Establish your presence in Indonesia with confidence
Navigating the complexities of initiating a business or forming a legal entity in Indonesia may pose challenges for foreigners or companies, especially for those new to the country and without a reliable network or contacts.
est assured, Kontrak Hukum is committed to delivering efficient, precise, and cost-effective incorporation solutions. Our team of experienced professionals will adeptly steer you through the entire PT PMA setup process, handling all documentation and submission procedures on your behalf, ensuring a seamless and stress-free experience for you.
Foreign Ownership Company (PMA)
The legal entity of the FDI Company should be a Limited Liability Company or Ltd. (Perseroan Terbatas or PT). The establishment of a PT PMA is regulated by Law No. 40 in the Year 2007 regarding Limited Liability Companies (Company Law). PT PMA shall be categorized as a large business and shall comply with the minimum investment value requirement, except otherwise stipulated by prevailing laws and regulations.
PT Penanaman Modal Asing (PT PMA) is a popular option for foreign investors who want to explore investing in Indonesia. A PT PMA’s structure and function are similar to a limited liability company (LLC) known in the West.
PT PMA is a limited liability company which any number of shares owned by a foreign business or individual. It is a legal entity through which foreign investors are allowed to conduct commercial activities in Indonesia. A PT PMA can be either 100% foreign-owned or partially foreign-owned, but there are various sectors in Indonesia that are completely off-limits or partially closed to foreigners. Investors from ASEAN member states can enjoy a higher percentage of foreign share ownership in certain business fields.
- Shareholders of the PT PMA
At least two shareholders are required (President Director and President Commissioner) for the establishment of a PT PMA. At least one of the shareholders needs to be a foreign individual (or foreign legal entity). The Director needs to reside in Indonesia to take care of all daily activities. The foreigner who works and resides in Indonesia is required to obtain a tax number (NPWP) and a work permit (KITAS). - Deed of Establishment of the PT PMA
In order to set up a PT PMA in Indonesia, the shareholders must present a deed of establishment which needs to be legalized by a public notary. The deed of establishment contains, besides the Articles of Association, the following additional information regarding the Founders, the Board of Directors and Board of Commissioners and Shareholders (other than the founders): - Minimum (Paid Up) Capital Requirements for the PT PMA
To establish a PT PMA, the foreign investor needs to comply with minimum capital requirements for foreign investment. Currently, the minimum requirement stands at IDR 10 billion or the equivalent value in US dollars. The Indonesian government set a high conditions in order to attract large-scale companies and investors while protecting smaller-sized local businesses. - The amount of investment required for PT PMA is more than IDR 10 billion (excluding lands and buildings) for every five digits of KBLI per project location, with a minimum paid-up capital of IDR 10 billion. Representative Offices and Foreign Business Entities are exempted from these requirements.
- Paid-up capital is generally set at 25 percent of the minimum capital requirement (hence IDR 2.5 billion). In certain (capital-intensive) industries paid-up capital requirements are higher. In practice, however, it frequently occurs that a PT PMA is established without the foreign investor needing to transfer the paid-up capital to an Indonesian bank account. The shareholders of the PT PMA can sign a Capital Statement Letter pledging that the paid-up capital can be transferred (without ever transferring it). However, in specific sectors, such as the financial services sector, this is not possible.
- A principal license and a business license from Indonesia Investment Coordinating Board (BKPM)
- Approval of company name at the Ministry of Law and Human Rights
- Preparation of Article of Association by Notary
- Approval of Deed of Establishment at the Ministry of Law and Human Rights
- Obtaining Taxpayer Registration Number
- Obtaining a Certificate of Domicile from the local district office (except for Jakarta)
- Approval of Business Registration Number (NIB), Business Permit,
- Commercial/Operational Permit, Location Permit, Environmental Permit, and BPJS through the Indonesian Online Single Submission (OSS) System
- An annual manpower report and company welfare report from the Ministry of Manpower.
Why Choose PMA?
Legal Recognition
PT PMA (Penanaman Modal Asing) is a legal entity recognized by Indonesian law, ensuring that your business is properly regulated and compliant.
