Your Definitive Guide to Indonesia Trading Company Setup (PT PMA)
- Roger Pay
- Sep 26
- 10 min read
Indonesia Trading Company Setup Guide
Indonesia, with its massive consumer base and strategic location, is a powerhouse for trading and distribution. Establishing a trading company here—especially a Foreign-Owned Limited Liability Company (known as a PT PMA or Perseroan Terbatas Penanaman Modal Asing)—is a direct route to capitalizing on the archipelago’s dynamic market.
However, navigating the legal requirements can be complex. This comprehensive, SEO-optimized guide breaks down the essential steps, capital requirements, and licenses needed for a successful Indonesia trading company setup.
1. Choosing Your Legal Entity: The PT PMA for Foreign Trading
For most foreign investors looking to conduct trading and distribution activities in Indonesia, the PT PMA is the mandatory and most suitable legal structure.
Feature | Details for PT PMA (Trading) |
Legal Status | Limited Liability Company |
Foreign Ownership | Up to 100% in many trading sectors (since the Positive Investment List reform) |
Minimum Shareholders | 2 (individuals or legal entities, local or foreign) |
Management | Minimum 1 Director and 1 Commissioner (at least one must be an Indonesian Resident for local compliance) |
Minimum Investment Plan | IDR 10 Billion (approx. USD 605,000 to USD 650,000, excluding land and buildings) |
Minimum Paid-up Capital | IDR 2.5 Billion (part of the IDR 10 Billion investment plan) |
Governing Authority | Indonesia Investment Coordinating Board (BKPM) |
Key Takeaway: The minimum IDR 10 Billion Investment Plan is the most critical financial barrier for foreign-owned trading companies.
2. Step-by-Step Registration Process
The company setup process is largely centralized through the government’s Online Single Submission (OSS) system, which simplifies licensing by connecting various governmental bodies.
Step 1: Name Reservation & Notarization
Company Name Reservation: Reserve a unique name for your PT PMA through the Ministry of Law and Human Rights (AHU). It must consist of at least three words.
Drafting the Deed of Establishment: Engage a licensed Indonesian Notary to draft the Articles of Association. This legal document outlines the company’s structure, capital, and most importantly, its business activities using the Indonesian Standard Business Classification (KBLI) codes.
Step 2: Legal Entity Approval & Tax Registration
AHU Approval: The Notary submits the Deed to the Ministry of Law and Human Rights to obtain the Decree of Approval (Surat Keputusan Pengesahan), which formally grants your company legal entity status.
Tax Identification Number (NPWP): Apply for the company's NPWP (Nomor Pokok Wajib Pajak) from the local Tax Office. This is mandatory for all transactions, banking, and tax filings.
Domicile/Address: Secure a valid registered office address in a commercial zone (especially in Jakarta) and obtain a Domicile Letter, if required by local authorities.
Step 3: Obtaining the Business Identification Number (NIB)
OSS System Application: Apply for the NIB (Nomor Induk Berusaha) via the OSS system. The NIB serves as your single business registration ID and automatically registers your company for BPJS (social security) and customs.
Risk-Based Licensing: The NIB assigns your business a risk level based on your KBLI code. For general trading, the NIB often acts as your primary license, but further permits are often needed.
3. Essential Licenses for Trading Activities
To legally begin commercial trading, your PT PMA will likely require specific operational and product-related licenses.
A. Trading License (SIUP/NIB)
Historically, the Trading Business License (SIUP) was mandatory. Today, for most low- to medium-risk trading activities, the NIB obtained through the OSS system functions as the de facto SIUP, granting immediate operational permission.
B. Import/Export Licenses (If Applicable)
If your trading company plans to import goods, you must secure an Importer Identification Number (API).
API-U (General Importer): For companies importing finished products for distribution and trading.
API-P (Producer Importer): For manufacturing companies importing raw materials or supporting goods for their own production.
