What Is a Local PT?

A Local PT (Perseroan Terbatas) is a company owned entirely by Indonesian citizens or local entities.

Foreigners cannot legally own shares in a Local PT. These structures are great for local entrepreneurs running small or medium-sized businesses, from cafes and retail shops to service companies.

Pros of a Local PT:

• Easier and faster to register
  
  
• Lower setup and maintenance costs
  
  
• Can operate across many industries
  
  

Cons of a Local PT:

• Not accessible to foreign investors
  
  
• Limited ability to employ foreigners or issue visas
  
  
• Requires a trusted local partner
  
  

What Is a PT PMA?

A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company.

It allows foreign investors to legally own and operate a business in Indonesia under their own name or company, without needing a nominee arrangement.

Pros of a PT PMA:

• Legal foreign ownership (often up to 100%)
  
  
• Can hire foreign employees and sponsor KITAS visas
  
  
• Eligible to hold property under Hak Guna Bangunan (HGB) or Hak Pakai titles
  
  
• Recognized nationwide for trade, services, and investment
  
  

Cons of a PT PMA:

• Higher investment and capital requirements
  
  
• More complex reporting and compliance
  
  
• Certain sectors remain restricted for foreign ownership
  
  

Capital Requirements (2025 Update)

Indonesia’s Investment Coordinating Board (BKPM) updated the rules in 2025:

• Minimum total investment plan: IDR 10 billion per business activity and location
  
  
• Minimum paid-up capital: IDR 2.5 billion placed in the company’s account for business use
  
  

Some industries, such as construction or finance, may require a higher amount.
The goal is to ensure that PT PMA companies represent serious long-term investments.

PT PMA vs Local PT: Quick Comparison

Feature

Local PT

PT PMA

Ownership

100% Indonesian

Foreign or mixed ownership allowed

Capital

Flexible / low

IDR 2.5 B paid-up, IDR 10 B investment plan

Foreign Staff & Visas

Limited

Fully permitted

Property Ownership

Not available to foreigners

Allowed under HGB or Hak Pakai

Compliance

Basic reporting

Ongoing BKPM & tax compliance

Best For

Local entrepreneurs

Foreign investors & expats

Setting Up Your Company

The registration process in Indonesia involves several legal and government steps under the OSS RBA system — including company formation, investment approval, and licensing.

Because each business type and industry has its own requirements, it’s best to work with a professional consultant who can guide you through:

‍
✅ the correct documentation,
✅ legal structure setup, and
✅ capital and license compliance.

Our team helps simplify the entire process from selecting your business activities to completing registration and obtaining the right permits so you can focus on launching your business faster and legally.

Which One Is Right for You?

• If you’re Indonesian, a Local PT is the simplest and most affordable way to start.
  
  
• If you’re a foreigner looking to invest or operate your own business in Bali, a PT PMA is the correct and legal path forward.
  
  

The best choice depends on your long-term goals, the type of business you want to run, and whether you plan to live or hire in Indonesia.

‍