Foreign Ownership
PT PMA allows up to 100% foreign ownership in most business sectors, providing full control and autonomy for foreign investors while adhering to Indonesian regulations.
Legal Protection
PT PMA entities enjoy legal protection under Indonesian law, safeguarding your investments and business operations from potential legal disputes.
Limited Liability
PT PMA provides limited liability for shareholders, protecting their personal assets from potential business losses or debts.
Access to Contracts
As a legally recognized entity, PT PMA allows businesses to enter into legally binding contracts with local and international partners, ensuring enforceability and reliability.
Intellectual Property Protection
PT PMA enables businesses to register and protect their intellectual property rights, such as trademarks and patents, under Indonesian law.
Compliance with Tax Regulations
PT PMA ensures that businesses comply with Indonesian tax regulations, facilitating transparent and lawful financial management.
Ease of Obtaining Work Permits
PT PMA simplifies the process of obtaining work permits for foreign employees, ensuring legal compliance while bringing in international talent.
Dispute Resolution
PT PMA entities have access to Indonesia’s legal system, enabling them to address and resolve any disputes or legal issues that may arise.
Clear Exit Strategy
Establishing a PT PMA provides a clear exit strategy for foreign investors, as the legal framework allows for the sale or transfer of shares, mergers, acquisitions, or liquidation, in accordance with Indonesian law.
Representative Office
A representative office is a distinct business structure that allows foreign companies to establish a non-commercial presence in Indonesia. This type of office serves as an extension of the parent company, primarily focusing on activities such as market research, promotion, and relationship-building with local partners, suppliers, and customers.
While a representative office is not permitted to engage in direct revenue-generating activities or make legally binding agreements on behalf of the parent company, it provides a valuable opportunity for businesses to explore the Indonesian market, understand the local business landscape, and lay the groundwork for potential future investments or expansion.
By establishing a representative office, foreign companies can enjoy a simpler registration process, a streamlined legal framework, and the ability to conduct essential groundwork in the Indonesian market, all while adhering to local regulations and requirements.
Rep Office
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Order- Shareholders of the PT PMA
At least two shareholders are required (President Director and President Commissioner) for the establishment of a PT PMA. At least one of the shareholders needs to be a foreign individual (or foreign legal entity). The Director needs to reside in Indonesia to take care of all daily activities. The foreigner who works and resides in Indonesia is required to obtain a tax number (NPWP) and a work permit (KITAS). - Deed of Establishment of the PT PMA
In order to set up a PT PMA in Indonesia, the shareholders must present a deed of establishment which needs to be legalized by a public notary. The deed of establishment contains, besides the Articles of Association, the following additional information regarding the Founders, the Board of Directors and Board of Commissioners and Shareholders (other than the founders): - Minimum (Paid Up) Capital Requirements for the PT PMA
To establish a PT PMA, the foreign investor needs to comply with minimum capital requirements for foreign investment. Currently, the minimum requirement stands at IDR 10 billion or the equivalent value in US dollars. The Indonesian government set a high conditions in order to attract large-scale companies and investors while protecting smaller-sized local businesses. - The amount of investment required for PT PMA is more than IDR 10 billion (excluding lands and buildings) for every five digits of KBLI per project location, with a minimum paid-up capital of IDR 10 billion. Representative Offices and Foreign Business Entities are exempted from these requirements.
- Paid-up capital is generally set at 25 percent of the minimum capital requirement (hence IDR 2.5 billion). In certain (capital-intensive) industries paid-up capital requirements are higher. In practice, however, it frequently occurs that a PT PMA is established without the foreign investor needing to transfer the paid-up capital to an Indonesian bank account. The shareholders of the PT PMA can sign a Capital Statement Letter pledging that the paid-up capital can be transferred (without ever transferring it). However, in specific sectors, such as the financial services sector, this is not possible.
