Setting up a PT PMA: what to decide before you incorporate

A PT PMA is an Indonesian limited liability company with foreign shareholders. For most foreign investors it is the vehicle that makes owning and operating a business in Indonesia possible. Incorporation itself is a defined process. The harder part comes before it: a handful of decisions that are difficult to change once the deed is signed.

1. Your business lines (KBLI)

Every PT PMA registers one or more business activities using Indonesia's standard industrial classification, known as KBLI. The codes you choose decide which licences you need, whether foreign ownership is allowed and at what percentage, and how much investment the authorities expect.

Choose codes that describe what the company will actually do in its first years, not every activity it might one day pursue. Each additional code can add licensing and reporting work. A code that does not match your real activity can cause problems with licences, banks and tax registration later.

2. Foreign ownership limits

Indonesia's investment framework opens most sectors to full foreign ownership, but some activities remain capped, reserved for local businesses, or tied to partnership requirements. Check the ownership rules for each KBLI code before you agree a shareholder structure with partners.

3. Capital and investment value

Two figures matter, and they are often confused:

• Investment value: the total planned investment, which regulators generally expect to exceed IDR 10 billion per KBLI code per project location, excluding land and buildings.
• Issued and paid-up capital: the money actually placed into the company. Under BKPM Regulation No. 5 of 2025, the minimum was reduced to IDR 2.5 billion for new PT PMA companies.

The paid-up capital is not a fee. It stays in the company and is used for its business, though rules restrict moving it out of the company's account for a period after it is injected. Confirm the current figures for your sector before you plan cash flows, as thresholds and their interpretation change.

4. Who holds the shares, and in whose name

A PT PMA needs at least two shareholders. If you plan to live in Indonesia as an investor, how shares are held also matters for immigration: the investor stay permit looks at the shareholding registered in your own name. Settle this together with your visa plan, not after it.

5. Directors and commissioners

The company needs at least one director and one commissioner. Directors who are foreign nationals need the right stay and work authorisation. Decide early who will manage the company day to day and whether they will be based in Indonesia.

6. A registered address

A PT PMA needs a registered business address that matches its zoning and activities. A virtual or serviced office can be suitable for some business lines but not others.

What comes after the deed

Incorporation is followed by registration in the OSS system, a business identification number (NIB), tax registration, any sector licences, and recurring obligations such as quarterly investment reports (LKPM). Planning these at the start avoids a company that exists on paper but cannot yet operate.

Where to start

Write down what the company will do in its first two years, who will own it, who will run it, and where. With those answers, the KBLI codes, capital and permits can be mapped in one plan. That is the work we do in a first consultation. See our Legal & Corporate services and the Ready to Enter package on the services page.