A Guide to Setting Up a PT PMA for Malaysian Investors

The key steps to establishing a foreign-owned company in Indonesia, from choosing a KBLI code to LKPM reporting.

Simplifi Editorial Team Simplifi.id 27 October 2026 · 1 min read

Foreign investors who want to do business in Indonesia generally must do so through a foreign-investment limited liability company, or PT PMA, under the Investment Law. Here is an overview of the process.

1. Choose your KBLI and check the investment list

Every business activity is classified by a KBLI code. Before setting up a PT PMA, confirm your business line is open to foreign investment and whether any ownership caps or partnership requirements apply.

2. Plan the capital structure

BKPM rules set a minimum investment value per KBLI per project location (excluding land and buildings) and a minimum issued and paid-up capital. These thresholds can change through BKPM regulations, so check the current figures with your advocate.

3. Deed of establishment and approval

A notary prepares the deed of establishment, which is then approved by the Ministry of Law through the AHU system. You will also appoint the board of directors, the board of commissioners and the registered address.

4. NIB and risk-based licensing

The company then obtains a Business Identification Number (NIB) through the OSS system. Additional licences depend on the risk level of your activities.

5. Once operating

Open a bank account and register the company for tax (NPWP).
File periodic Investment Activity Reports (LKPM).
Obtain RPTKA and KITAS approvals if employing foreign staff.

This article is general information, not legal advice. Discuss your investment plans with an advocate.