Company Formation in Indonesia
Service Overview
Indonesia, Southeast Asia's Largest Emerging Market
Indonesia is ASEAN's largest economy and one of the world's most compelling emerging markets, with over 270 million consumers and a rapidly growing middle class driving demand across e-commerce, financial services, FMCG, and digital sectors. Foreign companies entering Indonesia must navigate the Investment Coordinating Board (BKPM) framework, sector-specific positive investment lists, and Indonesia's complex OSS licensing environment.
ASC Consulting supports international businesses in establishing PT PMA (foreign-owned limited liability company) entities, securing OSS-RBA business licenses, and maintaining full compliance with Indonesia's corporate income tax (PPh), VAT (PPN), and BPJS social insurance obligations. Our team provides end-to-end guidance from initial feasibility analysis through to full operational setup and ongoing statutory reporting.
IMPLEMENT
- • PT PMA Incorporation
• OSS Business Licensing
• Notarial Deed & MOH Approval
• Bank Account Setup
THINK
DEVELOP
- • Distribution & Trading
• Manufacturing Setup
• E-commerce Compliance
• Supply Chain Advisory
What WE DO
- • Tax consulting (VAT, GST, Profit tax, ...)
• Hide the source of your goods
• Do business in China
• Set up structuring tools (Monday.com, Xero, ...)
RUN
- • Tax Filing (PPh, PPN)
• Monthly Payroll (BPJS)
• Transfer Pricing
• Annual Compliance
Industry Insights
Indonesia Investment Landscape: Insights
Indonesia's FDI realization reached USD 47.3 billion in 2023, with key inflows into digital economy, electric vehicle supply chain, nickel processing, and financial services. The government's positive investment list, introduced in 2021, opened hundreds of previously restricted sectors to foreign capital.
Key compliance challenges for foreign companies include Indonesia's complex tax system (monthly VAT returns, withholding tax obligations, transfer pricing documentation requirements), and BPJS Ketenagakerjaan social security contributions. ASC Consulting provides end-to-end support to ensure your Indonesian operations remain fully compliant while minimizing administrative burden.
Benefits
Largest ASEAN Economy: Indonesia's GDP exceeded USD 1.3 trillion in 2023, driven by domestic consumption, digital economy growth, and natural resources. It is the 7th largest economy in the world by PPP.
Young & Growing Consumer Market: With a median age of 29 and over 120 million internet users, Indonesia offers exceptional opportunities in e-commerce, fintech, FMCG, and digital services.
Strategic ASEAN Hub: Indonesia's central location within ASEAN provides access to a 680-million-person regional market and benefits from ASEAN free trade agreements with China, Japan, South Korea, Australia, and India.
Investment Incentives: The government offers tax holidays (up to 20 years for pioneer industries), super deductions for R&D and vocational training, and special economic zones (SEZs) with additional fiscal benefits.
Natural Resources & Manufacturing: Indonesia is the world's largest producer of nickel and palm oil, and a growing hub for EV battery supply chains, attracting significant FDI from Chinese, Japanese, and Korean manufacturers.
Process
Step 1, Feasibility & Ownership Structure
We analyse your business activity against the Positive Investment List (DNI) to determine whether your sector is fully open, restricted, or closed to foreign investment. We then recommend the optimal PT PMA share structure and minimum capital requirements for your specific industry.
Step 2, PT PMA Incorporation via OSS
We prepare your Articles of Association (Akta Pendirian), coordinate with a local notary, and submit your PT PMA registration through Indonesia's Online Single Submission Risk-Based Approach (OSS-RBA) system to obtain your NIB (Business Identification Number).
Step 3, BKPM Registration & Sectoral Licenses
Depending on your sector, we obtain required permits from BKPM, the Ministry of Trade, Ministry of Industry, or other relevant authorities. This includes SIUP (trading license), IUI (industrial permit), and any sector-specific regulatory approvals.
Step 4, Tax & Employment Registration
We register your PT PMA with the Directorate General of Taxes (DJP) for corporate income tax (PPh Badan), VAT (PPN), and withholding obligations. We also handle BPJS Ketenagakerjaan (employment insurance) and BPJS Kesehatan (health insurance) registration for your workforce.
Step 5, Bank Account & Ongoing Compliance
We assist with Indonesian corporate bank account opening, implement Indonesian accounting standards (PSAK), manage monthly payroll and statutory deductions, and handle periodic tax reporting and annual corporate filing obligations.
Getting Started
Setting up a company in Indonesia requires clear planning from the beginning, including the right company structure, foreign ownership rules, tax registration, sector requirements and ongoing compliance.
ASC Consulting can help you review your project, understand the key steps and coordinate the right local support before you move forward.
Book a free consultation to discuss your Indonesia company formation project and identify the next steps.
Our Main Places of Activity
Indonesia is Southeast Asia’s largest economy and one of the world’s most compelling emerging markets, with over 270 million consumers and a rapidly expanding middle class. Foreign companies entering Indonesia must navigate a detailed regulatory framework governed by the Investment Coordinating Board (BKPM), the Companies Act (UU PT), and sector-specific licensing regimes that vary by industry and region.
ASC Consulting supports international businesses in establishing PT PMA (foreign-owned limited liability company) entities, securing OSS-RBA licenses, obtaining relevant sectoral permits, and maintaining ongoing compliance with Indonesia’s corporate tax, VAT, and payroll obligations. Our team provides end-to-end guidance, from initial feasibility analysis and ownership structure planning to registration, operational setup, and long-term statutory compliance.
Explore our company formation services in other key markets: Singapore · Hong Kong · China · Japan
Our Group
We are a privately owned Group that prioritizes service to our clients with a personal approach. Founded by qualified professionals from legal and fiscal sectors with 25+ years of cross-border experience in Europe and Asia.
FAQ
How long does it take to incorporate a company in Indonesia ?
Timelines depend on structure, activity scope and documentation readiness. We confirm a realistic timeline after reviewing your setup and coordinate the steps end-to-end.
Which structure should I choose in Indonesia ?
It depends on your activity, ownership needs and how you plan to operate locally. We help you choose a structure that fits your business model and expansion plan.
Do I need to be in Indonesia to incorporate ?
Not necessarily. Some steps can be coordinated remotely depending on verification requirements. We clarify what can be done remotely and what may require presence.
What documents are typically required ?
Commonly: shareholder/director identification, proof of address, company details and a clear activity description. Exact requirements vary by structure and shareholders.
Can you help with banking preparation in Indonesia ?
Yes. We support banking readiness by helping you prepare documentation and coordinate the process with the right partners. Approval depends on bank requirements and your profile.
What compliance is required after incorporation ?
Ongoing obligations typically include accounting, periodic filings and operational compliance. We can coordinate the right setup and partners depending on your footprint.
Can you coordinate Indonesia with Hong Kong/Singapore structures ?
Yes. We often coordinate multi-country setups across Asia and Europe, aligning incorporation, banking preparation and compliance planning.
How do we start ?
Book a free consultation. We’ll map your countries, activity and timeline, then propose a clear incorporation and compliance plan.
