Indonesia Company Registration | Set Up a PT PMA Company in Indonesia
Planning Indonesia company registration to set up a company in Indonesia? Foreigners set up a foreign investment limited liability company (PT PMA), registered through the OSS-RBA system of the Ministry of Investment (BKPM) to obtain a business identification number (NIB). Foreign founders can hold shares under the positive investment list, and most sectors are open to 100% foreign ownership, but the company must meet the thresholds of total investment above IDR 10 billion and paid-up capital of at least IDR 2.5 billion.
Indonesia is the largest economy in Southeast Asia and the world’s fourth most populous country. Its large population, natural resources and fast-growing middle class make up a busy domestic market. Corporate income tax is 22%, and VAT (PPN) has a statutory rate of 12% with an effective rate of 11% for general goods and services. NSS Group (戰國策集團) offers a one-stop service for setting up a PT PMA in Indonesia: KBLI business code and foreign ownership assessment, the notarial deed, OSS registration, tax registration, bank account opening and quarterly LKPM reporting.
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Our team supports you at every step so your company registration is completed smoothly.
A simplified registration process gets your company set up quickly so you can act on business opportunities
for your investment?
Indonesia’s appeal to investors comes from its large market and ongoing economic reforms. The government has been investing heavily in infrastructure and has introduced reforms such as the Omnibus Law on Job Creation, which aim to simplify investment procedures, improve the business environment and attract more foreign direct investment.
The digital economy is another strength of the Indonesian market: its e-commerce, fintech and sharing economy sectors are among the fastest growing in the world, which gives room for technology and new business models. As a founding member of ASEAN, Indonesia also lets a factory or operating base serve the wider ASEAN free trade area.
Penanaman Modal Asing
The main way for foreign investors to set up a company in Indonesia is the foreign investment limited liability company (PT Penanaman Modal Asing, or PT PMA). This entity allows foreign shareholders to hold shares and is the most common and best protected way for foreign capital to enter the Indonesian market. Recent reforms have greatly simplified the setup process, which runs mainly through the risk-based business licensing platform (OSS-RBA) of the Online Single Submission (OSS) system.
Indonesia’s regulations and administration have their own particulars, and successful registration depends on getting the details right. With NSS Group’s practical experience and local partner network, we guide you through every step of Indonesia company registration and help you avoid potential risks as you start your business in Indonesia and enter the Southeast Asian market.
Before you apply, confirm whether your business (its 5-digit KBLI business code) is open to foreign investment, the foreign ownership cap and the risk level. Indonesia has replaced the old negative investment list (DNI) with a positive investment list. You also need to plan total investment of more than IDR 10 billion (excluding land and buildings, calculated per KBLI code and per location) and paid-up capital of at least IDR 2.5 billion.
Choose an Indonesian company name (at least three words), which the notary searches and reserves through the Ministry of Law’s AHU system. The deed of establishment (Akta Pendirian) must be drafted and notarized by a local Indonesian notary (Notaris), and the Ministry of Law then issues approval of the legal entity.
This is the core step. You upload all company and investment information to the OSS-RBA system, and once registration is complete the system issues a business identification number (Nomor Induk Berusaha, NIB). The NIB is the company’s identity number and also combines business registration, the importer identification number and customs registration.
OSS-RBA sets the risk level by KBLI business code. Low-risk businesses can operate once they have an NIB; medium-low and medium-high risk businesses also need a standard certificate (Sertifikat Standar); high-risk businesses need a license (Izin) and must complete a review by the relevant ministry or local government for their sector.
After obtaining the NIB and any licenses, the company still needs tax registration (NPWP) and social security registration for employees (BPJS) before it is fully ready to operate. After incorporation, a PT PMA must file an investment activity report (LKPM) through OSS every quarter and file tax returns on time.
service
- Company name search and reservation
- Preparation and filing of registration documents
- Drafting of governing documents
- Collection of the registration certificate
- Indonesian bank account options
- Account opening document preparation
- Appointment booking and accompaniment
- Post-opening support
- Registered address
- Company secretary appointment
- Annual filing services
- Document custody and management
- Bookkeeping
- Tax filing and planning
- Financial statement preparation
- Audit arrangement
- Trademark search and assessment
- Trademark application filing
- Trademark maintenance and renewal
- Infringement protection advice
- Company change filings
- Share transfer support
- Company deregistration
- Legal advisory support
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Good customer service is key to a successful business. We include a free AI customer service system that answers customer questions in real time and raises customer satisfaction.
