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Company Registration in Indonesia - Access to a Market of 280 Million People.
Indonesia company registration (PT PMA) provides access to the largest market in Southeast Asia and enables companies to operate within strategically significant nickel and electric vehicle supply chains. Tax incentives of up to 20 years are available for certain priority industries. Infrastructure development and investment reforms are expanding opportunities for foreign companies in trade and manufacturing.Indonesia company registration (PT PMA) provides access to the largest market in Southeast Asia and enables companies to operate within strategically significant nickel and electric vehicle supply chains. Tax incentives of up to 20 years are available for certain priority industries. Infrastructure development and investment reforms are expanding opportunities for foreign companies in trade and manufacturing.
Updated

What Foreign Investors Need to Know.
Indonesia is one of the largest economies in Southeast Asia: the world’s fourth-most populous country, a G20 member, the region’s largest consumer and digital market, and, as a result of targeted government policy, a key hub in the global nickel and battery supply chain. Export restrictions have stimulated the development of local enterprises engaged in raw material processing and electric vehicle manufacturing. The Omnibus reforms replaced the previous restrictions with a positive investment list: most industries are now open to 100% foreign ownership through the OSS system, while PT PMA is used as the legal form for foreign investment.
The government provides incentives for priority projects: tax holidays for pioneer industries range from 5 to 20 years depending on the investment amount, while SEZs and the Batam Free Trade Zone have their own regimes, and R&D expenses may qualify for a deduction of up to 300%. For PT PMA, an investment plan of more than IDR 10 billion is generally required for each business activity, along with stated capital with a minimum paid-up amount of IDR 2.5 billion and LKPM reporting. OSS has streamlined licensing, although additional regional permits may be required for certain projects; local content requirements (TKDN) apply in selected industries, while labor laws provide for severance-related costs.
Indonesia is one of the largest economies in Southeast Asia: the world’s fourth-most populous country, a G20 member, the region’s largest consumer and digital market, and, as a result of targeted government policy, a key hub in the global nickel and battery supply chain. Export restrictions have stimulated the development of local enterprises engaged in raw material processing and electric vehicle manufacturing. The Omnibus reforms replaced the previous restrictions with a positive investment list: most industries are now open to 100% foreign ownership through the OSS system, while PT PMA is used as the legal form for foreign investment.
The government provides incentives for priority projects: tax holidays for pioneer industries range from 5 to 20 years depending on the investment amount, while SEZs and the Batam Free Trade Zone have their own regimes, and R&D expenses may qualify for a deduction of up to 300%. For PT PMA, an investment plan of more than IDR 10 billion is generally required for each business activity, along with stated capital with a minimum paid-up amount of IDR 2.5 billion and LKPM reporting. OSS has streamlined licensing, although additional regional permits may be required for certain projects; local content requirements (TKDN) apply in selected industries, while labor laws provide for severance-related costs.
Business Registration in Indonesia - Costs and Packages.
Company
Registration of an Indonesian PT PMA - KBLI strategy, deed, ministry approval, OSS registration, tax numbers and the first year of the registered address included.
Optional add-ons: tax-holiday / SEZ application - scoped per case · investor KITAS - from $900 · accounting - from $200/month · renewal - from $2,000/year.Optional add-ons: tax-holiday / SEZ application - scoped per case · investor KITAS - from $900 · accounting - from $200/month · renewal - from $2,000/year.
Start with Company →Company + Bank Account
A fully operational PT PMA with an Indonesian bank account - balances in IDR and USD, online banking, and the ability to process payroll through a major bank.
Promising Business Areas in Indonesia.
The positive investment list opens most sectors to 100% foreign ownership, while KBLI codes determine licensing requirements and investment calculations. Special SEZ regimes and tax incentives are available for priority sectors.The positive investment list opens most sectors to 100% foreign ownership, while KBLI codes determine licensing requirements and investment calculations. Special SEZ regimes and tax incentives are available for priority sectors.
A supply chain shaped by government policy: processing, battery manufacturing, and related industries.
Manufacturing for the Indonesian domestic market and ASEAN countries, with potential access to tax incentives.
The region’s largest market, where e-commerce and modern retail are rapidly moving into the formal economy.
An archipelago-wide ecosystem of platforms, logistics, and fintech shaped by the growth of GoTo.
Special regimes offering customs and tax advantages; Batam provides a link to Singapore.
Palm oil, coal, copper, and raw-material processing aligned with government policy priorities.
A supply chain shaped by government policy: processing, battery manufacturing, and related industries.
Manufacturing for the Indonesian domestic market and ASEAN countries, with potential access to tax incentives.
