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Start a Business in Indonesia — ASEAN's Largest Economy & IDR 2.5B Minimum Capital

Indonesian company formation involves incorporating a PT PMA (Perseroan Terbatas Penanaman Modal Asing Foreign-Owned Limited Company) through the OSS-RBA (Online Single Submission Risk-Based Approach) system and the Ministry of Investment (BKPM).

By Dr. Anil Kumar Gupta, Chairman, Connect Ventures Group · Updated April 2026 · 15 min read

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Indonesia is ASEAN's largest economy (GDP USD 1.4 trillion, 280 million consumers, G20 member) and offers tax holidays of 5-20 years of 100% CIT exemption for pioneer industries. The minimum paid-up capital for PT PMA was reduced 75% from IDR 10 billion to IDR 2.5 billion (~USD 155K) in October 2025. The standard CIT rate is 22% (listed companies 19%, SME 0.5% final tax). 100% foreign ownership is permitted in most sectors under the Positive Investment List. The India-Indonesia DTAA caps withholding tax at 10% on dividends, interest and royalties ( PwC treaty rate table ). As the world's largest nickel producer and a critical EV battery supply chain hub, Indonesia is increasingly strategic for Indian manufacturers. Comply Globally has helped 1,080+ entrepreneurs across 47+ countries.

22%CIT (Listed 19%)
5-20 YrsTax Holiday
IDR 2.5BCapital (75% Cut!)
280MConsumers (G20)
RCEP+ ASEAN Largest

OUR SERVICES ININDONESIA

What We Help You With in Indonesia

Leverage our expertise for company formation, EXIM, IOR/EOR, visas, banking, and ongoing compliance all from a single point of contact.

Most Popular

Company Formation

Register a PT PMA (Foreign-Owned Company) in Indonesia through the OSS (Online Single Submission) system and Ministry of Law & Human Rights. We handle company name approval, deed drafting, notary coordination, NIB (Business Identification Number), tax registration, and full incorporation remotely from India. Minimum capital requirements apply depending on business activity classification (KBLI). 100% foreign ownership permitted in many sectors. Incorporation usually takes 7–14 business days once your documents are complete. Starting from ₹1,25,000* (government fees extra).

Tax & Compliance Advisory​

We handle Indonesia’s 22% Corporate Income Tax (CIT), VAT (12% headline rate, 11% effective on most goods and services, per PwC), transfer pricing, withholding tax obligations, and annual LKPM investment reporting. We help optimise your structure using the India–Indonesia DTAA to reduce withholding taxes on dividends, royalties, and interest and keep you compliant with Directorate General of Taxes (DGT) rules. We also assist with bookkeeping, NPWP registration, and monthly tax filings.

Most Popular

FEMA & RBI Compliance

We handle BOTH sides simultaneously: Indonesia incorporation AND Indian FEMA compliance. From ODI filings with your AD bank to Annual Performance Reports (APR), FLA returns to RBI, and Foreign Tax Credit (FTC) claims under Section 90 — so Indian promoters investing in Indonesia deal with one team for both countries’ filings.

Visas & Immigration

Business Visa, KITAS (Limited Stay Permit), Investor KITAS, Work Permit (IMTA), and Dependant Visa support for founders, professionals, and expatriates relocating to Indonesia. We handle sponsor documentation, immigration processing, renewals, and ongoing compliance. Investor KITAS is the permit route designed for foreign shareholders of an Indonesian company.

EXIM & Logistics

Import/export licensing, customs registration, bonded warehouse support, freight forwarding, IOR/EOR services, and Indonesia–India trade facilitation. Indonesia is Southeast Asia’s largest economy and a strategic manufacturing and sourcing hub for ASEAN markets.

Cross-Border Banking

Corporate account opening assistance with major Indonesian and international banks including BCA, Mandiri, BNI, CIMB Niaga, HSBC, and Standard Chartered. We prepare business plans, shareholder documentation, and KYC packages to improve approval success rates. Most banks require video verification or a single in-person visit.

  • 1080+ Clients Served
  • 47+ Countries
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Why Partner With Comply Globally?

Our 4 Brand Promises — Backed by Results

These are not marketing claims. They are measurable operational standards tracked and verified across 1,080+ client engagements worldwide.

Speed of Action

We reply within 4 hours. Indonesia PT PMA incorporation usually takes 7–14 business days, depending on sector licensing and approvals.

Fast-track setup available for eligible sectors

Accuracy & Competence

Zero compliance failures across 1,080+ engagements. Every filing is reviewed by a dedicated country specialist before submission.

Filing dates tracked for you · 4.7★ on Trustpilot

Ease of Doing Business

One contact for everything — Indonesia company incorporation AND Indian FEMA compliance handled simultaneously, with no vendor juggling.

