Foreign Company Registration PMA (Penanaman Modal Asing)

PMA stands for “Penanaman Modal Asing,” which translates to “Foreign Investment Company” in English. A PMA company is a specific type of legal entity in Indonesia that allows for foreign investment and ownership in various business sectors. It allows foreign investors to participate in and own a substantial share of the company. Before establishing a PMA company, foreign investors typically need to obtain approval from the Indonesia Investment Coordinating Board (BKPM) or relevant authorities. This approval process involves demonstrating the economic and social benefits of the proposed investment. PMA companies can engage in various business sectors, depending on government regulations and restrictions. Some sectors may have limitations on foreign ownership, while others may be fully open to foreign investment. In some cases, PMA companies may require local partners or shareholders, depending on the business sector and regulations. The extent of local ownership varies by sector. When foreign nationals are involved in the management or employment of a PMA company, they may need to comply with Indonesian immigration regulations. This often includes obtaining appropriate work or residence permits.