🇮🇩 Annual Compliance — Indonesia
Ongoing requirements and costs for maintaining your Indonesia company in good standing.
Annual Costs
Key Compliance Requirements
Foreign Investment Limited Liability Company (PT PMA)
- Annual cost: IDR 50,000,000 – 200,000,000 ($3,200 – $12,500)
- Required documents: 7 items
Common Compliance Mistakes
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.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.