Foreign investors applying for business licenses in Indonesia generally establish a PT PMA, select the correct business classification, register through the Online Single Submission (OSS) system, and obtain the approvals required for their activities.
The licenses required depend on the company’s business activities, location, risk classification, and sector-specific requirements.
Check Foreign Ownership and Business Classification First
Before establishing a company, foreign investors should determine whether their intended activities are open to foreign investment and whether any ownership restrictions apply. Some sectors permit 100% foreign ownership, while others impose foreign ownership limits, special conditions, or restrictions on participation.
Contact MAP Resources Indonesia at info@mapresourcesindonesia.com for assistance with your Indonesian business licenses
The company must also select the appropriate KBLI 2025 business classification. KBLI codes determine the activities a company can conduct through OSS and affect its risk classification, licensing requirements, and investment commitments.
A company planning several activities may require multiple KBLI codes, with separate licensing requirements applying to each activity.
Establish a PT PMA and Meet the Capital Requirements
Foreign investors generally conduct business through a foreign-owned limited liability company, or PT PMA.
A PT PMA generally requires minimum issued and paid-up capital of IDR 2.5 billion (USD 150,000), unless a higher sector-specific requirement applies.
A PT PMA is also generally required to have a total investment value exceeding IDR 10 billion (USD 625,000), excluding land and buildings, for each five-digit KBLI business classification and project location.
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Different calculations apply to specified activities, including wholesale trade, food and beverage services, construction, certain industrial activities, property, agriculture, plantations, livestock, and aquaculture.
Paid-up capital generally must remain in the company for at least 12 months from placement, unless used for permitted purposes such as purchasing assets, constructing buildings, or funding company operations.
How Indonesia’s Risk-Based Licensing System Works
Indonesia determines licensing requirements according to the risk associated with each business activity.
Low-Risk Activities
Low-risk businesses generally require a Business Identification Number (Nomor Induk Berusaha, or NIB).
Medium-Risk Activities
Medium-risk businesses generally require an NIB and a Standard Certificate.
The process depends on whether the activity is medium-low or medium-high risk. Some Standard Certificates are issued based on a company’s declaration of compliance, while others require verification before the activity can become fully operational.
High-Risk Activities
High-risk businesses require an NIB and the applicable Business License.
Technical, environmental, location, or sector-specific requirements may need to be satisfied before the license becomes effective.
How to Apply Through the OSS System
Once the PT PMA has been established, the company enters its corporate information and selected KBLI activities into OSS to obtain its NIB and process the licenses identified for each activity.
Depending on the business and project location, the company may also need spatial conformity, environmental, and building-related approvals.
These requirements can be significant for manufacturing, warehousing, energy, hospitality, and other businesses dependent on physical premises. The proposed location should be assessed before committing to a site because it can affect whether the required approvals can be obtained.
Certain business activities may also require additional supporting licenses (PB UMKU), depending on the company’s sector and operations.
How Licensing Timelines Work
Processing periods depend on the license, approval, responsible authority, and whether the submitted documents are complete.
Contact MAP Resources Indonesia at info@mapresourcesindonesia.com to assess the licenses your company requires
Where the responsible authority fails to act within the applicable Service Level Agreement (SLA), the fiktif positif mechanism allows the OSS system to advance the application to the next stage in accordance with the applicable procedure.
Business Licensing Continues After Approval
Foreign-owned companies may be required to submit Investment Activity Reports (LKPM), maintain the conditions attached to their licenses, and update OSS when relevant corporate or operational information changes.
A company expanding into a new business activity or project location should determine whether its existing KBLI registrations and licenses cover the expansion.
Contact MAP Resources Indonesia for Business Licensing Support
MAP Resources Indonesia assists foreign investors with PT PMA establishment, KBLI classification, OSS registration, business licensing, and ongoing investment compliance. Contact info@mapresourcesindonesia.com for assistance with establishing and licensing your business in Indonesia.
