Question 1

What is the procedure to change the director, commissioner, or shareholder of a PT PMA?

Accepted Answer

Changes to the corporate structure require a General Meeting of Shareholders (RUPS), followed by a Notarial Deed. The changes must then be submitted to and approved by the Ministry of Law and Human Rights (MOLHR) and updated in the OSS system.

Question 2

How do we officially increase the paid-up capital of our existing company?

Accepted Answer

Increasing paid-up capital requires a shareholder resolution (RUPS) to amend the Articles of Association. Once the funds are transferred to the corporate bank account, a Notary will execute the deed and register the capital increase with the MOLHR.

Question 3

Do all business agreements in Indonesia need to be drafted in the Indonesian language (Bahasa Indonesia)?

Accepted Answer

Yes, under Law No. 24 of 2009, any agreement involving an Indonesian entity must be drafted in Bahasa Indonesia. Bilingual contracts are permitted and standard practice for international transactions, but the Indonesian version is mandatory.

Question 4

Can your firm assist with the legalization and 'waarmarking' of foreign documents for use in Indonesia?

Accepted Answer

Yes. We assist with the full legalization process, including translation by a sworn translator, notarization, and processing through relevant embassies or through the Apostille system depending on the issuing country.

Question 5

Is my international trademark automatically protected in Indonesia, or do I need to register it locally?

Accepted Answer

Indonesia uses a 'First-to-File' system. Your international trademark is not automatically protected unless it is registered in Indonesia through the local intellectual property office (DJKI) or via the Madrid Protocol designating Indonesia.

Question 6

How long is a registered trademark valid in Indonesia, and when should I renew it?

Accepted Answer

A registered trademark is valid for 10 years from the filing date. You can apply for renewal starting from 6 months before the expiration date.

Question 7

Can I use a Virtual Office address to apply for specialized business licenses?

Accepted Answer

A Virtual Office is sufficient for standard company establishment and obtaining an NIB. However, specialized licenses (such as manufacturing, certain trading, or warehousing) require a physical operational address to pass site verifications.

Question 8

Can a foreign national hold multiple work permits (KITAS) if they work for two different companies in Indonesia?

Accepted Answer

Generally, dual-employment is prohibited. A foreigner can only hold one working KITAS sponsored by one company. The only exception is for foreign Directors or Commissioners who may hold roles in multiple companies, provided it is approved by the Ministry of Manpower.

Question 9

What is the difference between an EPO (Exit Permit Only) and an ERP (Exit Re-entry Permit)?

Accepted Answer

An EPO is required when you are permanently ending your stay in Indonesia or changing sponsors; it cancels your KITAS. An ERP allows you to leave Indonesia temporarily and re-enter while keeping your KITAS active.

Question 10

What are the risks of operating a business if my NIB is active, but my standard certifications (like PKKPR) are still unverified?

Accepted Answer

An active NIB only acts as a basic registration. If your business risk level is medium to high, you cannot legally commence commercial operations until standard certifications (like PKKPR and environmental permits) are verified. Operating without them can lead to sanctions or NIB revocation.

Question 11

What is a PKKPR (Confirmation of Suitability of Space Utilization Activities) and why is it mandatory?

Accepted Answer

PKKPR replaces the old location permit. It confirms that your intended business activities align with the spatial planning of the regional government. It is a mandatory foundational requirement in the OSS system before any other operational licenses can be issued.

Question 12

Can a foreign investor establish a CV (Commanditaire Vennootschap) or Firm in Indonesia?

Accepted Answer

No. A CV or Firm is exclusively reserved for 100% domestic (Indonesian citizen) ownership. Foreign investors must establish a PT PMA (Limited Liability Company for Foreign Direct Investment).

Question 13

If I want to change my company’s business classification (KBLI), do I need to update my Articles of Association?

Accepted Answer

Yes. Changing your KBLI requires amending the 'Purpose and Objective' section of your Articles of Association through a Notarial Deed, which must then be registered with the MOLHR and updated in the OSS system to issue a new NIB.

Question 14

Why do I need a Notarial Deed for certain agreements instead of just a privately drafted contract?