C. Product-Specific Certifications
Depending on the goods you trade, additional government approvals are mandatory:
Product Category | Mandatory Certification | Authority |
Food, Beverages, Cosmetics, Pharmaceuticals | BPOM Certification (Distribution Permit) | National Agency of Drug and Food Control |
Certain Textiles, Electronics, Footwear | SNI Certification (Indonesian National Standard) | National Standardization Agency |
Halal-Eligible Products | Halal Certification | Halal Product Assurance Organizing Body (BPJPH) |
4. Post-Establishment Compliance
Once your Indonesia trading company setup is complete, compliance shifts to operational and reporting requirements:
Corporate Bank Account: Open a corporate bank account and inject the necessary paid-up capital (IDR 2.5 Billion minimum for PT PMA).
Tax Compliance: Register for Value Added Tax (VAT) if your annual turnover exceeds IDR 4.8 billion. File monthly corporate and withholding taxes.
LKPM Reporting: Submit mandatory Investment Activity Reports (Laporan Kegiatan Penanaman Modal) to BKPM, detailing the realization of your IDR 10 Billion investment plan.
Manpower: If you plan to hire foreign workers, you must obtain a Foreign Worker Utilization Plan (RPTKA) from the Ministry of Manpower.
Ready to Launch Your Indonesian Trading Business?
The Indonesian government has actively streamlined the process for foreign investment, but adherence to KBLI codes, minimum capital, and specific licensing remains non-negotiable.
To ensure full compliance and a swift setup, partnering with a local firm specializing in Indonesia company registration is highly recommended. Get expert help to navigate the OSS system, secure your NIB, and obtain all necessary import and product certifications to begin trading legally and profitably.
💰 Indonesia Trading Company Setup Costs: A Foreign Investor's Financial Guide (PT PMA)
Setting up a foreign-owned trading company in Indonesia, known as a PT PMA (Perseroan Terbatas Penanaman Modal Asing), involves two main financial components: the legally mandated Minimum Capital/Investment and the necessary Incorporation Fees.
For foreign investors in the trading sector, the minimum capital requirement is the most significant financial consideration, placing Indonesia's market entry cost higher than many other Southeast Asian countries.
1. The Mandatory Minimum Investment & Capital
The capital requirements for a PT PMA are set by the Indonesian Investment Coordinating Board (BKPM). These requirements are not fees paid to the government, but rather funds committed to be invested in the Indonesian entity for its operations.
A. Minimum Total Investment Plan
Requirement | Amount (IDR) | Approximate USD Equivalent* | Purpose |
Minimum Investment Plan | IDR 10 Billion | ~ USD 605,000 | The total committed investment over the lifetime of the company, excluding land and buildings. |
This IDR 10 Billion figure is the minimum threshold for your company to be classified as a Large Enterprise, which is the required classification for foreign ownership.
B. Minimum Paid-Up Capital
Requirement | Amount (IDR) | Approximate USD Equivalent* | Purpose |
Minimum Issued & Paid-Up Capital | IDR 2.5 Billion | ~ USD 151,000 | The legally required minimum portion of the capital that must be contributed by the shareholders and deposited into the corporate bank account. |
Important Note: While the minimum paid-up capital is IDR 2.5 Billion (25% of the total investment), the total IDR 10 Billion must be recorded as the company's authorized capital. The entire paid-up capital funds can be used for operational expenses, such as renting an office, buying inventory, paying salaries, and general trading activities.
2. Fixed & Variable Incorporation Fees
These fees cover the actual cost of administrative processes, government stamp duties, and professional services required to establish the legal entity.
A. Core Company Registration Fees
These are one-time costs primarily covering the legal documentation and registration process:
Cost Item | Estimated Cost (IDR) | Approximate USD Equivalent* | Notes |
Notary & Deed of Establishment | IDR 10 Million – IDR 25 Million | $600 – $1,500 | Fee for drafting the Articles of Association and obtaining the AHU approval. |
Professional Service/Consultant Fee | IDR 25 Million – IDR 60 Million | $1,600 – $4,000 | Comprehensive service fee (highly variable) for guiding the entire setup, including name reservation, OSS application, and compliance checks. |
Domicile Letter & Tax Registration (NPWP) | Minimal/Included | Minimal | Often covered in the professional service fee. |
B. Post-Establishment & Licensing Fees
For a trading company, additional permits are almost always required to begin operations legally, especially if you plan to import goods.
