In general, yes foreigners are permitted to set up businesses in Indonesia, however, certain businesses are restricted to foreign ownership and others where foreign ownership stakes are limited by law. Please contact us for more information.
PT (Perseroan Terbatas) is the Indonesian term for a limited liability company.
PT PMA (Penanaman Modal Asing) is a limited liability company established with foreign direct investment, allowing foreign ownership from 1% to 100%. Foreigners can serve as shareholders, directors, or commissioners. However, not all business activities are fully open to foreign ownership—some sectors are subject to foreign ownership restrictions as regulated by the Indonesian government.
PT PMDN (Penanaman Modal Dalam Negeri) is a limited liability company with 100% local/domestic direct investment. Foreigners can not be shareholders in PT PMDN.
2 shareholders are needed to incorporate a PT.
1. The minimum investment requirement for Foreign Investment Companies (PMA) is set at more than IDR 10 billion (excluding land and buildings) for each 5-digit KBLI code per project location. Exceptions apply to specific sectors as follows:
- Wholesale trade: more than IDR 10 billion (excluding land and buildings) per 4-digit KBLI code.
- Food and beverage services: more than IDR 10 billion (excluding land and buildings) per 2-digit KBLI code per location.
- Construction services: more than IDR 10 billion (excluding land and buildings) per 4-digit KBLI code.
- Industries producing multiple products within a single production line: more than IDR 10 billion (excluding land and buildings).
- Property development and management: minimum investment of more than IDR 10 billion with specific provisions apply.
2. The minimum paid-up/issued capital for each PT PMA is IDR 2.5 billion.
These thresholds are established by the government to ensure that foreign direct investment (FDI) contributes to national development objectives by fostering large-scale investment, creating employment, enabling technology transfer, and enhancing domestic industrial competitiveness.
- Micro: a maximum of IDR 1 billion (excluding land and buildings)
- Small: more than IDR 1 billion and up to IDR 5 billion (excluding land and buildings)
- Medium: more than IDR 5 billion and up to IDR 10 billion (excluding land and buildings)
- Large: more than IDR 10 billion (excluding land and buildings)
PMA / PMDN incorporation process takes about 2-3 weeks.
A KPPA is a representative office of a foreign company in Indonesia. It is limited to supervisory, liaison, and coordination functions, as well as preparing the establishment of a PMA. The office must be located in a provincial capital..e.g. Jakarta, Bandung, Surabaya, Denpasar, etc.
There is no minimum capital requirement. However, a KPPA is strictly prohibited from conducting commercial activities or generating revenue. A PT PMA should be established instead for profit-generating activities in Indonesia.
KPPA licence does not have a validity period, meaning that it is valid as long as the KPPA operates.
KITAS refers to the Indonesian stay permit, allowing foreigners to stay in Indonesia for a specified period legally.
Investor KITAS (E28A) is granted to individuals who own shares in an Indonesian company with a minimum share capital of IDR 10 billion in their name. Learn more about the Investor KITAS here.
Investor KITAS (E28A) is initially valid for 2 years and can be extended.
Passports must have a minimum validity of 6 months.
A minimum account balance equivalent to USD 2,000 is required for KITAS.
Work Permit KITAS (E23/E25) is issued to individuals employed by an Indonesian company.
Work permit KITAS is valid for 1 year and extendable for up to 5 years.
No, you are only allowed to work for the company that sponsors your KITAS. But you can work for two companies as long as you are a director/commissioner in both companies and you will have to pay the DPKK in both companies
No, you are only allowed to work based on the location stated in your work permit.
A Single-Entry Business Visa allows one visit to Indonesia for a single business purpose, such as attending meetings or exploring a potential investment. A Multiple-Entry Business Visa allows repeated entries over a longer validity period, which suits foreign nationals who need to travel in and out of Indonesia regularly for business — for example, board members or overseas suppliers visiting on an ongoing basis.
Typical requirements include a passport valid for at least six months, a sponsoring letter from the host company in Indonesia, a letter explaining the business purpose of the visit, and proof of return travel. Requirements can vary depending on the applicant's nationality and the nature of the business activity, so we recommend confirming your specific document list with our team before applying.
No. A Business Visa permits business-related activities such as meetings, negotiations, and site visits, but it does not authorize paid employment or hands-on operational work in Indonesia. Anyone intending to work must hold the appropriate work permit and KITAS.
Processing times vary by visa type and nationality, and typically range from a few business days to a few weeks. Our team can confirm the current expected timeline once we know your nationality and the visa category you need.
In some cases, a Business Visa holder who decides to take up employment or investment activity in Indonesia can transition to a KITAS without leaving the country, subject to eligibility and current immigration procedures. Our team can assess whether your situation qualifies.
The Second Home Visa is a long-stay KITAS designed for foreign nationals who want to live in Indonesia without necessarily working or investing in a local company. It offers an extended stay period and is aimed at retirees, remote workers, and financially independent individuals who want a long-term base in Indonesia.
Eligibility generally requires proof of sufficient financial means, such as a qualifying bank deposit or investment in Indonesia, along with a valid passport and supporting documentation. Specific financial thresholds are set by regulation and should be confirmed with our team, as they can be updated over time.
Holders can generally reside in Indonesia and engage in personal activities such as property matters and family life, but the visa carries restrictions on operational work and hands-on business management. If your plans include working or actively running a business, it's worth discussing your specific activities with our team first, since misclassification can affect compliance.
Direct paid employment is not permitted under this visa category. Passive investment is generally allowed, but active, hands-on business operation typically requires a different KITAS category. If your activities change after arrival, a rangkap kegiatan (concurrent activity) or perubahan kegiatan (change of activity) filing may be required — our team can advise on the correct process.
The Second Home Visa is issued for an extended multi-year period and can be renewed provided the holder continues to meet the eligibility requirements. Exact validity and extension terms should be confirmed with our team based on current regulations at the time of application.
The KITAS registration process takes about 2-3 weeks for Investor KITAS (E28A); 6-8 weeks for work KITAS (C312).
Spouses and children require Dependant KITAS (E31B or E31E)
Parents can obtain Dependant KITAS (E31H) under certain conditions.
If you need to check for Indonesian company registration details, you can use our Company Registry service to discover some information about the company.
Company registration is the process of forming a company, while a company registry is an official list of all companies and information about them.
The company registry contains detailed information about the company status, capital and shareholders, and the company’s history. Learn more about the company registry here.