A complete guide for foreign investors — and why doing it through OBC saves time, money, and risk.

Introduction

If you’re a foreign entrepreneur looking to relocate and invest in Indonesia, the most effective and legal way to do that is by setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a foreign-owned limited liability company.

Setting up a PT PMA allows you to operate a business legally, apply for an investor visa (KITAS), and even bring your family to live with you. But Indonesia’s company formation process involves more than just paperwork — it’s about compliance, accuracy, and long-term peace of mind.

Here’s a step-by-step breakdown — and why working with Overseas Business Consultancy (OBC) gives you a serious edge.

Step 1: Reserve Your Company Name

Choose three potential business names using Latin characters (no symbols or numbers). The Ministry of Law and Human Rights will approve one based on availability and local naming regulations. This is the first formal step in your registration journey.

Step 2: Draft the Deed of Establishment

A licensed Indonesian notary will draft your Deed of Establishment, including your Articles of Association — which detail your company’s objectives, structure, and shareholder information. This document must be in Bahasa Indonesia, as required by law.

Step 3: Legalize the Company (Pengesahan Pendirian)

Once your deed is complete, it must be submitted to the Ministry of Law and Human Rights for validation. When approved, your PT PMA officially becomes a recognized legal entity in Indonesia.

Step 4: Obtain Your NIB (Business Identification Number)

The NIB acts as your business’s central ID and includes:

• Company Tax Number (NPWP)
  
  
• Import/export license (if needed)
  
  
• Sector classification (KBLI code)
  
  

The NIB is essential for operational, tax, and compliance matters.

Additional Licenses You May Need (and Why They Matter)

Depending on your industry, location, and business activity, you may be required to obtain additional licenses for full compliance. These are critical steps — not optional.

• KKPR (Zoning Approval)
  Confirms your business location matches land-use regulations. Without it, you risk shutdowns or fines.
  
  
• K3L (Health, Safety, and Environment License)
  Mandatory for sectors such as manufacturing, logistics, construction, and food processing — proving compliance with national safety standards.
  
  
• PKPLH (Environmental Feasibility Study Approval)
  Required for high-impact sectors such as real estate development, agriculture, or mining. This shows your operations won’t harm the environment.
  
  
• SPPL (Environmental Commitment Letter)
  A simpler version of PKPLH, suitable for SMEs — shows basic commitment to environmental responsibility.
  
  
• Pengesahan Pendirian (Company Legalization Certificate)
  Confirms that your PT PMA is fully registered and operational — required before signing contracts, applying for visas, or opening bank accounts.
  
  

With OBC, we ensure every required permit is obtained on time, based on your sector and region — saving you from delays, legal risks, or costly corrections later.

 Step 5: Apply for Your Investor Visa (KITAS – E28A)

Once your PT PMA is set up and fully legalized, you can apply for the Investor Visa (E28A). This is a two-year visa that allows you to live, manage your business, and enter/exit Indonesia multiple times.

Upon entering Indonesia on an E28A visa, you’ll receive your Investor KITAS (residence permit) — a crucial step for:

• Staying in Indonesia legally as a business owner
  
  
• Applying for bank accounts, utilities, and personal tax ID
  
  
• Sponsoring family members for dependent KITAS
  
  

OBC supports you throughout the visa application process and also helps you sponsor dependent KITAS for your spouse and children — all in full compliance with immigration law.

 Step 6: Open a Corporate Bank Account

After you have received your Investor KITAS and your PT PMA is fully operational, you can proceed to open a corporate bank account.

This account is essential for:

• Handling official business transactions
  
  
• Processing tax payments and salaries
  
  
• Fulfilling compliance for ongoing operations
  
  

Documents Typically Required:

• Business Identification Number (NIB)
  
  
• Company Tax Number (NPWP)
  
  
• Deed of Establishment
  
  
• Pengesahan Pendirian (Company Legalization)
  
  
• Company Domicile Letter
  
  
• Copy of passport/KTP of shareholders/directors
  
  
• Investor KITAS (E28A)
  
  
• Personal NPWP (individual tax ID)
  
  

⚠ Note: Banks in Indonesia may have their own specific requirements. OBC does not provide bank coordination services. However, we can guide you on what documents to prepare and assist with your Personal NPWP application.

 Important Compliance Notice

In accordance with Indonesian immigration and company law, each foreign shareholder applying for an Investor KITAS must commit to a minimum total capital investment of IDR 10 billion (approximately USD 600,000).

There are no exemptions or shortcuts. OBC operates with full transparency and stays 100% compliant with Indonesian regulations. We do not offer any services that bypass legal requirements.

Why Doing It Through OBC Is the Smartest Option

Setting up a PT PMA in Indonesia is not just about “opening a company.” It’s about doing it right the first time — and avoiding the traps that delay your visa, hurt your compliance, or put your investment at risk.

With OBC, you get:

✔ Full compliance with Indonesian law
 ✔ Fast-track licensing with zero guesswork
 ✔ Multilingual team support (Urdu, English, Bahasa Indonesia)
 ✔ Business advisory tailored to your investment goals
 ✔ Transparent pricing — no hidden fees

Ready to Set Up Your Business in Indonesia?

Let’s get you started on the right foot — legally, smoothly, and confidently.