Licensing Process

Notarial deed and incorporation

A PT PMA is established by signing a deed of establishment before an Indonesian public notary. The deed of establishment contains the company’s articles of association and key particulars, including shareholders, directors/commissioners, capital structure, and business activities. As a general requirement, a PT PMA must have at least two shareholders and a minimum issued and paid-up capital of IDR 2.5 billion. Where founders cannot sign in Indonesia, execution may be carried out through a power of attorney, with supporting documents subject to applicable legalization or apostille requirements.

Relevant stakeholder: Public Notary


Ministry of Law approval (AHU Online) and beneficial ownership disclosure

Following execution of the notarial deed, the notary submits the deed of establishment electronically through the Ministry of Law’s corporate administration platform (AHU Online: https://ahu.go.id/). Upon approval, the company obtains legal entity status. In parallel, Minister of Law Regulation No. 2 of 2025 requires companies to disclose beneficial ownership (pemilik manfaat) information and to keep such information accurate and up to date. In practice, consistency between shareholder, control, and beneficial ownership data is important, as discrepancies may result in verification queries or delay in AHU filings. Ministry of Law recently implemented substantive verification in the AHU Online system for changes to company data, specifically changes to directors/ commissioners, share transfers, and updates to shareholder names to improve data accuracy and prevent misuse.

Relevant Stakeholder: Ministry of Law


Capital and Investment Value

A PT PMA must meet a minimum total investment value of more than IDR 10 billion, calculated excluding land and buildings, unless otherwise specified. PMA investments typically consist of:

  • Capital invested in land and buildings,
  • Capital invested outside land and buildings (such as machinery, equipment, and operational assets),
  • Investment allocated per project and per business activity.

Certain business sectors benefit from an investment value exception, whereby the IDR 10 billion minimum (excluding land and buildings) per KBLI may not apply. These exceptions include:

  • Wholesale trade, requiring a minimum of IDR 10 billion, calculated per four-digit KBLI classification. Where multiple business activities share the same first four digits of the KBLI code, they are treated as a single KBLI for investment calculation purposes.
  • Food and beverage services, with a minimum of IDR 2 billion per two-digit KBLI classification and per business location at the regency or city level. Business activities sharing the same relevant KBLI digits are aggregated accordingly.
  • Construction services, requiring IDR 10 billion per four digits KBLI.
  • Manufacturing industries, requiring IDR 10 billion per production line.
  • Special Economic Zones (Kawasan Ekonomi Khusus / KEK), with lower thresholds applicable within a single province

For these sectors, investment value may include land and buildings, provided the investment is directly related to the permitted business activities, such as property development, leasing operations, accommodation services, agriculture, plantations, livestock, fisheries, and aquaculture.


Tax registration (NPWP)

After incorporation, the company must obtain a Tax Identification Number (Nomor Pokok Wajib Pajak or NPWP). The NPWP is required for tax administration purposes and is often requested by banks as part of standard account opening and onboarding procedures.

Relevant Stakeholder: Directorate General of Taxes/Ministry of Finance


Business licensing under OSS-RBA

Indonesia has adopted an integrated, electronic business licensing system through the Online Single Submission – Risk Based Approach (OSS-RBA). This framework is designed to streamline the licensing process by aligning regulatory requirements with the risk level of the relevant business activity.  Under the OSS-RBA system, business activities are classified into four risk levels: low risk, medium low risk, medium-high risk, and high risk. The classification determines the type and range of licences or approvals required before a business may commence operations.

  • Low risk activities – A company conducting low risk activities can generally commence operations after obtaining a Business Identification Number (Nomor Induk Berusaha or NIB). The NIB functions as a core business identifier and also serves multiple administrative purposes, including company registration, customs access, and certain tax and employment registrations. Additional licences or approvals may still be required under sector-specific regulations, particularly in regulated industries.
  • Medium-low risk activities – A company conducting medium-low risk activities is required to obtain an NIB and a standard certificate prior to commencing operations. At this level, the standard certificate is issued based on self declaration by the company. The standard certificate serves as a formal statement of compliance, confirming that the company has fulfilled the minimum business implementation standards applicable to its relevant KBLI. These standards generally relate to basic operational readiness, such as having a lawful business location, adequate facilities or equipment, and internal procedures that comply with applicable technical, safety, and administrative requirements. The standard certificate is issued electronically through the OSS system based on the company’s self declaration.
  • Medium-high risk activities – Similar to medium low risk activities, a company must obtain an NIB and a standard certificate. However, the standard certificate is issued in unverified form and will subsequently be subject to verification by the relevant authority. The unverified standard certificate allows the company to commence preparatory business activities, such as procuring land, purchasing equipment, or constructing facilities. Operational activities may only commence once the relevant authority has verified compliance with the applicable business standards and issued the verified standard certificate.
  • High risk activities – A company conducting high-risk activities is required to obtain an NIB and a license before commencing operations. In addition, the company must assess and fulfill any infrastructure-related requirements, such as the provision of a waste processing facilities or land, where such infrastructure is necessary for the intended business activity.

While the OSS-RBA system centralises business licensing at the national level, implementation may involve coordination with relevant ministries or regional authorities, depending on the nature and location of the business activity. Accordingly, careful assessment of applicable licensing requirements remains essential at the planning stage to ensure compliance and avoid delays during project implementation.

Relevant Stakeholders: OSS System operated by Ministry of Investment and Downstream Industry/BKPM, coordinating with sectoral ministries and regional governments


Supporting licenses (PB UMKU)

Certain business activities also require supporting licences (Perizinan Usaha Untuk Menunjang Kegiatan Usaha or PB UMKU) issued b y relevant ministries or institutions, such as halal certification, Indonesian National Standards (SNI), or other sector‑specific approvals. These licences may be obtained before or after the operational or commercial stage, depending on the applicable regulatory framework. PB UMKU do not constitute primary business licences, but supplement and are linked to the core business licenses already held by the business.

Relevant Stakeholders: Relevant sectoral ministries or institutions


Investment incentives and facilities

Eligible investors may apply for investment incentives  and facilities through the OSS system, including tax incentives (such as tax holidays, tax allowances, and super tax deductions) and import duty facilities. Incentive availability is closely linked to the Priority Investment List and Indonesia’s policy focus on value‑added and strategic sectors.

Relevant Stakeholders: Ministry of Investment and Downstream Industry/ BKPM, Ministry of Finance, Customs Authority