Foreigners are allowed to do business in Indonesia by opening a company. In Indonesia, a limited liability company is called PT. If at least one shareholder is a foreign individual or a foreign company, the structure becomes a PT PMA, which is a foreign-owned company in Indonesia.
A properly registered company can be used to conduct business, lease or purchase certain assets in the company name, open corporate bank accounts, hire employees, apply for business licenses and, in many cases, support long-term stay permits such as Investor KITAS, Working KITAS and Dependent KITAS for family members.
Flado Indonesia helps foreign investors register PT PMA companies across Indonesia, including Bali, Jakarta, Lombok and other provinces. However, the process in 2026 requires more preparation than before: the business location, KBLI activity, zoning, risk level and paid-up capital readiness must be checked from the very beginning.
Important update for 2026: if you are planning to open a PT PMA in Bali, please read our latest update about OSS restrictions for low-risk and medium-low-risk activities before starting the process:
What is the difference between PT and PT PMA?
Both PT and PMA are Indonesian abbreviations.
PT means Perseroan Terbatas, which is the Indonesian form of a limited liability company.
PMA means Penanaman Modal Asing, or foreign investment. It indicates that at least one shareholder is foreign. Indonesian shareholders may also be present, but even one foreign shareholder makes the company a PT PMA.
If all shareholders are Indonesian citizens or Indonesian-owned entities, the company is a local PT. If at least one shareholder is foreign, the company must be structured as a PT PMA and follow foreign investment rules.
In everyday speech, PT PMA is often shortened to PMA. In formal company documents, the company name usually uses the PT prefix, while the foreign investment status is reflected in the company structure and registration data.
How to open a company in Bali, Jakarta, Lombok or anywhere in Indonesia?
A PT PMA can be registered in Indonesia with the assistance of a notary. Founders may sign notarial documents in person, or the company can be established remotely by power of attorney when one or more founders are outside Indonesia.
The first step is to fill out a brief for the establishment of a company. However, in 2026 we strongly recommend preparing the business location and KBLI direction before requesting a detailed review.
Before we can properly assess whether your PT PMA can be registered and licensed, please prepare:
- a Google Maps link to the exact business location;
- a description of the real business activity;
- possible KBLI codes from the official OSS directory;
- information about shareholders, director and commissioner;
- confirmation that the paid-up capital requirement can be met;
- passport scans of foreign founders;
- Indonesian phone number and contact details for the company.
The location must be exact. Please do not send a nearby hotel, restaurant, villa or landmark if the company will not actually operate there. OSS licensing depends on the real location where the business activity will be carried out.
Once the basic information is clear, our notary and team can review whether the structure is realistic. If the activity is not allowed at the selected location, we may need to check another KBLI subcategory or consider another location.
Company registration itself can be relatively fast, but correct planning may take longer. Opening a PT PMA is not only a notarial process. It is also a licensing, investment, immigration and compliance process.
You can also apply for a residence permit in Indonesia through an Investor KITAS, if the company and the investor’s share structure meet immigration requirements.
Start from location, not from company name
Many foreign investors want to start with the company name, shareholders and office address. In 2026, the correct first step is different: start with the exact location and planned business activity.
Indonesia uses a risk-based business licensing system through OSS. The same business activity may be possible in one location and blocked in another location because of zoning, land use, regional policy, environmental requirements or risk classification.
For this reason, Flado Indonesia needs a Google Maps link to the exact business location before confirming whether a certain activity can be used. This applies to Bali, Jakarta, Lombok and any other region in Indonesia.
If the activity is not allowed at the selected location, there are usually several options:
- check another KBLI subcategory that better describes the real activity;
- adjust the business model legally;
- choose another location within the same region;
- consider another province, for example Lombok, East Java or another suitable area;
- review whether PT PMA is the correct structure for the intended business.
This is why we ask clients to come to us with a clear business plan, a real location and a preliminary KBLI direction. We can help with the review, but the first practical step is always the location.
How to choose KBLI activities in 2026
KBLI is the Indonesian Standard Industrial Classification. Every company in Indonesia must use KBLI codes to describe its business activities.
You can search possible KBLI codes through the official OSS directory:
You can also check the official KBLI 2025 publication from BPS:
Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) 2025 — BPS
Please do not use old printed KBLI lists or outdated articles from previous years. KBLI 2025 was released and is being integrated into the AHU and OSS systems during the 2026 transition period. For new companies and new licensing steps, the KBLI direction should be checked under the current online framework.
