The foreign investment company PT PMA is the most suitable option for foreign investors who want to expand their businesses and profit from the huge Indonesian market. For the PT PMA company formation, investors need assistance to navigate the complicated rules and bureaucracy. This is where MAM Corporate Solutions comes in.
MAM Corporate Solutions is a trusted company incorporation specialist firm based in Jakarta that can help you to set a Direct Foreign Investment Company PT PMA in Indonesia.
Restrictions on foreign investors and available alternatives
If you are foreign investor, you can establish Foreign Direct Investment Company known as PT PMA or just a Representative Office. However, according to the rules of business in Indonesia, several business sectors are closed for foreign investors. Negative Investment List issued by Government of Indonesia provides details about what business sectors are either partially closed or fully closed for foreign investors.
You can download the Latest Negative Investment List. Consequently, foreign investors must form a local PT company to start a business in that sector which has restrictions for foreign investors in Indonesia. Foreign investors can form Local PT company through Local nominee shareholder. Read more about local nominee company here.
Indonesia has enormous business opportunities for foreign investors and its citizens. In order to start and carry out a profitable business in Indonesia, foreigners must first incorporate a Direct Foreign Investment Company PT PMA.
Advantages of setting up PT PMA
- It gives foreign investors complete control over the path of the company.
- There are no restrictions on where a PT PMA can function in Indonesia.
- It lowers the risk of finding a suitable local partner.
Steps for establishing a PT PMA
Here are the steps needed to establish a Direct Foreign Investment Company:
| No. | Description | Administrating body | Duration (working days) |
| 1 | Approval of company name from the department of Law and Human Rights | The Ministry of Law & Human Rights | 1 |
| 2 | Deed of Establishment (containing Articles of Association) legalized by Public Notary | Public Notary | 7 |
| 3 | Legalization of the legal entity status of the Direct Foreign Investment Company PT PMA by the Minister of Law and Human Rights | The Ministry of Law & Human Rights | 3 |
| 4 | Domicile letter of the company (Not needed if the company is incorporated in Jakarta) | The landlord of the office building and Local Council | 3 |
| 5 | Tax Identification Number (NPWP) and taxpayer registration certificate (SKT) from the tax office | Tax office | 3 |
| 6 | Business Identification Number through Online Single Submission (OSS) system | Provincial Government | 3 |
Investment plan to establish PT PMA
According to new regulations, the foreign investment company must have paid-up capital of at least 10 billion Rupiah (approximately equal to $700,000). Investment can be either cash or net assets, for example, machinery. After the company has been established and has a bank account, paid-up capital shall be paid (stated by notary letter).
How MAM Corporate Solutions can help to setup PT PMA?
The process of registering Direct Foreign Investment Company PT PMA in Indonesia is very detailed and challenging. Additionally, surrounding countries, for example, the ASEAN countries are continuously altering and updating rules for business engagement. Thus, the need to have professionals and specialists in Indonesia is vital to your success. MAM Corporate Solutions’ experts help companies to steer through local regulations and understand the customs of business in Indonesia.
Business Setup Guide
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