Company registration in Indonesia: A guide for foreign investors

Setting up business in Indonesia has become a compelling option for global merchants looking to reach one of Asia’s most active digital economies. You may be exploring new markets, facing rising demand from Indonesian buyers, or aiming to strengthen your regional footprint. Whatever the motivation, understanding how company registration in Indonesia works will help you prepare a structured plan with fewer surprises.

Why set up a business in Indonesia?

Market potential and digital infrastructure

Indonesia is home to more than 280 million people and a young, digital-first population. Adoption of online services continues to rise, with growing demand across retail, travel, digital entertainment, logistics, and cross-border commerce. Building an entity allows you to access this demand with long-term stability, direct control, and a local registration number.

Indonesia’s appeal for foreign and Chinese investors

Foreign investors continue to enter Indonesia as regulations become clearer and more accessible. Investors from China and other Asian markets often view Indonesia as a practical entry point for the region because of its expanding consumer base and openness to foreign-owned companies in many sectors.

Fast-growing mobile commerce and e-wallet usage

Mobile devices now play a central role in how people shop. Indonesia ranks among the most active e-wallet markets in Southeast Asia. Popular local wallets and bank-transfer methods shape the way buyers complete online payments. This makes local presence and localisation important when you build a company in Indonesia.

Business structures for foreign investors in Indonesia

Foreign investors must select a structure that complies with Law No. 25/2007 on Investment (as amended). The most common option for commercial operations is the PT PMA, which functions as a foreign-owned limited liability company. Other options exist for non-commercial activities or partnership-based models.

A PT PMA must have at least two shareholders, one resident director, and one commissioner. The resident director can be a foreign national with the appropriate stay permit (KITAS). Directors manage operations while commissioners supervise compliance. 

Some sectors, such as small-scale retail, may require collaboration with local partners based on the Positive Investment List.

Pre-registration considerations

Sector eligibility

Use the KBLI (Indonesian Standard Business Classification) to confirm your intended activities. Cross-check the Positive Investment List for any foreign ownership limits. Many manufacturing and technology activities allow up to 100% ownership, while others such as broadcasting may restrict ownership to 49%.

Capital commitment

Foreign investors must sign a notarised Capital Statement Letter committing to the required funds. After you register your company and receive your documents, you deposit the paid-up capital into an Indonesian bank account.

Business address

You need a physical or virtual office to obtain a Domicile Letter from the local subdistrict (kelurahan). Virtual offices are accepted for low-risk KBLI codes, subject to zoning rules.

Incentives

Some priority sectors, such as green energy or advanced manufacturing, may receive tax holidays or import duty exemptions through BKPM. Review these early, so they align with your investment plan.

Step-by-step registration process

Indonesia’s OSS-RBA system manages most filings digitally. For a PT PMA, the full process usually takes four to six weeks. A Representative Office may take less time.

Reserve company name (1–2 days)

Submit three proposed names through the AHU Online System. Names should contain three words, use Latin characters, and reflect your business activity. Once approved by the Ministry of Law and Human Rights, you can move to the next stage.

Draft deed of establishment (5–10 days)

A notary prepares the Articles of Association in Bahasa Indonesia. These include your company name, objectives, capital structure, and details of shareholders, directors, and commissioners. 

Once drafted, the notary submits the deed to AHU for ratification. You then receive the official Decree of Legal Entity Approval.

Tax registration (NPWP) (1–3 days)

After the deed is approved, register for an NPWP at the tax office. For new PT PMA entities, NPWP issuance is now integrated into OSS.

OSS registration and NIB issuance (1–5 days)

Create an OSS account, submit your company profile, select KBLI codes, and complete the risk assessment. OSS then issues the NIB (Nomor Induk Berusaha), which serves as your business identity number. For PT PMA entities, BKPM also validates your investment plan.

Secure additional licences (1–4 weeks)

Low-risk activities often require only the NIB. High-risk activities may need environmental or sectoral licences. GR 28/2025 integrates spatial and environmental approvals into OSS.

