A PT PMA (Penanaman Modal Asing) is the standard legal vehicle for foreign investors who want to own and operate a business in Indonesia. Unlike a local PT, a PT PMA permits foreign shareholding — but it comes with specific capital, licensing, and reporting obligations. Here is how the process works in 2026.

What is a PT PMA?

A PT PMA is a foreign-investment limited liability company registered with Indonesia's Investment Coordinating Board (BKPM) through the OSS (Online Single Submission) system. It gives foreign investors a fully recognised legal entity that can sign contracts, employ staff, sponsor work permits, and repatriate profits.

Step 1 — Confirm your sector is open

Before anything else, check the Positive Investment List. It defines the maximum foreign ownership allowed in your business activity (KBLI code). Some sectors allow 100% foreign ownership; others are capped or require a local partner.

Step 2 — Meet the capital requirement

A PT PMA generally requires:

  • A minimum investment plan of IDR 10 billion (excluding land and buildings) per business line
  • Paid-up capital that demonstrates genuine commitment
  • A clear, documented source of funds

Step 3 — Register through OSS and obtain your NIB

The Business Identification Number (NIB) is your company's core licence. Through OSS you also obtain sector-specific permits depending on your risk classification.

Step 4 — Set up tax, banking, and reporting

Register for a corporate tax number (NPWP), open a corporate bank account, and prepare for the mandatory LKPM (quarterly investment activity report). Missing LKPM reports is one of the most common compliance failures for new investors.

The legal entity is the easy part. Staying compliant — and keeping your cash flow transparent — is what protects the investment long-term.

Common mistakes to avoid

  • Choosing the wrong KBLI code, which can silently cap your ownership
  • Underestimating paid-up capital and triggering scrutiny
  • Relying on a nominee structure to bypass ownership limits (a serious legal risk)
  • Treating licensing as a one-time event rather than an ongoing obligation

Setting up a PT PMA is very achievable with the right preparation — but the difference between a clean entry and a costly correction lies in the due diligence done beforehand. Grafasco helps inbound investors structure, license, and monitor their Indonesian entities so that compliance and transparency are built in from day one.