Establish your foreign-owned company in Indonesia with Accura Indonesia comprehensive known as Perseroan Terbatas Penanaman Modal Asing (PT PMA) establishment package. Our expert team guides you through the entire process, ensuring compliance with all legal requirements regulated by Law No. 40/2007, Perpres 10/2021, and Perpres No. 49/2021 getting you operating as quickly as possible.
WHAT IS PT PMA?
A Perseroan Terbatas Penanaman Modal Asing (PT PMA) is a legal business entity in Indonesia that allows partial or full foreign ownership. It is the most common structure for foreign investors who wish to operate legally and competitively in Indonesia.
Key Legal Requirements:
- Ownership: Can be 100% foreign-owned, depending on the sector.
- Structure: Minimum 2 shareholders (individuals or entities), 1 Director, and 1 Commissioner.
- Capital Investment: Minimum IDR 10 billion (~USD 700,000), as required by BKPM (Indonesia Investment Coordinating Board).
- Sector Approval: Must comply with Indonesia’s Positive Investment List (DPI), replacing the former Negative Investment List (DNI). Some sectors are fully open, while others have restrictions or require local partnerships.
PT PMA is a legal entity partly or 100% owned by foreign share ownership. 100% foreign ownership is possible in many business activities and seeking full control in Indonesia, full or partially ownership requires approval from the Investment Coordinating Board (BKPM) to confirm that the business sector is open to 100% foreign investment.
In law No. 40/2007 explains that the minimum requirements for a PT PMA structure consist of a minimum of two (2) shareholders, either persons or companies, 1 (one) Chairman/Commissioner, and 1 (one) Director (the executive officer). The director should be most involved in the company’s day-to-day operations within Indonesia.
In law Perpres No. 10/2021, the Indonesian government regulates foreign ownership through the Negative Investment List (DNI), which details 3 (three) business sectors, things: MSMEs (partnerships), business sectors that are open with certain requirements (partially with foreign Investment), and 100% open to foreign investment. The minimum investment required for establishing a PMA (Penanaman Modal Asing) company in Indonesia is generally IDR 10 billion, which is approximately USD 700,000. This amount represents the total investment plan for the company, which will be reported annually in the Investment Activity Report (LKPM).
Referring to Perpres No. 49/2021, the change in the Negative Investment List (DNI) to the Positive Investment List (DPI) where almost all business sectors are open to PT PMA.
REGISTER YOUR COMPANY WITH US!
Accura Indonesia will help you to set up for PT. PMA. For your reference, we provide PT. PMA formation Planning Assistance is as follows:
- Business Scope: Our team researches, reviews, and prepares all necessary documents to comply with BKPM regulations.
- Company Incorporation: Reservation of Name of the PMA Company, Preparing and Execution of DOE (Deed of Establishment) of PMA Company, The issuance of the Approval Letter from Ministerial of Law and Human Rights (Gazette/SK) for the Establishment of PMA Company.
- Obtaining Taxpayer Number (NPWP) and Taxpayer Certificate (SKT) for the PMA Company.
- Obtaining the Business Identification Number (Nomor Induk Berusaha) or NIB
- Obtaining the Domicile License (PKKPR)
- Obtaining the Business License (Izin Usaha)
- Opening Bank Account Assistance
- Advice: Add BPO (Business Processing Outsourcing) services, Investment Activity Report (LKPM) Report.