A Penanaman Modal Asing – abbreviated as PMA – is a business established in Indonesia, in which shares are held entirely or predominantly by foreign investors in conjunction with national investors. If you want to set up a PT PMA, i.e., a limited liability business, here is what you should do:
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Understanding the PT PMA
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Definition : PT PMA refers to registered limited liability companies established by Indonesian law with foreign capital wholly or jointly with domestic capital.
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Foreign Capital : Money is invested by the foreign country or its legal citizen or business entity or legal entity or the legal entity under its control.
2. Investment Approach
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The investment Approach of PT PMA Foreign investments in Indonesia must only use the approach set by the Investment Coordinating Board (BKPM).
3. Founders of PT PMA
The founders could fit into one of two categories:
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domestic and foreign investor nationals:
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Domestic investors are Indonesian citizens, businesses, the Indonesian state, or regions investing within the country.
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On the other hand, foreign investors are foreign citizens, business and business agents, or governments.
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Required documents:
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for foreign individuals: Passport
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for foreign business entities: Legal documents from their countries.
4. Investment and Shareholding Requirements
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PT PMA must have:
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Minimum of Rp 10 billion investment.
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Out of which both must have a placed and paid-up capital of Rp 2.5 billion
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The shareholding percentage is drawn from the nominal value of shares
5. Notary Implication
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The notary shall draw the authentic establishment deed of PT PMA in Indonesian language.
6. Ministry Approval
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The Minister of Law and Human Rights approves the company
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The company will be published in the State Gazette Supplement of the Establishment Deed of the PT PMA.
7. Tax Registration Number (NPWP)
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The tax registration number, also known as NPWP. After the Ministerial Decree, NPWP can be obtained by requesting it from the local tax office.
8. Business Identification Number (NIB) & Business License
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Each business is assigned a NIB (business identity number), and the business license identifies the type of business permitted.
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The Online Single Submission system is the platform for obtaining NIB and the operation license.
9. State Gazette Publication
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The establishment of PT PMA must be announced in the State Gazette for the benefit of the public. The publication cost is around Rp 580,000.
10. Gazette Publication Timeline
The timeline to inform the public of the establishment of PT PMA in the State Gazette is Typically within 6-12 months after the Ministerial Decree.
11. Additional Requirements
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Copies of founder’s ID card (KTP)/Passport and Tax ID (NPWP).
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Detailed address of the PT PMA.
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Contact information of the founder.
PT PMAs must adhere to legal requirements and procedures to operate effectively in Indonesia’s business landscape. For comprehensive legal assistance, consult KIA Consulting Indonesia.
