Indonesia is entering 2026 with continued optimism for foreign investment. According to Bank Indonesia, the country’s economy is projected to grow between 4.9% and 5.7%, supported by industrial transformation, the rapid expansion of the digital economy, and a resilient financial sector. New international financial hubs, strategic industrial cooperation, and government-led investment reforms are further positioning Indonesia as one of Southeast Asia’s most attractive destinations for international businesses.
For entrepreneurs, investors, and expatriates looking to expand into one of the region’s largest consumer markets, understanding how to establish a company in Indonesia is the first step. While the process may seem complex, choosing the right business structure and obtaining the appropriate licences can make market entry significantly smoother.
This guide answers some of the most common questions about company establishment in Indonesia, particularly for foreigners looking to register a PT PMA (Foreign-Owned Company).
How Can You Open a Business in Indonesia as an Expat?
Indonesia allows foreign nationals to establish and own businesses through a PT PMA (Perseroan Terbatas Penanaman Modal Asing), provided the intended business sector is open to foreign investment.
A PT PMA is the most common legal entity for international investors because it allows foreign shareholding while providing the ability to conduct commercial activities, hire employees, obtain business licences, sponsor work permits and KITAS, and enter into commercial contracts under Indonesian law.
Before setting up a company, foreign investors should first determine whether their intended business activity is open to foreign ownership and whether any sector-specific requirements apply.
What Determines Your Eligibility for Company Establishment in Indonesia?
Not every business sector in Indonesia can be fully owned by foreign investors. Eligibility depends on several regulatory considerations, including:
- The company’s proposed business activities
- The applicable KBLI (Indonesian Standard Industrial Classification) code
- Indonesia’s investment regulations
- Sector-specific licensing requirements
- Minimum capital requirements
Certain industries may require additional approvals or limit the percentage of foreign ownership, while many professional services, technology businesses, consulting firms, trading companies, and digital businesses remain open to foreign investment.
Reviewing your business model before incorporation helps ensure the chosen structure complies with Indonesian regulations.
What is a PT Company Registration in Indonesia?
A Perseroan Terbatas (PT) is Indonesia’s limited liability company structure.
For foreign investors, this takes the form of a PT PMA, which is recognised as a foreign investment company under Indonesian investment law.
Once incorporated, a PT PMA becomes a separate legal entity capable of:
- Conducting commercial activities
- Opening corporate bank accounts
- Entering into contracts
- Employing local and foreign staff
- Obtaining business licences
- Registering for taxation
- Applying for immigration sponsorship
The company must complete registration through Indonesia’s Online Single Submission (OSS) system before commencing operations.
How Can You Set Up a PT PMA as an Expat?
Many expatriates establish a PT PMA before relocating permanently to Indonesia.
The incorporation process generally involves:
- Determining the appropriate business activities.
- Selecting the relevant KBLI classification.
- Preparing incorporation documents.
- Registering through the OSS system.
- Obtaining a Business Identification Number (NIB).
- Applying for any sector-specific licences.
- Registering for taxation and other regulatory requirements.
Once the company is operational, eligible shareholders or directors may also apply for an Investor KITAS, while foreign employees may require a Work KITAS depending on their role.
Also Read: Guide to Establish a PT PMA in Indonesia
What is the Required Capital for a PT PMA in Indonesia?
Indonesia requires foreign investment companies to satisfy minimum investment commitments.
Under current regulations, a PT PMA is generally expected to have:
- A minimum investment plan of IDR 10 billion (excluding land and buildings) for each business activity.
- Adequate paid-up capital in accordance with prevailing investment regulations.
The exact capital structure may vary depending on the business sector and licensing requirements.
What Required Documents Do You Need to Establish a PT PMA?
Although documentation varies according to the company’s shareholders and business activities, applicants generally prepare:
- Passport copies of foreign shareholders and directors
- Indonesian identification documents for local shareholders (if applicable)
- Proposed company name
- Company address
- Articles of Association
- Shareholding structure
- Business activity information (KBLI)
- Power of Attorney, where required
Additional documents may be requested for regulated industries.
What is a Representative Office in Indonesia?
Not every foreign company needs to establish a PT PMA immediately.
Businesses still evaluating Indonesia’s market often begin by opening a Representative Office, which allows overseas companies to:
- Conduct market research
- Build relationships with potential partners
- Promote their parent company
- Supervise local interests
- Explore investment opportunities
However, a Representative Office cannot generate revenue or engage in direct commercial activities within Indonesia.
Many businesses later convert their Representative Office into a PT PMA once they decide to expand their operations.
What Indonesian Business License Do You Need to Operate Legally?
After incorporation, businesses generally need to obtain the appropriate licences before commencing operations.
The primary licence issued through the OSS platform includes:
- Business Identification Number (NIB)
Depending on the business sector, companies may also require:
- Standard Certificates
- Operational licences
- Commercial licences
- PSE registration (for digital businesses)
- PPMSE registration (for e-commerce businesses)
Maintaining these licences is essential for ongoing corporate compliance.
How Can PT Establishment Services Help Foreign Investors?
Setting up a company involves more than preparing incorporation documents.
Professional incorporation services typically assist with:
- Company registration
- OSS submissions
- NIB registration
- Business licence applications
- Tax registration
- Corporate bank account assistance
- Investor KITAS applications
- Ongoing corporate compliance
Working with experienced consultants helps businesses avoid unnecessary delays and ensures compliance from the outset.
Establish a PT: Choosing the Right Legal Entity
Indonesia offers several business structures depending on your commercial objectives.
Common legal entities include:
| Legal Entity | Suitable For |
| PT PMA | Foreign investors conducting commercial business |
| Local PT (PT PMDN) | Indonesian-owned businesses |
| Representative Office | Market research and liaison activities |
| Branch Office | Selected regulated sectors |
Selecting the appropriate legal entity depends on your ownership structure, investment plans, and intended business activities.
How Do You Register Your KBLI Through OSS and Choose the Right Business Field?
Every company established in Indonesia must register under one or more KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes through the OSS system.
The selected KBLI determines:
- Whether foreign ownership is permitted
- Required licences
- Applicable regulatory obligations
- Risk classification
- Reporting requirements
Choosing the correct KBLI is one of the most important decisions during company incorporation, as it influences nearly every subsequent licensing and compliance requirement.
Planning to Establish a Company in Indonesia?
Indonesia continues to strengthen its position as one of Asia’s most attractive investment destinations, supported by economic growth, regulatory reforms, and an expanding digital economy. However, successful market entry requires careful planning, from selecting the right business structure to obtaining the appropriate licences and maintaining ongoing compliance.
LMI Consultancy assists foreign entrepreneurs, investors, multinational companies, and expatriates with comprehensive company establishment services, including PT PMA incorporation, Representative Office registration, OSS licensing, KBLI selection, tax registration, immigration support, and long-term corporate compliance.
Whether you are exploring opportunities or ready to establish your business, obtaining professional guidance from the beginning can help ensure a smooth and compliant expansion into Indonesia.
For the latest immigration, business setup, and corporate compliance updates in Indonesia, visit LMI Consultancy or speak with one of our consultants for tailored advice.
