PMA Establishment
End-to-end foreign company setup — entity structuring, deed, AHU, OSS, bank account, and tax registration.
Integra Law Office advises foreign investors entering Surabaya and East Java — handling PMA establishment, investment licensing, regulatory compliance, and ongoing legal support. We help international businesses navigate Indonesian investment law from initial planning through operational launch.
East Java — with Surabaya as its commercial capital — is one of Indonesia's most attractive destinations for foreign investment. The province offers manufacturing infrastructure, a large consumer market, port access (Tanjung Perak), and a growing industrial base. Foreign investors are active in manufacturing, wholesale trade, logistics, and services.
The Indonesian investment regime is governed by the Investment Law (UU 25/2007) and the Omnibus Law (UU 11/2020), which introduced the risk-based approach to investment licensing. The Positive Investment List (Perpres 10/2021) specifies which sectors are open to foreign investment and the maximum foreign ownership permitted.
We help foreign investors establish their presence in Surabaya — from PMA company formation through to operational licensing, employment compliance, and ongoing legal support. Our clients include manufacturing companies, trading firms, and service providers from Asia, Europe, and North America.
Planning to establish a PMA company in Surabaya and needing end-to-end legal support.
Needing to understand foreign ownership restrictions for your sector under the Positive Investment List.
Requiring BKPM/OSS licensing support — NIB, operational permits, and sector-specific approvals.
Entering a joint venture with a local partner and needing legal structuring and documentation.
Transferring foreign employees and needing work permits (IMTA/RPTKA) and immigration support.
Requiring ongoing compliance support — reporting, audit, and regulatory monitoring.
The Investment Law (UU 25/2007) and the Job Creation Law (UU 11/2020) provide the overarching framework. Perpres 10/2021 replaced the Negative Investment List (DNI) with a Positive Investment List — sectors are classified as: open to 100% foreign ownership, subject to certain conditions, reserved for domestic investment, or reserved for cooperatives and SMEs.
All foreign investment must be registered through OSS (Online Single Submission) and obtain an NIB (Business Identification Number). Investment plans must meet minimum capital requirements — generally IDR 10 billion minimum issued capital for PMA, though sector-specific requirements may apply.
We start with a feasibility assessment — understanding the client's business model and mapping it against Indonesian investment regulations. We identify ownership restrictions, licensing requirements, and potential structural issues before the client commits resources.
For PMA establishment, we manage the entire process: entity structuring, deed preparation, AHU registration, OSS licensing, bank account opening, and tax registration. After establishment, we provide ongoing compliance support tailored to the client's operational needs.
End-to-end foreign company setup — entity structuring, deed, AHU, OSS, bank account, and tax registration.
NIB, operational permits, sector-specific licenses, and BKPM compliance.
Designing ownership structures within Positive Investment List constraints — direct ownership, joint venture, or nominee-free alternatives.
Foreign worker permits (RPTKA/IMTA), KITAS/KITAP, and employment compliance for expatriate staff.
Investment reporting, tax compliance, regulatory monitoring, and annual legal health checks.
In many sectors — yes. The Positive Investment List (Perpres 10/2021) allows 100% foreign ownership in sectors including manufacturing, wholesale trade, and many services. Sectors that are restricted or reserved are specified in the regulation. We assess ownership eligibility during the initial consultation.
The minimum issued capital for a PMA is generally IDR 10 billion (approximately USD 625,000). However, actual investment plans must exceed this and reflect the scale of operations. Some sectors have higher minimum capital requirements.
PMA establishment typically takes 2-4 weeks for the legal entity, plus additional time for operational permits depending on the sector. Manufacturing PMA with standard licensing takes approximately 4-6 weeks from start to operational readiness.
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Describe your investment plans. A senior partner will respond within one business day.
Last reviewed: · by Budiarmanto Setyo Hutomo, S.H., M.H.