Step-by-Step Guide How to Set Up a Company in Indonesia as a Foreigner

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Legally, Islands in Indonesian Territory Cannot Be Bought or Sold", "Parking for Just a Few Hours Costs Millions", you may read also "Malaysian Authorities Sue Telegram to the Court" and on this occasion we will discuss about 'Step-by-Step Guide How to Set Up a Company in Indonesia as a Foreigner'.

Indonesia has become an increasingly attractive destination for foreign investors due to its growing economy and large consumer base. If you're a foreigner looking to start a business in Indonesia, the most common legal entity is a PT. PMA (Perseroan Terbatas Penanaman Modal Asing), or Foreign-Owned Company.

Step-by-Step Guide:

1. Determine Your Business Sector

Some sectors are open 100% to foreign ownership, while others are restricted or require partnerships with locals. Always refer to the Negative Investment List (DNI) or the updated Positive Investment List to check the rules for your industry.

2. Choose a Legal Entity: PT. PMA

A PT PMA allows foreign investors to legally conduct business and generate revenue in Indonesia. It can be 100% foreign-owned, depending on the sector.

3. Meet Minimum Investment Requirements

-Minimum total investment: USD 700,000 (approx. IDR 10 billion)

-Minimum paid-up capital: USD 175,000 (approx. IDR 2.5 billion)

Proof of capital must be shown through a statement letter or capital injection.

4. Company Setup Process

-Reserve a company name

-Prepare the Deed of Establishment via a local notary

-Obtain approval from the Ministry of Law and Human Rights

-Obtain a Tax Identification Number (NPWP) and register with the tax office

-Apply for a Business Identification Number (NIB) through the OSS system

-Secure additional licenses depending on your business field

5. Open a Corporate Bank Account

Once your company is registered, you can open a bank account in Indonesia to operate financially.

6. Hire Staff and Start Operating

You can hire local or foreign employees, but foreign hires may require a work permit (KITAS).

Note: The process usually takes 4–8 weeks, depending on the complexity and your business type. It’s highly recommended to consult a local legal or business consultant to ensure compliance and smooth processing. And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com