Introduction
Starting a business in Indonesia as a foreigner is an exciting opportunity—but to do it right, understanding the required legal documentation is crucial. Whether you’re setting up a PT PMA (foreign-owned company) or expanding your international operations, compliance with Indonesia’s corporate regulations is non-negotiable. In this blog, we walk you through the essential documents and permits you need to successfully establish and operate your company in Indonesia.
1. Akta Pendirian (Deed of Establishment)
The Akta Pendirian is the foundational document for your company. Drafted and notarized by a local notary in Bahasa Indonesia, it includes:
- Company name and legal address
- Shareholder structure (local and foreign)
- Business activities (based on KBLI codes)
- Authorized capital and paid-up capital
- Articles of association
2. Pengesahan SK Kemenkumham (Ministerial Decree of Legalization)
Once the Akta Pendirian is completed, it must be submitted to the Ministry of Law and Human Rights for approval. If accepted, the Ministry will issue the Surat Keputusan Pengesahan—a legal acknowledgment that your company has been formally established under Indonesian law.
3. Nomor Induk Berusaha (NIB – Business Identification Number)
The NIB is a unique identification number that effectively serves as:
- Your company’s legal registration
- Import/export license
- Customs registration number
- Mandatory business license for OSS (Online Single Submission)
- Social security and tax registration
4. NPWP (Tax Identification Number)
Issued by the Indonesian Tax Office, the Nomor Pokok Wajib Pajak (NPWP) is mandatory for:
- Paying corporate income tax
- Opening a business bank account
- Fulfilling monthly and annual tax obligations
Foreign shareholders are also advised to obtain a personal NPWP once they receive their KITAS (Investor Visa).
5. Sertifikat Standar (Standard Certificate)
If your business activities require technical standards or specific operational licenses, the Sertifikat Standar is mandatory. This certificate confirms that your business complies with the technical and safety regulations based on your KBLI code.
Examples of businesses that require this include construction, food and beverage, manufacturing, logistics, and healthcare.
6. KKKPR (Kesesuaian Kegiatan Pemanfaatan Ruang)
This document confirms that your business activities are suitable for the land or area based on regional zoning regulations. KKKPR is especially essential if:
- You are building a factory, warehouse, or commercial facility
- Your business involves physical property development
- You’re applying for further environmental or operational permits
7. K3L (Keselamatan, Kesehatan, dan Lingkungan)
K3L requirements relate to health, safety, and environmental standards. This includes:
- Worker safety protocols
- Environmental impact safeguards
- Equipment and hazardous material handling
Depending on your industry, you may need to submit K3L assessments and reports, especially in manufacturing, logistics, or chemical-related businesses.
8. PKPLH (Persetujuan Kelayakan Lingkungan Hidup)
If your business has a significant environmental impact, you’ll need to go through an Environmental Feasibility Assessment (PKPLH). This permit ensures:
- Your business operations align with environmental laws
- Mitigation plans are in place to reduce ecological damage
- You’ve passed the AMDAL (Environmental Impact Assessment), if applicable
This license is issued by the Ministry of Environment and Forestry after a detailed feasibility study.
Summary Checklist: What You Need to Set Up a PT PMA
Document | Purpose |
Akta Pendirian | Legal foundation of your company |
SK Pengesahan | Governmental approval of legal status |
NIB | Unified business ID and license |
NPWP | Corporate tax registration |
Sertifikat Standar | Operational compliance certification |
KKKPR | Land-use suitability based on zoning |
K3L | Health, safety, and environmental compliance |
PKPLH | Environmental feasibility permit |
Final Thoughts
While Indonesia offers tremendous opportunities for foreign investors, establishing your business requires patience, planning, and professional guidance. Each document serves a critical purpose—failure to secure even one can delay operations or lead to compliance issues.
Need expert help? At Overseas Business Consultancy (OBC), we specialize in helping foreigners—especially Pakistani entrepreneurs—successfully establish their companies in Indonesia. From documentation and licensing to Investor Visa and relocation support, we’re with you every step of the way.
Contact us today to start your journey in Indonesia with confidence!