The Indonesian government provides opportunities for foreign citizens to invest and do business in Indonesia by establishing a PT PMA. PT PMA is a form of business entity that allows foreign investors to operate businesses in various sectors in Indonesia. According to Law No. 25/2007 regarding investment, PT PMA is defined as the activity of investing to conduct business in the territory of Indonesia, carried out by foreign investors, either using entirely foreign capital or through joint ventures with domestic investors.
Key Requirements for Foreign Investors
Based on the Regulation of the Head of BPKM No. 4/2021 regarding Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities, the minimum investment value for PT PMA is more than 10 billion rupiah, excluding land and buildings. Furthermore, there are several documents required to establish a PT PMA, such as the identity card and tax identification number (NPWP) of the shareholders, directors, commissioners, passport for foreigners, filling out the establishment form for a PT PMA and signing the notary documents.
The Process of Establishing a PT PMA in Indonesia
- Company Name Registration
The company name must comply with the regulations set by the Ministry of Law and Human Rights and reflect the type of business conducted.
- Making Deed of Establishment
The establishment deed of a PT PMA must be made by an authorized notary in Indonesia, containing important information such as the company name, address, business purpose, capital amount, and ownership structure.
- Submission of Permits From The Investment Coordinating Board
To establish a PT PMA, you need permission from the Investment Coordinating Board (BKPM) by providing supporting documents such as a business plan, articles of incorporation, and proof of capital deposit.
- Registration at The Ministry of Law and Human Rights
The company needs to be registered with the Ministry of Law and Human Rights after obtaining permission from the Investment Coordinating Board (BKPM).
- Operational Permit
The required operational permits depend on the type of business being conducted. This may include environmental permits, business licenses, and other special permits.
If you want to establish a PT PMA, you can contact us for further information and we will gladly to assist you.