once documents and decisions are ready. Sector licences, the bank account and stay permits can add further weeks. Your written scope includes a timeline for your case.
Do I need an Indonesian partner or director?
Not in sectors open to full foreign ownership. A PT PMA needs at least two shareholders, which can be individuals or companies, plus at least one director and one commissioner. Foreign directors who live in Indonesia need the right stay and work permits.
Can an Indonesian nominee hold shares for me?
No. Nominee arrangements, where an Indonesian holds shares or land on a foreigner's behalf, are not legally recognised and leave the foreign party with little protection. A properly structured PT PMA is the legitimate route.
Can I use a virtual office as the registered address?
For many service and trading activities, yes. Activities that need physical premises, such as manufacturing or warehousing, need an address that matches the activity and its zoning.
What is the difference between a PT PMA and a representative office?
A representative office (KPPA) can promote, research and coordinate for its foreign parent company but cannot earn revenue in Indonesia. A PT PMA is a full operating company that can trade, invoice and hold business licences. Some investors start with a representative office to test the market.
Visas and stay permits
Which visa do I need to visit Indonesia for business before investing?
For meetings, site visits and market surveys before you invest, the D12 pre-investment visa allows multiple entries over one or two years. It does not allow you to work in Indonesia.
What is the difference between an investor KITAS and a working KITAS?
The investor KITAS (E28A) is for shareholders whose personal shareholding meets the immigration threshold, which practitioners report as IDR 10 billion in shares held in your own name. The working KITAS (E23) is for foreign employees, including directors, and requires the company to hold approval to employ a foreign worker for the position.
How long does a KITAS take?
Usually several weeks from a complete application, including an in-person photo and interview session at an immigration office. A working KITAS also depends on the work permit approval. We confirm the timeline when we scope your case.
Can my family join me in Indonesia?
Yes. Spouses, children and parents can apply for dependent KITAS sponsored through the main permit holder. Their permits follow the main permit, so renewals are planned together.
Tax and compliance
What is the corporate tax rate in Indonesia?
The standard corporate income tax rate is 22%. Companies also handle VAT, withholding taxes on payments such as salaries, services and dividends, and monthly reporting. Incentives and reduced rates apply in some cases.
What does a PT PMA have to report?
Monthly tax payments and returns, an annual corporate income tax return, investment activity reports (LKPM) through the OSS system, an annual general meeting to approve the financial statements, and monthly BPJS contributions for employees.
Does a PT PMA have to report even with no activity?
Generally yes. LKPM reports and tax returns are expected even in quarters with little or no activity, and missed LKPM reports can lead to warnings, suspension and ultimately revocation of the business identification number.
Property and land
Can foreigners buy property in Indonesia?
Foreigners cannot hold freehold title (Hak Milik). A foreign individual with a valid stay permit can hold a house or apartment under a right of use (Hak Pakai), subject to a regional minimum price. A PT PMA can hold land under a right to build (HGB) for its business. Long leases are a third option.
Can my company buy land for an office, warehouse or factory?
A PT PMA can hold land under HGB for its business use. Many manufacturing activities must be located in an industrial estate, where land rights come through the estate operator. Zoning, building permits and the underlying title should be checked before you commit.
Market entry
How do you find and check a local partner?
We identify candidates for your sector, check their company registration and background, and help you assess fit before introductions turn into commitments.
How is market research priced?
Market research and partner search are quoted per project at a special rate, because the work depends on your sector, questions and locations. We quote after a discovery conversation.
Working with Bridgepoint
Are the fees on this site final?
They are starting fees for a standard scope. Your final fee, deliverables, timeline and exclusions are agreed in writing before any work begins. Fees are invoiced in IDR; USD amounts are indicative.
Who carries out the legal, tax and immigration work?
The founder leads and coordinates every engagement. Where specialist execution is needed, suitable external providers are engaged within the agreed scope, and you keep one point of contact throughout.
Can I work with you before I arrive in Indonesia?
Yes. Bridgepoint works remotely, so discovery, research and structuring can start while you are still abroad.
Start with the right questions.
If you are evaluating Indonesia, preparing to enter, or reviewing your advisory needs, we welcome a conversation about your objectives.
