A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company with foreign investment in Indonesia. It is commonly referred to as a foreign-owned company or a foreign direct investment (FDI) company. PT PMA allows foreign investors to establish a legal entity in Indonesia and engage in various business activities. Here’s an overview of PT PMA and the requirements to create one for a foreigner:

1. PT PMA Ownership:

• PT PMA must have at least one foreign shareholder, and the minimum percentage of foreign ownership depends on the business sector and regulations.
• For certain industries, there might be restrictions or requirements for having a local Indonesian partner or obtaining special licenses.

2. Capital Requirements:

• The minimum capital requirement for establishing a PT PMA is determined based on the business sector and location of the company. The capital can be in the form of cash, assets, or a combination of both.
• The capital must be fully paid up before the company’s incorporation.

3. Business Activities:

• PT PMA can engage in a wide range of business activities, depending on the industry, and should be consistent with the business classification in the company’s Articles of Association (Akta Pendirian).

4. Business Plan and Investment Plan:

• A comprehensive business plan and investment plan are required for PT PMA registration. These documents should outline the company’s objectives, operations, and investment projections.

5. Local Representative Office:

• PT PMA must have a local representative office (Kantor Perwakilan) in Indonesia. The representative office is responsible for liaising with Indonesian authorities and is often used as the company’s official address.

6. Board of Directors and Commissioners:

• PT PMA should have a Board of Directors (Direksi) and a Board of Commissioners (Dewan Komisaris). Directors must be individuals, and the Commissioners can be either individuals or corporate entities.

7. Legal Entity and Tax Identification:

• PT PMA must obtain a legal entity and a tax identification number (NPWP) from the Indonesian tax office.

8. Licenses and Permits:

• Depending on the business activities, PT PMA might need to obtain specific licenses and permits from relevant government agencies.

9. Company Registration Process:

• The company registration process involves several steps, including drafting the Articles of Association, obtaining approvals from relevant ministries (if required), and registering the company with the Indonesian Investment Coordinating Board (BKPM) and the Ministry of Law and Human Rights.

Establishing a PT PMA in Indonesia can be but does not have to be a complex process, as long as you hire professional consultants. Foreign investors are strongly advised to seek professional assistance from legal and business consulting firms familiar with Indonesian regulations. Adhering to local laws, understanding the investment restrictions, and having a well-prepared business plan are essential for a successful PT PMA registration.

Even though you hold a valid Investor KITAS and you are one of the shareholder in the company, that does not mean that you can work and receive salary in Indonesia. You would probably be assigned as the commissioner or director of the company. 

As a shareholder you can receive a pro-rata dividend. Dividends are taxed with 10% in Indonesia. 

To be able to work for your company, you would need to get properly hired and need a “Work Permit”, receive a salary, pay taxes on the salary (income tax) and pay USD 1,200 a year as DPK-TKA (Compensation to Hire Foreign Workers).

The official Immigration Website states:

1. Stay

• Up to 2 Years 

2. Cost

• US$150+Rp 3.950.000 (Up to 2 Years)

3. 3. With this visa you can
      1. Carry out activities related to business, investment, and company establishment.
      2. Bring eligible members of your family.
      3. Conducting activities as a member of the board of directors or a member of the board of commissioners of the company in which you are investing.
      4. Study in Indonesia as long as you registered (in multiple activity stay permit procedure).
      5. Travel to and from Indonesia as long as your permit is valid.
      6. Carry out activities related to tourism, and visit friends or family.
   4. You must
      1. Comply with Indonesian laws and regulations.
      2. Respect local customs, culture, and wisdom.
      3. Have sufficient living expenses while in Indonesia.

 

3. 3. Other information
      1. Staying in Indonesia over the period of your stay permit, engaging in prohibited activities, not complying with visa conditions, and/or not complying with Indonesian laws may result in you paying fines, being deported, and/or other legal charges.
      2. You are prohibited from doing work that is not in accordance with the residence permit.

 

3. 3. Document Requirement
      1. Valid Nationality Passport at least 6 (six) months.
      2. Proof of living expenses of at least US$ 2,000 (two thousand US Dollars) or equivalent.
      3. Latest color photograph.
      4. You are prohibited from doing work that is not in accordance with the residence permit,
      5. Evidence of share ownership of at least Rp10,000,000,000.00 (ten billion rupiah) or equivalent in the guarantor company listed in the Ministry of Investment / Indonesia Investment Coordinating Board.
      6. Ministry of Law and Human Rights Decree regarding the legalization of the establishment the company.
      7. company current account for the last 2 (two) months.

 

3. Visa Validity
   1. This visa must be used within 90 days from the date of issue.
   2. Please note that the visa validity period of the visa is different from the period of stay, kindly check your visa for the period of stay Information.