Accepted Answer

A Notarial Deed (Authentic Deed) has perfect evidentiary power in an Indonesian court of law. Certain agreements, like Company Establishment, Share Transfers, and specific Sale & Purchase agreements, legally require a Notarial Deed to be valid.

Question 15

Is a Virtual Office suitable for a PMA company applying for a Permanent Business License?

Accepted Answer

Virtual Offices are excellent for consulting or service-based PMAs. However, for retail, manufacturing, or distribution, the government may inspect your premises. In those cases, a physical office or warehouse is mandatory for final license approval.

Question 16

What is the difference between a KITAS (Temporary Stay Permit) and a KITAP (Permanent Stay Permit)?

Accepted Answer

A KITAS is typically valid for 6 months to 2 years and must be renewed regularly. After holding a KITAS consecutively for a number of years, you may be eligible to convert it into a KITAP, which is valid for 5 years and provides greater residency stability.

Question 17

Can a dependent spouse holding a Dependent KITAS legally work in Indonesia?

Accepted Answer

No. A Dependent KITAS strictly prohibits the holder from engaging in any income-generating activities. To work, the spouse must obtain their own Working KITAS sponsored by an Indonesian company.

Question 18

Can I register an Industrial Design for a product that is already being sold in the market?

Accepted Answer

No. Industrial Designs in Indonesia must meet the 'Novelty' requirement. If the design has been publicly disclosed or sold before the filing date, it cannot be registered.

Question 19

Do I need to submit an LKPM (Investment Activity Report) if my company hasn't started commercial operations yet?

Accepted Answer

Yes. Every PMA and PMDN company must submit LKPM quarterly or semi-annually (depending on investment size) even during the construction/preparation phase before generating revenue. Failure to do so can result in NIB revocation.

Question 20

What are the specific restrictions for foreign ownership (The Positive Investment List)?

Accepted Answer

Under Presidential Regulation No. 10 of 2021 (The Positive List), most business sectors are now 100% open to foreign ownership. However, certain sectors (like specific logistics, postal, and traditional industries) remain restricted to partial foreign ownership or are reserved exclusively for domestic companies.

Question 21

Can I set up a company in Indonesia as a foreigner?

Accepted Answer

Yes, as a foreigner you can set up a foreign-owned company (PT PMA) in Indonesia if your business field is entirely open to foreigners. Find more about Indonesia’s Positive Investment List.

Question 22

Is a foreigner able to become a director or commissioner?

Accepted Answer

Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner.

Question 23

How long does PMA / PMDN incorporation process take?

Accepted Answer

2-3 Weeks.

Question 24

How long does KPPA incorporation process take?

Accepted Answer

3-3 Weeks.

Question 25

What is a PT PMA?

Accepted Answer

Limited liability company with foreign direct investment ranging from 1-100%

Question 26

Can a foreigner form a CV?

Accepted Answer

No.

Question 27

Can foreigners invest and own a company without having a local partner?

Accepted Answer

Yes, if it is a PMA.

Question 28

Can foreigners be shareholders in a PMA?

Accepted Answer

Yes.

Question 29

Can foreigners be shareholders in a PMDN?

Accepted Answer

No.

Question 30

Can a foreigner be the Chief Representative Oﬃcer of a KPPA?

Accepted Answer

Yes.

Question 31

How long can a KPPA operate in Indonesia?

Accepted Answer

KPPA licence does not have a validity period, meaning that it is valid as long as the KPPA operates.

Question 32

What is the difference between PT and CV?

Accepted Answer

PT: limited liability company (shareholders are notlegally liable for company liabilities).CV: proprietary company where liability falls on theshareholders.

Question 33

What is the minimum shareholder requirement to incorporate a PT?

Accepted Answer

2 shareholders.

Question 34

What is the minimum authorised capital requirement to form a PMA?

Accepted Answer

IDR 10 billion.

Question 35

What is the minimum paid-up capital requirement to form a PMA?

Accepted Answer

IDR 10 billion.

Question 36

What is the minimum investment requirement for PMA?

Accepted Answer

IDR 10 billion.

Question 37

What is the minimum authorised capital requirement to form a PMDN?

Accepted Answer

Small: IDR 50 million – 500 million.Medium: IDR 501 million – 10 billion.Large: more than IDR 10 billion.

