Yes, a PMA (Penanaman Modal Asing) company in Indonesia can be 100% foreign-owned, but this depends on the specific business sector in which the company operates. The Indonesian government regulates foreign ownership through the Negative Investment List (DNI), which details which business sectors are open to foreign investment and to what extent.

  • Open Sectors: Many business sectors in Indonesia allow full (100%) foreign ownership. These are typically sectors where the Indonesian government is looking to attract foreign expertise and investment to drive economic growth.
  • Restricted Sectors: Some sectors have restrictions on foreign ownership, meaning a foreign investor can only own a certain percentage of the company, and the rest must be owned by Indonesian nationals or entities. These restrictions are often in place to protect local businesses and industries.
  • Closed Sectors: There are also sectors that are completely closed to foreign investment, where a PMA cannot be established at all. These are typically sensitive areas related to national security, cultural heritage, or small-scale enterprises reserved for local businesses.


To establish a 100% foreign-owned PMA company, investors need to ensure that their planned business activities align with those listed in the DNI as open to full foreign ownership. The process involves:

  1. Checking the DNI: Review the latest version of the Negative Investment List to confirm that the business sector is open to 100% foreign investment.
  2. Investment Approval: Apply for investment approval from the Indonesian Investment Coordination Board (BKPM), detailing the business plan and capital investment.
  3. Company Registration: Once approval is granted, proceed with the formal registration of the company, including obtaining necessary licenses and permits.

For specific guidance and assistance in setting up a 100% foreign-owned PMA company, including navigating the regulatory framework and investment approval process, 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.

Can a PMA company be 100% foreign-owned?

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