What is a PT PMA Company in Indonesia?A PT PMA (Foreign Investment Company) is a legal entity established under Indonesian law that enables foreign individuals or foreign legal entities to invest in Indonesia for the purpose of conducting business activities and generating revenue or profit.
Since 2021, the registration and licensing process for PT PMA companies has been fully integrated into Indonesia’s Online Single Submission (OSS) system, allowing foreign investors to complete company registration and obtain business licenses online.
1. Confirm the Business Activities of Your PT PMA
PT PMA must be built on clearly defined business activities. These activities are categorized through KBLI codes, which determine:
- Whether foreign ownership is permitted
- Required licenses, capital, and operational compliance
- Whether special approvals or additional certifications are needed
Under the Positive Investment List, certain industries allow 100% foreign ownership, for example:
- Management consulting
- IT and software development
- General trading (import/export)
- Web portals and digital services
Meanwhile, some sectors have limitations or require Indonesian partners, such as:
- Construction services
- Travel agencies
- Certain distribution activities
- And some sectors remain restricted for foreign ownership entirely.
Why this matters for Investors :
Choosing the wrong KBLI code can delay your licensing, disrupt your operations, or even invalidate your PT PMA eligibility. precise KBLI selection ensures your business is compliant and ready for commercial activity.
2. Establish a Clear and Compliant Shareholding Structure
Every PT PMA must have at least two shareholders (foreign individual/foreign company/Indonesian individual/Indonesian entity). Before incorporation, clarify the roles within the Investment Coordinating Board, such as:
- Who will own how many shares?
- Will the ownership be individual or corporate?
- Is the structure compliant with foreign ownership limits?
In Indonesia, shareholding determines:
- Eligibility under the Positive Investment List
- Required minimum capital
- Licensing requirements
- Your long-term operational structure
Foreign investors frequently overlook this step and face issues later when restructuring, transferring shares, or adding new business lines.
3 Choose a Valid and Compliant Company Name
Before your PT PMA can be incorporated, you must register a company name that meets Indonesian naming rules:
- Must consist of three distinct words
- Must not use restricted or government-associated terms
- Must not duplicate or resemble existing company names
- Must not contain culturally sensitive or prohibited language
During Company Registration, your company name also affects the speed of approval at the Ministry of Law and Human Rights. Names that violate naming conventions often result in immediate rejection.
4. All Legal Registration and Business Licensing Requirements
Once your business activities, shareholders, and name are confirmed, your PT PMA must complete mandatory legal registrations, including:
- Core Corporate Documents
- Deed of Establishment
- Approval from the Ministry of Law and Human Rights
- Company’s NPWP (Tax ID)
- NIB (Business Identification Number)
- Business and commercial licenses through OSS-RBA
- Sector-Specific Licenses
Depending on your activity, you may need:
- Import licenses (API-U or API-P)
- Halal certification
- Operational permits
- SIUP, SLS, or special industry licenses
The regulations for foreign investment have tightened since 2025, including capital lock-up requirements, environmental screening, and expanded reporting obligations. Without proper licensing, your company cannot operate legally, even if the PT PMA is already registered.
5. Choose a Trusted Legal and Corporate Partner
Indonesia’s investment framework is highly regulated, and foreign investors must follow strict requirements regarding:
- Capital structure
- KBLI classification
- OSS-RBA licensing
- Import/export licenses
- Tax compliance
- Local manpower regulations
- LKPM reporting for foreign investment
Attempting to manage incorporation alone can lead to delays, inaccurate filings, or non-compliance that may result in business suspension.