Business setup in Indonesia often begins with one simple question: “Where do we actually start?”
The answer is no longer just registering a company. Today’s licensing framework involves several stages. Businesses must choose the right legal entity, prepare company documents, complete registration through the OSS-RBA system plays a central role in business setup in Indonesia, allowing investors to complete company registration and licensing through one integrated platform.
Whether you’re establishing a PT PMA or exploring other investment structures, understanding each step helps foreign investors build a compliant business from the very beginning.
Fortunately, once each step is understood, business setup in Indonesia becomes much easier to navigate. Here’s how the process typically works under Indonesia’s latest regulations.
Choose the Right Business Entity for Business Setup in Indonesia
Every successful business starts with choosing the right legal structure. This decision influences ownership, business activities, and the licensing process that follows.
Common business entities include:
▪️ PT PMA (Foreign Investment Company) — The most common structure for foreign investors conducting commercial activities in Indonesia.
▪️ KPPA (Foreign Representative Office) — Suitable for market research, liaison, and promotional activities. It cannot generate revenue in Indonesia.
▪️ PMDN (Domestic Investment Company) — A company owned entirely by Indonesian shareholders.
▪️ CV (Limited Partnership) — Available only to Indonesian citizens and cannot be directly owned by foreign investors.
Choosing the appropriate business entity from the beginning creates a solid foundation for the entire registration process. The next step is preparing the information needed to establish the company.
Prepare for Business Setup in Indonesia
Good preparation helps the registration process move more smoothly. Before a notary can prepare the Deed of Establishment, several important decisions should already be finalised.
Before registration begins, prepare the following:
▪️ Choose an available company name.
▪️ Select the appropriate KBLI 2025 classification.
▪️ Appoint shareholders, directors, and commissioners.
▪️ Prepare the registered office address.
▪️ Complete shareholder identification documents.
▪️ Draft the Articles of Association and Deed of Establishment.
Selecting the correct KBLI 2025 is particularly important because it determines the company’s registered business activities, licensing obligations, and whether additional approvals may be required later.
Once these preparations are complete, registration continues through Indonesia’s digital licensing system.
Register Your Business Setup in Indonesia Through OSS-RBA
Indonesia uses the Online Single Submission Risk-Based Approach (OSS-RBA) system to integrate company registration and business licensing across multiple government agencies.
During this stage, businesses generally obtain:
▪️ Approval of the Deed of Establishment from the Ministry of Law.
▪️ Business Identification Number (NIB).
▪️ Corporate Tax Identification Number (NPWP).
▪️ Business Licence or Standard Certificate, depending on the selected KBLI and business risk level.
The NIB becomes the company’s official business identity and serves as the foundation for obtaining additional licences where required.
However, registration through OSS-RBA is only one part of the licensing process. Depending on the business activity, additional regulatory requirements may also apply.
Complete the Requirements for Business Setup in Indonesia
Under Government Regulation (PP) No. 28 of 2025, businesses may need to complete several regulatory requirements before they can begin operating. The applicable requirements depend on the business activity, project location, and level of risk.
These requirements may include:
▪️ Spatial Planning Conformity (KKPR).
▪️ Environmental Approval, where applicable.
▪️ Building Construction Approval (PBG).
▪️ Certificate of Proper Function (SLF).
Some businesses also require additional sector-specific approvals before commercial operations can begin.
Obtain Supporting Licences for Business Setup in Indonesia
Certain industries require Supporting Business Licences (PB UMKU) after completing the main registration process. The applicable licences depend on the selected KBLI and business sector.
Examples include:
▪️ Tourism Business Registration Certificate (TDUP).
▪️ BPOM Registration.
▪️ Halal Certification.
▪️ Alcohol Licence.
▪️ Import or Export Licences.
▪️ Other sector-specific approvals required by the relevant authorities.
Not every business requires PB UMKU. However, understanding these requirements early helps investors plan realistic timelines and reduce unnecessary delays.
Business Setup in Indonesia with Seven Stones Indonesia
Business setup in Indonesia involves much more than registering a company. Every investment begins with choosing the right legal structure, preparing accurate documentation, and understanding the latest licensing requirements.
Seven Stones Indonesia brings corporate, legal, tax, immigration, and licensing professionals together under one roof.
From selecting the appropriate business entity to managing OSS registration and sector-specific licences, our integrated team supports foreign investors throughout every stage of establishing a business in Indonesia.
Building a business is easier when every step is planned from the beginning. With the right preparation, investors can focus less on paperwork and more on growing their business in Indonesia.
References
- OSS Indonesia – Business Licensing Guidelines (OSS-RBA)
- Regulation of the Government of the Republic of Indonesia No. 28 of 2025 on the Organization of Risk-Based Business Licensing
- Directorate General of Taxes – Electronic Tax Registration through OSS and AHU
- Government Regulation No. 28 of 2025 (Official Legal Database)