Setting Up a PT PMA and Getting a KITAS: A Roadmap for Foreign Investors Entering Indonesia

Setting Up a PT PMA and Getting a KITAS: A Roadmap for Foreign Investors Entering Indonesia

Foreign capital keeps flowing into Indonesia. BKPM (Badan Koordinasi Penanaman Modal, the Investment Coordinating Board) reported IDR 777.8 trillion of foreign direct investment from January to September 2026, or 50.5 percent of the national total, with Singapore the largest source at US$14 billion. For many of these investors, setting up a PT PMA is the entry point.

A PT PMA Indonesia entity (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company with foreign shareholders. It is incorporated by notarial deed, then licensed through OSS (Online Single Submission) under a five-digit KBLI code, the business activity classification.

Capital sets the first threshold. Under Minister of Investment and Downstreaming/BKPM Regulation No. 5/2025, IDR 2.5 billion must be paid up, with an investment plan above IDR 10 billion per KBLI code and location.

The founder’s residence permit sets the second threshold, and it is easy to overlook. Incorporating at the IDR 2.5 billion minimum does not automatically qualify a founder for an Investor KITAS (Kartu Izin Tinggal Terbatas), because immigration tests a separate shareholding of IDR 10 billion.

This guide is written for readers planning a move into Indonesia from Singapore. It follows the full path for investors and directors, from the company deed to the permit that lets a founder reside in Indonesia, and ends with a short test that keeps the two thresholds apart.

What Is a PT PMA Indonesia Structure, and Who Is It For?

A PT PMA is the standard vehicle for foreign investment in Indonesia. It rests on Law No. 25/2007 on Investment and Law No. 40/2007 on Limited Liability Companies, both as amended by Law No. 6/2023 on Job Creation. Each PT PMA obtains its permits through OSS, the government’s online licensing platform.

A PT PMA Indonesia structure suits investors who want to operate, hire staff and invoice customers locally, which a representative office cannot do.

PT PMA Indonesia at a Glance

Item Position
Minimum shareholders Two individuals or companies
Foreign ownership Up to 100 percent where the KBLI code is open; some sectors are capped or closed
Licensing platform OSS, under Government Regulation (PP) No. 28/2025

How Does Foreign-Owned Company Registration in Indonesia Work?

Foreign-owned company registration in Indonesia follows a fixed order. Government Regulation (PP) No. 28/2025 on Risk-Based Business Licensing replaced PP No. 5/2021 and keeps OSS as the gateway. That is why a PT PMA company setup is best planned backward from the KBLI code.

The outcome is a 13-digit NIB (Nomor Induk Berusaha, business identification number), and the permits that follow depend on the risk tier of each activity, the same logic behind any foreign company incorporation in Indonesia.

Step Gate What happens Reference
1 KBLI selection Planned activities are mapped to five-digit KBLI 2025 codes BPS Regulation No. 7/2025
2 Deed and approval Notarial deed signed; legal entity approved by the ministry Law No. 40/2007
3 NIB through OSS NIB issued; extra permits follow the risk tier PP No. 28/2025
4 Capital placement Paid-up capital deposited in the company account Regulation No. 5/2025

Why Does KBLI 2025 Matter for a New Registration?

Statistics Indonesia (BPS) Regulation No. 7/2025, promulgated on 18 December 2025, replaced the 2020 classification. Article 5 gave users six months to adjust, a window that ended around mid-June 2026. New filings therefore rely on KBLI 2025 codes.

What Capital Does Setting Up a PT PMA Require?

Minister of Investment and Downstreaming/BKPM Regulation No. 5/2025, in force since 2 October 2025, replaced BKPM Regulations No. 3, 4 and 5 of 2021 and cut the minimum paid-up capital by 75 percent, from IDR 10 billion to IDR 2.5 billion per company.

Investment value is a separate commitment. It must exceed IDR 10 billion per five-digit KBLI code per project location, excluding land and buildings.

Item Earlier practice Current rule
Paid-up capital IDR 10 billion IDR 2.5 billion per company
Investment value Above IDR 10 billion per KBLI and location Unchanged
Cash retention No formal lock-up 12 months in the company account, unless spent on assets or operations

These figures form the capital side of any PT PMA Indonesia setup, and a fuller checklist of what to prepare before setup covers the documents behind them.

