Starting a Business - Indonesia

Under the Positive Investment List (Perpres 10/2021, amended by 49/2021, implementing the Omnibus Law), every business line is presumed open to 100% foreign investment unless it appears as restricted, conditional, reserved for MSMEs/cooperatives, or fully closed.

Foreign investors must operate through a PT PMA, which requires at least two shareholders, a director and a commissioner (directors/commissioners may be foreign), and a registered Indonesian address; representative offices are an alternative but cannot conduct commercial revenue-earning activity.

A PT PMA must commit a total investment value exceeding IDR 10 billion (roughly USD 600,000–650,000) per 5-digit KBLI business classification, excluding land and buildings — a threshold that effectively excludes small-scale foreign ventures.

Under BKPM (Ministry of Investment) Regulation No. 5 of 2025, issued October 2025, the minimum issued and paid-up capital for a PT PMA was reduced from IDR 10 billion to IDR 2.5 billion, while the >IDR 10 billion investment-value requirement per business line remains.

Incorporation runs through a notarized Deed of Establishment approved by the Ministry of Law and Human Rights, followed by obtaining the tax number (NPWP) and Business Identification Number (NIB) and risk-based licenses via the OSS-RBA platform (oss.go.id), governed by Government Regulation 24/2018.

A PT PMA can typically be registered in about 4–8 weeks once documents are in order; PT PMAs must then file quarterly investment realization reports (LKPM) to BKPM, with persistent non-filing risking NIB suspension.