PT PMA or Local PT: which to choose
The PT PMA is the foreign-investment company: any overseas shareholding, capital from IDR 10 billion, and the only way a foreigner can lawfully own a business and earn in Indonesia. The Local PT belongs solely to Indonesian citizens, capital from IDR 50 million, and for a foreigner it is a joint-project format with a partner. On nominee arrangements we are blunt: legally it belongs to whoever it is registered to.
Updated: 25 August 2026 · Verified by the Malina Visa team
Two forms, two logics
The PT PMA and the Local PT are not an expensive and a cheap version of the same thing. The difference is who may own the company, and everything else follows from that.
| PT PMA | Local PT | |
|---|---|---|
| Owners | any foreign shareholding — 1% or 100% | Indonesian citizens only, 100% of shares |
| Share capital | from IDR 10 billion | from IDR 50 million |
| Structure | at least 2 shareholders, a director and a commissioner | standard PT structure |
| Foreign share | set by KBLI codes: 100% in many sectors | not available |
| Registration time | 2 weeks to 2 months | 2 weeks to 2 months |
| Residence for the owner | investor KITAS based on the stake | work KITAS issued by the company |
When you need a PT PMA
A company counts as foreign with any overseas shareholding. And a foreigner may carry on income-generating activity in Indonesia only through one.
- ✓You want to own the business lawfully and in your own name
- ✓You need an investor KITAS based on your stake
- ✓You plan to hire staff and operate locally on equal terms with Indonesian companies
- ✓You need a corporate account and contracts in the company's name
The capital threshold is the price of that: from IDR 10 billion against 50 million for a Local PT. How registration runs is in a separate article.
When a Local PT works
The Local PT is the most common business form in Bali: a low capital threshold, a straightforward process and a lighter regulatory load. For a foreigner it is a workable format for a joint project with an Indonesian partner.
- ✓The partner holds ownership; you take part in legal roles
- ✓A foreigner can work in such a company on a work KITAS issued by the company itself
- ✓The standard route: KBLI → founding documents → NPWP → NIB → licences
On nominee arrangements — plainly
The 'register it to a local, but really it is yours' arrangement is widely sold and sounds cheap. The problem is that legally it belongs to whoever it is registered to.
- !You hold no owner's rights — neither to the shares nor to the company's assets
- !Private side agreements do not give the protection a register entry does
- !A dispute with the partner resolves against you by default
- !Claims can also come from the regulator — against both sides
We say this plainly because the cost surfaces years later, at the worst possible moment. If the business is yours, the structure should say so.
Frequently asked questions
How does a PT PMA differ from a Local PT?
By ownership. A PT PMA is a company with any foreign shareholding, capital from IDR 10 billion. A Local PT belongs to Indonesian citizens only, capital from IDR 50 million.
Can a foreigner own a Local PT?
No. A Local PT is 100% owned by Indonesian citizens. Any foreign shareholding automatically makes it a PT PMA.
How much capital is needed?
PT PMA from IDR 10 billion, Local PT from IDR 50 million. How it is evidenced depends on the structure and the line of business.
Can a foreigner work in a Local PT?
Yes, on a work KITAS issued by the company. That does not confer ownership, but it does give a lawful role in the project.
How risky are nominee arrangements?
Substantially. Legally the shares belong to whoever holds them, and side agreements do not replace the register. Disputes resolve against you.
We will match the structure to your plan
We work through your activity, KBLI codes and ownership structure — and tell you what is genuinely needed and what is being sold for nothing.
The PT PMA page