PT PMA in Indonesia:
What Foreign Investors Need to Know

What Is a PT PMA?

A PT PMA is a limited liability company that allows foreign nationals to hold shares in an Indonesian entity. It is the only structure through which foreigners can legally own a business in Indonesia, as local PT entities are restricted to Indonesian nationals. The PT PMA is governed by Law No. 40/2007 on Limited Liability Companies and the Investment Law (Law No. 25/2007), along with implementing regulations from BKPM.

Ownership and the Positive Investment List

Foreign ownership of up to 100% is permitted in most business sectors under Indonesia's Positive Investment List (Government Regulation No. 10/2021). However, some sectors remain restricted — requiring partial Indonesian ownership, joint ventures, or specific licences. Before incorporating, verify your business activity's KBLI code and confirm the applicable ownership rules.

Capital Requirements

A PT PMA must declare a minimum Total Investment Plan of IDR 10 billion (~USD 600,000) and a minimum Paid-Up Capital of IDR 2.5 billion (~USD 150,000). These are declared commitments, not necessarily cash deposited upfront. The unpaid amount remains the liability of the shareholders.

Key Structural Requirements

• Minimum of 2 shareholders (individuals or companies)
• At least 1 Director — must be an Indonesian resident (KITAS or Indonesian national)
• At least 1 Commissioner — oversight role, does not need to be resident
• A registered business address at a commercial location
• Notarised Deed of Establishment and MoLHR approval
• Business Identification Number (NIB) via OSS

Ongoing Compliance

A PT PMA is not a set-and-forget structure. Annual obligations include quarterly LKPM reporting to BKPM, annual financial statements, corporate income tax return, and renewal of time-limited permits. KITAS for directors must also be renewed annually. Failure to meet these obligations can result in warnings, fines, or revocation of the NIB.