Can a PMA company be 100% foreign-owned?

Yes, a PMA (Penanaman Modal Asing) company in Indonesia can be 100% foreign-owned, and since 2021 this is the case in most business sectors. Foreign ownership is regulated through the Positive Investment List (Presidential Regulation No. 10/2021, as amended by No. 49/2021), which replaced the old Negative Investment List (DNI): all sectors are now open to full foreign ownership unless specifically listed otherwise.

• Open Sectors: The default. Most business sectors — including most tourism, trade, manufacturing, and services activities — allow full (100%) foreign ownership.
• Conditional Sectors: A small number of sectors keep foreign ownership caps or special requirements (for example postal services and domestic air transport), or are reserved for — or require partnership with — Indonesian cooperatives and micro, small, and medium enterprises.
• Closed Sectors: A short list of activities is completely closed to investment, such as gambling and casinos, class-I narcotics cultivation, capture of protected species, coral extraction, and chemical weapons production.

Process:

To establish a 100% foreign-owned PMA company, investors need to ensure that their planned business activities (KBLI codes) allow full foreign ownership. The process involves: 1. Checking the Positive Investment List: Confirm that each planned business classification is open to 100% foreign investment. 2. Company Incorporation: Prepare and register the Deed of Establishment and Articles of Incorporation. 3. OSS Registration: Register through the Online Single Submission (OSS) system to obtain the NIB (Business Identification Number) and the risk-based licenses required for the chosen business classifications.

For specific guidance and assistance in setting up a 100% foreign-owned PMA company, including navigating the regulatory framework and OSS registration, consulting with a specialized firm like Okusi Associates is advisable. They can provide detailed information and support tailored to the specific needs of foreign investors in Indonesia.