Incorporating a PT PMA Company in Indonesia for Foreigners.

When starting a business in Indonesia, it's important to understand the different types of business entities. One popular option is the PT PMA company. PT refers to Perserona Terbatas, a private company in Indonesia that can be a local or foreign limited liability company. PMA stands for Penanaman Modal Asing, a choice for foreign companies wanting to do business in Indonesia.

Popularity of PT PMA Company as a Business Entity.

The advantage of setting up an Indonesian PT PMA company is that it is the preferred legal form for foreign businesses to operate and earn income in Indonesia. However, the drawback is that due to its global market status, the required start-up capital is high and not all business sectors are eligible. An initial investment of 700,000 USD is necessary with an estimated 10-week incorporation period, which may vary on a case-by-case basis.

While a minimum investment of IDR 10 billion is stated, this refers to the total investment over 5 years of operation, not just at the time of incorporation. The start-up capital requirement is not necessarily the full IDR 10 billion.

The limitation of PT PMA company registration in Indonesia is that foreign ownership is restricted in some business sectors.

What is Required for Setting Up a PT PMA Company in Indonesia ?

To establish a PT PMA company in Indonesia, typically the following documents are required :


Documents Required for PT PMA Company Incorporation

These are the required documents for incorporating a PT PMA company in Indonesia :

  • Power of Attorney signed by each shareholder
  • Shareholder documents
  • Rental agreement between the company and the building management
  • Building confirmation from the building management agency
  • Building & land tax receipt (PBB) with current year payment approval
  • IMB or certificate of ownership if the building is owned
  • Lease statement (if any)
  • At least 3 office photos: reception, company signage, and office room with business activity
  • Company domicile statement acknowledged by the building management
  • Company letterhead and a copy or sample design of the company stamp.


Documents Required from Shareholders

Documents are required :

  • Article of Association and amendments (in English or Bahasa Indonesia)
  • Business registration certificate
  • Board of Directors structure


Director & Commissioner Personal Documents

Documents are required :

  • Foreigner: Colored Passport with 18+ months validity and 4 blank pages
  • Local: ID card (KTP & Tax ID)
  • Family card (KK)
  • Indonesian visa stamp
  • Director's Hotel or Apartment Residence Letter
  • Recent passport-sized photo with red background for each Director.

Requirements for shareholder documents vary depending on whether the shareholder is a foreign national, local resident, or personal foreigner.

Types of Business Entities
Overseas Legal Entity
Indonesian Legal Entity
Individual with Foreign Citizenship

Shareholder Papers

  • Copy of Article of Association and its amendment (English or Bahasa Indonesia)
  • Business registration certificate
  • Board of Directors structure

Shareholder Papers

  • Article of Association and its amendment
  • Business registration certificate
  • Board of Directors structure
  • Company taxpayer ID number (NPWP)
  • Domicile letter from sub-district (Dominisili Kelurahan)
  • Business license (SIUP/NIB)
  • Company registration certificate (TDP/NIB)
  • ID card (KTP) & NPWP for each Board of Director
  • Passport for foreign Board of Director

Shareholder Papers

  • Copy of passport with 18 months validity and 4 blank pages in color.

Stages for Setting Up a PT PMA Company

The steps to establish a PT PMA Company in Indonesia involve obtaining various documents from multiple institutions and can be summarized as follows Simplified procedure for setting up a PT PMA company in Indonesia :
Steps involved in the process. Organization
Approval of company name with 3 words. Ministry of Law and Human Rights.
Review, Revision, and Approval of Temporary Principle License. BKPM
Company Constitution (AKTA) Notary Public
Legalizing the Legal Entity (Establishment Deed/Judicial Decree) Ministry of Law and Human Rights

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