The OSS website is in Indonesian, but you can use browser translation or an AI translator to understand the general meaning of each activity. Right-click on the page and translate it into your language, or copy the Indonesian activity description into a translation tool. This will usually help you prepare a preliminary list of possible KBLI codes.
When contacting Flado Indonesia, please send us:
- the KBLI codes you think may fit your business;
- a short explanation of why you selected them;
- a detailed description of what the company will actually do;
- the exact Google Maps location of the business;
- whether you need the company mainly for business operations, property holding, Investor KITAS, Working KITAS or family relocation.
The final decision cannot be made only from the KBLI title. The notary and licensing process must check whether the activity is allowed for PT PMA, whether it is open to foreign investment, whether it is allowed at the selected location and whether additional sectoral licenses are required.
What types of activities are allowed for PT PMA?
The list of activities open to foreign-owned companies changes over time. Some activities that are easy for Indonesian citizens or local small businesses are not available for PT PMA, or may be restricted by foreign ownership limits, risk level, location or UMKM protection rules.
Activities such as small local services, micro retail, some beauty services, certain accommodation categories and other small-scale activities may be restricted or reserved for Indonesian-owned UMKM. On the other hand, larger-scale projects, consulting, certain IT activities, real estate services, hospitality structures, management services, trading, manufacturing or other commercial activities may be possible if the KBLI, location and licensing requirements match.
Not all types of activities from different categories should be included in the company deed. We usually recommend selecting the main activity and a small number of additional activities. In many cases, 2–3 well-selected activities are better than a long and unfocused list.
If the list of activities or shareholders needs to be changed later, this may require notarial amendments and additional costs. It is better to think through the business structure before registration.
Type of activity is not the same as a license
Declaring a KBLI activity in the company documents does not automatically mean that the company is fully licensed to operate.
Each activity may require its own licensing process through OSS. Depending on the activity, risk level and location, the company may need:
- NIB;
- standard certificate;
- business license;
- KKPR or spatial suitability confirmation;
- environmental document such as SPPL, UKL-UPL or AMDAL;
- sectoral approvals through PB-UMKU;
- additional requirements from a ministry, local authority or regulator.
Some licenses are issued quickly. Other activities require time, documents, inspections, office or building conditions, environmental approvals or additional sectoral checks. The process can be instant in simple cases and may take several months for more complex or higher-risk activities.
This is why the company setup process and the licensing process should be treated as connected but separate stages.
Important Bali update: low-risk and medium-low-risk activities may be blocked for PT PMA
In May 2026, Flado Indonesia published a separate update about the situation in Bali. The Governor of Bali sent a letter to the Ministry of Investment and Downstream Industry / BKPM requesting restrictions on foreign-owned companies in Bali for activities with low and medium-low risk levels.
In practice, this document has appeared in OSS as a basis for refusing certain PT PMA activities in Bali. This is especially important for foreign investors planning villas, guesthouses, short-term rentals, certain accommodation activities, consulting, retail, real estate-related activities or other lower-risk activities in Bali.
Please read the full update here before starting a Bali PT PMA project:
The same activity may be difficult or impossible in one location but possible in another location. If Bali does not work for your business model, it may be worth considering Lombok, East Java, Jakarta or another Indonesian province, depending on the activity and licensing requirements.
This does not mean that foreigners cannot open a company in Indonesia. It means that the location and KBLI must be checked more carefully before registration.
What is the easiest company to open in Bali or Jakarta?
There is no universal “easiest” company anymore. The answer depends on the exact location, business activity, KBLI, risk level and purpose of the company.
In previous years, many investors used consulting, tourism consulting, IT activities, real estate services, rental or management activities as relatively simple entry points. Some of these activities may still be possible, but they must be checked through the current OSS and KBLI logic, especially in Bali.
For example, an IT project not related to finance may be easier than a regulated financial activity. A real estate agency may be easier than a construction company. A restaurant, hotel, villa, rental or hospitality project may require a deeper check because the licensing logic depends heavily on the exact activity, zoning, building, region and risk classification.
If you want to open a cryptocurrency exchange or other regulated financial activity, this is a completely different level of licensing and capital requirement and may involve OJK or other regulators. Such projects require separate legal and financial review.