Cost Item | Estimated Cost (IDR) | Approximate USD Equivalent* | Notes |
Registered Address/Virtual Office | IDR 8 Million – IDR 20 Million/year | $500 – $1,200/year | Mandatory for company registration, especially in commercial areas of major cities. |
Importer Identification Number (API-U/API-P) | IDR 5 Million – IDR 15 Million | $300 – $900 | Mandatory for importing goods. Variable based on complexity and service provider. |
BPOM or SNI Certification | Highly Variable | $1,000 – $5,000+ | Product-specific cost. Mandatory for regulated goods like food, cosmetics, or electronics. Can be a significant variable cost. |
Corporate Bank Account Opening | Minimal/Deposit Required | Minimal | Banks may require a minimum initial deposit, which will form part of your working capital. |
3. Personnel and Immigration Costs (Variable)
If your foreign shareholders or directors plan to reside and work in Indonesia, you must factor in immigration costs:
Cost Item | Estimated Cost (IDR) | Approximate USD Equivalent* | Notes |
Investor KITAS/ITAS | IDR 10 Million – IDR 18 Million | $600 – $1,100 | The most common visa for foreign shareholders/directors (valid for up to two years). |
Foreign Worker Utilization Plan (RPTKA) | IDR 1 Million – IDR 5 Million | $60 – $300 | Mandatory initial registration for hiring foreign employees. |
DKP-TKA Fee | USD 1,200/year/employee | Fixed USD Cost | Compensation fund paid to the government for each foreign employee hired, used for local labor training. |
Summary of Initial Setup Costs (Excluding Capital)
The total out-of-pocket, non-capital initial setup fees for a PT PMA trading company typically range from USD 2,500 to USD 6,500, depending on your choice of service provider, city of registration, and required licensing (like API).
*Disclaimer: Currency conversion rates are approximate and based on the prevailing exchange rate (e.g., USD 1 = IDR 16,500) at the time of publication and are subject to fluctuation.
🔑 Key Financial Takeaways for Investors
High Barrier to Entry: The IDR 10 Billion minimum investment is the primary cost factor. This requirement exists to reserve the Small and Medium Enterprise (SME) sector for local Indonesian companies.
Working Capital: The IDR 10 Billion is not a sunk cost; it is your company's working capital. You are expected to use these funds to run and grow the business in Indonesia.
LKPM Reporting: You are legally required to report the realization of this investment plan periodically via the LKPM (Laporan Kegiatan Penanaman Modal) to the BKPM.
Local Expertise is Critical: Due to the complexity of KBLI codes and product licensing (BPOM/SNI), engaging an experienced local consultant is an essential investment to avoid costly delays and rejections.
The Definitive Guide: How Bestar Global Can Help Your Indonesia Trading Company Setup (PT PMA)
Your Definitive Guide to Indonesia Trading Company Setup (PT PMA)
Navigating the Indonesian regulatory landscape is complex, especially for foreign investors establishing a trading company (PT PMA). The process goes far beyond simple incorporation—it requires compliance with high capital requirements and securing critical import and product licenses.
Bestar Global simplifies this journey, acting as your local expert partner to ensure full legal compliance, accelerate market entry, and protect your significant investment.
1. Navigating the Complex PT PMA Establishment
Establishing a PT PMA (Foreign-Owned Limited Liability Company) is the only legal way for foreign entities to conduct active trading business in Indonesia. Bestar Global’s expertise ensures you meet all foundational requirements efficiently.