Question 38

What is the minimum paid-up capital requirement to form a PMDN?

Accepted Answer

Small: IDR 1 billion – 5 billion.Medium: IDR 5 billion – 10 billion.Large: more than IDR 10 billion.

Question 39

What is the minimum capital requirement for KPPA?

Accepted Answer

None.

Question 40

What is the role of Director?

Accepted Answer

Take responsibility and make every decision for the company.

Question 41

What is the role of Commissioner?

Accepted Answer

Supervise and monitor the work of the Directors to make sure every activity is done and the decisions made are in coherence with the Shareholders’ goals.

Question 42

Can the same person be Director and Commissioner?

Accepted Answer

No.

Question 43

Can the same person be Shareholder and Director?

Accepted Answer

Yes.

Question 44

Can the same person be Shareholder and Commissioner?

Accepted Answer

Yes.

Question 45

How many Directors can be in a PMA / PMDN?

Accepted Answer

There is no maximum requirement, however for a small company we would recommend having 2-3 Directors and appoint a President Director.

Question 46

What happens if a PT wants to add a director, a commissioner or other business activities in the future?

Accepted Answer

Any changes in the Deed of Incorporation will result in deed amendment and updating the changes in the OSS system.

Question 47

Do I need to apply for the work permit if I’m both a shareholder and Director / Commissioner?

Accepted Answer

No.

Question 48

Are there options to expand my business without incorporating a company in Indonesia?

Accepted Answer

Yes, particularly for export and import business, you can use a service called undername import.

Question 49

What are the common company types in Indonesia?

Accepted Answer

Depending on your business requirements, preferences, and the nature of your business. there are 3 company types you can chooseLocal Company (PT): 100% local ownership.Foreign Company (PT PMA): can be entirely owned by foreigners, however, restrictions in business sectors applyRepresentative Office: a branch of parent company overseas whose purpose is to conduct marketing-related activities without generating income or profits

Question 50

What is a PT?

Accepted Answer

PT (Perseroan Terbatas) is the Indonesian term for a limited liability company.

Question 51

What is a PT PMDN?

Accepted Answer

Limited liability company with 100% local / domestic direct investment

Question 52

What is a CV?

Accepted Answer

CV (Commanditer Vennootschap) is a proprietary business entity that houses several individuals to run a business.

Question 53

What kind of company is the best for me: a foreign-owned company, local company, or representative office?

Accepted Answer

It all depends on the nature of your business and the purpose of your business incorporation. Consult with us if you are not sure.

Question 54

When do I have to deposit money in the bank?

Accepted Answer

As soon as the company completes its establishment process, the minimum paid-up capital should be deposited. Another option to look into: after the company receives the Article of Association and Deed of Establishment.

Question 55

Can you provide pricing details for company registration services?

Accepted Answer

To provide you with accurate pricing information for our company registration service, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the services may vary accordingly. For detailed information, please contact our consultants.

Question 56

Can I set up a PMA / PMDN company in any location in Indonesia?

Accepted Answer

No.

Question 57

Will the government check if I have fulfilled the investment plan of IDR 10,000,000,000?

Accepted Answer

Yes, the government will check IDR 10,000,000,000, which is the minimum paid-up capital. Fulfilling this requirement is a must.

Question 58

Can I use a virtual oﬃce for PMA / PMDN?

Accepted Answer

Yes.

Question 59

What is a virtual oﬃce?

Accepted Answer

A low cost set of services that facilitate remote working while maintaining a business address to present to customers.

Question 60

What is a serviced oﬃce?

Accepted Answer

A regular physical oﬃce where you can sit and work.

Question 61

What is a KPPA?

Accepted Answer

Representative Oﬃce.

Question 62

Can I set up a KPPA (Representative Oﬃce) in any location in Indonesia?

Accepted Answer

No, Representative Oﬃces must be situated in the provincial capital, e.g. Jakarta, Bandung, Surabaya, Denpasar, etc.

Question 63

Can a KPPA conduct business and generate proﬁt?

Accepted Answer

No, KPPA is strictly prohibited to do so.

Question 64

Can the CEO of the parent company be CRO?

Accepted Answer

No.

