Welcome to Surabaya. It is a bustling metropolis and the economic powerhouse of Eastern Indonesia. As a prime destination for global business, Surabaya offers immense opportunities for growth and expansion. However, for foreign investors, navigating the legal landscape can be challenging. It requires a clear understanding of Indonesia’s specific regulations.
This guide provides a strategic overview of the foreign investment company setup in Surabaya. We will walk you through the essential concepts and key requirements. Ultimately, this ensures you start your investment journey on a solid and compliant legal foundation.
What is a Foreign Investment Company (PT PMA) in Indonesia?
First, you need to know the legal structure you will use. In Indonesia, a company with foreign shareholding is known as a PT PMA (Perseroan Terbatas Penanaman Modal Asing). Essentially, this is the only legal entity that allows foreign parties to conduct commercial activities and generate revenue.
Setting up a PT PMA has two primary advantages. First, it provides a formal and legal basis for all your business operations. Second, it offers limited liability. This means your personal assets are legally separate and protected from the company’s debts and risks.
The “Positive Investment List”: Your First Regulatory Checkpoint
Before you proceed, your first step is to check Indonesia’s “Positive Investment List” (Daftar Positif Investasi or DPI). This crucial regulation is governed by Presidential Regulation No. 10 of 2021. It outlines which business sectors are open to foreign investment.
In general, the list categorizes business fields into a few main types:
- Priority Sectors that may receive government incentives.
- Open Sectors, most of which are 100% open to foreign ownership.
- Sectors with Specific Requirements, which may require a local partner.
- Closed Sectors, which are a small number of fields closed to foreign investment.
Therefore, validating that your intended business activity is permitted for foreign ownership is the most critical first step of your entire setup process.
Key Capital and Investment Requirements
The Indonesian government has set clear financial requirements for foreign investors. This is to ensure that investments are substantial and well-capitalized. As of 2025, these are the key figures:
- A Total Investment Plan of over IDR 10 Billion. Your company must have a business plan with a total investment value of more than 10 billion Rupiah. This value excludes the price of land and buildings.
- A Minimum Paid-Up Capital of IDR 10 Billion. Furthermore, from that investment plan, a minimum of 10 billion Rupiah must be fully paid up. You must deposit this into the company’s Indonesian bank account after its establishment.
The General Setup Process at a Glance
The procedure for a foreign investment company setup in Surabaya follows a structured path. While a professional consultant will handle the details, understanding the phases is helpful.
- Phase 1: Company Registration. This involves drafting a Deed of Establishment with a local notary. It also requires approval from the Ministry of Law and Human Rights.
- Phase 2: Business Licensing. Next, all core business licensing is integrated into the Online Single Submission (OSS) system. The main output is the Business Identification Number (NIB), which is your company’s master license.
- Phase 3: Tax Registration. Finally, your new company must be registered with the local tax office. This is to obtain a company Tax ID number (NPWP).
Why a Professional Consultant is Your Most Valuable Asset
Navigating the Positive Investment List and structuring a multi-billion Rupiah investment requires deep local expertise. The same applies to dealing with multiple government systems. In fact, a professional consultant is not a luxury; it’s a necessity for a secure and efficient process. They act as your project manager, legal advisor, and cultural bridge.
Kontrak Hukum! is a digital legal platform ready to be your trusted partner for investing in Surabaya. Our team of experienced legal consultants can guide you through every step of this journey with clarity and efficiency. If you are ready to explore your options or have specific questions about your business plan, we invite you to our professional consultation.
For just IDR 490,000, you can have a direct discussion with our legal experts. Contact us directly via Tanya KH (WhatsApp) for a fast response, or follow our latest business insights on Instagram at @kontrakhukum. You can also expand your network by joining the KH Business Community and find additional income opportunities through our Kontrak Hukum Affiliate Program. Make your investment journey in Indonesia a success. Let’s talk.
