Business
Indonesia — Business: Limited Company
A foreign-owned Indonesian company (PT PMA) needs at least two shareholders and a minimum investment of IDR 10 billion, with paid-up capital of IDR 2.5 billion.
VerifiedGovernment / official sourceBKPM — Investment procedures for foreign-owned companies (PT PMA)Last reviewed: 2026-10-23
Key facts
- Foreign investors must form a limited liability company (PT) with at least two shareholders, individuals or companies, under Law 40/2007.
- BKPM pages give a minimum investment of IDR 10 billion excluding land and buildings and minimum issued and paid-up capital of 25% of the total investment, about IDR 2.5 billion; BKPM Regulation 4/2021 Article 12 carves out exceptions such as some wholesale trade.
- Licensing runs through the OSS risk-based system; the NIB business number is free.
- Presidential Regulation 10/2021 replaced the negative list: 46 industries have specific requirements, 30 cap foreign capital (for example sea transport at 49%) and 11 are reserved to domestic capital.
Steps
- Step 1: Choose a Business Name — The name of the company must be unique and comply with Indonesian naming conventions.
- Step 2: Prepare the Required Documents — This includes the articles of association, the deed of establishment, and other supporting documents.
- Step 3: Obtain Licenses and Permits — This includes obtaining a business license (SIUP) and a tax identification number (NPWP) from the relevant authorities.
- Step 4: Register the Company with the Ministry of Law and Human Rights — This involves submitting the required documents and paying the necessary fees.