- A principal license and a business license from Indonesia Investment Coordinating Board (BKPM)
- Approval of company name at the Ministry of Law and Human Rights
- Preparation of Article of Association by Notary
- Approval of Deed of Establishment at the Ministry of Law and Human Rights
- Obtaining Taxpayer Registration Number
- Obtaining a Certificate of Domicile from the local district office (except for Jakarta)
- Approval of Business Registration Number (NIB), Business Permit,
- Commercial/Operational Permit, Location Permit, Environmental Permit, and BPJS through the Indonesian Online Single Submission (OSS) System
- An annual manpower report and company welfare report from the Ministry of Manpower.
Why Choose Rep Office?
Simplified Registration Process
Market Research and Networking
Promotional Activities
Compliance with Local Regulations
Establishing a representative office ensures compliance with Indonesian regulations while avoiding the need to navigate the more complex legal requirements of other business entities, such as PT PMA.
Ease of Hiring Local Staff
Representative offices can hire local employees to support their operations, providing valuable insights into the local market and ensuring compliance with Indonesian labor laws.
No Capital Requirements
Unlike PT PMA, there are no minimum capital requirements for establishing a representative office in Indonesia, reducing the initial financial investment needed to set up a presence in the country
Facilitated Business Visits
Representative offices can sponsor business visas for foreign employees visiting Indonesia for business-related activities, ensuring legal compliance during their stay.
Intelectual Property Protection
Our Intellectual Property (IP) protection services are designed to provide comprehensive and tailored solutions to safeguard your valuable creations and innovations. We understand the importance of securing your trademarks, copyrights, and patents to maintain a competitive edge in the market and foster business growth. Our team of experienced professionals will guide you through each step of the IP registration process, ensuring that your applications are accurately prepared and submitted in compliance with local regulations.
Additionally, we offer strategic advice on IP portfolio management, helping you optimize the value of your intellectual assets. By entrusting us with your IP protection needs, you can focus on your core business operations while we diligently work to preserve and enhance the legal security of your innovations.
- Shareholders of the PT PMA
At least two shareholders are required (President Director and President Commissioner) for the establishment of a PT PMA. At least one of the shareholders needs to be a foreign individual (or foreign legal entity). The Director needs to reside in Indonesia to take care of all daily activities. The foreigner who works and resides in Indonesia is required to obtain a tax number (NPWP) and a work permit (KITAS). - Deed of Establishment of the PT PMA
In order to set up a PT PMA in Indonesia, the shareholders must present a deed of establishment which needs to be legalized by a public notary. The deed of establishment contains, besides the Articles of Association, the following additional information regarding the Founders, the Board of Directors and Board of Commissioners and Shareholders (other than the founders): - Minimum (Paid Up) Capital Requirements for the PT PMA
To establish a PT PMA, the foreign investor needs to comply with minimum capital requirements for foreign investment. Currently, the minimum requirement stands at IDR 10 billion or the equivalent value in US dollars. The Indonesian government set a high conditions in order to attract large-scale companies and investors while protecting smaller-sized local businesses. - The amount of investment required for PT PMA is more than IDR 10 billion (excluding lands and buildings) for every five digits of KBLI per project location, with a minimum paid-up capital of IDR 10 billion. Representative Offices and Foreign Business Entities are exempted from these requirements.
- Paid-up capital is generally set at 25 percent of the minimum capital requirement (hence IDR 2.5 billion). In certain (capital-intensive) industries paid-up capital requirements are higher. In practice, however, it frequently occurs that a PT PMA is established without the foreign investor needing to transfer the paid-up capital to an Indonesian bank account. The shareholders of the PT PMA can sign a Capital Statement Letter pledging that the paid-up capital can be transferred (without ever transferring it). However, in specific sectors, such as the financial services sector, this is not possible.
- A principal license and a business license from Indonesia Investment Coordinating Board (BKPM)
- Approval of company name at the Ministry of Law and Human Rights
- Preparation of Article of Association by Notary
- Approval of Deed of Establishment at the Ministry of Law and Human Rights
- Obtaining Taxpayer Registration Number
- Obtaining a Certificate of Domicile from the local district office (except for Jakarta)
- Approval of Business Registration Number (NIB), Business Permit,
- Commercial/Operational Permit, Location Permit, Environmental Permit, and BPJS through the Indonesian Online Single Submission (OSS) System
- An annual manpower report and company welfare report from the Ministry of Manpower.
