Description
If you are unsure whether your business field falls under PMA guidelines, please feel free to contact me for advice.
What does the PT stand for and are there any limitations to my business name?
PT is basically the Indonesian equivalent to Limited, Pte or Ltd.
In Indonesia you must register your company name in Indonesian using a minimum of 3 words. For example: Klub Rumah Baru. But, don’t worry this is just your company establishment name, you may brand your business with an English name if you prefer.
When setting up a business do you need an actual office or can you use a residential location?
Before processing of incorporation, you need to choose the location of your business and have a registered address in an office building Indonesia. You cannot use your home address as it is not possible to register a company with a residential address. Alternatively, you can also use a virtual office for Local PT or Coworking Space for PT PMA.
What is paid up capital and how does that effect the business set up?
Paid up capital is the amount of money the shareholder invests into the business. The amount varies depending on whether the business is a PT or a PMA and the proposed size of the business.
There are 2 ways to prove the paid up capital; one being to send a copy of your company bank statement which shows the investment amount, the second option is to sign a statement letter acknowledging that you will invest the capital in the future.
The paid up capital amounts are as follows:
PT Company Establishment:
Small: Above IDR 50.000.000 – 500.000.000
Medium: Above IDR 500.000.000 – 10.000.000.000
Large: Above IDR 10.000.000.000
Please note, that if you want to employ foreigners, in a PT, the company size must be at least Medium with a paid in capital above IDR 1.100.000.000.
PMA Company Establishment: :
Being a foreign owned company the investment value is significantly higher than that of a PT. The investor should invest above USD 1 million / 10 Billion IDR as their investment plan, with a paid-up capital above USD 250.000.000 / 2.5 Billion IDR. The Investment plan can either be cash or fixed assets, such as machinery.
According to the Indonesia Company Law (04/2007), every limited liability company in Indonesia requires at least two shareholders, one commissioner, and at least one director. The shareholders can be individuals, corporations, or both.
Do you need to provide proof of transfer of your paid up capital?
Whilst processing our company establishment, you do not need to provide proof of transfer for your paid up capital. You may pay the paid up capital once the company is established.
Are there any standard compliances you need to know before establishing your company in Indonesia?
Apart from taxes, companies must also register for social and health security programme (BPJS) by the government. For PT PMA companies it is mandatory to report investment four times per year which is commonly known as the “LKPM Report”.
Read more about Company Establishment in Indonesia

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