Local Investment (PMDN) and Foreign Investment (PMA)

Principal License and establishing a PMA Company

The Principal License of investment is required as an initial government approval that must be obtained before conducting investment in Indonesia and establishing a PMA Company. After BKPM has granted approval for the proposed investment, the process of incorporating a PMA Company may commence. This process involves execution by the shareholders of the company of the Deed of Establishment containing the articles of association (AKTA) of the company before a notary public in Indonesia.

At least two shareholders are required (President Director and President Commissioner) for the establishment of a PMA. At least one of the shareholders needs to be a foreign individual (or foreign legal entity). The Director needs to reside in Indonesia to take care of all daily activities. The foreigner who works and resides in Indonesia is required to obtain a tax number (NPWP) and a work permit (KITAS).

For the establishment of a PMA, the foreign investor needs to comply with minimum capital requirements for foreign investment. Currently the minimum requirement stands at IDR 10 billion or the equivalent value in US dollars. Paid up capital is generally set at 25 percent of the minimum capital requirement (hence IDR 2.5 billion). In certain (capital intensive) industries paid up capital requirements are higher.

Estimated Time (Days)


Days Principle License & Business License from BKPM (7 Days)

Legalization of the legal entity status of the PT PMA by the Ministry of Law and Human Rights (10 Days)

Domicile Letter from the local district authority (3 Days)

Company Registration Certificate (TDP) from the agency for integrate licensing services (BPPT) (14 Days)

Deed of Establishment (Containing the Articles of Association) legalized by a public Notary (2 Days)

Tax Identification Number (NPWP) and taxable entrepreuneur confirmation (PKP) from the tax office (3 Days)

Manpower Report and Company Welfare Report from the sub-departement of the Ministry of Manpower (7 Days)


Local Investment  (PMDN)          
Ministry of Law and Human Rights,         
Kantor Wilayah Kementerian Hukum dan HAM Jakarta       
Jl. Letjen Mt. Haryono No.24, RT.4/RW.1, Cawang,
Kramatjati, Kota Jakarta Timur, Daerah Khusus Ibukota Jakarta 13630             


Foreign Investment  (PMA)          
Foreign Investment at Investment Coordinating Board (Badan Koordinasi Penanaman Modal /BKPM)   
Jl. Gatot Subroto No.44, RT.5/RW.4, Karet Semanggi, Kecamatan Setiabudi,
Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12930