Practical answers on company establishment, OSS licensing, investment reporting, certification, and coordinated professional services in Indonesia.
These general answers are a starting point. Current rules, OSS settings, sector requirements, and the facts of each matter must be checked before action is taken.
There is no single guaranteed timeline. The process can involve company-name approval, preparation and execution of a notarial deed, AHU registration, tax administration, and OSS licensing. Timing depends on document completeness, the selected KBLI, system availability, and any review by the responsible authority.
The principal distinction is ownership: a PT PMDN is wholly domestically owned, while a PT PMA has foreign shareholding. The licences and conditions that apply still depend on the company’s actual business activities, scale, location, and sector rules.
Under Article 26 of BKPM Regulation No. 5 of 2025, a PT PMA is generally expected to have total investment of more than IDR 10 billion, excluding land and buildings, per five-digit KBLI and project location, and minimum issued and paid-up capital of IDR 2.5 billion per company. Sector-specific rules and current OSS implementation must also be checked before relying on these figures.
Sometimes. Full foreign ownership is possible only where the selected business activity permits it and all applicable sector, licensing, and investment conditions are met. The answer cannot be determined from the company form alone.
KBLI is Indonesia’s business-activity classification. The selected code is an important input for OSS licensing, but it is not the only factor. Business scale, location, sector rules, foreign ownership, and the facts of the proposed activity may also affect risk classification and required approvals.
An NIB is a business identification number issued through the OSS system for businesses within its scope. Depending on the activity and risk level, additional standard certificates, licences, or sector approvals may still be required. An NIB alone does not prove that every legal or operational requirement has been completed.
LKPM obligations are generally determined by business scale and applicable investment rules, not merely by whether a company is domestic or foreign owned. Businesses should confirm their current classification, reporting period, and any exemption in OSS before filing.
Late, missing, or inaccurate reporting can lead to administrative follow-up or sanctions under the applicable investment rules. The response depends on the facts and current system status, so records should be reconciled and any correction handled through the proper channel.
An SBU or other sector certification is required only where the company’s actual activity and the applicable sector rules require it. Construction and electricity activities use different certification and licensing pathways, so the KBLI, scope of work, personnel, and project requirements must be reviewed together.
Indonesian investment law prohibits agreements stating that shares are held for and on behalf of another person. The legality and consequences of a particular structure depend on its actual documents and facts; labels alone do not make an arrangement compliant.
Availability and fees depend on the requested scope. Ask our team to confirm whether an initial scope call is available and whether any professional or third-party fee will apply before work starts.
We provide administrative coordination and document support for business establishment, OSS licensing, regulatory reporting, and matters requiring licensed or authorized professionals. Regulated acts are performed by the appointed notary, PPAT, advocate, or other competent professional.
Tell us the proposed activity, ownership, location, and current documents. We can help define the administrative scope and identify when a licensed professional or authority is required.