Our Key PT PMA Establishment Services:
Area of Assistance | Bestar Global Solution | Investor Benefit |
Business Activity Classification (KBLI) | Expert Consultation: Accurately determines the specific Indonesian Standard Business Classification (KBLI) codes for your trading activities, ensuring they are open to 100% foreign ownership under the Positive Investment List. | Prevents Regulatory Rejection: Avoids costly errors by ensuring your activities (e.g., General Trading, Distributor) are legally permitted from the start. |
Deed & Legal Entity Status | Notary & Ministry of Law Management: Handles the drafting and notarization of the Deed of Establishment, followed by securing the Decree of Approval from the Ministry of Law and Human Rights (MoLHR). | Accelerated Timeline: Streamlines the core legal process, transforming your proposal into a fully ratified Indonesian legal entity swiftly. |
Online Single Submission (OSS) System | NIB & Business License Acquisition: Manages the entire registration process on the OSS system to obtain your crucial Business Identification Number (NIB) and initial Business License (Izin Usaha). | Operational Readiness: The NIB automatically registers your company with key government bodies, fast-tracking your ability to begin setting up operations. |
Capital Compliance | Paid-Up Capital Documentation: Provides guidance on correctly documenting and reporting the required IDR 2.5 Billion paid-up capital and the total IDR 10 Billion investment plan to the BKPM (Investment Coordinating Board). | Secures Investor Visa Eligibility: Ensures all financial disclosures are compliant, which is critical for the Investor KITAS (stay permit) application for shareholders and directors. |
2. The Crucial Trading & Product Licensing
For any trading company, the company setup is merely the first step. You must secure specific licenses to legally import, distribute, and sell goods in Indonesia. This is where Bestar Global’s deep local knowledge is invaluable.
A. Securing the Import License (API)
A trading PT PMA must possess an Importer Identification Number (API) to clear goods through Indonesian customs.
Import Licensing Type | Bestar Global Service | Impact on Your Business |
General Importer License (API-U) | Direct Application Management: We manage the entire application process via the OSS system to secure your API-U, allowing you to import and trade a wide range of finished products. | Legal Importing Rights: Confers the legal right to act as an importer, a non-negotiable step for any international trading business. |
Customs Registration (NIK) | End-to-End Customs Compliance: Ensures your company is correctly registered with the Directorate General of Customs and Excise to obtain the Customs Registration Number (NIK). | Smooth Customs Clearance: Prevents costly delays, penalties, or seizure of your shipment at the border due to incomplete or incorrect documentation. |
B. BPOM Certification for Regulated Products
If your trading company deals with specific goods—such as food and beverages, cosmetics, supplements, or medical devices—you must obtain certification from the BPOM (National Agency of Drug and Food Control).
BPOM Certification Phase | How Bestar Global Assists | Why It Matters |
Pre-Certification Audit | Facility & Document Review: We audit your distribution facilities and pre-check all necessary foreign-issued documents (e.g., GMP certificates, Free Sale Certificates) for compliance. | Reduces Rejection Risk: Ensures your application is flawless, saving you months of processing time associated with rejection and resubmission. |
Product Registration (Izin Edar) | Online Submission Management: Manages the entire online product registration process with BPOM, which includes ingredient review, labeling compliance, and product category submission. | Legal Market Access: Without BPOM registration, your products cannot be legally sold or distributed in Indonesia, effectively shutting down your business. |
Labeling Compliance | Bahasa Indonesia Labeling Check: We verify that your product labels meet all Indonesian requirements, including language, nutritional information, and health claims. | Avoids Penalties: Ensures compliance with local consumer protection laws, protecting your brand from fines and product recall. |
3. Post-Establishment & Ongoing Compliance
The journey doesn't end with a trading license. Bestar Global offers continuity services to ensure your business remains legally sound.
Investment Activity Reporting (LKPM): We help you prepare and submit the mandatory quarterly/semi-annual LKPM reports to BKPM, detailing the realization of your investment plan. (Crucial for maintaining your PT PMA license).
Investor KITAS (Stay Permit): We facilitate the application for the Investor KITAS for your foreign directors and commissioners, allowing them to legally live and manage the company in Indonesia without a separate work permit.
Tax Registration & Compliance: We handle the full company Tax ID (NPWP) registration and provide support for ongoing corporate and VAT registration and reporting.
Don't let regulatory hurdles delay your Indonesian market entry. Partner with Bestar Global to transform your investment commitment into a thriving, legally compliant Indonesian trading operation.
Keywords: Indonesia trading company setup, PT PMA, business registration Indonesia, NIB, minimum capital Indonesia, API-U, BPOM certification, OSS system, foreign-owned company Indonesia, start a business in Indonesia.
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