PT PMA: Perusahaan Milik Asing di Indonesia

PT PMA stands for Perseroan Terbatas Penanaman Modal Asing, which translates to "Foreign Investment Limited Liability Company." This is the primary vehicle through which foreign individuals and entities can own and operate a business in Indonesia.

Key characteristics of a PT PMA include: - **Foreign ownership**: Can be up to 100% foreign-owned in many sectors, though some industries have ownership restrictions under the Positive Investment List (DNI) - **Limited liability**: Shareholders' liability is limited to their capital contribution - **Separate legal entity**: The company exists independently of its shareholders - **Perpetual succession**: The company continues to exist regardless of changes in ownership

Not all business activities are open to 100% foreign ownership. Indonesia maintains a Positive Investment List (Daftar Positif Investasi/DNI) that categorizes business sectors:

Open sectors Many sectors allow 100% foreign ownership, including most technology, trading, and service businesses.

Restricted sectors Some sectors have foreign ownership caps (e.g., 49%, 67%, 95%) or require partnerships with Indonesian entities.

Reserved sectors Certain sectors are reserved for Indonesian nationals or Micro, Small, and Medium Enterprises (MSMEs).

The specific KBLI (Indonesian Standard Industrial Classification) codes for your planned business activities determine what restrictions apply. This classification is crucial and should be carefully considered during the planning phase.

PT PMA companies have investment value requirements that vary by sector and activity:

Minimum investment value PT PMA companies typically require a minimum investment value. The specific amount depends on business sector and location.

Paid-up capital A portion of the total investment must be paid-up capital (modal disetor), representing actual funds deposited.

Investment plan You'll need to demonstrate how the investment will be used over a period, including operational costs, equipment, and working capital.

Note: Exact capital requirements vary significantly based on your business activities. We recommend consulting with us to understand the specific requirements for your planned operations.

Establishing a PT PMA involves several stages and government bodies:

1. Company name reservation Reserve your preferred company name through the Ministry of Law and Human Rights (Kemenkumham).

2. Articles of Association Draft and notarize the company's foundational documents with an Indonesian notary.

3. Ministry approval Obtain approval from Kemenkumham for the company deed.

4. OSS registration Register through the Online Single Submission (OSS) system to obtain your NIB (Business Identification Number).

5. Tax registration Register for NPWP (Tax ID) with the tax office.

6. Business licenses Obtain sector-specific licenses and permits as required by your KBLI codes.

The timeline for this process varies based on business complexity, documentation readiness, and sector-specific requirements.

Establishing a PT PMA requires various documents from shareholders and directors:

For individual shareholders/directors - Valid passport copies - Proof of address (utility bill, bank statement) - CV or resume - Photos

For corporate shareholders - Certificate of incorporation - Articles of association - Board resolution authorizing the investment - Company profile - Authorized representative documents

Additional requirements - Business plan or investment plan - KBLI determination for business activities - Domicile letter (typically provided by virtual office provider)

After formation, PT PMA companies must maintain various compliance obligations:

Annual requirements - Annual general meeting of shareholders - Financial statements and annual report - Corporate income tax return - Investment activity report (LKPM)

Periodic requirements - Monthly tax returns (PPh 21, PPh 23, PPh 4(2), etc.) - VAT returns (if registered as PKP) - License renewals as applicable

Corporate governance - Maintain proper corporate records - Hold required board and shareholder meetings - Update registrations for any company changes