Frequently Asked Questions

What is the procedure to change the director, commissioner, or shareholder of a PT PMA?

How do we officially increase the paid-up capital of our existing company?

Do all business agreements in Indonesia need to be drafted in the Indonesian language (Bahasa Indonesia)?

Can your firm assist with the legalization and 'waarmarking' of foreign documents for use in Indonesia?

Is my international trademark automatically protected in Indonesia, or do I need to register it locally?

How long is a registered trademark valid in Indonesia, and when should I renew it?

Can I use a Virtual Office address to apply for specialized business licenses?

Can a foreign national hold multiple work permits (KITAS) if they work for two different companies in Indonesia?

What is the difference between an EPO (Exit Permit Only) and an ERP (Exit Re-entry Permit)?

What are the risks of operating a business if my NIB is active, but my standard certifications (like PKKPR) are still unverified?

What is a PKKPR (Confirmation of Suitability of Space Utilization Activities) and why is it mandatory?

Can a foreign investor establish a CV (Commanditaire Vennootschap) or Firm in Indonesia?

If I want to change my company’s business classification (KBLI), do I need to update my Articles of Association?

Why do I need a Notarial Deed for certain agreements instead of just a privately drafted contract?

Is a Virtual Office suitable for a PMA company applying for a Permanent Business License?

What is the difference between a KITAS (Temporary Stay Permit) and a KITAP (Permanent Stay Permit)?

Can a dependent spouse holding a Dependent KITAS legally work in Indonesia?

Can I register an Industrial Design for a product that is already being sold in the market?

Do I need to submit an LKPM (Investment Activity Report) if my company hasn't started commercial operations yet?

What are the specific restrictions for foreign ownership (The Positive Investment List)?

Can I set up a company in Indonesia as a foreigner?

Is a foreigner able to become a director or commissioner?

How long does PMA / PMDN incorporation process take?

How long does KPPA incorporation process take?

What is a PT PMA?

Can a foreigner form a CV?

Can foreigners invest and own a company without having a local partner?

Can foreigners be shareholders in a PMA?

Can foreigners be shareholders in a PMDN?

Can a foreigner be the Chief Representative Oﬃcer of a KPPA?

How long can a KPPA operate in Indonesia?

What is the difference between PT and CV?

What is the minimum shareholder requirement to incorporate a PT?

What is the minimum authorised capital requirement to form a PMA?

What is the minimum paid-up capital requirement to form a PMA?

What is the minimum investment requirement for PMA?

What is the minimum authorised capital requirement to form a PMDN?

What is the minimum paid-up capital requirement to form a PMDN?

What is the minimum capital requirement for KPPA?

What is the role of Director?

What is the role of Commissioner?

Can the same person be Director and Commissioner?

Can the same person be Shareholder and Director?

Can the same person be Shareholder and Commissioner?

How many Directors can be in a PMA / PMDN?

What happens if a PT wants to add a director, a commissioner or other business activities in the future?

Do I need to apply for the work permit if I’m both a shareholder and Director / Commissioner?

Are there options to expand my business without incorporating a company in Indonesia?

What are the common company types in Indonesia?

What is a PT?

What is a PT PMDN?

What is a CV?

What kind of company is the best for me: a foreign-owned company, local company, or representative office?

When do I have to deposit money in the bank?

Can you provide pricing details for company registration services?

Can I set up a PMA / PMDN company in any location in Indonesia?

Will the government check if I have fulfilled the investment plan of IDR 10,000,000,000?

Can I use a virtual oﬃce for PMA / PMDN?

What is a virtual oﬃce?

What is a serviced oﬃce?

What is a KPPA?

Can I set up a KPPA (Representative Oﬃce) in any location in Indonesia?

Can a KPPA conduct business and generate proﬁt?

Can the CEO of the parent company be CRO?

What is the OSS?

What is IU?

What is SIUP?

What is TDUP?

What is IUI?

What is NIB?

Can I set-up a PT while I am abroad?

What is KBLI?

Do I have to decide the KBLI for my business in Indonesia on my own?

How many business activities can I have?

What is LKPM?

Do we need to submit it regularly?

What is NPWP?

What is BPJS?

Who are considered ‘dependents’?