PT PMA Registration

To register a business in Indonesia as a foreigner, you would typically need to establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) company. This type of company is specifically designed for foreign investors seeking to conduct business activities in Indonesia. The PT PMA license is suitable for projects of any size, providing a legal framework for foreign investment.

Foreign investors can engage in PT PMA registration to establish new companies or acquire existing local companies. The registration process enables them to operate in various sectors, including manufacturing, services, trading, construction, agriculture, and many others, depending on the prevailing investment regulations and restrictions.

It is important to note that PT PMA registration is subject to specific eligibility criteria, including minimum capital requirements, sector-specific regulations, and compliance with foreign ownership restrictions. The process involves various steps, such as obtaining licenses and permits, and fulfilling administrative requirements, all of which are overseen by the Investment Coordinating Board (BKPM) in Indonesia.

The C22A/C22B visa is a single-entry visa, meaning that if you leave Indonesia, your visa will be canceled.

With PT PMA, foreign investors are permitted to establish businesses in a wide range of sectors, providing them with the option of holding majority or full ownership, contingent upon the specific industry and applicable regulations. This policy grants foreign investors enhanced control and flexibility compared to local PT companies, which are subject to Indonesian ownership restrictions.

• A minimum of two shareholders.
• A company name (consisting of at least three words, with each word being at least three letters long) which does not include the words ‘holdings,’ ‘limited,’ ‘corporation,’ ‘company,’ or ‘ltd.’ 
• Valid passport photos of the shareholders with at least 30 months of validity (if shareholders plan to obtain Investor KITAS).
• The PT PMA shares must have a minimum valuation of IDR 10 billion.
• A company office address, an Indonesian mobile number and a selected business field(s).

Different business classifications in Indonesia have varying regulations to adhere to. For certain industries, such as real estate, events, restaurants, and fitness centers, 100% foreign ownership is permitted. However, in other sectors, a foreign entity must collaborate with an Indonesian investor.

For instance, in the construction industry, a foreign entity can own a maximum of 67-70% of the shares, with the remaining shares held by an Indonesian partner. Should you require further clarification regarding the specific requirements of your industry or whether your chosen business type can be owned entirely by a foreign entity, please do not hesitate to contact us. We would be delighted to provide you with additional information.