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Indonesia Business Registration Guide

the Indonesia business registration for 2026. The guide covers: PT (Perseroan Terbatas) registration via the AHU/Kemenkumham — the Ministry of Law and Human Rights; the NPWP (tax ID) from the DGT (the Directorate General of Taxes); the PKP (VAT entrepreneur) registration for the turnover exceeding IDR 4.8 billion; the BPJS registration for the social security; the BKPM (Investment Coordinating Board) approval for the PMA (Penanaman Modal Asing — the Foreign Investment); and the API (Angka Pengenal Importir — the Import License).

PT Registration — AHU/Kemenkumham

  • PT (Perseroan Terbatas) — Limited Liability Company: The PT is the most common legal entity form for the business operations in Indonesia. The registration is handled through the AHU (Administrasi Hukum Umum — the General Law Administration) under the Kemenkumham (Kementerian Hukum dan Hak Asasi Manusia — the Ministry of Law and Human Rights).
  • Online registration — SABH: The PT establishment is done through the SABH (Sistem Administrasi Badan Hukum — the Legal Entity Administration System) — the online portal of the Kemenkumham. The registration requires: (a) the proposed company name (approved by the Kemenkumham), (b) the deed of establishment notarised by the Indonesian notary (the "Akta Pendirian"), (c) the shareholders' details, (d) the directors and commissioners details, (e) the registered address, (f) the company's articles of association (the "Anggaran Dasar").
  • Minimum capital: The minimum authorised capital for the PT is IDR 50 million with the minimum paid-up capital of at least 25% of the authorised capital. For the PMA (foreign investment PT), the minimum investment is higher — typically IDR 10 billion (approximately USD 650,000).
  • Shareholders: The PT requires at least 2 shareholders (the individuals or the legal entities). The PMA PT may have the foreign shareholders holding up to 100% of the shares (depending on the business sector and the DNI — the Negative Investment List).

NPWP — Tax ID (Nomor Pokok Wajib Pajak)

  • NPWP — the taxpayer identification number: The NPWP (Nomor Pokok Wajib Pajak) is the tax identification number issued by the DJP (Direktorat Jenderal Pajak — the Directorate General of Taxes). The NPWP is required for the tax compliance — the corporate income tax, the VAT, the withholding tax, and the other tax obligations.
  • Registration: The NPWP registration is done through the DJP Online system or at the local tax office (the "KPP — Kantor Pelayanan Pajak"). The company must submit: (a) the deed of establishment, (b) the SK Kemenkumham (the Ministry approval), (c) the NPWP of the directors and the commissioners, (d) the registered address.
  • Electronic NPWP: As of 2024, the DJP issues the electronic NPWP (the "e-NPWP") — the digital certificate replacing the physical card.

PKP — VAT Entrepreneur Registration (Pengusaha Kena Pajak)

  • PKP — the VAT entrepreneur: The company must register as the PKP (Pengusaha Kena Pajak — the "Taxable Entrepreneur") when the annual turnover exceeds IDR 4.8 billion. The PKP registration is mandatory for the VAT compliance — the company must charge, collect, and remit the VAT (the PPN — the Pajak Pertambahan Nilai) at 11% (2026 rate).
  • Voluntary PKP: The company with the turnover below IDR 4.8 billion may voluntarily register as the PKP to obtain the input VAT refunds (the "restitusi PPN"). The voluntary PKP registration is common for the companies engaged in the export activities.
  • e-Faktur: The PKP must issue the tax invoices (the "Faktur Pajak") through the e-Faktur system — the DJP's electronic invoicing platform.

BPJS Registration

  • BPJS registration: The employer must register with the BPJS Kesehatan (health insurance) and the BPJS Ketenagakerjaan (employment social security). The registration is done through the BPJS online portal (the "BPJS Online" system).
  • Obligations: The employer must: (a) register the company as the BPJS participant, (b) register each employee within 30 days of the employment start, (c) calculate and remit the monthly contributions (the employee and the employer shares), (d) report the payroll changes to the BPJS.

BKPM — Investment Coordinating Board (PMA)

  • BKPM — Badan Koordinasi Penanaman Modal: The BKPM (the Investment Coordinating Board) is the government agency responsible for the foreign investment approval and the implementation of the investment policies. The BKPM operates the Online Single Submission (OSS-RBA) system — the integrated online platform for the business licensing.
  • PMA registration: The foreign investment company (the PMA — the Penanaman Modal Asing) must obtain the BKPM approval before the PT establishment. The PMA registration requires: (a) the investment plan, (b) the shareholder structure, (c) the business sector classification (based on the KBLBI — the Standard Classification of the Business Fields), (d) the investment value and the capital commitment.
  • Business fields: The PMA is permitted in most business sectors except those restricted by the DNI (the Daftar Negatif Investasi — the Negative Investment List). The DNI lists the sectors that are: (a) closed to the foreign investment, (b) conditionally open (with the maximum foreign ownership limits), or (c) fully open to the foreign investment.

API — Import License (Angka Pengenal Importir)

  • API — the importer identification number: The API (Angka Pengenal Importir) is the import licence required for the companies importing the goods into Indonesia. The API is issued by the Kemendag (Kementerian Perdagangan — the Ministry of Trade) through the OSS-RBA system.
  • Types: (a) the API-U (Umum — General) for the import of the goods for the trading purposes, (b) the API-P (Produsen — Producer) for the import of the raw materials and the equipment for the manufacturing purposes, (c) the API-T (Terbatas — Limited) for the limited import categories.
  • Requirements: The API application requires the NPWP, the company deed, the business licence (the NIB — the Nomor Induk Berusaha), and the customs registration.