Establishment

1. PT(Perseroan Terbatas)

* Overview The most common form of legal entity in Indonesia, similar to a limited liability company.

2. PT PMA (Perseroan Terbatas Penanaman Modal Asing)

* Overview A legal entity specifically for foreign investment, established based on foreign capital investment.

* Characteristics

Capital Requirements
A PMA company must have a minimum authorized capital of IDR 10 billion as stated in its Articles of Association.
The paid-up capital must be at least 25% of the authorized capital, equivalent to a minimum of IDR 2.5 billion.
Foreign Control and Business Operations
Foreign investors may directly control and manage a PMA company and legally conduct business activities in Indonesia through the PMA entity.
However, foreign employees, including foreign directors, are not permitted to exercise personnel authority, such as hiring or termination decisions.
Shareholder Requirements
A PMA company requires a minimum of two shareholders, which may be individuals or legal entities, regardless of nationality.
Foreign Shareholding
In most business sectors, foreign investors may own up to 100% of the company’s shares.
Certain industries are subject to foreign ownership restrictions in accordance with applicable regulations.
Legal Liability
A PMA is established as a limited liability company (PT), where legal responsibility rests with the company itself, not with individual shareholders.
Shareholders’ liability is limited to the amount of their capital contribution.

1. Branch Office

* Overview A part of a foreign company that supports the operations of the head office.

* Characteristics

1. Does not have independent legal personality and shares the legal liability of the head office.

2. Operates in the same manner as the head office's business activities, and the existence of the parent company is essential.

2. Representative Office

* Overview A temporary office that allows foreign companies to explore and prepare for the Indonesian market.

* Characteristics

1. Cannot generate sales or profits, and is limited to marketing and market research activities.

2. Primarily used to promote the foreign company's presence and for networking.

1. PT(Perseroan Terbatas)

* Overview The most common form of legal entity in Indonesia, similar to a limited liability company.

2. PT PMA(Perseroan Terbatas Penanaman Modal Asing)

* Overview A legal entity specifically for foreign investment, established based on foreign capital investment.

* Characteristics

Capital Requirements
A PMA company must have a minimum authorized capital of IDR 10 billion as stated in its Articles of Association.
The paid-up capital must be at least 25% of the authorized capital, equivalent to a minimum of IDR 2.5 billion.
Foreign Control and Business Operations
Foreign investors may directly control and manage a PMA company and legally conduct business activities in Indonesia through the PMA entity.
However, foreign employees, including foreign directors, are not permitted to exercise personnel authority, such as hiring or termination decisions.
Shareholder Requirements
A PMA company requires a minimum of two shareholders, which may be individuals or legal entities, regardless of nationality.
Foreign Shareholding
In most business sectors, foreign investors may own up to 100% of the company’s shares.
Certain industries are subject to foreign ownership restrictions in accordance with applicable regulations.
Legal Liability
A PMA is established as a limited liability company (PT), where legal responsibility rests with the company itself, not with individual shareholders.
Shareholders’ liability is limited to the amount of their capital contribution.

1. Branch Office

* Overview A part of a foreign company that supports the operations of the head office.

* Characteristics

1. Does not have independent legal personality and shares the legal liability of the head office.

2. Operates in the same manner as the head office's business activities, and the existence of the parent company is essential.

2. Representative Office

* Overview A temporary office that allows foreign companies to explore and prepare for the Indonesian market.

* Characteristics

1. Cannot generate sales or profits, and is limited to marketing and market research activities.

2. Primarily used to promote the foreign company's presence and for networking.