Expanding to Indonesia in 2026?

Indonesia is no longer just “emerging” market on the world stage. Latest reports is that Indonesia will be the fourth largest economy in the world by 2040.   With over 275 million people, rising middle-class consumption, digital acceleration, and strong international trade ties, more founders and investors are asking:

“How do I properly set up a company in Indonesia?”

The answer, in most cases, is a PT PMA. This article gives you a clear, practical overview — and at the end you’ll find structured intake forms so you can take the next step with confidence through Gareth Benson Principal of IP Assist and our strong relationship with Malekat Hukum and other local partners

What Is a PT PMA?

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia offers exciting opportunities for foreign investors. 

A PMA refers to a Foreign-Owned Company that operates under Indonesian law and is legally established for foreign investment. With the establishment of a PMA company foreign investors can ear profits or revenue directly from the PMA rather than local subsidiaries. 

It allows non-Indonesian investors to:

• Operate legally in Indonesia
• Hold up to 100% ownership (sector dependent)
• Invoice in IDR
• Open corporate bank accounts
• Sponsor foreign directors or investors
• Apply for an Investor KITAS

For anyone serious about operating in Bali, Jakarta, or elsewhere in Indonesia — this is the correct vehicle.

Company Structure:

Under Indonesian law, foreign investment companies (PMAs) must be set up as Limited Liability Companies (PTs). 

Business Licences for PT PMA 

Businesse licensing in Indonesia falls into two main categories:

• Risk - Based Licensing: based on the risk level of business activities, evaluating potential hazards and their impacts/. 
• Licensing to Support Business Activities: legal permits that enable businesses to operate smoothly. 

To start a business entrepreneurs must meet these requirements:

• Basic Requirements: Compliance with spatial planning, environmental approval, and building permits.
• Risk-Based Licensing: 

Low Risk: Requires a Business Identification Number (NIB) 

Medium Risk: NIB and a standard certificate 

High Risk: NIB and a licenses 

Foreign owner companies (PMA) licenses are issued via the Online Single Submission (OSS) system)

2025/2026 Capital & Ownership Standards

The following rules apply to the capital requirements for a PMA setup please note these revised totals in 2025 and 2026 for minimum capital requirements

• 
  Total Investment Value: Your investment plan must exceed IDR 10 Billion (approx. USD 650,000+) per 5-digit KBLI business code. This includes fixed assets, equipment, and working capital, but excludes land and buildings for most sectors.
  
  
• Minimum Paid-up Capital: To facilitate SMEs, the mandatory paid-up capital has been reduced to IDR 2.5 Billion (approx. USD 160,000+).
  
  
• The 12-Month Rule: To prevent "shell companies," this capital must remain in the corporate account for at least 12 months unless used for verified business operations. Regulators may require evidence that paid-up capital reflects genuine operational readiness and is not nominal in nature.