What is the minimum capital for a PT PMA company in 2026?
PT PMA is designed for foreign investment and is not intended for micro or small local businesses. Local micro and small business structures are generally for Indonesian citizens and Indonesian-owned businesses.
For PT PMA, the general investment plan is usually at least IDR 10 billion, excluding land and buildings, depending on the business activity and applicable rules.
Under the current 2026 approach, the paid-up capital should be at least IDR 2.5 billion. This amount represents 25% of IDR 10 billion.
In practice, shareholders should be ready to show that the paid-up capital is real and available. Previously, many processes were treated more flexibly, with shareholders confirming that capital would be injected later. In the current compliance environment, notaries and related parties may require stronger evidence that the capital is actually ready.
This means that before starting PT PMA registration, investors should be prepared to show funds, for example through an Indonesian personal bank account or relevant foreign bank account documentation. The exact practical requirement may depend on the notary, bank and case.
If the shareholders cannot show the required paid-up capital, the notarial registration may not be possible. Please do not start the process if the capital requirement is not realistic for your case.
Important: company capital rules and immigration rules are connected but not always identical. If you plan to apply for an Investor KITAS or later convert to KITAP, the investor’s personal share and capital structure must be reviewed separately.
Can foreigners work for an Indonesian company?
Yes, but a foreigner must have the correct immigration and work authorization for the actual role.
A shareholder or commissioner is not automatically allowed to work operationally in Indonesia. An investor may supervise investment and train staff within the permitted scope, but daily operational work may require a proper Working KITAS and work permit process.
Initially, it is usually better to rely on Indonesian staff. If the company needs an essential foreign specialist, the company may apply for a Working KITAS after meeting manpower and licensing requirements.
Without the correct permit, a foreigner may face immigration consequences, including deportation and future visa problems.
How long does the company and KITAS process take?
The company itself can sometimes be registered in a few days, but in practice the total timeline depends on the readiness of documents, shareholders, paid-up capital evidence, company address, KBLI review, notary schedule and licensing complexity.
The visa for Investor KITAS can usually be processed electronically when the company and investor structure are ready. Offshore Investor KITAS processing often takes around 7–12 business days after the required documents are complete. After approval, the applicant receives time to enter Indonesia and activate the stay permit process.
You can start the offshore process while you are in Indonesia, but you will need to leave Indonesia and re-enter to activate the visa. Many clients make a short visa run, for example to Kuala Lumpur or Singapore, depending on ticket availability and personal plans.
The offshore process is often faster and simpler than an onshore conversion. The onshore process depends on the current stay permit, timing, immigration rules and remaining validity of the current visa.
The onshore process can be started only when the current immigration status allows conversion. In many cases, additional timing rules apply, and starting too late may make onshore conversion impossible.
PT PMA taxes and accounting
PT PMA registration and business licensing are not the same as tax planning. Tax structure, accounting, VAT/PPN, payroll, withholding tax, shareholder loans, dividends and daily bookkeeping must be reviewed separately with a qualified tax consultant.
Depending on the company’s size, revenue, activity and tax status, different tax regimes may apply. Some companies may use a simplified turnover-based tax regime for a certain period if they qualify. Other companies may apply regular corporate income tax rules.
Tax payments and reporting are usually handled through the Indonesian tax system. You can access the official tax website here:
Flado Indonesia can help with company registration and licensing coordination, but tax planning and tax reporting should be confirmed with a licensed tax consultant or accounting firm.
How not to get confused in financial terms when paying taxes in Indonesia?
These simplified tables can help you understand the basic financial terms used in business accounting:
| Gross Income / Gross Revenue Primary Income | – | Cost of Goods Sold (COGS) Cost of Sales Purchases | = | Gross Profit |
Purchases may include cost, returns, discounts and direct expenses related to the goods or services sold.
| Gross Profit | – | Operating Expenses | = | Net Operating Income | – | Taxes | = | Net Profit |
Operating expenses may include salary, BPJS contributions, rent, electricity, cleaning, internet, hosting, domain, office supplies, transportation and other expenses related to company operations.
At the beginning, many foreign-owned companies use local accounting firms to prepare bookkeeping, monthly reports and annual tax filings. The exact cost depends on activity, number of transactions and reporting complexity.
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Family dependent KITAS
After the main applicant receives an Investor KITAS, eligible family members may apply for Dependent KITAS. This usually applies to a spouse and minor children.
