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