Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania. Indonesia achieved independence from the Netherlands in 1949. The nation's capital city is Jakarta.

Indonesia is Southeast Asia’s largest economy and has delivered consistently high annual growth. It has a well-diversified trading economy with oil and gas being the country’s largest export followed by other mining products, palm oil, agricultural products etc.

Indonesia is an attractive investment destination. Abundant natural resources, a large and growing domestic market combined with an improving investment climate, and technically trained work force are a few of the country’s salient advantages.

Other basic facts:

Time zone

Greenwich Mean Time +7


Official language

Bahasa Indonesia. English is also commonly used


National currency

Rupiah (IDR)



Penanaman Modal Asing, or PMA

This is the only type of company allowed for foreign investment. It must take the form of a limited liability company (PT).

Foreign entrepreneurs can set up a PMA in Indonesia either by setting up:

  • A limited liability company which is 100% foreign owned; or
  • A limited liability company through a joint venture with Indonesian partners
Shelf company availabilityNo
Estimated time for incorporation3 to 6 months
Permitted currenciesRupiah (foreign currency equivalent may be stated in brackets in the Articles of Association for the purposes of future capital repatriation)
Minimum issued capitalAt least 25% of the approved authorized capital must be issued and paid-up or minimum of USD100,000
Authorised capitalNo formal minimum capital requirements. The amount of capital to be invested in a foreign-owned company is subject to approvals by the Investment Coordinating Board (BKPM) based on the commercial feasibility and scale of the project
Par / nominal valueYes
MinimumOne (1)
Corporate directorNot allowed
Local director requirementsNon-Indonesian citizens may not be directors in a PMA unless an expatriate resident in Indonesia with a work permit sponsored by that company
Location of meetingIndonesia or place where the company has its business activities
Minimum number of meetingsPer Articles of Association
Publicly accessible recordsYes
MinimumTwo (2), which may be a combination of two individuals, two corporate or a combination
Bearer sharesNot Allowed
Corporate shareholdersAllowed
Local shareholder requirements

A foreign investment company may be 100% foreign-owned, whereby the minority shareholder must hold at least 1% or have an investment of USD1,000. However, there are restrictions on foreign ownership in certain business sectors (eg. investment in infrastructure) which requires a proportion of Indonesian shareholding.

A 100% foreign-owned PMA is required to sell at least 5% of the company’s share(s) to an Indonesian citizen or entity within 15 years of commercial start-up.

Location of meetingIndonesia
Minimum number of meetingsOne (1) annually
Publicly accessible recordsYes
MinimumNot required
RequirementsNone. A foreign investment company is basically free to choose where in Indonesia they will set up operations
RecordsKept in Indonesia
Preparation of accountsYes
Audit requirements and filingNo requirement to prepare audited financial statements unless assets of the company exceed Rp.25 billion
Publicly accessible recordsNo
Annual returnYes
Tax returnYes
Legal systemCivil Law
Corporate re-domiciliationNo
Double taxation treaty accessYes
Exchange controlYes
TaxationCorporate tax rate of 25% on taxable profits

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