If you are registering a company in Indonesia, the choice between a local PT and a PT PMA is the decision that determines who can own your business, how much capital you must commit, and which sectors are open to you. Here is how to choose.
What is a local PT?
A PT (Perseroan Terbatas) is a standard Indonesian limited liability company. Its shareholders must be Indonesian citizens or Indonesian legal entities. It is the most common structure for domestic businesses and the simplest to set up.
Best for: Indonesian founders, or foreign founders partnering with local shareholders who will legally hold the shares.
What is a PT PMA?
A PT PMA (Penanaman Modal Asing) is a foreign investment limited liability company. It allows foreign individuals or companies to legally own shares in an Indonesian business. This is the correct vehicle if you, as a foreign founder, want to own and control your company.
Best for: foreign founders who want direct, legal ownership of their Indonesian operations.
The three differences that matter
1. Ownership
- Local PT — 100% Indonesian ownership.
- PT PMA — foreign ownership permitted, but the maximum percentage depends on your business activity. Some sectors allow 100% foreign ownership; others are partially restricted or closed. Your KBLI business codes decide this.
