Foreign Owned Company or PMA (Penanaman Modal Asing)

A Foreign Owned Company or PMA (Penanaman Modal Asing) is a type of business entity in Indonesia that is fully or partially owned by foreign investors. The PMA is regulated under the Indonesian Law no 25 of 2007 concerning Investment.

In Indonesia a PMA must be registered with the Indonesian Investment Coordinating Board (BPKM). The process of registering a Pma involves obtaining a business license, a tax identification number, and various other permits and approvals from relevant government agencies.

The level of foreign ownership allowed in a PMA depends on type of business activity being conduct. For some industries, such as banking, telecommunications and energy the maximum foreign ownership allowed is 100%, while for others, the maximum foreign ownership may be limited 49 up to 60%.

PMA are required to submit annual financial statements to Indonesian government, and are subject to audit by Indonesian Audit Board (BPK).

In recent years, the Indonesian government has taken steps to encourage foreign investment in the country by improving the investment climate and reduce bureaucratic barriers.

Overall, a PMA is popular choice for foreign investor looking to enter Indonesian market, as it allows them to establish a legal presence in the country and engage in business activities in a relatively straightforward manner.

How To Set Up a PT PMA In Indonesia

The following documents are required to open a company:

1. Company name (3 words)
2. Areas of activity to be carried out (up to 10 activities)
3. Business address, phone number, email
4. Scanned version of the first page of the passport of all founders and a 3×4 photo
5. Directors and shareholders structure
6. Lease Agreement/Land Certificate (if available)*

*it’s not required for registering a Virtual Office