What Is a KITAS Indonesia Permit, and Which Type Suits a Foreign Investor?

A KITAS is the limited stay permit card for foreign residents. Investors hold index E28A. The permit is governed by Permenkumham No. 22/2023 on Visas and Stay Permits, amended by Permenkumham No. 11/2024, and by Ministerial Decision No. M.IP-08.GR.01.01/2025 on visa classification.

The test for the Investor KITAS is shareholding. Immigration’s official E28A page asks for proof of share ownership of at least IDR 10 billion in the sponsoring company, and says a director or commissioner holding fewer shares must apply for a work visa instead.

Feature Investor KITAS (E28A) Working KITAS (E23)
Who it suits Foreign shareholder acting as director or commissioner Foreign professional employed by the PT PMA
Requirements Shareholding of at least IDR 10 billion in the sponsoring company Approved RPTKA under Government Regulation No. 34/2021

RPTKA means Rencana Penggunaan Tenaga Kerja Asing, the foreign worker utilization plan. Because the KITAS Indonesia route depends on role and shareholding, every application starts with a structure review.

A Short Test to Keep the Two Thresholds Apart

Three questions settle which route applies, and they are best answered before the deed is signed.

  1. Capital: will the company deposit at least IDR 2.5 billion and plan investment above IDR 10 billion for each KBLI code and location? If not, rework the structure first.
  2. Shareholding: will the founder hold at least IDR 10 billion in shares and serve as a director or commissioner? If so, the Investor KITAS (E28A) is the route.
  3. Role: if the founder will hold less, the permit changes to a work visa backed by an approved RPTKA, and the founder’s role has to match it.

A yes to the first question says nothing about the second.

Planning the Move From Singapore

For a Singapore-based investor, foreign-owned company registration in Indonesia starts with a decision made outside Indonesia: whether individuals or a Singapore company will hold the shares. It is worth settling that before the deed is signed, because it shapes both the deed and the permit route.

Business Hub Asia and HC Consultancy work together as partners, each covering the side of the move it knows best. HC Consultancy supports companies in Singapore with incorporation, corporate secretarial, accounting, tax and work pass services. Business Hub Asia covers the Indonesian side, from company setup and the investor permit to compliance after licensing, with one dedicated consultant managing the process end to end.

A Well-Planned First Step Opens the Indonesian Market

Indonesia rewards foreign investors who match the right company structure to the right residence permit from the start. Setting up a PT PMA is the first decision, and the KITAS Indonesia route follows from the shareholding and role chosen on day one.

Frequently Asked Questions

How much does an Investor KITAS cost, and how long is it valid?

The Investor KITAS is issued for a stay of one or two years. Immigration’s official E28A page lists total state fees (PNBP) of Rp7,000,000 for a one-year stay and Rp9,500,000 for a two-year stay, covering the visa, the limited stay permit, the re-entry permit and verification. The visa itself is valid for 90 days from issue, after which a new visa is required if it was not used, and processing takes five working days after the visa payment is received.

When must a PT PMA file its LKPM investment activity report?

A PT PMA files the LKPM (Laporan Kegiatan Penanaman Modal) through OSS every quarter, by the 15th of April, July, October and January. Small businesses file twice a year, by 15 July and 15 January. The schedule belongs in the compliance calendar from the first quarter after licensing.

Are nominee shareholders allowed in a PT PMA?

No. Article 33 of Law No. 25/2007 on Investment prohibits an investor in a limited liability company from making an agreement or statement that the shares are held for and in the name of another person, and declares any such agreement or statement null and void. The shareholders named in the deed must be the real owners.

What can an Investor KITAS holder do in Indonesia?

According to Immigration’s E28A page, permitted activities include investing, forming and running a business, serving as director or commissioner of the foreign-invested company, overseeing production, and bringing family. Working in a way that does not match the stay permit is prohibited, so employment outside the sponsoring company needs a different permit.

Sources

Share the Post:

Related Posts

Join Our Newsletter

Scroll to Top