Converting a local PT to a PT PMA
A foreign investor wants to buy shares in our local PT. What changes?
The situation
Once a company has one foreign shareholder it becomes a PT PMA, and PMA rules apply, including capital and investment tests.
The law
- Art 5 and 33, Law 25/2007 on Investment, as amended by Law 6/2023: Foreign investment must be made through a PT under Indonesian law; nominee share arrangements are void
- Ministry of Investment and Downstreaming/BKPM Regulation 5/2025: PT PMA: investment above IDR 10 billion per 5 digit KBLI per location excluding land and buildings; issued and paid up capital of at least IDR 2.5 billion
- Perpres 10/2021 on investment business fields, as amended by Perpres 49/2021: The positive investment list: which fields are open, reserved or limited for foreign investors
What it means for you
Check the investment list for your KBLI, then sign the share transfer deed and update OSS to PMA status. Subsidiaries may also need PMA status. Tax, LKPM and KITAS duties change, and Tier C tax consultants are needed under PMK 55/2026.
What to do
- Check KBLI openness to foreign capital.
- Plan capital to meet IDR 2.5 billion.
- Sign the deed and update OSS.
- Update LKPM and tax set up.
Ignoring the change of status can cause OSS sanctions.
We can do this for youSetting up a foreign owned company (PT PMA): investment list, capital, deed, NIB and post set up: IDR 22.000.000