For many families, the company is not only a business structure, but also a practical immigration base. A properly structured PT PMA may support Investor KITAS for the founder and Dependent KITAS for the spouse and children, if all immigration requirements are met.
For Chinese investors and other foreign families, this is often one of the main reasons to open a PT PMA in Indonesia: the company becomes the entry point for a long-term stay structure, investment planning and family relocation.
Dependent KITAS is usually faster and cheaper when arranged through the offshore process, depending on the current location and status of the family members.
Employee salaries, dividends and BPJS contributions
Under employment contracts, the company pays salaries to employees from the company account. Shareholders may receive income through dividends when the company has distributable profit and proper accounting records.
It is better not to pay personal expenses that are not related to company activity from a corporate account. Company funds should be used for legitimate business purposes such as rent, transport, hospitality expenses, office furniture, equipment, stationery, software, internet, marketing and other operational costs.
In proportion to employee salaries, the company may need to make social security contributions to BPJS funds. There are two main BPJS systems:
- BPJS Ketenagakerjaan — employment social security;
- BPJS Kesehatan — health insurance.
The exact BPJS, payroll and tax treatment should be reviewed with an accountant or payroll specialist.
What if you decide to close the company?
Closing a PT PMA company in Indonesia is a formal legal, tax and administrative process. It is not enough to simply stop business activity, abandon the office, stop using the bank account or stop submitting reports. Until the company is officially closed, it may continue to have reporting, tax, accounting and administrative obligations.
If KITAS was issued on the basis of the company, the stay permit may also need to be closed properly. It may be necessary to complete the exit procedure from KITAS through EPO. If this requirement is ignored, future visa applications may be affected.
Official PT PMA closure may include shareholder decisions, appointment of a liquidator, notarial documents, publication announcements, settlement of company obligations, tax and accounting checks, revocation of NPWP where applicable, liquidation reports and reporting to the Ministry of Law and other relevant authorities.
The closure process should be planned in advance, especially if the company has active licenses, employees, bank accounts, assets, unpaid taxes, shareholder loans, ongoing contracts or KITAS holders sponsored by the company.
Flado Indonesia can assist with the notarial and administrative side of closing a PT PMA company. Accounting, liquidation reports and tax settlement may require coordination with an accountant or tax consultant.
Read the full guide here:
How To Officially Close A PT PMA Company In Indonesia: Full Guide
What is KITAS and KITAP? How to get Indonesian citizenship?
KITAS is a temporary residence permit in Indonesia. PT PMA founders may apply for an Investor KITAS if the company and investment structure meet the requirements.
Investor KITAS is convenient because it can be a long-term stay permit with multiple entries. Depending on the structure and current rules, it may be issued for 1 or 2 years.
Family members may be able to obtain Dependent KITAS. Dependent KITAS is usually issued and extended based on the main sponsor’s stay permit and family documents.
After several years of valid KITAS, some foreigners may become eligible to apply for KITAP, a permanent residence permit. Later, in certain cases, Indonesian citizenship may be considered, but this is a separate legal process with its own requirements.
Immigration planning should be reviewed separately from company registration. A company can be a strong base for long-term stay in Indonesia, but the KITAS or KITAP path depends on the investor’s role, capital share, company compliance and immigration rules.
It is important to determine the structure of investors in the company
Founders and officers may have different roles in a PT PMA. Common roles include:
- Main Director/Director;
- Commissioner.
Directors usually have authority to represent and sign for the company. Commissioners supervise and monitor the company but do not usually manage daily operations. There may be more than one director or commissioner, depending on the company structure.
The shareholder balance is important not only for corporate control, but also for Investor KITAS planning. If the company is being opened for immigration purposes, the share distribution must be reviewed before registration.
Information required to register a PT PMA company
For easier company registration, we have prepared a form. Before filling it out, please prepare the following information:
- company name, usually minimum 3 words;
- passport scans of foreign founders;
- Indonesian ID documents for Indonesian founders, if any;
- share distribution in Indonesian rupiah;
- roles of the founders: director, commissioner, shareholder;
- Google Maps link to the exact company/business location;
- company address and explanation of how the location will be used;
- possible KBLI codes selected from the OSS KBLI search;
- detailed description of the real business activity;
- residential addresses of the founders;
- Indonesian phone number of the company;
- confirmation of paid-up capital readiness.
