Company Establishment

• PT Local Company (PMDN)

Essentially a PT PMDN is a company with 100% local direct investment. Foreign companies or individuals need a local nominee partner to establish one. Foreign employees are allowed to work only in medium and large-sized PT PMDN.

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What is the minimum capital requirement to form a PMDN?

Small: IDR 50 million – 500 million.

Medium: IDR 501 million – 10 billion.

Large: more than IDR 10 billion.

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• PT Foreign Investment (PMA)

If you are a foreign company or foreign individual, a PT PMA is the best way to get your business started immediately in Indonesia. It ensures that the investor controls the management of the company completely. The minimum paid-up capital for incorporating a PMA must be over IDR 10 Billion. However, this amount does not have to be in the form of a cash deposit. Business assets can be shown as Investments, except land and buildings. For Real estate businesses, land, and buildings can be shown as investments.

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• Representative Officer (RO)

​​Do market research as a representative office without the risk of big investments. For companies that only want to explore business opportunities in the Indonesian market, a representative office is an ideal choice.

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• Yayasan

​Foundations are established by Indonesian citizens (WNI) or foreign citizens (WNA). Quoting the Foundation Establishment Procedure book, foundation founders can consist of one or more people. It is possible that companies or legal entities can establish foundations. In addition, foundations can also be established on the basis written in a will. Establish a foundation, the founder must have assets separated from personal assets. Based on Government Regulation Number 63 of 2008, the initial wealth of foundations established by Indonesian citizens is IDR 10 million. Meanwhile, the initial wealth of foundations established by foreigners was Rp. 1 billion.