Starting a Business in Indonesia: The Complete Guide 2026
Indonesia's economy is one of the fastest-growing in Southeast Asia, with a GDP of over $1.3 trillion and a population of 275 million. For foreign entrepreneurs, the opportunity is immense—but so is the complexity of setting up a legal business entity.
This guide will walk you through everything you need to know about starting a business in Indonesia, from choosing the right company structure to obtaining your operating permits.
Information Confidence
Company Types & Structures
%
Source: OSS & BKPM Regulations 2024
Capital Requirements
%
Source: Investment Coordinating Board
Registration Process
%
Source: OSS RBA System
Processing Times
%
Source: Aggregated client data 2024
Costs & Fees
%
Source: Government fee schedules + market rates
80-100%: High
60-79%: Good
40-59%: Moderate
0-39%: Low
Which Business Structure Is Right for You?
The first and most important decision is choosing the correct legal entity. Indonesia offers several options, but for foreign investors, the choices are more limited.
Find Your Ideal Business Structure
Progress0%
Are you a foreign national or foreign company?
Understanding Indonesian Company Types
Company Structure Comparison
Compare the main business entity types available in Indonesia
Feature
PT PMA
Foreign Investment Company
PT PMDN
Local Investment Company
CV
Limited Partnership
Representative Office
KPPA/KP3A
Foreign Ownership
Up to 100%
0%
0%
100%
Min. Investment
IDR 10 billion (~$625,000)
No minimum
None
None
Min. Paid-up Capital
IDR 10 billion
IDR 50 million
None
None
Min. Shareholders
2 (can be foreign)
2 (Indonesian only)
2 partners
Parent company
Min. Directors
1 (can be foreign)
1 (Indonesian)
Managing partner
Chief Representative
Min. Commissioners
1 (can be foreign)
None required
N/A
N/A
Liability
Limited to capital
Limited to capital
Unlimited for active partner
Parent company
Work Permits
Can sponsor
Cannot sponsor
Cannot sponsor
Limited
Best For
Foreign investors
Indonesian entrepreneurs
Small local business
Market research only
Important: The IDR 10 Billion Requirement
The minimum investment for PT PMA is IDR 10 billion (~$625,000 USD). This doesn't mean you need to deposit this amount immediately—it's the total planned investment over the life of the company, including:
Paid-up share capital
Loans to the company
Fixed assets and equipment
Working capital
Your paid-up capital (actual cash deposited) must also be IDR 10 billion minimum.
Key Terms You'll Encounter
Before diving into the registration process, let's understand the essential terminology:
OtherActive
Indonesian Business Registration Terms
Various Regulations
Understanding these terms is essential for navigating Indonesian business registration.
PT PMA Registration Process
Here's the complete journey from decision to operation:
PT PMA Registration Journey
Complete timeline from initial planning to business operation
4-8 weeks
Rp 0
9 steps
1
2
3
4
5
6
7
8
9
Cost Calculator
PT PMA Setup Cost Estimator
Estimate your total setup costs based on your specific situation
Default Inputs
Service Level
Basic agent service
Paid-up Capital (IDR)
10,000,000,000 IDR
Need Virtual Office?
Yes
Company Location
Bali
Number of Foreign Directors
1
Work Permits Needed?
Yes
Estimated Result
Notary & Legal FeesRp 15.000.000
Corporate Secretary ServiceRp 25.000.000
Government Fees (Kemenkumham, OSS)Rp 5.000.000
Pre-Registration Checklist
PT PMA Document Checklist
0 of 12 completed0/10 required
Understanding KBLI Codes
KBLI codes
are perhaps the most important element of your PT PMA setup. They determine:
What activities you can legally perform
Whether foreigners can own 100% (or less)
What permits you need
Your risk classification
KBLI Selection Tips
Be comprehensive - Add all activities you might do, including support
activities 2. Check the DNI list - Some codes have foreign ownership caps
Primary vs secondary - Your main code affects tax treatment 4.
Future-proof - Adding codes later requires amendments (cost and time)
Popular KBLI Codes for Foreign Companies
Code
Activity
Foreign Ownership
62010
Computer Programming
100%
62020
IT Consulting
100%
70201
Business Consulting
100%
46100
Wholesale Trade (agent)
100%
55111
5-Star Hotel
100%
56101
Restaurant (large scale)
100%
73100
Advertising
100%
74100
Design Activities
100%
Restricted Activities
Some activities are closed to foreign investment or have ownership caps:
Small retail (reserved for MSME)
Small restaurants (reserved for MSME)
Travel agencies (49% foreign cap)
Some media and broadcasting
Land transportation
Always verify current DNI (Negative Investment List) status before finalizing KBLI codes.
Common Mistakes to Avoid
Critical Mistakes
1. Nominee Arrangements
Using an Indonesian's name to hold shares is illegal. The real owner can lose everything, and the nominee can claim the assets.
2. Underestimating Capital
The IDR 10 billion isn't just a number—you need to show investment activity. Plan realistic capital deployment.
3. Wrong KBLI Codes
Choosing codes without checking restrictions can limit your business or ownership percentage.
4. Skipping Permits
Operating without proper licenses can result in fines, closure, or visa cancellation.
5. Tax Non-Compliance
Indonesia tracks foreign companies closely. Late filings = penalties. No filing = big trouble.
After Registration: Ongoing Compliance
Monthly & Annual Compliance
0 of 8 completed0/6 required
Need Help?
Starting a business in Indonesia is complex, but it's absolutely achievable with the right guidance. If you have specific questions about your situation:
This guide is for informational purposes only and does not constitute legal or
tax advice. Regulations change frequently—always verify current requirements
with official sources or qualified professionals. Last updated: January 2026.
Virtual Office (1 year)
Rp 12.000.000
Work Permits (1 person)Rp 35.000.000
Estimated total
Excludes paid-up capital and ongoing operational costs
Rp 92.000.000
Start a Business in Indonesia 2026 | Complete Guide
