PT PMA

Perseroan Terbatas Penanaman Modal Asing, or PT PMA for short, means “Limited Liability Company with Foreign Direct Investment.” PT PMA is an innovative link to Indonesia’s openness to global investment and economic potential. Investments from various sectors, including manufacturing and commerce, are facilitated by the legitimacy of PT PMA as a legal entity. With the authorization of BKPM, PMA demonstrates that cross-border collaboration not only results in economic expansion but also in motivational success tales. Any organization that accepts investment from foreign contributors, even if it is as low as 1% of foreign-owned shares, is deemed a foreign-owned corporation.

Indonesian regulation allows PT PMA license holders to make foreign direct investments. The highest amount of foreign ownership that is allowed is set by Indonesian law. The percentage of closed and open investments as well as asset allocation vary depending on the business classification: some are allowed 100% of open investments for both domestic and foreign investors; others are only allowed close contributions for a specific group of international projects; still others have specific percentage rates required (for example, 10% of open investment and 90% of closed ones).
If you want to find out about any restrictions on the type of business you want to run, you can look at the list of restricted business ideas in the Indonesian DNI (Negative Investment List).

Why do you need to start creating PT PMA?

• Get direct access to Indonesia’s huge market and its fast-growing economy.
• The Investment Coordinating Board (BKPM), which ensures legal certainty and expedites licensing processes for foreign investment, will offer complete support.
• Gain a competitive edge. Infrastructure development and supportive policies might provide PT PMA an advantage over the competitors.
• PT PMA enables adaptability in the production, commerce, and provision of goods and services.
• Competitive taxation: Indonesia has competitive tax regulations for PT PMA.
• PT PMA provides an internationally acclaimed platform, which helps to increase foreign investors’ confidence in doing business in Indonesia.
• The PT PMA business management methods are made easier to use by making sure they have the right infrastructure and regulatory support.
• PT PMA provides investors with a significant possibility to profit financially.

Some Difficulties in Establishing a PT PMA

• A lack of understanding of the nuances of business operations in Indonesia, such as legislation, controls, and legalization.
  Reporting issues with taxes, finances, and investments.
• Visa and corporate regulatory rules are frequently changed.
• Not all of business classification are available for PT PMA

We have professionals at Grow Indonesia who can assist you in establishing and navigating the PT PMA registration process, thereby maximizing your investment opportunities in Indonesia and ensuring your compliance. Grow Indonesia’s specialist teams are based in Bali and are ready to help you with the entire company registration procedure!

In order to start a business, you need the following papers:

1. Paid-up share capital. The minimum paid-share capital is 10 billion rupiah. Once the PT PMA registration is completed, the funds will be transferred to the company’s bank account for the issue of the Capital Statement Letter. As long as your PT PMA is functional, you may steadily build up the capital in the bank account and use it to expand your enterprise.
2. A minimum of two shareholders, representing the CEO and the commissioner. Shareholders might be either individuals or legal entities.
3. Name of the company (3 words).
4. Areas of activity to be carried out (up to 5 activities).
5. Business address, phone number, and email address.
   A scanned version of the first page of each founder’s passport, as well as a 3×4 photo.
6. Structure of directors and shareholders.
7. Obtain a taxpayer Identification Number (NPWP).
8. Obtain a company Identification Number (NIB- Nomor Induk Berusaha).
9. Obtain a business license.
10. Lease Agreement/Land Certificate (if available)