Why Protect your IP in Indonesia?
First to File
Safeguard your innovations
Encourage investment
Monetization opportunities
Legal enforcement
Compliance with local regulations
Immigration: Kitas and Visas
Kontrak Hukum offers comprehensive immigration services, expertly designed to guide foreign nationals through the complexities of Indonesian immigration procedures. Our team of experienced professionals is well-versed in the country’s immigration regulations and is committed to providing personalized assistance tailored to your specific needs.
Our immigration services encompass a wide range of solutions, including the application and processing of KITAS (limited stay permits), work permits, business visas, and other relevant documentation. We work diligently to ensure that your applications are accurately prepared and submitted in compliance with local regulations, minimizing the risk of delays or complications.
In addition to handling the application process, our team provides ongoing support, such as guidance on visa extensions, conversions, or renewals, ensuring that you remain compliant with Indonesian immigration laws throughout your stay. With Kontrak Hukum’s immigration services, you can focus on your business or personal endeavors in Indonesia, confident in the knowledge that your immigration matters are being expertly managed by our dedicated team.
- Shareholders of the PT PMA
At least two shareholders are required (President Director and President Commissioner) for the establishment of a PT PMA. At least one of the shareholders needs to be a foreign individual (or foreign legal entity). The Director needs to reside in Indonesia to take care of all daily activities. The foreigner who works and resides in Indonesia is required to obtain a tax number (NPWP) and a work permit (KITAS). - Deed of Establishment of the PT PMA
In order to set up a PT PMA in Indonesia, the shareholders must present a deed of establishment which needs to be legalized by a public notary. The deed of establishment contains, besides the Articles of Association, the following additional information regarding the Founders, the Board of Directors and Board of Commissioners and Shareholders (other than the founders): - Minimum (Paid Up) Capital Requirements for the PT PMA
To establish a PT PMA, the foreign investor needs to comply with minimum capital requirements for foreign investment. Currently, the minimum requirement stands at IDR 10 billion or the equivalent value in US dollars. The Indonesian government set a high conditions in order to attract large-scale companies and investors while protecting smaller-sized local businesses. - The amount of investment required for PT PMA is more than IDR 10 billion (excluding lands and buildings) for every five digits of KBLI per project location, with a minimum paid-up capital of IDR 10 billion. Representative Offices and Foreign Business Entities are exempted from these requirements.
- Paid-up capital is generally set at 25 percent of the minimum capital requirement (hence IDR 2.5 billion). In certain (capital-intensive) industries paid-up capital requirements are higher. In practice, however, it frequently occurs that a PT PMA is established without the foreign investor needing to transfer the paid-up capital to an Indonesian bank account. The shareholders of the PT PMA can sign a Capital Statement Letter pledging that the paid-up capital can be transferred (without ever transferring it). However, in specific sectors, such as the financial services sector, this is not possible.
- A principal license and a business license from Indonesia Investment Coordinating Board (BKPM)
- Approval of company name at the Ministry of Law and Human Rights
- Preparation of Article of Association by Notary
- Approval of Deed of Establishment at the Ministry of Law and Human Rights
- Obtaining Taxpayer Registration Number
- Obtaining a Certificate of Domicile from the local district office (except for Jakarta)
- Approval of Business Registration Number (NIB), Business Permit,
- Commercial/Operational Permit, Location Permit, Environmental Permit, and BPJS through the Indonesian Online Single Submission (OSS) System
- An annual manpower report and company welfare report from the Ministry of Manpower.
Why is Kitas Important?
Legal Residency
Work Authorization
Access to Services
Ease of Travel
With a valid KITAS, you can enjoy multiple entries into Indonesia without the need for a visa, simplifying your travel arrangements and reducing bureaucratic hurdles.
Longer Stay Duration
A KITAS typically has a longer validity period compared to a tourist visa, allowing you to reside in Indonesia for an extended time without the need for frequent visa renewals or exits.
Compliance with Local Regulations
Holding a KITAS ensures that you are adhering to Indonesian immigration laws, minimizing the risk of fines, penalties, or deportation due to non-compliance.
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