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.
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.