Business Licensing in Indonesia: PT PMA Setup, NIB and Permits

Business licensing in Indonesia now runs under Government Regulation (PP) 28 of 2025, which replaced PP 5 of 2021 on 5 June 2025. The capital rules for foreign-owned companies (PT PMA) changed on 2 October 2025. Government fees for registering a company changed on 1 August 2026.

Which licenses you need depends on your business line, its risk level and the location of your site. Business lines are coded under Indonesia's standard industrial classification (KBLI). A factory, for example, may need a building approval and an environmental approval on top of its business identification number (NIB).

Getting one piece wrong can hold up the others. Our licensing team maps the full set of approvals first, then coordinates each application with the notary and the relevant agency. Our tax and accounting services take over once the company is running.

A PT PMA must plan investment above Rp10 billion per five-digit KBLI business line per project location, excluding land and buildings. Its issued and paid-up capital must be at least Rp2.5 billion, unless otherwise specified. These rules come from Minister of Investment and Downstreaming/BKPM Regulation 5 of 2025, in force since 2 October 2025.

The Rp10 billion test has sector exceptions. Wholesale trade and construction are measured per four-digit KBLI, and food and beverage services per two-digit KBLI per location in each regency or city. For property, accommodation, agriculture, plantations, livestock and aquaculture, the investment value includes land and buildings.

Paid-up capital must stay in the company's account for at least 12 months. It may be used earlier only to buy assets, construct buildings or fund operations. You confirm this commitment by self-declaration in the Online Single Submission (OSS) system. The previous paid-up minimum under BKPM Regulation 4 of 2021 was Rp10 billion.

Setting up a PT in Indonesia follows four main stages. First, a notary draws up the deed of establishment. The Ministry of Law then approves the company as a legal entity. The company obtains its Taxpayer Identification Number (NPWP) and registers in OSS for its NIB and the licenses its risk level requires.

Legal entity approval sits with the Directorate General of General Legal Administration (AHU) at the Ministry of Law. The ministry was formed in the cabinet restructuring of October 2024 under Presidential Regulation 139 of 2024, and Presidential Regulation 155 of 2024 governs it.

Your business lines are classified under KBLI 2025, set by Statistics Indonesia (BPS) Regulation 7 of 2025 and now used in OSS. For a PT PMA, the capital commitment described above is declared in OSS. Getting the KBLI codes right early matters, because they drive both the investment test and the licenses.

Since 1 August 2026, Government Regulation (PP) 30 of 2026 sets the state fee for registering a new PT according to its authorized capital. The fee ranges from Rp300,000 for capital up to Rp25 million to Rp5,000,000 for capital above Rp5 billion, per application. These are government fees, not Akuntax's fees.

The fees are non-tax state revenue (PNBP) paid to the Ministry of Law. PP 30 of 2026 was promulgated on 2 July 2026 and replaced the Ministry of Law rates in PP 45 of 2024. Notary fees and our service fees are separate, and we explain both before any work begins. You can reach the team through our contact page.

Issued capital cannot exceed authorized capital, so a PT PMA meeting the Rp2.5 billion minimum will normally fall in one of the top two bands. A PT Perorangan, the single-founder company for micro and small businesses, pays Rp50,000. Only an Indonesian citizen can found one.

Under Government Regulation (PP) 28 of 2025, the licenses you need depend on the risk level of each business activity. Every business receives a business identification number (NIB) through OSS. Low-risk activities need only the NIB, while higher-risk activities also need a standard certificate or a license.

Licensing also rests on three basic requirements. These are confirmation of spatial use conformity (KKPR), environmental approval, and a building approval (PBG) with a certificate of building function (SLF). Environmental screening now runs in OSS, which is connected to the Amdalnet system.

PP 28 of 2025 took effect on 5 June 2025 and revoked PP 5 of 2021. It also sets service-level deadlines for each license. If an agency misses a deadline, OSS can issue the license automatically, with the rollout phased by sector.

You need a building approval (PBG) before you build, alter, expand, reduce or maintain a building. A completed building then needs a certificate of building function (SLF) before it is used. Government Regulation (PP) 16 of 2021 replaced the old building permit (IMB) with the PBG, and applications go through the SIMBG system.

Both are basic requirements for business licensing under PP 28 of 2025, so they affect any factory, warehouse or office project. Applications are handled by local government offices in the area where the building stands, and the division of tasks differs between regions. In some, the Public Works and Spatial Planning Office (DPUPR) issues the technical recommendation, and the regional investment and licensing office (DPMPTSP) then issues the technical-standards letter and calculates the levy.

Each regency and city has its own DPMPTSP. We coordinate with the offices that cover your site, wherever it is in Indonesia.

Every business activity in Indonesia needs an environmental approval, and the document type depends on its environmental impact. Activities with significant impact need an AMDAL (environmental impact assessment). Activities without significant impact need a UKL-UPL, and those not required to hold one need only an SPPL. Government Regulation (PP) 22 of 2021 sets these rules.

The document is not chosen by business size or licensing risk level. It follows a screening of the activity's impact, which the business carries out in OSS, connected to Amdalnet, the environment ministry's information system. In some cases, technical approvals may be submitted together with the environmental approval application. If a technical approval is not issued within its time limit, the environmental approval application can proceed.

An AMDAL or UKL-UPL is prepared by environmental document specialists, not by Akuntax. Our licensing team coordinates the process with the preparer and the environmental agency, and keeps it aligned with your other licenses.

Akuntax does not draw up deeds or issue licenses. Notaries prepare deeds, while the Ministry of Law, OSS and regional offices issue approvals. Our licensing team prepares the documents, coordinates each party and follows each application until the authority decides.

Once the company exists, the tax and accounting work starts. The same firm can keep your books from day one and handle the tax obligations of a new company, including monthly returns in Coretax.

A PT PMA also submits investment activity reports (LKPM). If your company trades with its parent or sister companies, transfer pricing documentation may apply as well. You can read about our consultants and their credentials.