If you want to run a real business in Indonesia as a foreigner — whether that's a villa-rental operation in Lombok, a café, a consultancy, or a tech company — the standard vehicle is a PT PMA (Penanaman Modal Asing), a foreign-investment limited liability company. It lets you own and operate legally, sponsor your own stay permit, and build something that can scale. Here's how the process works.
Every Indonesian company is built around one or more KBLI codes — the official classifications of business activities. This is the foundation of everything: your KBLI determines whether foreign ownership is allowed, what licences you'll need, and your minimum capital. Some sectors are fully open to foreign investment; others are restricted or closed. Getting the classification right at the start avoids costly restructuring later.
Indonesia's investment regulations (the "Positive Investment List") set out which sectors foreigners can enter and up to what percentage. Most activities open to foreign investment allow up to 100% foreign ownership, but some require a local partner or have caps. We check this carefully against your intended activities before you commit.
A PT PMA is generally treated as a large-scale investment, with a minimum planned investment value and minimum paid-up capital per business line/location. These thresholds are set by regulation and apply regardless of your company's actual size, so it's important to plan for them from the outset.
Capital and ownership thresholds are set by regulation and are periodically updated. We'll confirm the figures that apply to your specific KBLI and location before you start.
You reserve a compliant company name, then a notary prepares the Deed of Establishment (Akta Pendirian) setting out your articles of association, shareholders, directors, and commissioners. This is approved by the Ministry of Law to give your company its legal existence.
Through the OSS (Online Single Submission) system, the company obtains its NIB (Business Identification Number), which also serves as your import licence and registration in several systems. Depending on your activity, you may then need additional operational or sector licences, plus a tax ID (NPWP).
Incorporation is the beginning, not the end. A PT PMA has ongoing obligations: monthly and annual tax reporting, investment activity reports (LKPM), and proper bookkeeping. We coordinate accounting and tax support so your company stays in good standing without you having to track every deadline.
Planning a business in Lombok or elsewhere in Indonesia? We handle PT PMA setup end-to-end — classification, incorporation, licensing, and ongoing compliance. Talk to us for free →
This article is general information, not legal advice. Indonesian investment and company regulations change, and requirements depend on your sector and circumstances. Please consult a qualified Indonesian legal professional — like our team — before acting.
