Foreign Investment Company

Over the past decade, Indonesia has become one of the most investment-attractive places in the world. Foreign investors come to Bali and willingly open businesses here.

PT PMA is the most popular and secure type of business license for foreign investors in Indonesia. It is suitable for projects of any size, and investors do not face any restrictions in their ventures.

What Is Considered a Foreign Company?

Any organization that is invested by foreign investors (even with 1% of shares owned by foreigners) is considered foreign. Indonesian regulations allow foreign direct investment under the PT PMA license.

However, if you only want to represent a foreign company in Indonesia and will not receive any income from local activities, you can create a representative office instead.

Restrictions For a Foreign Company

Indonesian law regulates the maximum allowable share of foreign capital owned by a company, depending on the activity of the company. In some enterprises, 100% participation of foreign capital is allowed, in some not over 10%. The list of restrictions is contained in the document DNI (Negative Investment List).

What are the benefits of opening a company

• Establishing a legal business entity in compliance with local regulations.

• Opening a bank account for financial transactions.

• Eligibility to apply for an investor visa (KITAS).

• Access to local medical insurance options.

How Do I Register a PT PMA in Indonesia?

• The authorized capital of 10 billion Indonesian rupiah or more is required.

• At least 2 shareholders are required.

• At least one director and one commissioner must be listed in the company's structure.

• The registered address of the company.

Steps in The PT PMA Registration Process

1. Selecting the Right Business Classification: Choose the appropriate classification to maximize ownership percentage permissible.

2. Securing Office Space: Obtain a Domicile Letter providing the company's registered address.

3. Obtaining NPWP Tax Number: Register with the Tax Office to obtain the NPWP tax identification number.

4. Acquiring NIB Business Registration: Obtain the NIB (Nomor Induk Berusaha) for official business registration.

5. Securing Commercial Licenses: Obtain necessary licenses and permits required for business operations.

Additional documentation and permits may be required for specific projects, impacting registration costs.

The registration cost for a PT PMA company starts at 20 million IDR.

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