Open corporate bank account (3–7 days)

Provide your NIB, NPWP, and deed of establishment to your chosen bank. Deposit the required paid-up capital.

Summary of required documents

All foreign documents must be apostilled, translated into Bahasa Indonesia, and notarised.

Costs and fees

Total costs for PT PMA setup vary depending on complexity, chosen advisors, and location. Ongoing taxes include corporate income tax at 22% and VAT at 12% based on current rates.

Post-registration compliance and obligations

Once your PT PMA or Representative Office becomes active, you move into the stage of ongoing compliance. These requirements support your operational readiness, maintain your legal standing, and help you avoid interruptions in OSS access.

• Company seal. Some banks and institutions still request a physical seal when signing documents. Preparing one early avoids delays.
• BPJS registration. Enrol your company in BPJS Ketenagakerjaan and BPJS Kesehatan. Register employees as they join. This is mandatory for all employers.
• Internal governance. Establish board resolutions, authorisation rights, and internal policies. Keeping these documents organised helps with audits and future filings.
• Bookkeeping and accounting systems. Indonesian bookkeeping standards apply. Set up accounting software, chart of accounts, and VAT reporting processes. Prepare for monthly VAT filings when relevant.
• BKPM reporting (LKPM). Submit quarterly or annual realisation reports. These show your progress on investment plans, hiring, and capital flows. Timely submission preserves your compliance status.
• Manpower requirements. Employment contracts follow local labour rules. When hiring foreign staff, obtain an RPTKA approval and ensure roles align with permitted categories.
• Corporate secretarial updates. Any changes to directors, commissioners, shareholders, addresses, or KBLI activities must be recorded in AHU and OSS. Keeping these aligned avoids mismatches during inspections or bank checks.
• Tax obligations. File monthly VAT returns when applicable and an annual corporate income tax return. Companies with revenue above IDR 50 billion must undergo an audit. All bookkeeping records must remain accessible in Indonesia.
• Branch registrations. If you operate in several provinces, register NPWP branch numbers to manage local tax exposure.
• Stay permits (KITAS). When foreign directors or key personnel reside in Indonesia, renew KITAS on schedule to avoid processing delays.
• Dissolution. When closing the company, follow notary-led liquidation and public notice requirements. Authorities will verify tax clearance and obligations before final approval.

Common pitfalls to avoid

• Overlooking foreign ownership caps in the Positive Investment List. Some sectors allow full ownership while others carry limits or require specific conditions. Review the Positive Investment List and KBLI codes early and confirm any requirements with your notary.
• Underestimating the total investment requirement of IDR 10 billion for PT PMA. The total commitment applies even if only part of the capital must be paid up initially. Prepare a clear investment plan that maps out how and when you will deploy funds.
• Misalignment of deed details, OSS filings, and actual paid-up capital. Authorities compare your documents closely. Keep your Articles of Association, OSS entries, and capital transfers consistent. If you update one, update all related records to avoid compliance checks or requests for clarification.
• Missing BKPM reporting deadlines. Late submissions may result in OSS warnings or temporary licence suspension. Set internal reminders and assign someone to manage reporting. Submit LKPM updates even if activity is limited so your PT PMA stays in good standing.
• Using nominee arrangements. Nominee structures carry significant legal and regulatory risk in Indonesia. Maintain transparent ownership supported by proper documentation. If your sector requires Indonesian partners, work with genuine shareholders and formal agreements rather than informal arrangements.

Conclusion

Registering your company in Indonesia can help you engage directly with buyers and strengthen your commercial plans in Southeast Asia. Once your entity is ready, you may look at how you accept payments from local buyers. Indonesia’s preference for e-wallets and mobile-first payment journeys means reliable payment support becomes a key part of your setup.

Antom supports merchants of many sizes with payment acceptance and local methods across Asia. As you prepare to expand your business in Indonesia, this can provide a practical foundation for handling payments as your operations grow.