The region’s largest market, where e-commerce and modern retail are rapidly moving into the formal economy.
An archipelago-wide ecosystem of platforms, logistics, and fintech shaped by the growth of GoTo.
Special regimes offering customs and tax advantages; Batam provides a link to Singapore.
Palm oil, coal, copper, and raw-material processing aligned with government policy priorities.
Key advantages of the jurisdiction.
280 million people - one of Southeast Asia’s largest centers of consumer demand, with the formal sector continuing to grow.280 million people - one of Southeast Asia’s largest centers of consumer demand, with the formal sector continuing to grow.
Government policy has made Indonesia a hub of the EV supply chain - investors are entering an ecosystem built through that policy.Government policy has made Indonesia a hub of the EV supply chain - investors are entering an ecosystem built through that policy.
For priority industries, tax holidays range from five to twenty years depending on investment size.For priority industries, tax holidays range from five to twenty years depending on investment size.
Most sectors are open to 100% foreign ownership - one of the key changes introduced by the Omnibus reforms.Most sectors are open to 100% foreign ownership - one of the key changes introduced by the Omnibus reforms.
Small companies pay 0.5% of turnover while their revenue remains below IDR 4.8 billion.Small companies pay 0.5% of turnover while their revenue remains below IDR 4.8 billion.
Up to 300% of R&D expenses and up to 200% for vocational training - additional incentives for investment.Up to 300% of R&D expenses and up to 200% for vocational training - additional incentives for investment.
Indonesia Compared with Other ASEAN Countries.
Vietnam offers a more flexible manufacturing model. Thailand provides developed infrastructure alongside restrictions on foreign ownership. The Philippines offers an English-speaking services market. Malaysia provides balanced conditions. Indonesia combines economic scale with access to natural resources. Data current as of 2026.Vietnam offers a more flexible manufacturing model. Thailand provides developed infrastructure alongside restrictions on foreign ownership. The Philippines offers an English-speaking services market. Malaysia provides balanced conditions. Indonesia combines economic scale with access to natural resources. Data current as of 2026.
| Country | Corporate Tax | Ownership | Signature Advantage |
|---|---|---|---|
| Indonesia | 22% · incentives | 100% in most sectors | Scale + nickel supply chain |
| Vietnam | 20% | Up to 100%, subject to sector rules | Agile manufacturing |
| Thailand | 20% | 49% in restricted sectors | Infrastructure + BOI |
| Philippines | 25% · 20% for qualifying small companies | 100% in most sectors | English-speaking services |
| Malaysia | 24% · SMEs 15/17% | 100% in most sectors | Balanced conditions |
Company Registration in Indonesia: What to Plan for in Advance.
Company Formation in Indonesia: From Application to Launch in a Few Weeks.
Company registration in Indonesia involves a notary, the relevant Ministry, and the OSS system. Before filing, we determine the applicable KBLI codes and assess eligibility for tax incentives and SEZ regimes, as available incentives depend on the type of activity.Company registration in Indonesia involves a notary, the relevant Ministry, and the OSS system. Before filing, we determine the applicable KBLI codes and assess eligibility for tax incentives and SEZ regimes, as available incentives depend on the type of activity.
KBLI codes, eligibility for tax incentives and SEZ regimes, and TKDN requirements are assessed before filing.
Passports and company structure. The deed of establishment is prepared and notarized.
Document legalization, followed by obtaining the NIB and required sector-specific licenses through OSS.
NPWP registration, VAT status determination, and opening IDR/USD bank accounts.
Filing for tax holidays for pioneer industries or applying for the relevant SEZ regime.
Visa processing and preparation for hiring in accordance with applicable labor-law requirements.
Eligibility for tax incentives and SEZ regimes depends on the selected business activities, KBLI codes, investment size, and compliance with applicable requirements - so the relevant conditions should be determined before filing.
On the ground in Indonesia.

Your setup is run with Jakarta notaries and consultants who file PMAs and BKPM work every week.
Pioneer holidays, SEZ status and super-deductions - claimed by design, not luck.
The quarterly investment reports that keep the plan and the licence aligned.
A network of offices across Europe, the Gulf and the Americas - one team for your whole international structure.
















Taxation in Indonesia: Rates and Incentives for Businesses.
Indonesia’s tax system provides for standard corporate taxation, special conditions for small companies, and separate incentives for priority industries and investment projects. Special tax regimes also apply to certain zones, business activities, and investment structures.Indonesia’s tax system provides for standard corporate taxation, special conditions for small companies, and separate incentives for priority industries and investment projects. Special tax regimes also apply to certain zones, business activities, and investment structures.
