Indonesia is one of the most attractive emerging markets in South-East Asia for foreign businesses looking to expand their businesses. Any foreigner who wants to legally run a business in Indonesia must incorporate a PT PMA Indonesia. This entity allows foreigners to generate revenue streams and profit from business conducted within the Indonesian territory.Any company in Indonesia that has one or more foreign shareholder is a PT PMA (Perseroan Terbatas Penanaman Modal Asing) which means a “limited liability company with foreign direct investment. The company will still be a PT PMA even if the foreign shareholding is only 1%.

There are various factors that foreigners must consider incorporating a PT PMA in Indonesia. In this article, we will discuss all those factors that foreign investors should consider so that no costly mistakes are made during the PT PMA incorporation.