What is the difference between a PT PMA and a local PT?
A PT PMA is the vehicle used whenever there is any foreign shareholding, even a minority share, and it carries its own paid-up capital requirement. A local PT (PT PMDN) is for a company with no foreign shareholders at all, and it is not subject to the PT PMA capital rules.
Can I use a nominee arrangement to hold shares if my sector has foreign ownership limits?
No. Indonesian law treats nominee shareholder arrangements, where a local party holds shares on behalf of a foreign investor, as prohibited or legally ineffective. Disputes are generally resolved in favor of the registered shareholder, not the side agreement, and both parties can face administrative or criminal exposure. The lawful route is a correctly structured PT PMA, a joint venture that meets the sector's actual partnership requirement, or a conversation with us about the options for your specific activity.
How much capital does a PT PMA need?
As of BKPM Regulation No. 5 of 2025, the minimum paid-up capital is IDR 2.5 billion per business activity (KBLI), inside an overall investment plan of at least IDR 10 billion excluding land and buildings. Some sectors carry higher minimums. Confirm the current figure for your specific activity before filing.
Can a representative office invoice customers or sign sales contracts?
No. A representative office (KPPA) cannot earn Indonesian-sourced income, invoice customers, or sign sales or purchase contracts in its own name. It is meant for liaison, supervision, or market research ahead of a future investment, not for trading.
How accurate is this tool, and when should I talk to Koral Advisory directly?
This tool reflects publicly available regulatory sources, each with a link and the date we last checked it, shown at the end of your result. It is general guidance, not legal advice, and it cannot check your exact business classification (KBLI) against current sector-specific foreign ownership limits. Where a rule could not be verified with confidence, the tool says so directly rather than guessing, and points you to a conversation instead.