The standard rate is 22%. Small companies with revenue of up to IDR 4.8 billion are subject to a 0.5% turnover tax.The standard rate is 22%. Small companies with revenue of up to IDR 4.8 billion are subject to a 0.5% turnover tax.
From 5 to 20 years for qualifying industries that meet the applicable investment requirements.From 5 to 20 years for qualifying industries that meet the applicable investment requirements.
Up to 300% of R&D expenses and up to 200% of professional training expenses.Up to 300% of R&D expenses and up to 200% of professional training expenses.
A 20% withholding rate applies to non-residents and may be reduced under a tax treaty. Dividends reinvested in Indonesia may qualify for a tax exemption if the applicable conditions are met.A 20% withholding rate applies to non-residents and may be reduced under a tax treaty. Dividends reinvested in Indonesia may qualify for a tax exemption if the applicable conditions are met.
Owners’ tax obligations depend on their country of tax residence. If the company invoices in US dollars, foreign-exchange settlements and rupiah cash-flow planning should be considered from the outset.
The specialists who'll handle your case.
Guides clients from the first consultation to a working setup - companies, accounts and substance in 60+ jurisdictions.
Handles incorporation paperwork, KYC and bank introductions so your Indonesian company launches without delays.
Active across our channels.
Southeast Asia's heavyweight, entered by strategy - PMA, incentives, bank and LKPM discipline in one project. Full support, start to finish.
Talk to a specialist →How to Register a Company in Indonesia, answered.
Can I register a company in Indonesia without visiting?+
Yes - the deed of establishment, Ministry approval, OSS, and tax registration can be handled by power of attorney, while banks can be arranged around a planned visit, often combined with trips for production and market entry. KITAS biometrics are completed upon arrival. We structure the process around your travel plans.
How much does company registration in Indonesia cost?+
Turnkey registration starts from $3,900, including the notary, Ministry, OSS, and first-year address, with banking from $5,900. Tax incentives and SEZ applications are quoted separately for each project. Renewals with accounting and LKPM support start from $2,000 per year.
Does the IDR 10 billion investment requirement apply across Indonesia?+
As a rule, a PT PMA requires an investment plan of more than IDR 10 billion for each 5-digit KBLI code and separate project location. The minimum paid-up capital is IDR 2.5 billion. Special rules apply to certain business activities.
What taxes does a company pay in Indonesia?+
The standard corporate tax rate is 22%. Certain qualifying small companies may be subject to a 0.5% turnover tax on revenue up to IDR 4.8 billion. VAT (PPN) is 11%, while dividends paid to non-residents are generally subject to 20% withholding tax, unless a lower rate applies under a tax treaty.
How do tax holidays work?+
For pioneer industries, including processing, petrochemicals, EV components, and digital infrastructure, tax incentives depend on investment size: from five years for qualifying projects at the entry level to twenty years for the largest investments, followed by a reduced benefit period. Eligibility is assessed as part of the KBLI selection before registration.
What changed with the Positive List?+
The Omnibus reforms changed the previous approach: the Positive List opened most sectors to 100% foreign ownership while retaining a limited number of restrictions. OSS has simplified licensing, although additional regional and sector-specific requirements may still apply.
What is TKDN?+
TKDN sets local-content requirements in selected sectors, including telecommunications, energy, government procurement, and certain manufacturing activities. Where applicable, it can affect supplier selection and, in some cases, local assembly decisions. We assess these requirements before company formation in Indonesia.
How does labor law affect planning?+
Severance payments are calculated under statutory rules and can have a significant impact on employment costs. Hiring plans should therefore account for contract types, probation terms, and future employer obligations from the outset.
Key differences between Indonesia and Vietnam for company registration?+
Vietnam offers a more flexible export-manufacturing model and developed infrastructure for foreign investment. Indonesia combines a large domestic market with the nickel supply chain and investment incentives for large-scale projects. Vietnam may be better suited to export-oriented manufacturing, while Indonesia can be a stronger fit for projects targeting domestic demand or resource-linked industries.
How long does it take to register a company in Indonesia?+
Company registration generally takes 3-6 weeks, from the deed of establishment through Ministry and OSS processing. Tax incentive and SEZ applications may take another 4-12 weeks. LKPM reporting begins after the relevant licence is obtained.
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Other jurisdictions & licenses.
Start your Indonesian company today.
Tell us about your business and a specialist will reply within one business day with an honest recommendation - PT PMA, the incentive map or a different flag - a timeline and a fixed quote.An Indonesia specialist will reply within one business day with an honest recommendation, a timeline and a fixed quote.