Company Registration Indonesia

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How registering a PT PMA works

1. Choose the business classification and check foreign ownership. Every activity maps to a KBLI classification code, and the code determines the licensing risk level and whether full foreign ownership is permitted in that sector. Capital and licensing obligations attach per code and per project location, so the classification choice is a commercial decision, not paperwork.
2. Establish the legal entity. A PT PMA needs at least two shareholders, at least one director and one commissioner, and a registered business address in Indonesia. The company is created by notarised deed of establishment followed by legal entity approval from the law ministry, then tax registration for an NPWP number.
3. Register through OSS and obtain the NIB. Registration in the OSS risk-based system issues the NIB, the business identification number that anchors all licensing. Depending on the KBLI risk level, further business licences follow through the same system before some activities can lawfully begin.
4. Meet capital and reporting obligations. The paid-up capital requirement, reduced substantially by an investment ministry regulation in late 2025, is deposited once the corporate bank account opens, with a declaration accepted at incorporation. The declared investment plan is then realised progressively and reported in quarterly LKPM filings; failure to report risks suspension of the NIB.

What the entity route really commits you to

The published requirements are the visible part: capital, shareholders, a director and commissioner, an address, notarial and ministry steps that typically run several weeks end to end. The ongoing part is what should drive the decision: quarterly investment realisation reports against the plan you declared, corporate tax and payroll compliance, and licensing that must be kept aligned with what the company actually does. The declared investment plan is set per business classification and per location, so a multi-activity or multi-city operation multiplies the commitment.

The entity route pays off when Indonesia is a market you are operating in: local clients, local revenue, a team that will grow, activities that require holding your own licences. It is the wrong instrument for testing whether two Jakarta-based engineers work out, because the fixed compliance cost is the same whether the entity employs two people or forty.

The EOR alternative for hiring first

An employer of record already operates an Indonesian entity with the registrations and licences in place. It employs your hires under compliant local contracts, runs payroll, tax withholding and social security enrolment, and charges a monthly fee per employee on top of employment costs. Time to first hire is days rather than the weeks of an incorporation project, and leaving the market is a notice period rather than a liquidation.

The honest comparison is fee against fixed cost: at a handful of employees the EOR fee is far below what establishing and maintaining a PT PMA costs; at meaningful headcount the lines cross and the entity wins, which several vendors openly sell as a supported transition. Vendors in this site's index are priced on their published Indonesia rates, linked beside each figure where the vendor publishes one. Nothing here is legal or tax advice; regulations change and the current OSS requirements and your counsel control any actual registration.

Common questions

What is a PT PMA?

A foreign investment limited liability company, the entity type through which foreign shareholders own an Indonesian business. It requires at least two shareholders, a director and a commissioner, a registered address, and registration through the OSS system to obtain the NIB business identification number.

How long does company registration in Indonesia take?

Typically several weeks from deed of establishment to an NIB and any risk-based licences, assuming clean documents and a sector open to foreign ownership. Sector-specific licences can extend the timeline.

What are the capital requirements for a PT PMA?

Two layers: a paid-up capital requirement, cut substantially by regulation in late 2025, and a much larger total investment plan declared per KBLI business classification and per location, realised progressively and reported in quarterly LKPM filings. Confirm current thresholds before committing, as they have changed recently.

Can I hire in Indonesia without registering a company?

Yes, through an employer of record whose Indonesian entity employs your staff compliantly while you direct the work. It is the standard route for the first hires or a market test, with the entity option kept for when headcount and operations justify it.

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