FANISA WILSON LAWFIRM & PARTNER

(Lawyer & Legal Assistant)

Register Number | NIA : 22.1667.2022
Address : Jl Tambak Sari No 1 (ByosistemGroup) Denpasar Selatan
Sanur (Denpasar Bali) 80228
Email : Info@fanisawilsonlawfirm,.com Phone : +628155700570

PT PMA (Perseroan Terbatas Penanaman Modal Asing)

Foreign Investment Limited Liability Company
Guidance And Regulation
I. Definition:
PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign investment
limited liability company in Indonesia. It is a legal entity established under Indonesian
law with foreign capital ownership, and it requires a minimum paid-up capital of IDR
10 billion (approximately USD 700,000) to operate.
II. Conditions:
To establish a PT PMA in Indonesia, foreign investors must comply with the
Indonesian Investment Coordinating Board (BKPM) regulations and obtain necessary
licenses and permits. The company must have a minimum of one director and one
commissioner, with the director being a resident of Indonesia. PT PMA is allowed to
engage in various business sectors, subject to the Negative Investment List, which
outlines sectors that are either fully or partially closed to foreign investment.
III. Company Structure:
As a foreign investment company registered in Indonesia, PT PMA (Penanaman
Modal Asing) is subject to specific regulations outlined by the Indonesian
government. The company structure of PT PMA is based on the following guidelines
as per the Indonesian Company Law (Law No. 40 of 2007) and the Regulation of the
Indonesian Investment Coordinating Board (BKPM) (Peraturan BKPM No. 6 of
2018).
1. Shareholders: PT PMA must have at least two shareholders, with at least one
being a foreign entity or individual, holding a minimum of 5% of the total
shares. Shareholders are responsible for providing the capital required for
company operations.
2. Board of Directors (BOD): PT PMA must have a Board of Directors consisting
of at least one director. The directors are responsible for managing the day-to-
day operations of the company, making decisions on behalf of the company,
and ensuring compliance with local laws and regulations.
3. Board of Commissioners (BOC): PT PMA must also have a Board of
Commissioners consisting of at least one commissioner. The commissioners
oversee the performance of the directors and provide guidance and supervision
to ensure that the company operates in accordance with the law and best
practices.
4. General Meeting of Shareholders (GMS): PT PMA is required to hold an
annual General Meeting of Shareholders to discuss and make decisions on
important matters such as the appointment and removal of directors and
commissioners, approval of financial statements, and dividend distribution.
5. Company Secretary: PT PMA must appoint a company secretary who is
responsible for ensuring that the company complies with statutory
requirements, maintains proper corporate records, and assists in facilitating
communication between the company and its shareholders.
 FANISA WILSON LAWFIRM & PARTNER
(Lawyer & Legal Assistant)
Register Number | NIA : 22.1667.2022
Address : Jl Tambak Sari No 1 (ByosistemGroup) Denpasar Selatan
Sanur (Denpasar Bali) 80228
Email : Info@fanisawilsonlawfirm,.com Phone : +628155700570

IV. Benefits for Foreign Investors:

1. Longer Stay: Foreign investors who establish a PT PMA are eligible for a
Business Visa (Index 313) that allows them to stay in Indonesia for up to 5
years, which can be extended.
2. Ownership Control: Foreign investors can have up to 100% ownership of the
PT PMA, depending on the business sector and investment value, giving them
control over the business operations.
3. Local Market Access: PT PMA allows foreign investors to tap into the growing
Indonesian market and benefit from its large consumer base and favorable
economic conditions.
4. Incentives: Foreign investors may be eligible for various incentives, such as
tax holidays, tax allowances, and import duty exemptions, depending on the
business sector, investment location, and value.
V. Updated Regulation:
As of 2023, the Indonesian government has implemented various regulatory changes
to improve the ease of doing business for foreign investors, including simplifying the
investment licensing process, reducing the negative investment list, and providing
more incentives to attract foreign investment.
VI. Tax System:
PT PMA is subject to the Indonesian tax system, which includes corporate income tax,
value-added tax, and withholding tax, among others. The corporate income tax rate
for PT PMA is currently 22%, but it may vary depending on the business sector and
location. Foreign investors may also be eligible for tax incentives, such as tax
holidays or reduced tax rates, depending on the investment value, location, and
business sector, as regulated by the Indonesian tax laws.

company tax calculation :

for income IDR 0 - 4,8 Billion have to pay tax 0,5%
for income up to IDR 4,8 Bill have to pay tax 22%

Personal tax if you received salary from indonesia:

income salary IDR 0-60 million / year have to pay 5%
IDR 60 mill – IDR 250 mill have to pay 15%
IDR 250 mill – IDR 500 mill have to pay 30%
up to IDR 500 mill have to pay 35%
 FANISA WILSON LAWFIRM & PARTNER
(Lawyer & Legal Assistant)
Register Number | NIA : 22.1667.2022
Address : Jl Tambak Sari No 1 (ByosistemGroup) Denpasar Selatan
Sanur (Denpasar Bali) 80228
Email : Info@fanisawilsonlawfirm,.com Phone : +628155700570

In conclusion, establishing a PT PMA in Indonesia offers foreign investors an opportunity to

invest in a dynamic market, enjoy longer stay options, have ownership control, and
potentially benefit from various incentives. However, it is important to comply with the
Indonesian regulatory framework and tax regulations, which are subject to updates and
changes over time.