OCTIS vs PT PMA vs local PT for businesses in Indonesia
Which company type applies, what capital it needs and what changed with the 2025 BKPM rule.
Last checked · 4 sources
Otty's short answer
Any foreign shareholder, even one share, makes the company a PT PMA. That needs Rp2.5 billion paid-up capital held for 12 months and an investment plan above Rp10 billion per business line and location. A PT PMDN is for companies owned only by Indonesian citizens or entities and has no such national minimum. Do not use a local PT to hide foreign ownership.
Side by side
Swipe to see every column
| What matters | OCTISHong Kong company + OCTIS global plan | PT PMA (foreign-owned) | PT PMDN (locally owned) |
|---|---|---|---|
| Who can own it | 100% foreign ownership of a Hong Kong company | Any foreign equity, even one share | Indonesian citizens or entities only |
| Minimum paid-up capital | No minimum capital | Rp2.5 billion (was Rp10 billion) | No PMA-style minimum |
| Investment value rule | No Hong Kong equivalent; Indonesian rules apply if you operate there | Over Rp10 billion per KBLI, per site | Not applicable |
| Capital must stay in company | No minimum capital | At least 12 months | Not applicable |
| Business sectors | 100% foreign ownership allowed | Positive Investment List applies | Outside the PMA framework |
| Registration route | Filed online with the Companies Registry | Notary deed, AHU, OSS NIB | Notary deed, AHU, OSS NIB |
| Notary deed cost | At least 10% below any qualifying quote (Lowest Price Guarantee), government fees included | Reported Rp5 to Rp15 million | Not published |
| Corporate income tax | Profits tax 8.25% on the first HK$2 million, 16.5% above; Hong Kong-sourced profits only | 22% | 22% |
| Dividend tax to foreign owners | No tax on dividends paid out | 20%, treaty rate with DGT form | No foreign owners |
| Land title | Not needed for the Hong Kong company; local rules apply if you trade there | HGB or Hak Pakai, no Hak Milik | HGB or Hak Pakai, no Hak Milik |
| Investor KITAS for a person | Not needed for the Hong Kong company; local rules apply if you trade there | Rp10 billion in personal shares | Not applicable |
If you have staff, premises or local sales in this country, its own registration and tax rules still apply. OCTIS can help you arrange them.
Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.
Which one fits you
OCTIS · Hong Kong company + OCTIS global plan
Choose OCTIS if you sell into Indonesia from abroad or want an international Hong Kong company with no minimum capital, and you accept that Indonesian rules still apply to local operations.
PT PMA (foreign-owned)
Choose a PT PMA if any shareholder is foreign, you need an investor KITAS route, and your sector is open to foreign ownership under the Positive Investment List.
PT PMDN (locally owned)
Choose a PT PMDN if every shareholder is an Indonesian citizen or Indonesian-owned entity and you want to avoid the PMA capital and investment rules.
What the table does not show
What changed in 2025
Before Perka BKPM 5/2025, a PT PMA needed Rp10 billion in paid-up capital. The new rule sets the minimum paid-up capital at Rp2.5 billion. The Rp10 billion figure now describes the investment value of the project, which must exceed Rp10 billion per five-digit KBLI code and per location, generally excluding land and buildings. The paid-up capital must stay in the company account for at least 12 months and is declared through OSS. Companies already set up are generally not affected. Consultant summaries differ on small points, so read the regulation text before you sign.
Why a local PT is not a workaround
A PT PMDN is meant for owners who are Indonesian citizens or Indonesian-owned entities. One source we read says it is appropriate only when there is no foreign equity. Putting a nominee in front of a foreign owner is not a lawful shortcut and can expose the real owner to sanctions and loss of the company. If you are foreign and your sector is open, the PT PMA is the route. If the sector is closed or capped, you need a real local partner with real control.
What a PT PMA keeps costing
A PT PMA needs a physical office. A virtual office is not allowed, and proof is a lease or title certificate. It files quarterly LKPM investment reports by the 15th of the month after each quarter, even when dormant, plus monthly PPh 25 and withholding returns. Consultant sources report that a foreign person who wants an investor KITAS through share ownership needs Rp10 billion in personally held shares, and that the capital cut did not change that. Confirm with Immigration. Foreign directors need work permit support, or the company appoints an Indonesian director.
Where OCTIS fits
OCTIS does not set up Indonesian companies or file Indonesian tax. If your Malaysian or Hong Kong company is opening a PT PMA, OCTIS keeps the home company's books and brings the Indonesian subsidiary's statements into your group view. It can also help you compare the cost of selling into Indonesia from Malaysia or Hong Kong. If you are moving accounting providers, OCTIS offers 10–30% off your current bill.
Frequently asked questions
What is the minimum capital for a PT PMA in 2026?
Rp2.5 billion in issued and paid-up capital under Perka BKPM 5/2025, down from Rp10 billion. The project must still show an investment value above Rp10 billion per five-digit KBLI and location, generally excluding land and buildings.
Can a foreigner own 100% of a PT PMA?
Yes, in sectors fully open under the Positive Investment List. One foreign party can found a PT PMA alone in those sectors. In capped sectors you must bring Indonesian partners, and closed sectors are not available to foreign investors.
What is the difference between PT PMA and PT PMDN?
PMA is a company with any foreign equity. PMDN is owned only by Indonesian citizens or entities. PMA faces the Rp2.5 billion capital and Rp10 billion investment rules. PMDN does not, and capital is set in its deed.
How long does it take to set up a PT PMA?
One consultant guide estimates 4 to 8 weeks, depending on documents and business type. Sectors that need sector licences take longer. The NIB is issued through OSS, and the NPWP and NIB themselves carry no fee.
Do I pay tax on dividends sent abroad?
Dividends to non-resident shareholders carry 20% withholding under Article 26. A tax treaty can cut it, often to 10% to 15%, but only with a DGT form certificate.
Sources
Checked on the date above. Links open the provider's or regulator's own page.