Dive into seamless investment ventures with PT PMA, the gateway to Indonesia’s thriving business landscape. If you want to do business in Indonesia, this is one of the requirements you need to have. So, what is PT PMA?
Definition
PT PMA is a limited liability company established under Indonesian law, which has the participation or use of foreign capital, fully utilizes foreign capital or a joint venture with domestic investors.
The foreign capital included by capital owned by foreign countries, individual foreigners, foreign business entities, foreign legal entities, and or Indonesian legal entities which are partially or fully owned by foreign parties.
Investment of foreign capital in Indonesia must go through the foreign investment procedures set by the Investment Coordinating Board (BKPM).
One important element in the preparation of the services for foreign investment is the DNI (Negative Investment List) regulation that governs the maximum foreign ownership ratio in a commercial activity.
Things of interest PT PMA

Before investing in Indonesia, foreign investors should know a few things, including the following:
- PMA must be in form of a PT
PMA will be in the form of a limited liability company (PT) based on Indonesian law and headquartered in Indonesia, except where the law stipulates otherwise and is accomplished by:
- Taking part of the capital stock at the time of establishment of the PT;
- Purchasing shares
- Taking other actions as prescribed by law.
- Only permitted to do business in large companies
Foreign investors only permitted to do business in large companies. Therefore, foreign investors cannot do business in micro, small, and medium enterprises in Indonesia.
- Investment value above IDR 10 billion
Foreign investors must qualify for an investment value above IDR 10 billion, excluding the value of land and houses according to the 5-digit KBLI business field and project location.
- Investment capital minimum of IDR 10 billion
PMA also has a minimum capital requirement, specifically an issued/deposited capital of at least IDR 10 billion, except as otherwise stipulated by law.
Requirements Of PT PMA
As a company that wants to operate in Indonesia with foreign capital, a PT PMA needs to comply with various requirements set by the Indonesian government. The requirements are as follows:
- Minimum IDR 10 billion for the first investment.
- Minimum two (2) shareholders with one or more foreign investors and one or more local investors.
- Registered address
- Name of your company with minimal three (3) words (can be using foreign language)
Company Licenses
The business license required to operate depends on the risk level of the business being operated by the PT PMA. But as PMA is only for large companies, the operational permit required by PT PMA is not only NIB, but also standard certificates or licenses, depending on the level of risk.