Written by Kevin Tan , Foreign Client Director
Last updated: 24 June 2026
What is a PT PMA, and why foreign investors need one
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing — a foreign direct investment limited liability company. The moment any shareholder is a foreign individual or a foreign company, your Indonesian company is legally a PT PMA, not a local company (PT lokal). Foreigners cannot directly hold a local PT, so the compliant route into the market is the PT PMA.
A PT PMA is a separate legal person. It can hold assets in its own name, sign contracts, apply for business licences, employ local and foreign staff, and sponsor KITAS stay permits for foreign directors and investors. It is also the entity behind every downstream permit — environmental approval, construction qualification, or a halal registration — so without a valid company there is nothing to license.
This matters especially in Bali, where a large share of foreign-run businesses (villa management, hospitality, F&B, surf and wellness brands, and remote-first agencies in Canggu, Seminyak and Ubud) have historically operated through informal arrangements or nominee structures. Those structures are legally fragile. A clean PT PMA is what makes a Bali operation bankable, hireable and sellable.
How much can foreigners own? The Positive Investment List
Since March 2021, Indonesia replaced the old “negative list” with the Positive Investment List under Perpres 10/2021 (as amended by Perpres 49/2021). The principle flipped: unless a regulation explicitly restricts or closes a sector, business lines are open to 100% foreign ownership by default.
The list sorts activities into priority sectors (with tax and other incentives), lines reserved for or requiring partnership with cooperatives and MSMEs, lines open with specific conditions, and lines fully open to all investors. Those “specific conditions” are usually a foreign-ownership ceiling — for example, some transport and energy lines cap foreign equity at 49% or 67%.
Your ownership ceiling is driven by your exact KBLI code, so checking the KBLI against the Positive Investment List before you incorporate is the single most important step. See our KBLI & Foreign Ownership Check.
Requirements to set up a PT PMA
- At least two shareholders — foreign individuals or foreign/Indonesian companies — plus at least one Director (Direktur) and one Commissioner (Komisaris).
- A clear KBLI business scope — each 5-digit KBLI code maps to one activity, a risk level and any foreign-ownership limit, and is fixed at incorporation.
- The minimum investment plan — more than IDR 10 billion per 5-digit KBLI per project location, excluding land and buildings.
- A registered address that complies with local zoning (zonasi). In Bali that means a properly zoned commercial address, not a residential villa.
- Paid-up capital of at least IDR 2.5 billion under BKPM Reg 5/2025 (see below).
The PT PMA setup process, step by step
- Name reservation and KBLI. Reserve the company name through Kemenkumham’s AHU system (Latin letters, at least three words, valid 60 days) and lock in your KBLI and ownership.
- Notary deed (Akta Pendirian). An Indonesian notary drafts the articles of association — shareholding, capital, directors and commissioners, and the business purpose.
- Legal-entity approval (SK Kemenkumham). The deed is submitted to the Ministry of Law and Human Rights, which issues the legal-entity decree and brings the company into existence.
- Tax number (NPWP). The company is issued its corporate tax number, the basis for all reporting and the bank account.
- NIB and licences (OSS-RBA). Register on OSS-RBA to obtain the NIB; depending on risk level, obtain a Standard Certificate or a full Licence.
- Bank account and capital injection. Open the corporate bank account and inject the required paid-up capital to begin operating.
Estimate assuming complete documents — roughly 4–8 weeks total; actual timing depends on OSS / Kemenkumham processing.
Paid-up capital vs investment plan: the two numbers people confuse
The two figures investors most often mix up are paid-up capital and the investment plan. Under BKPM Reg 5/2025, the minimum paid-up capital for a PT PMA dropped 75% — from IDR 10 billion to IDR 2.5 billion — but it now carries a 12-month lock-up: that capital cannot leave the company account for a year unless it is spent on assets, construction or genuine operations, proven through quarterly LKPM reports.
The minimum investment plan is unchanged: more than IDR 10 billion per 5-digit KBLI per project location, excluding land and buildings. The investment plan covers fixed assets and working capital — it is a commitment over time, not cash you must wire up front.
The practical effect is that mid-tier foreign founders — agencies, software firms, consultancies — who were priced out at IDR 10 billion can now incorporate at IDR 2.5 billion. But the lock-up means how you spend that capital is audited. We pair every setup with a plan to stay compliant: see LKPM Reporting & Capital Lock-Up.
What CLAN does for foreign founders
- Structure & KBLI assessment — we confirm whether your sector allows 100% foreign ownership, which KBLI codes you need, and the matching risk level and licences.
- End-to-end setup — we coordinate the notary and Kemenkumham, from name reservation, Akta and SK through NPWP and NIB, in one managed sequence.
- Permit bundling — for regulated activities (F&B, manufacturing, construction) we plan the downstream permits and your director and staff KITAS in parallel.
- Done in English — clear explanations of every document and obligation, so nothing is lost in translation between Indonesian regulation and your board.