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Step-by-step regulatory requirements organized by timeline phase
Establish PT PMA (Foreign Investment Company)
Foreign investors must establish a PT PMA before NIB issuance. Minimum paid-up capital IDR 10 billion (~USD 650,000) and minimum 2 shareholders. Articles must be notarised and approved by Ministry of Law.
Open Corporate Bank Account
Open IDR and USD accounts with an Indonesian bank (BCA, Mandiri, BNI, BRI). Foreign-owned PTs face enhanced KYC and may need to demonstrate beneficial ownership; allow 2-4 weeks.
Apply for KITAS Work and Stay Permits
Foreign employees need an IMTA (work permit) and KITAS (limited stay permit) approved by Ministry of Manpower and Directorate General of Immigration. New investor KITAS available for shareholders.
Apply for Sector Operating Licences
Sector permits issued via OSS based on KBLI risk classification (low/medium-low/medium-high/high). High-risk sectors require additional ministerial licences (e.g., banking by OJK, mining by ESDM, food by BPOM).
Register the PT with the local Tax Office (KPP) to obtain corporate NPWP within 1 month of incorporation. Required for invoicing, payroll, and bank account opening.
Register for VAT (PKP Status)
Register as a VAT-able Taxpayer (PKP) once turnover exceeds IDR 4.8 billion in 12 months or voluntarily. Standard VAT (PPN) rate 12% from 2025. Register e-Faktur for electronic VAT invoicing.
Register the company and each employee with BPJS Kesehatan (national health insurance) within 30 days of hiring. Contribution 4% employer + 1% employee on wages capped at IDR 12 million.
Domicile Letter and Local Permits
Some local governments still require a domicile letter (SKDP) and local nuisance permit (HO) on top of OSS-issued permits. Confirm with the local Dinas Penanaman Modal.
Beneficial Owner Disclosure
Submit beneficial owner data to the Ministry of Law and Human Rights and update on any change. Mandatory under Presidential Regulation 13/2018.
Monthly Tax and BPJS Filings
File monthly PPh 21 (employee withholding), PPh 23/26 (third-party withholding), PPh 25 (corporate prepayment), VAT, and BPJS contributions via DJP Online and BPJS portals.
Annual Corporate Income Tax (PPh Badan)
File annual PPh Badan return (1771 form) by 30 April for calendar-year companies. Standard rate 22%; reduced rate for SMEs (50% reduction on first IDR 4.8 billion of taxable income).
Annual LKPM Investment Activity Report
PT PMAs must submit quarterly Investment Activity Reports (LKPM) via OSS. Failure can lead to NIB suspension or revocation by BKPM.
Annual Audited Financial Statements
PT PMAs and companies above thresholds (assets or revenue over IDR 50 billion) must engage a public accountant and file audited financial statements with the Ministry of Trade.