Frequently Asked Questions

A PT PMA establishment typically takes 4–8 weeks from initial consultation to final license issuance, provided all required documents are complete and accurate. The timeline includes company name reservation, notarial deed execution, Ministry of Law approval, OSS licensing, and tax registration.

The minimum total investment capital for a PT PMA is IDR 10 billion (approximately USD 650,000). The minimum paid-up capital is IDR 2.5 billion. Capital requirements may vary depending on your business sector. We strongly recommend a consultation to determine the precise requirements for your intended business activity.

Foreign ownership up to 100% is permitted in many business sectors in Indonesia. However, some sectors have foreign ownership caps or require local partnership under the Positive Investment List (DNI). Certain sectors are entirely closed to foreign investment. Our team will assess your specific business activity and advise on the ownership structure available to you.

A tourist visa (B211A or visa on arrival) is for short-term visits and does not permit you to work or earn income in Indonesia. KITAS (Kartu Izin Tinggal Terbatas) is a Temporary Stay Permit that allows legal long-term residence and, depending on the KITAS type, the right to work or operate a business. Working on a tourist visa is illegal in Indonesia and carries serious penalties.

KITAS is typically issued with a validity of 6 months or 12 months depending on the type and sponsor. It can be renewed annually and most types can be extended up to a cumulative maximum of 5 years, after which the holder may be eligible to apply for KITAP (Permanent Residence Permit).

For foreign investors and business persons, the most relevant visa categories include the B211A Business Visa (short-term), KITAS Investor (for PT PMA shareholders), E33A Social/Cultural Visa, and the Indonesian Second Home Visa for longer stays. The appropriate visa depends on your specific activities, duration of stay, and investment structure. Our immigration team will recommend the optimal pathway for your situation.

While you are not legally required to have legal representation in civil matters, having an experienced advocate significantly improves your outcome. Indonesian civil procedure can be complex and differs substantially from Western legal systems. Our litigation team handles all procedural filings, court appearances, and negotiation on your behalf.

Indonesian contract law contains specific requirements and enforceability standards that differ from other jurisdictions. A professionally reviewed contract ensures that your rights are protected, unfair clauses are identified, governing law and jurisdiction are properly specified, and the agreement is enforceable under Indonesian law. Many disputes we handle could have been prevented with a proper contract review at the outset.

If your company's annual taxable turnover reaches or exceeds IDR 4.8 billion, registration as a Taxable Entrepreneur (PKP) and collection of PPN at the current rate of 11% is mandatory. Even below this threshold, voluntary PKP registration may be beneficial in certain circumstances. Our tax team will advise on the optimal approach for your business.

While our primary office is in Denpasar, Bali, we handle legal and business matters across Indonesia, including Jakarta, Surabaya, Lombok, and other regions. For national-level regulatory matters, company registrations, and litigation in other jurisdictions, we coordinate with our network of trusted partner attorneys and specialists across the country.

Absolute confidentiality is a cornerstone of our professional practice. All client information, case details, and business matters shared with AKSARA LEGAL are treated with the strictest confidentiality in accordance with our professional obligations and applicable privacy laws. We never share client information with third parties without explicit client consent.