Description
Setting up a Foreign-Owner Company (PMA):
- A foreign-owned company or Perseroan Terbatas Penanaman Modal Asing (PT PMA) is the common way for foreign investors to operate a company in Indonesia. It’s roughly similar to a Limited Liability Company in structure and function.
- A foreign-owned company (PT PMA) does not need to have a local shareholder if their industry is not mentioned in the Negative Investment List, which means that 100% of the capital can be owned by foreigners.
- If their industry is listed in the Negative Investment List, there will be a special rule where the foreign-owned company (PT PMA) must have a specified percentage of local Indonesian shareholders.
- Therefore, for specific restrictions, a foreign-owned company (PT PMA) needs to be a joint venture with Indonesian citizens or Indonesian legal entities to be able to run their businesses in Indonesia.
- Regarding the business location, foreign companies are allowed to use virtual offices or physical space in a registered office building as their business address.