If you are a foreign company or individual looking to start a business in Indonesia, a PMA (Penanaman Model Asing) is the safest way to start a business in Indonesia. PMA suitable for projects of any size, and investors do not face any restrictions in their ventures. It will ensure the investor has full control over the direction of the company. There are no restrictions where the company can operate and it reduces the risk in finding a suitable local partner.
Being a foreign owned company the investment value is significantly higher than that of a PT. The investor should invest above USD 1 million / 10 Billion IDR as their investment plan, with a paid-up capital above USD 1 million / 10Billion IDR. The Investment plan can either be cash or fixed assets, such as machinery. The paid-up capital does not need to be paid until after the company is established.
WHAT IS CONSIDERED A FOREIGN COMPANY?
Any organization that is invested by foreign investors (even with 1% of shares owned by foreigners) is considered foreign. Indonesian regulations allow foreign direct investment under the PT PMA license.
However, if you only want to represent a foreign company in Indonesia and will not receive any income from local activities, you can create a representative office instead.