A professional, attractive website is your company’s storefront online. We offer full web design services so your site looks good and works well.
Online marketing is a key part of business success today. We offer professional online marketing services, including SEO, social media marketing and content marketing.
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- Company name search and registration
- Preparation and filing of registration documents
- Drafting of governing documents
- Registration certificate and company documents
- Registered address service for the first year
Actual costs depend on the company type, share capital structure and any extra services you need. We give you a transparent quote with no hidden fees.
Official thresholds are separate: a PT PMA needs paid-up capital of at least IDR 2.5 billion and total investment of more than IDR 10 billion (excluding land and buildings). Notary fees and sector licenses are charged at cost; see the fee breakdown below.
How much capital do you need to set up a PT PMA in Indonesia? Investment thresholds and fee breakdown
When foreign investors set up a company in Indonesia, the most common entity is the foreign investment limited liability company (PT PMA). A PT PMA is always classed as a large enterprise and must meet both the "total investment" and the "minimum paid-up capital" thresholds set by the Ministry of Investment (BKPM). The main items are listed below so you can check each line when you compare quotes.
| Item | Rule or fee | Notes |
|---|---|---|
| Total investment | More than IDR 10 billion (IDR 10,000,000,000) | Excludes land and buildings, and is calculated per 5-digit KBLI business code and per project location; it can be funded from sources other than share capital. |
| Minimum paid-up capital (modal ditempatkan/disetor) | At least IDR 2.5 billion (IDR 2,500,000,000) per company | Lowered from IDR 10 billion from October 2025; where sector regulations set other rules, those apply. |
| Retention of paid-up capital | Cannot be moved out of the company account for at least 12 months | Except for buying assets, building premises or the company's operating needs. |
| Notarial deed of establishment (Akta Pendirian) | Indonesian notary (Notaris) | Charged by the notary |
| OSS-RBA registration and NIB issuance | Ministry of Investment OSS system | Online application, per official notices |
| Business licenses, standard certificates and office address | Quoted by business risk level and case details; NSS Group gives you a written quote after a free assessment | |
Investment thresholds are based on Articles 26 and 27 of Regulation of the Minister of Investment and Downstreaming/Head of BKPM No. 5 of 2025 (issued October 2, 2025), checked in October 2026. The latest official notices prevail.
Indonesia company tax: 22% corporate income tax and PPN
Indonesian companies are supervised by the Directorate General of Taxes (DJP). After incorporation, a company must obtain a tax identification number (NPWP), register as a taxable entrepreneur (PKP) depending on its size, and file returns on time.
| Item | Rule | Notes |
|---|---|---|
| Corporate income tax (PPh Badan) | 22% | Under Article 17 of the Law on Harmonization of Tax Regulations (UU HPP), for domestic companies; eligible listed companies can reduce it by a further 3 percentage points. |
| VAT (PPN) statutory rate | 12% | In effect from January 1, 2025 under Minister of Finance Regulation PMK 131/2024. |
| Effective PPN rate | 11% for general goods and services, 12% for luxury goods | For non-luxury goods, the tax base is 11/12 of the selling price (DPP nilai lain) multiplied by 12%, giving an effective rate of 11%; certain goods and services with their own rules are excluded. |
| Investment activity report (LKPM) | Quarterly for medium and large enterprises | A PT PMA is a large enterprise and must file the LKPM through OSS every quarter; small enterprises file every six months. |
| Annual filing and bookkeeping | Under DJP rules | Annual corporate income tax return, monthly withholding and PPN returns. |
Tax rates are based on notices from the Indonesian Directorate General of Taxes (pajak.go.id). Ask an Indonesian tax advisor to assess your structure.
