🇮🇩 Annual Compliance — Indonesia

Underestimating the minimum capital requirement for PT PMA

Fix: PT PMA requires an IDR 10 billion (~$625,000) total investment plan commitment, though paid-up capital can be lower depending on the sector. This is a genuine barrier for small businesses. If your investment capacity is below this threshold, explore options such as partnering with a local Indonesian company (PT PMDN) or using virtual office arrangements that comply with domicile requirements. Consult a BKPM-experienced lawyer before committing to a structure.

Choosing the wrong KBLI codes and triggering foreign ownership restrictions

Fix: Indonesia's Positive Investment List ties foreign ownership percentages to specific KBLI business classification codes. Selecting the wrong codes can either restrict your foreign ownership below 100% or trigger additional licensing requirements. Work with Indonesian legal counsel who specialises in foreign investment to correctly classify your business activities before registration through OSS.

Not appointing a commissioner alongside a director

Fix: Indonesian company law requires a PT PMA to have both a board of directors and a board of commissioners. The commissioner provides supervisory oversight and is legally required — you cannot incorporate without one. Foreign nationals can serve as commissioners but at least one director must hold a KITAS (work permit). Plan for this governance requirement during the structuring phase.