Setting up a foreign-owned limited company (a PT PMA) in Indonesia is just the start. From day one the company faces regulatory, tax, labor and reporting obligations — and getting them wrong can mean fines, revoked permits or costly restructures. This practical guide explains the main post-incorporation obligations for PT PMA (what you must do), the most common mistakes foreign investors make, and a short compliance checklist to keep your business on the right side of the law.

Many founders treat incorporation as the finish line. It isn’t. The company enters an active compliance phase immediately: paid-up capital rules, OSS-RBA licensing and Investment Activity Reports (LKPM), tax and employment registrations, sectoral permits, bookkeeping and annual filings are all mandatory and monitored. Missing any of these can stop operations or attract enforcement.

Key Post-incorporation Obligations (What You Must Do)

Key Post-incorporation Obligations

1. Paid-up capital & investment plan

You must deposit the required paid-up capital into the company bank account at incorporation and keep appropriate proof. Recent 2025 regulations reduced the minimum paid-up capital shown at incorporation to IDR 2.5 billion in many cases, but the minimum total investment plan (the project value registered in OSS) commonly remains IDR 10 billion (excl. land/building) depending on KBLI and location — so don’t confuse paid-up capital with total investment commitment. The paid-up amount often must remain in the company for a specified period (commonly 12 months) unless legitimately used for business needs.

2. OSS-RBA registration & LKPM reporting

Register your business activities and obtain licences via the OSS-RBA (Online Single Submission — Risk Based Approach). PT PMA holders must submit an Investment Activity Report (LKPM) periodically through OSS when required by the business risk profile; failing to file accurate LKPMs is a frequent trigger for audits and sanctions. Keep access credentials secure and assign responsibility for OSS updates.

3. Tax registrations & filings

Register for a Tax Identification Number (NPWP), and if applicable register for VAT (PKP). PT PMAs must keep proper accounting books, file monthly/annual VAT returns, monthly payroll withholding and annual corporate tax returns (SPT). Timely VAT invoices, withholding tax remittances and accurate financial statements are essential to avoid penalties.

4. Employment & social security compliance

Register employees for BPJS Ketenagakerjaan (workfare/insurances) and BPJS Kesehatan (health insurance) per Indonesian labor law. Correct payroll withholding, employment contracts consistent with local law, overtime calculation and termination procedures are all mandatory. Non-compliance can lead to fines and reputational damage.

5. Sectoral & operational permits

Depending on your KBLI, industry and location you may need additional licences — e.g., business operational licences, environmental permits (AMDAL/UKL-UPL when applicable), tourism permits, food & beverage permits, building/HO permits and municipal approvals. Do not assume incorporation covers operating permits; perform a sectoral permit check early.

6. Accounting, annual reports & audits

Maintain Indonesian-standard accounting records, prepare annual financial statements, and where required, have those audited and filed. Annual general meetings and statutory annual filings (company deed updates, ministerial notifications) must be observed. Timely, accurate books are the foundation of tax compliance and license renewals. 

Most Common Mistakes (and How to Avoid Them)

1. Confusing paid-up capital with total investment

Many foreign investors assume the lower paid-up capital means lower overall investment obligations. In reality, paid-up capital (the cash actually deposited) and the investment plan (the total project value registered in OSS/LKPM) are distinct. Not aligning both creates administrative headaches and possible mismatches with OSS approvals. Always align your KBLI, paid-up capital and investment plan before incorporation.

2. Wrong KBLI or activity scope

Registering the wrong KBLI (business classification) or an overly broad/narrow activity can block permits, cause rejections in OSS or require amendments later. Use up-to-date KBLI 2020 classifications and get local legal advice to select precise activity codes.

3. Skipping OSS/LKPM updates and licence renewals

Some companies think once they have an initial licence, that’s sufficient. The OSS-RBA system requires continuous updates and periodic LKPM filings for certain risk profiles. Missing updates or renewals can lead to suspended licences and enforcement actions. Assign an internal owner or trusted advisor to manage OSS.

4. Underestimating tax & payroll obligations

Failing to register for VAT, incorrectly processing withholding taxes, or neglecting BPJS enrollments are common traps. These cause fines and complications for employee relations. Set up payroll with a local accountant who knows Indonesian tax rules and BPJS timelines.

5. Using nominee arrangements or informal ownership shortcuts

Some foreign investors attempt to avoid restrictions through nominee local shareholders or informal structures. This is legally risky and can result in loss of control, legal penalties, or nullified contracts. Use a proper PT PMA structure and legal advice to manage foreign ownership limits.

6. Poor record-keeping & late financial reporting

Weak bookkeeping leads to incorrect tax returns, failed audits and non-compliance. Maintain Indonesian-format accounting records, reconcile bank accounts monthly, and prepare for annual audits where required.

Practical compliance checklist (first 12 months)

Practical compliance checklist

  1. Deposit and document paid-up capital; keep proof and bank statements.

  2. Complete OSS-RBA company profile, secure access credentials, and register KBLI correctly.

  3. File initial LKPM if required and set calendar for periodic LKPM updates.

  4. Register NPWP, VAT (if applicable), and set monthly tax reporting routines.

  5. Register employees for BPJS Kesehatan and Ketenagakerjaan; ensure written employment contracts comply with Labor Law.

  6. Check for sectoral permits (environment, building, tourism, food safety) and apply early.

  7. Engage a local accountant and legal counsel familiar with PT PMA compliance.

Final tips for foreign investors

  • Plan compliance costs into your budget. Licenses, consultants, audits and mandatory social contributions add up.

  • Use reputable local advisors. Good corporate secretarial support and a licensed accountant prevent common errors.

  • Keep records digital and organised. OSS, tax portals and BPJS systems require documents that are easy to retrieve and upload.

  • Be conservative with timelines. Permit processing, OSS corrections and tax registrations can take longer than expected; build buffer time into launch plans.