PT PMA or representative office? Comparing Indonesian entity types
When foreign companies set up a company in Indonesia, they most often compare the foreign investment limited liability company (PT PMA) with a foreign company representative office (such as a KPPA).
| Item | PT PMA foreign investment company | Foreign company representative office |
|---|---|---|
| Legal status | Indonesian legal entity; shareholders' liability is limited to their capital contribution | Not a separate legal entity; represents the parent company |
| Setup platform | NIB through the OSS-RBA system; the deed is notarized and approved by the Ministry of Law | Apply to the relevant authority for the type of office, through OSS |
| Capital and investment thresholds | Total investment of more than IDR 10 billion and paid-up capital of at least IDR 2.5 billion | No PT PMA capital thresholds |
| Permitted activities | Trade, invoice and collect payments under the registered KBLI business codes | Market research, liaison and promotion; in principle cannot trade or collect payments directly |
| Foreign ownership | Under the positive investment list, 100% foreign ownership is allowed in most sectors | Set up directly by the parent company |
These are general principles. Choose based on your business model, business codes and payment collection needs.
What foreign founders should know about setting up a company in Indonesia
- Check the KBLI code and foreign ownership limits first: Indonesia has replaced the old negative investment list (DNI) with a positive investment list. Each 5-digit KBLI business code has its own foreign ownership cap and risk level, and the risk level decides whether you need only an NIB or also a standard certificate or license.
- Treat the capital thresholds separately: paid-up capital of at least IDR 2.5 billion applies at company level, while total investment of more than IDR 10 billion is calculated per KBLI code and per location. If you run several business codes, plan each one separately.
- Do not miss the quarterly LKPM: a PT PMA must file an investment activity report through OSS every quarter. Failing to file can lead to administrative sanctions that affect the NIB and later licenses.
- Directors and commissioners: a PT must have a board of directors and a board of commissioners. Foreign directors working in Indonesia need a work and residence permit (KITAS).
- Bank accounts: opening an Indonesian bank account usually requires the NIB, NPWP, articles of association and directors' identity documents. Some banks require directors to attend in person, and the paid-up capital must be paid into the company account with records kept.
- Home-country tax and outbound investment: check whether your home country has a double taxation agreement with Indonesia, and handle dividend repatriation and transfer pricing under the treaty and your home-country rules. Also check whether your home country requires approval or a filing for outbound investment.
Further reading
Sources: JDIH BKPM: Regulation of the Minister of Investment and Downstreaming/Head of BKPM No. 5 of 2025; JDIH BKPM: Government Regulation No. 28 of 2025 (risk-based business licensing); OSS Online Single Submission system; pajak.go.id: corporate income tax rates; pajak.go.id: PMK 131/2024 PPN rates. The latest official notices prevail. This page is general information, not legal or tax advice.
How long does Indonesia company registration take?
What documents do I need to set up a company in Indonesia?
To set up a company in Indonesia, you usually prepare the following:
- 1. Identity documents for shareholders, directors and ultimate beneficial owners
- 2. Proof of address from the last three months and contact details
- 3. Indonesian company name, company type and registered address arrangements
- 4. A description of the business model, main trading regions and source of funds
- 5. Shareholding percentages, director appointments, KYC and required authorization documents
Do I need to go to Indonesia in person to set up a PT PMA?
Most of the Indonesian company setup process can be completed through remote document preparation, signing under authorization and support from local agents, so you do not always need to be there in person. However, bank account opening, identity verification, special licenses or certain government procedures may require a director, shareholder or authorized person to attend in person or by video, or to provide more documents. We confirm the requirements in advance and help you arrange them.
What tax and filing obligations does an Indonesian company have?
- 1. Corporate income tax (22%) and VAT (PPN: statutory rate 12%, effective rate 11% for general goods and services)
- 2. Annual filings, company registration upkeep, registered agent or secretarial services
- 3. Bookkeeping records, quarterly LKPM investment reports and beneficial owner information
What businesses or structures suit an Indonesian company?
Who can help me register a company in Indonesia?
NSS Group (go.ai.com.tw) can help. We provide one-stop support from pre-incorporation assessment to post-incorporation maintenance in Indonesia, reducing uncertainty in cross-border setup and compliance.
Our main services include:
- 1. Indonesia company type and structure assessment
- 2. Company name search, document preparation and registration filing
- 3. Bank account opening, KYC and cross-border payment documents
- 4. Bookkeeping, tax filing and annual compliance
- 5. Changes to shareholders, directors, address, shares and company details
- 6. Trademark registration, contract review and intellectual property planning
- 7. Website build, digital marketing and AI customer service setup
- 8. Ongoing business advisory and cross-border business support
We arrange Indonesian company setup, maintenance and ongoing operational support based on your industry, customer locations, banking needs and tax planning, so you can focus on developing the market.