Foreign Business Ownership in Indonesia: Can Non-Residents Hold Company Shares?

Yes. A foreign individual who lives outside Indonesia may hold shares in an Indonesian PT PMA. The investor’s residence does not by itself bar ownership. The business activity, foreign ownership limit, shareholder documents, and any plans to live or work in Indonesia need separate checks.

Non-Residents May Own PT PMA Shares

Indonesia’s Directorate General of General Legal Administration, or AHU, confirms that foreign citizens and foreign legal entities may become shareholders in a PT. A company with foreign shareholding is treated as a PT PMA under the applicable investment rules.

Investment Ministry/BKPM Regulation No. 5 of 2025 identifies a foreign individual through a valid passport. It addresses foreign corporate shareholders through their incorporation documents, subject to the applicable legalization or apostille requirements.

The company itself must be established under Indonesian law and domiciled in Indonesia. Shareholder residence is a different issue from the company’s legal address and operating site. See the PT PMA definition and requirements for the entity framework.

Also Read: Guide to PT Shares: Classification, Distribution, and Related Regulations

Check Foreign Ownership Limits by Business Activity

Presidential Regulation No. 10 of 2021, amended by No. 49 of 2021, sets the investment field framework. Some activities allow full foreign ownership. Others impose conditions or caps, and sector regulations may add their own requirements.

List the products and services the company will actually sell. Match each activity to its KBLI code in OSS before setting the share percentages in the deed. The KBLI single majority guide explains one kind of ownership restriction.

Once the activities and ownership structure are clear, InvestinAsia’s PT PMA registration service describes notarial, company approval, tax registration, and OSS support. Request a written scope for the ownership review and overseas shareholder documents.

Share Ownership Does Not Grant Residence Rights

A shareholder may remain abroad. If that person intends to live in Indonesia or perform work here, review the visa and residence category against the intended duties. Indonesia’s immigration authority sets separate conditions for investor visas; being named in the share register does not satisfy them automatically.

An individual PT, or PT Perorangan, is not a shortcut for a sole foreign founder. That route is reserved for eligible Indonesian citizens running micro or small businesses. The individual PT eligibility guide covers that structure, while the PT founder guide compares who may establish a company.

Prepare Documents for Remote Incorporation

BKPM’s incorporation guidance says founders who cannot sign in Indonesia may use a power of attorney. Supporting documents may need legalization or an apostille. Ask the Indonesian notary to confirm the document form before arranging signatures overseas.

1. Identify each individual or corporate shareholder and collect identity documents.
2. List the main and supporting activities, then review every KBLI and sector condition.
3. Agree on share percentages, directors, commissioners, and deed signing authority.
4. Check the registered address against the intended operating locations.
5. Assess visa or work requirements only for people who will enter and carry out activities in Indonesia.

A registered address may not replace a warehouse, factory, or licensed service site. The PT PMA virtual office guide discusses address planning. The PT PMA establishment procedure outlines the steps, although figures and older instructions should be checked against current official rules.

Ask for a proposal that separates incorporation, sector permits, premises, and immigration work. That scope also clarifies what the company must arrange after it receives its NIB.