Set up a Limited Liability Company in Indonesia

If you want to set up a limited liability company in Indonesia, our team of legal experts who provide company formation services can assist you with incorporation, licensing, and post-registration steps.

How can I set up an LLC in Indonesia?

A foreign-owned Indonesian LLC is generally established as a PT PMA (Perseroan Terbatas Penanaman Modal Asing/Foreign Investment Limited Liability Company). The main steps are:

1. Select the appropriate business activity code (KBLI– Indonesian Standard Industrial Classification) and check the applicable foreign-ownership restrictions. An Indonesian shareholder is required only for sectors subject to local ownership conditions.
2. Determine the shareholders, directors, commissioner, registered address, and company capital.
3. Have an Indonesian notary prepare the deed of establishment and submit the company details through the Ministry of Law’s General Legal Administration (AHU) system.
4. Obtain the Ministry of Law’s approval to grant the company legal-entity status.
5. Register through the Online Single Submission System (OSS) to obtain the Business Identification Number (NIB) and complete any risk-based or sector-specific licensing requirements.

What types of limited liability companies can I choose in Indonesia?

You can choose from:

1. Locally owned limited liability company (PT – Perseroan Terbatas), generally recorded with domestic investment status (PMDN – Penanaman Modal Dalam Negeri).
2. Foreign investment limited liability company (PT PMA – Perseroan Terbatas Penanaman Modal Asing), used when the ownership includes foreign capital.

Please have in mind that foreign ownership is checked under KBLI (Klasifikasi Baku Lapangan Usaha Indonesia – Indonesian Standard Industrial Classification).

What are the features of a locally owned PT in Indonesia?

1. A locally owned PT has only Indonesian shareholders. If a foreign person or entity becomes a shareholder, the investment status changes to PMA, and the company is treated as a PT PMA.
2. The founders determine the authorized capital. At least 25% must be issued and fully paid. The remaining authorized capital may be issued later, and every later share issue must be fully paid.
3. An Indonesian company that intends to employ a foreign worker generally needs an approved Foreign Worker Utilization Plan (RPTKA – Rencana Penggunaan Tenaga Kerja Asing), unless a legal exemption applies.
4. The time for the incorporation of a limited liability company is around one to two months. This is an estimate, not a legal deadline.

What are the features of a PT PMA in Indonesia?

A PT PMA is a limited liability company established for foreign investment and has the following characteristics:

1. The standard minimum total investment is more than 10 billion Indonesian rupiah (IDR), excluding land and buildings, per five-digit KBLI business field and project location. Specific activities have different calculation rules.
2. The PT PMA in Indonesia can be fully or partially owned by foreign investors; the percentage depends on the field.
3. The minimum issued and paid-up capital is IDR 2.5 billion per PT PMA, unless another regulation provides otherwise.
4. Foreign-worker approval depends on whether the proposed position is permitted and whether the required RPTKA has been approved. The worker must also obtain the visa and residence permit required to work in Indonesia.
5. The company registration process for this type of company takes around 10 weeks to complete. This is an estimate, not a legal maximum.

For a quick overview of how to open an LLC in Indonesia, please explore the infographic below:

What steps should I follow to open an LLC in Indonesia in 2026?

To open an LLC in Indonesia, you should follow the steps below:

1. Check if your business sector permits full foreign ownership or requires an Indonesian shareholder.
2. If local participation is required, conclude a joint venture agreement with an Indonesian partner.
3. Ask an Indonesian notary to prepare the company’s deed of establishment.
4. Have the notary submit the deed to the Ministry of Law (Kementerian Hukum/Kemenkum) for approval.

What requirements do I need to fulfill to register an LLC in Indonesia?

Please consider that the following requirements must be fulfilled when registering an Indonesian LLC:

• Prepare the Articles of Association by drafting and notarizing them;
• Provide information about the owners of the company (name, address, and nationality);
• Appoint one director; Indonesian nationality is not required.
• Name a commissioner for the company, regardless of nationality;
• The notary files through SABH (Sistem Administrasi Badan Hukum – Legal Entity Administration System).
• Pay the registration fee and obtain the receipt, which will be appended to the incorporation documents;
• Obtain an NIB (Nomor Induk Berusaha – Business Identification Number) through OSS (Online Single Submission); VAT (value-added tax) registration is separate.
• The notary submits to the competent authorities the notarized documents electronically.
• The KBLI code in the corporate documents should match the activity used for the NIB and any sector license. A mismatch can delay licensing or require amendments before operations begin.

The Ministry of Manpower (Kemnaker – Kementerian Ketenagakerjaan) is relevant only for foreign workers.

When does a PMA company in Indonesia need a NIB?

In general, in terms of licensing, a PMA company will only need the Business Identification Number it receives after registration with the Indonesian authorities.

However, for companies that are involved in activities that are considered medium-low and medium-high risk, the requirements are to obtain a standard certification. Additionally, companies considered high-risk will need to obtain a license or permit.

• low risk: only NIB;
• medium risk: NIB and certificate;
• high risk: NIB and license.

Which obligation must I consider when having an LLC registered in Indonesia?

You must know that your company, registered in Indonesia, must report its beneficial owner and keep the information accurate. The beneficial owner is the one who ultimately owns or controls the company, receives its benefits, or can appoint or dismiss directors or commissioners. Update the record when ownership or control changes. The filing is part of the company’s transparency duties and supports accurate corporate records.

You can also watch our video on how to open a limited liability company in Indonesia:

What responsibilities does an LLC commissioner have?

The appointed commissioner of an LLC in Indonesia can be a non-resident, and he:

• must supervise the company;
• needs to analyze the annual report of activities in the firm;
• must approve the budget plan issued by the board of managers.

Please note that naming a commissioner for your LLC in Indonesia is a mandatory request. Budget approval depends on the Articles of Association. Article 33 of the Law 25/2007 bans nominee shareholding.

FAQ – What should I know before establishing a foreign-owned LLC in Indonesia?

If you want more details about how to register a limited liability company as a foreigner in Indonesia in 2026, please contact our Indonesian agents for starting a company.