Establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — or Foreign-Owned Limited Liability Company — is the most common way for foreign investors to operate legally in Indonesia. However, before jumping into the registration process, there are key preparations that need to be made to ensure everything runs smoothly, legally, and efficiently.

In this article, we’ll walk you through everything you need to prepare before officially setting up your PT PMA.

1. Clarify Your Business Activities and KBLI Code

Indonesia uses a standardized system known as KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) to classify business activities. Each code corresponds to a specific industry or service.

• Your KBLI code will determine:
  • The kind of business license you’ll need
  • Whether the business is open to foreign ownership
  • Reporting requirements post-establishment

Why this matters: Not all business activities are fully open to foreign investors. Some sectors may be partially restricted or require joint ventures. This is determined by the Positive Investment List, regulated by the government.

Preparation tip: Identify your intended business activities early and consult a professional to ensure your chosen KBLI codes are allowed for foreign ownership.

2. Secure a Valid Business Address

To register a PT PMA, you must provide a legal business domicile.

• This address must be located in a commercial zone (not a residential area)
• Some cities like Jakarta allow virtual office services for certain KBLI codes (especially consulting or digital businesses)

Required documents typically include:

• Lease Agreement or Office Rental Contract
• Building Permit or Domicile Certificate from the building management

Preparation tip: Choose an address that aligns with your sector and is accepted by the OSS (Online Single Submission) system.

3. Define the Shareholder and Management Structur

Every PT PMA must have at least:

• 2 shareholders (can be individuals or companies; locals or foreigners)
• 1 director – responsible for day-to-day operations
• 1 commissioner – acts as an internal supervisor

Important: The director is not required to be an Indonesian citizen, but if they are a foreigner, they may need a work permit (KITAS) later on.

You’ll need to prepare:

• Valid passport copies for individual shareholders
• Company profile & legal documents for corporate shareholders (Articles of Association, Certificate of Incorporation, Board Resolution, etc.)
• NPWP (tax ID) if Indonesian parties are involved

Preparation tip: Decide early who will be the operational leader (director), especially if your business will apply for licenses requiring specific expertise or qualifications.

4. Prepare a Realistic Investment Plan

One of the core requirements for a PT PMA is to submit an investment plan to the BKPM (Indonesian Investment Coordinating Board). This includes:

• Planned capital investment
• Type of goods/services to be produced or sold
• Number of employees
• Location and facilities
• Target market (domestic or export)

Even if no physical investment is made immediately, investors must demonstrate the intent and scope of business activities in Indonesia.

Preparation tip: Prepare a simple but clear breakdown of how you intend to operate, including hiring plans, technology needs, and expansion timeline.

5. Understand Licensing and Sector Requirements

The base license for most companies is called NIB (Nomor Induk Berusaha) — a Business Identification Number. However, NIB alone is not always enough.

Depending on your business activity, you may also need:

• Commercial or operational licenses
• Location permits
• Environmental approvals
• Specific sector approvals (e.g. finance, education, health, mining)

These licenses are now typically processed through the OSS RBA (Risk-Based Approach) system.

Preparation tip: Map out your required licenses early — especially if you operate in a regulated industry.

6. Plan for Tax and Compliance

Once your PT PMA is established, it becomes a legal taxpayer in Indonesia. You’ll need to:

• Register for a Tax ID (NPWP)
• Choose a tax consultant or prepare for monthly tax filings
• Submit LKPM (Investment Activity Reports) quarterly or semi-annually

Not reporting taxes or LKPM properly can lead to penalties or business suspension.

Preparation tip: Engage a local accounting firm or corporate service provider like Accura to manage compliance from day one.

7. Work with a Trusted Local Consultant

The company formation process in Indonesia can be smooth — or overwhelming — depending on your understanding of the local system. Many foreign investors find it difficult to navigate OSS, interpret Indonesian legal language, or stay updated on changes in investment laws.

That’s where a corporate services partner becomes essential.

Accura provides:

• KBLI & licensing guidance
• Document preparation
• Shareholder structuring
• PT PMA registration via OSS
• Visa and KITAS assistance for foreign directors

Preparation tip: Don’t take risks with legal compliance. Choose a partner with on-the-ground experience and access to the latest regulatory updates.

Final Thoughts

Starting a PT PMA in Indonesia is a powerful step toward entering Southeast Asia’s largest economy. By preparing the right documents, clarifying your business model, and aligning with local laws, you’ll avoid costly delays and missteps.

The right foundation saves months of correction later.

Ready to Launch Your PT PMA?

Let Accura assist you in building a compliant, scalable, and investor-friendly company structure in Indonesia.
Whether you’re an early-stage startup or a global brand, we’ll help you navigate the process — from company setup to full operational readiness.

Visit Accura.co.id to get started or schedule a consultation.