How long does it take to establish a PT PMA in Indonesia?
The PT PMA incorporation process typically takes 10 to 14 business days, depending on how complete the shareholders' documents are and how quickly the OSS RBA system and Ministry of Law verify the filing.
What is the main difference between PT PMDN and PT PMA?
PT PMDN (domestic investment company) is fully owned by Indonesian citizens or Indonesian legal entities, while PT PMA (foreign investment company) involves share ownership by foreign nationals or foreign entities, with stricter minimum capital requirements and business-field restrictions.
What is the minimum capital required to set up a PT PMA?
Under the latest BKPM regulations, the minimum capital for a PT PMA is IDR 10,000,000,000 (10 billion Rupiah) per business field (5-digit KBLI code), with paid-up/placed capital of the same amount.
Can a foreign national own 100% of a company in Indonesia?
Yes, for business fields that are fully open to foreign investment under the Positive Investment List. However, certain business fields have foreign ownership restrictions, so checking the correct KBLI code beforehand is essential before setting up a PT PMA.
What is KBLI and why does it matter for business licensing?
KBLI (Indonesian Standard Industrial Classification) is the official coding system used to classify economic activities. The correct KBLI code determines your business risk level, the type of permit required (NIB, Standard Certificate, or full License), and whether the business field is open to foreign investment.
What is NIB and is it mandatory for every business?
NIB (Business Identification Number) is the business identity issued through the OSS RBA system and serves as the basic legality to operate, including as a prerequisite for other permits such as the corporate tax ID and customs access.
When is a company required to file LKPM reports?
The LKPM reporting schedule depends on paid-up capital: small businesses (paid-up capital of IDR 1-5 billion) must report every semester, while medium and large businesses (paid-up capital above IDR 5 billion) must report quarterly through the OSS RBA system.
What are the penalties for late LKPM reporting?
LKPM non-compliance penalties are staged: starting with a written warning (up to 3 times), followed by a temporary suspension of business activities, and ultimately permanent revocation of the Business Identification Number (NIB) and related permits if non-compliance continues.
What is SBU certification and who needs it?
SBU (Business Entity Certificate) proves the legal qualification and competency of construction and electrical services companies, in accordance with LPJK and Ministry of Public Works regulations. SBU is mandatory for any company that wants to officially participate in construction or electrical tenders and projects.
Is a nominee agreement legal for a PT PMA?
No. Under the Investment Law, a nominee arrangement — where a local citizen is used to unofficially hold shares on behalf of a foreign investor — is strictly prohibited and legally void. The lawful way to invest as a foreigner is through a properly established PT PMA.
Is the initial consultation with Jakarta Legal ID free?
Yes, the initial consultation to discuss your legal needs, business structure, and cost estimate is completely free. You can reach us via WhatsApp to start your consultation.
What services do you offer besides company incorporation?
In addition to PT PMDN/PMA incorporation, we also handle SBU certification, mining licenses (IUP, IUPK, IUJP), industrial licenses (small/medium/large), notary services (property sale deeds, lease agreements, land title verification), and tax and bookkeeping consulting.
