Most foreign investors choose a 100% foreign-owned company, known as a Penanaman Modal Asing (or PMA), as their preferred investment vehicle. Through a PMA, a foreign investor can retain full control over the company, without having to reside in Indonesia.

Applications for register a company in Indonesia are lodged through the Indonesia Investment Coordination Board (called the BKPM in Indonesia), which processes foreign investment applications. Documents to be submitted to the BKPM for foreign investment include i) completed foreign investment application forms (issued by the BKPM) ii) a business plan outlining the new company’s planned activities, operational and marketing strategy as well as financial projections) and iii) investors’ due diligence, including passport copies/proof of address etc).

If approved, the BKPM issues a letter of approval to the investor (called a Surat Persetujuan Penanaman Modal Asing in Indonesia). Approval for Indonesia company registration for foreign investors is normally granted within two weeks of receipt of application.