Business Setup

Investment and Company Establishment Guide

Indonesia’s economic growth trajectory continues its upward climb, making it a fertile ground for aspiring entrepreneurs. As the world’s fourth-largest population, spread across a staggering 18,307 islands, Indonesia presents an archipelago brimming with opportunity. Natural resources abound, from gold and copper to natural gas and minerals. Recognizing the potential for foreign investment to fuel further economic development, the Indonesian government has implemented more investor-friendly policies, solidifying Indonesia’s position as a promising investment destination.

But how does one navigate the path towards establishing a legitimate business in Indonesia? Let’s delve into the world of Indonesian business regulations, guiding you through the initial steps of compliant investment.

This guide, compiled in collaboration with LetsMoveIndonesia, a leading business and immigration consultancy firm, provides valuable insights for both local and foreign investors.

Keep in mind that Social Expat does not handle legal documents or permits such as visas or licenses. Our role is to empower expatriates and locals by providing knowledge and updates to navigate the Indonesian investment landscape while adhering to regulations.

If you are interested in knowing more about setting up a business in Indonesia, kindly visit LetsMoveIndonesia’s website or fill out the form below.

Common Types of Company Establishment in Indonesia

PT (Perseroan Terbatas)

The most popular choice for business entities in Indonesia, a PT is a limited liability company similar to a Limited Liability Company (LLC) in the United States. It offers the advantage of separating the owner’s personal assets from the company’s assets, providing liability protection to its shareholders.  A minimum of two shareholders are required to form a PT, and both local and foreign individuals or entities can be shareholders.

PT PMA (Penanaman Modal Asing)

This entity structure is specifically designed for companies with foreign ownership or investment.  A PT PMA allows foreign investors to establish a limited liability company in Indonesia, providing them with a direct stake in the Indonesian market. The minimum foreign ownership requirement for a PT PMA varies depending on the industry sector, but it can be as low as 100% for certain business activities.

Representative Office (KPPA)

Foreign companies seeking to establish a presence in Indonesia for market research,  liaison activities, or promotional purposes can opt for a Representative Office (KPPA). It’s important to note that a KPPA is not a separate legal entity and cannot generate direct revenue in Indonesia.  Its primary function is to represent the parent company and conduct activities that support the parent company’s business in Indonesia.

Virtual Office

Keep the professional address with Virtual offices in Indonesia. This type of office space provides a business address and essential services like mail forwarding and phone answering, all without the need for a physical space. This cost-effective solution is ideal for startups, entrepreneurs, and foreign companies looking to establish a presence in Indonesia efficiently. It’s a perfect way to test the market, before committing to a traditional office setup.

Understanding Business Licenses and Legal Document Requirements

Following your decision on deciding the company structure for your business in Indonesia, obtaining the necessary licenses and permits is paramount. These legal documents act as your official business credentials, ensuring compliance with Indonesian regulations. The specific licenses required will vary depending on your industry and location. Don’t hesitate to partner with a reliable Business Consultant Agency. Their expertise can be invaluable in navigating this process. They can help you understand licensing requirements, streamline the application process, and ultimately, guarantee your legal documents meet all Indonesian standards, giving you peace of mind to focus on running your business.

How to Amend Business Documents

Navigating the Indonesian market is not only running outwards. At some points, your Board of Commissioners experiences a shift, you require new business licenses, or your company undergoes other changes.  Whatever the reason, revising your Company Deeds will become a necessity along with your development.  Partnering with an experienced business and legal consultant streamlines the amendment process and ensures all the requirements to meet the local regulations, leveraging their expertise to ensure both compliance and efficiency.  This allows you to focus on what matters most –  steering your business towards continued success in Indonesia.

How to Navigate Tax Management for Business in Indonesia

Indonesia’s well-defined tax system offers a clear framework, but its intricacies can be a hurdle for foreign businesses. To ensure your business thrives, a thorough understanding of your tax obligations is key. Partnering with a certified tax consultant simplifies the process by providing expert guidance. They’ll assist you with tax registration, ensuring you’re categorised correctly. They’ll also guide you through filing tax returns accurately and on time, and advise on adhering to all relevant tax regulations. This expert support keeps your business compliant and avoids costly penalties, allowing you to focus on growth and navigating the Indonesian market with confidence.

List of Business Setup Services for Indonesia

The most popular choice for both domestic and foreign investors. PT offers limited liability protection for shareholders.
Type of Foreign Investment Company in Indonesia that allows foreign entities to own a majority stake in the Indonesian business.
Representative Office (KPPA) allows for market research, promotion, and relationship building, but cannot generate direct revenue.
The specific licenses required depend on your industry and activities. Streamline the process of obtaining a Business License in Indonesia.
As your business evolves, your company deeds may need revisions to reflect changes in ownership, share structure, or activities.
Understanding and complying with Indonesian corporate tax regulations is essential to make sure your business can smoothly run.

Why LetsMoveIndonesia is Your Ideal Partner

Partnering with LetsMoveIndonesia empowers you to focus on your core business activities. They will handle the intricacies of company registration, license acquisition, and tax management, allowing you to seamlessly establish and operate your business in Indonesia.

LetsMoveIndonesia brings a wealth of experience and expertise to the table:

  • Streamlined Business License Application: Their team navigates the complexities of license applications, ensuring efficiency and minimising delays.
  • Expert Document Revision: They meticulously review your legal documents to guarantee compliance with Indonesian regulations.

Ready to unlock the vast potential of the Indonesian market? Contact LetsMoveIndonesia today and turn your entrepreneurial dreams into reality!

Still have questions about Business and Investment in Indonesia? Contact our trusted business and legal consultant partner, Lets Move Indonesia!

Additional useful services from Lets Move Indonesia


Social Expat offers essential guides and consultations for Business establishments in Indonesia. Please note that we are not providing any documents process, so please follow the right procedures from the official website of OSS Indonesia. If you need further assistance in establishing your business, contact Lets Move Indonesia!