Please note that a villa address, apartment address, virtual office or residential address may not be suitable for every activity. Some activities require a real office, commercial premises, warehouse, restaurant location, hotel building or other specific type of business location.
For online businesses, consulting or IT projects, a simpler office structure may sometimes work. For hospitality, restaurants, manufacturing, trading, storage, health, education or regulated activities, the location check is much more important.
Where are the founders located? Remote business opening
If the founders are in Bali or Jakarta, the process may be simple. After the documents are checked, the founders can be invited to sign the deed of incorporation with the notary.
If one or more founders are not in Indonesia, the company may still be opened remotely by power of attorney. In that case, the founder signs a power of attorney for the person who will represent them in Indonesia.
The notary prepares the power of attorney template. The founder may need to sign it, send the original document, provide a passport scan and sometimes take a selfie with the passport and signed power of attorney. The exact requirement depends on the notary and case.
Remote opening is possible, but it requires correct preparation and coordination. Delays usually happen when documents, addresses, capital structure or KBLI information are incomplete.
Company registration PT PMA
The notary prepares and registers the deed of incorporation, obtains approval through the relevant legal administration system and supports the initial company registration steps. After that, the company can proceed with tax number, OSS account, NIB and business licensing steps.
PT PMA registration should be treated as the first stage. The next stage is licensing the actual business activity through OSS and, where required, obtaining additional approvals.
Onshore and offshore issue of Investor and Working KITAS: steps, prices, terms
1. PT PMA founders may be eligible to receive an Investor KITAS for 1 or 2 years, depending on the company structure, capital share and current immigration requirements. If the long-term goal is KITAP, the capital share and compliance history should be reviewed from the beginning.
Getting KITAS may be possible through an offshore process or an onshore process, depending on the applicant’s current location and immigration status.
The offshore process can often be started while the applicant is in Indonesia, but the applicant must leave Indonesia and re-enter after visa approval to activate the stay permit. In many cases, this is the most practical route.
2. The onshore process is handled through the immigration system in Indonesia and depends on the current visa or stay permit. It is not always available and should not be started too late. If there is not enough time left on the current stay permit, a visa run or another immigration strategy may be required.
Offshore KITAS processing may take around 1–2 weeks after all company and immigration documents are ready. Onshore processes can take longer and may require additional steps, depending on the case.
3. In addition to Investor KITAS for company owners and executives, there is also a Working KITAS for foreign employees. Before a Working KITAS can be issued through immigration, the company must usually obtain manpower approval and work permit-related documents through the relevant manpower process.
The duration of the requested work permit affects the government fee. In many cases, foreign worker compensation fund payments are calculated by month, commonly USD 100 per month, depending on the position and permit duration.
A company hiring a foreign employee should also have Indonesian employees and proper employment documentation. BPJS registration, employment contracts and payroll compliance may be required.
The term for obtaining a work permit through our agency depends on the company readiness, position, documents and ministry processing. The service price should be confirmed for the current case.
Free first review and paid detailed consultation
Flado Indonesia can provide an initial review of your planned PT PMA case. This first review is intended to understand whether your request is realistic and what information is missing.
However, opening a company is often a long advisory process. If your case requires detailed analysis of location, KBLI, zoning, capital structure, immigration strategy, family KITAS, tax implications or several business models, we may offer a paid consultation before moving forward.
Please contact us with a specific task, not only with a general idea. The minimum information we need is:
- Google Maps link to the exact business location;
- planned business activity;
- possible KBLI codes from OSS;
- description of the real operation;
- number and nationality of shareholders;
- planned director and commissioner;
- confirmation of paid-up capital readiness;
- whether Investor KITAS, Working KITAS or Dependent KITAS will be needed.
If the request is incomplete, too general or does not meet the basic PT PMA requirements, we may not be able to provide a detailed answer before the required information is prepared.
Useful links before starting PT PMA registration
- PT PMA company registration form
- Official OSS KBLI search
- Official KBLI 2025 publication by BPS
- Important Bali PT PMA update for low-risk and medium-low-risk activities
- How To Officially Close A PT PMA Company In Indonesia: Full Guide
- Investor KITAS
- Working KITAS
- Dependent KITAS
- KITAS
- KITAP
- EPO / KITAS exit procedure
- Official Indonesian tax website