Opening a company in Indonesia: locals, foreigners, freelancers and digital nomads

At a glance: foreign-owned PT PMA with an investment plan above IDR 10 billion (about 525,000 euros) per business line, notary deed and OSS online licensing in 2 to 4 weeks, 22 percent corporate tax and a 0.5 percent turnover tax for small businesses, VAT 11 percent effective (12 nominal) from IDR 4.8 billion turnover, E33G remote worker permit. Legal forms. Individual company (Perseroan Perorangan) for citizens with small turnover, online without a notary. Limited liability company (Perseroan Terbatas, PT): capital set by the founders, 25 percent paid in, two shareholders, a director and a commissioner; Indonesian-owned only. Foreign investment company (PT Penanaman Modal Asing, PT PMA): the only vehicle for any foreign shareholder: investment plan above IDR 10 billion per business line (KBLI) and location, paid-up capital of at least IDR 10 billion. Registration. Deed of establishment before an Indonesian notary, ministerial approval through AHU Online within days, tax number (NPWP), then the Online Single Submission (OSS) portal, which issues the Business Identification Number (NIB) and the risk-based licence for each KBLI line. Agencies charge IDR 15 to 40 million (about 800 to 2,100 euros) all in for a PT PMA, two to four weeks; a local PT costs a third and takes a week. Taxes 2026. Corporate income tax 22 percent. Companies with turnover below IDR 4.8 billion (about 250,000 euros) may pay a final 0.5 percent of turnover for a limited number of years. Dividends: 10 percent final tax for resident individuals; 20 percent for foreign shareholders unless a treaty cuts it. VAT 12 percent in law but 11 percent effective on everything but luxury goods; PKP registration from IDR 4.8 billion turnover. Personal income tax 5 to 35 percent, top rate above IDR 5 billion (about 260,000 euros); residents (183 days) pay on worldwide income, but qualifying foreign experts may elect Indonesian-source taxation for four years. Freelancers and the self-employed. An Indonesian freelancer registers on the Coretax portal and reports under the 0.5 percent final turnover regime (the first IDR 500 million a year, about 26,000 euros, tax free) for up to seven years, or on actual books; annual return by 31 March. National health insurance (BPJS Kesehatan) is compulsory at about IDR 35,000 to 150,000 a month (about 2 to 8 euros). Foreigners cannot be sole traders. Foreigners. Up to 100 percent foreign ownership in most sectors under the 2021 Positive Investment List; a short closed list, caps such as 49 or 67 percent in transport and some media, and small trades reserved for micro and small enterprises. A PT PMA needs in practice a resident director to sign filings. Foreign directors and commissioners holding at least IDR 1 billion (about 53,000 euros) in shares get an investor stay permit (KITAS) without a work permit. The Golden Visa (2024): five or ten years for USD 2.5 or 5 million invested through a company, or USD 350,000 or 700,000 in bonds or funds. Corporate bank accounts need a director with a KITAS in person. Branch of a foreign company. Trading branches are not allowed; branches exist only for banks, oil and gas contractors and foreign construction firms. Representative offices (KPPA general, KP3A trade) are licensed through OSS, may not earn income, and need a chief representative with a stay permit. Permitted branches pay 22 percent plus a 20 percent branch profits tax. The PT PMA subsidiary is the standard route. Digital nomads. Yes: the Remote Worker Visa (E33G), a one-year multiple-entry limited stay permit for employees and contractors of companies outside Indonesia with income of at least USD 60,000 a year (about 52,000 euros) and health cover; spouse, children and parents can be sponsored; no Indonesian clients or income. Otherwise the visa on arrival (30 days, IDR 500,000, extendable once). Over 183 days you are tax resident on worldwide income; nomads get no tax holiday. Changed recently. Remote Worker Visa E33G (April 2024) and Golden Visa (July 2024); national ID as tax number and Coretax system (1 January 2025); VAT 12 percent in law but 11 effective for non-luxury goods (1 January 2025); new risk-based licensing regulation GR 28/2025 (June 2025); All Indonesia arrival declaration for all travellers (October 2025). Figures checked October 2026 from the Ministry of Law (AHU), the Directorate General of Taxes, the OSS portal and the Directorate General of Immigration, with PwC and Indonesian law-firm summaries; thresholds and fees change yearly. Confirm with a licensed adviser in Indonesia before you file.