Complete Guide to Setting Up a PT PMA in Indonesia (2025 Update)

Complete Guide to Setting Up a PT PMA in Indonesia (2025 Update)
DKC Consulting
27 November 2025
Blog & Article

Setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing, or Foreign-Owned Limited Liability Company) is the primary legal pathway for foreign investors wishing to establish a business in Indonesia. Whether you are entering the Indonesian market for the first time or expanding your existing operations, understanding the requirements, processes, and compliance obligations is essential.

This comprehensive 2025 guide explains everything you need to know about how to open a company in Indonesia, including minimum capital rules, documents required, timelines, and operational considerations after incorporation.

If you are planning investment or expansion in Indonesia, this is your starting point.

1. What Is a PT PMA?

A PT PMA is a limited liability company in Indonesia that allows foreign individuals or foreign entities to hold partial or full ownership. Unlike a local PT, which must be owned by Indonesian citizens or entities, a PT PMA enables foreign investors to legally operate, invest, and generate revenue in Indonesia.

A PT PMA receives the same legal standing as a local entity, meaning it can:

  • Own assets (under certain categories)
  • Employ foreign and local staff
  • Sign contracts
  • Operate in regulated industries
  • Import materials and equipment
  • Distribute and sell products or services

A PT PMA is the most common business structure chosen by investors in sectors such as hospitality, tourism, technology, consulting, trading, real estate development, and professional services.

2. Minimum Capital Requirements (2025 Rules)

One of the most important parts of PMA setup in Indonesia is understanding capital requirements.

As of 2025 regulations, the minimum paid-up capital required is:

IDR 10 billion

(approximately USD 650,000 depending on exchange rate)

This amount must be declared in the company documents, but it does not need to be deposited immediately unless required for specific licensing or bank-related operations.

However, investors should understand:

  • The capital must be realistic for business activities.
  • The government may require proof if audited or during certain licensing stages.
  • Some industries may require additional capital or sector-specific requirements.

The capital structure is divided into:

  • Authorized Capital
  • Issued Capital
  • Paid-Up Capital

Most PT PMA structures declare IDR 10 billion as authorized capital, with issued and paid-up capital aligned during incorporation.

3. Step-by-Step Process to Set Up a PT PMA in Indonesia

The PT PMA setup process involves several stages, from planning the business structure to obtaining full legal status. Below is the standard flow used by professional consulting firms such as DKConsulting.

Step 1: Pre-Incorporation Planning

Before the legal process begins, investors must define:

  • Company ownership structure
  • Industry classification (KBLI codes)
  • Capital allocation
  • Directors and commissioners
  • Business location
  • Company name options
  • Planned operational model

This planning is crucial to avoid future errors that may affect licenses or compliance.

Step 2: Drafting of Incorporation Deed (Akta Pendirian)

A notary prepares the official incorporation deed, which includes:

  • Company name
  • Business sector
  • Capital structure
  • Share allocation
  • Director & commissioner details
  • Articles of association
  • Operational purpose

All foreign shareholders must provide passport copies and other identification documents.

Step 3: Legalization by Ministry of Law and Human Rights (SK Kemenkumham)

After the deed is signed, the notary submits the documents to the Ministry.
Once approved, your company is legally recognized as an Indonesian entity.

Step 4: Tax Registration (NPWP)

Your company must obtain an NPWP (Tax Identification Number) before it can legally operate.
This also enables:

  • Tax filings
  • Employee registration
  • Opening a corporate bank account

Step 5: Business Identification Number (NIB) via OSS RBA

The NIB functions as:

  • The company’s business license
  • Importer identification (if required)
  • Registration in the national business database

During this step, you choose your business activities through KBLI codes and determine additional licenses needed.

Step 6: Operational Licensing (If Applicable)

Some business sectors require additional permits beyond the NIB, such as:

  • Tourism licenses
  • Construction permits
  • Trading permits
  • Health & safety certifications
  • Environmental documents

The requirements vary depending on the industry.

Step 7: Post-Incorporation Setup

Once legally established, your PT PMA must complete post-incorporation obligations, including:

  • Corporate bank account setup
  • Tax access activation
  • EFIN creation
  • Monthly and annual tax filing setup
  • LKPM reporting registration
  • HR, payroll, and BPJS setup

These steps must be completed for the company to become fully operational.

4. Required Documents for PT PMA Setup

Foreign investors must prepare the following documents:

From Shareholders (Individual)

  • Passport copy
  • Full address details
  • Email and phone number
  • NPWP (if resident in Indonesia)

From Shareholders (Corporate Entity)

  • Certificate of incorporation
  • Articles of association
  • List of directors and commissioners
  • Resolution approving investment

From the Company

  • Office address (virtual office allowed for most sectors)
  • Company name (3 options)
  • Business activities (KBLI codes)
  • Capital structure and ownership breakdown

Professional consulting ensures all documents are correct, compliant, and ready for submission.

5. Timeline Overview (2025)

A realistic timeline for PT PMA incorporation:

Transport Option Price Range (USD)
Private Car with Driver 45 – 65
Ride-Hailing Apps 40 – 60
Rental Car (Self-Drive) 16 – 26 / day
Scooter or Motorbike 5 – 10 / day
Shuttle or Tour Transfer 15 – 30 / person

Total estimate: 3–6 weeks, depending on completeness of documents and government processing times.

6. Cost Overview (General Guidance)

The cost of setting up a PT PMA depends on:

  • Professional consulting fees
  • Notary fees
  • Licensing complexity
  • Type of business activity
  • Whether additional permits are required

Most investors budget for:

  • Incorporation & legal costs
  • Post-incorporation accounting setup
  • Monthly tax & compliance services
  • Payroll and HR setup
  • Optional architecture or operational advisory (if related to development projects)

DKConsulting provides clear, reliable cost breakdowns based on your business needs.

7. After You Establish Your PT PMA: Ongoing Compliance

Once the company is formed, you must fulfill several recurring obligations:

Monthly Tax Reporting

All PT PMA companies must file monthly tax returns, even with zero activity.

Quarterly LKPM Reporting

This includes reporting investment activity to the government.

Annual Corporate Tax Filing

A mandatory yearly submission for all companies.

HR & BPJS Compliance

Employee registration, BPJS contributions, and payroll tax (PPh21).

Bookkeeping & Financial Reporting

Monthly accounting aligned with Indonesian tax rules.

Working with a consulting partner ensures compliance and reduces risk.

Conclusion: Is PT PMA the Right Structure for You?

If you are planning foreign investment in Indonesia, want to operate legally, hire employees, issue invoices, and conduct business activities, then PT PMA is the correct and most secure structure.

With a clear process, proper documentation, and ongoing compliance, your business will have a strong and legally sound foundation to grow.

If you require assistance with PMA setup, post-incorporation obligations, accounting, or legal advisory, DKCConsulting offers complete end-to-end support tailored for foreign investors and companies entering Indonesia.