Single Point of Management · 47+ countries

Cost Competitiveness

Published pricing: PT PMA setup from ₹1,25,000*. You get a written quote in rupees before you pay, with government fees at cost.

Indonesia PT PMA setup · Competitive fixed-fee pricing

“Initially I thought their brand promises were marketing jargon but after taking their services, I can confidently say they exceeded expectations in Speed of Action, Cost Competitiveness, and Competence.”Deepak Nirwan, Indonesia

TAX FRAME WORk

What Is the Corporate Tax Rate in Indonesia?

Indonesia’s Corporate Income Tax Rate is 22%

According to Indonesia’s Directorate General of Taxes (DGT), resident companies are generally subject to a flat 22% Corporate Income Tax (CIT) on taxable income. Certain publicly listed companies may qualify for reduced rates, while eligible MSMEs can access simplified tax regimes under specific turnover thresholds. Indonesia levies 11% VAT on most goods and services and applies withholding taxes on dividends, royalties, and interest payments to non-residents. The India–Indonesia DTAA helps reduce cross-border tax rates and prevents double taxation for Indian investors operating in Indonesia. Indonesia also offers tax holidays, tax allowances, and investment incentives for priority sectors including manufacturing, renewable energy, infrastructure, and downstream processing industries.

Sources: Directorate General of Taxes (DGT) Indonesia · Indonesia Investment Coordinating Board (BKPM) · India–Indonesia DTAA · Updated May 2026

Indonesia vs Thiland vs Philippines vs Malaysia— Tax Comparison

Indonesia Tax Comparison Table
Factor🇮🇩Indonesia🇹🇭Thailand🇵🇭Philippines🇲🇾Malaysia
CIT Rate
22%20%25%24%
Capital Gains Tax
0.1% final tax (listed shares)0% (listed shares)15% (listed); 5–15% (unlisted)0%
Dividend WHT
10% (non-resident)10%15%0%
VAT / GST
11%7%12%8%
DTAA Network
~70 treaties~60 treaties~43 treaties~75 treaties
Ease of Doing Business
#73 (World Bank)#21#95#12
Natural Resources / Mining Tax
Coal: 10–13.5% royalty + CITPetroleum: 50% PITMining: 4–5% excisePetroleum: 38% PITA
Investment Incentives
Super deduction: 200–300% R&D; SEZ: 0% CIT 10–25 yrsBOI: 0% CIT up to 13 yrsCREATE: 0% CIT 4–7 yrs (ITH)Pioneer: 70–100% tax exemption

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  2. 2A free 30-minute callWe agree the country, the entity type and the route under FEMA.
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    “Excellent service and professional guidance throughout the Entry UAE process.”

    Udhay Marwah
    UAE entry · August 2026

    “We had an excellent experience with company formation in Singapore. The team guided us in each and every step.”

    Shubham Badheka
    Singapore company formation · November 2025

    “I had a very complex VAT issue in the UK, but one detailed consultation call cleared each of the doubts.”

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    UK VAT · September 2025

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    Frequently Asked Questions

    Expand Your Business in Indonesia

    What is a PT PMA company in Indonesia?

    A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia registered under the OSS-RBA system and regulated by BKPM (Ministry of Investment).

    Can foreigners own 100% of a company in Indonesia?

    Yes, foreigners can own 100% of a PT PMA in many sectors under Indonesia’s Positive Investment List, though some restricted industries may require local partnership.

    What is the minimum capital required to start a PT PMA?

    The standard minimum paid-up capital requirement is IDR 2.5 billion (~USD 155,000), depending on the business classification (KBLI code) and sector regulations.

    How long does it take to register a company in Indonesia?

    Company incorporation typically takes 7–14 business days, depending on approvals from OSS-RBA, notary processing, and sector-specific licensing.

    What is the corporate tax rate in Indonesia?

    The standard corporate income tax rate is 22%, with reduced rates for listed companies (19%) and special regimes for MSMEs and export-oriented businesses.

    Are there tax incentives available in Indonesia?

    Yes. Indonesia offers tax holidays of 5–20 years for pioneer industries, super deduction incentives for R&D, and tax allowances for strategic sectors like manufacturing, EV supply chain, and energy.

    Do I need to be physically present in Indonesia to start a company?

    Not necessarily. Many incorporation steps such as OSS registration, legal documentation, and approvals can be handled remotely, though bank account setup or KITAS visa may require physical verification.

    Why is Indonesia attractive for foreign investors?

    Indonesia is ASEAN’s largest economy with 280M consumers, strong growth in manufacturing and EV supply chains, rich natural resources (especially nickel), and investor-friendly reforms under the Positive Investment List.

    Start Your Business in Indonesia with PT PMA Setup Support from India

    From OSS-RBA registration and BKPM approval to tax licensing, visas, banking, and compliance launch your Indonesia company remotely in just 7–14 business days.