Setting Up a PT PMA in Indonesia: The 2025 Guide for Foreign Investors

Foreign direct investment into Indonesia rebounded to a record IDR 1,714 trillion in 2024 according to the Investment Ministry, and the trajectory for 2025 looks stronger still. Yet the vehicle through which almost every euro of that capital arrives, the PT PMA, remains widely misunderstood by first-time founders.

This guide walks through every practical question we are asked in our Canggu office: what a PT PMA actually is, what it costs to set up, how long it takes, and the traps that catch most self-managed incorporations.

What is a PT PMA?

A PT PMA, Perseroan Terbatas Penanaman Modal Asing, is an Indonesian limited liability company with any portion of foreign equity. It is governed by Law No. 40/2007 on Limited Liability Companies and Law No. 25/2007 on Investment, both administered through the Ministry of Investment / BKPM.

Foreign individuals or companies can own up to 100% of a PT PMA in most sectors, subject to the Positive Investment List (Perpres 10/2021 as amended). Sensitive sectors, local media, some retail, certain agricultural categories, remain restricted.

Minimum capital in 2025

BKPM's published threshold is an investment plan of more than IDR 10 billion per KBLI business classification per project location, excluding land and buildings. Paid-up capital must be at least IDR 2.5 billion and fully placed in the company's Indonesian bank account before licensing completes, the rule is set out in BKPM Regulation 4/2021. BKPM Regulation 4/2021

In practice the IDR 10 billion is an investment plan, not a cash deposit, it can be realised over the first project years and reported through quarterly LKPM filings.

The OSS-RBA process step by step

Since 2021, all business licensing flows through the Online Single Submission Risk-Based Approach (OSS-RBA), a digital portal where the NIB single business identification number is issued automatically once shareholders, KBLI codes and capital are uploaded. OSS official portal

Our standard incorporation runs in six stages: name reservation at AHU, deed of establishment with a notary, Ministry of Law SK, company NPWP, NIB and risk-based licensing, and finally bank account opening. Realistic end-to-end timing is three to five weeks for low and medium-risk businesses.

Common mistakes we fix for clients

The most expensive mistake is choosing the wrong KBLI code at incorporation. Each KBLI carries its own foreign-ownership cap and its own sectoral permits, and changing it later requires a notarial amendment.

The second is under-capitalising. Banks will reject paid-up below the legal threshold, and BKPM will issue a warning on your first LKPM. The third is using a nominee structure to mimic local ownership, a practice that is unenforceable and exposes the founder to total loss of the asset.