Glossary Β· Indonesia
PT PMA (foreign-owned company)
Definition
A foreign-investment limited liability company structure in Indonesia, required for most foreign-owned or foreign-invested businesses, subject to sector-by-sector foreign ownership caps set by the government's investment list.
Why it matters for a secondary
A foreign buyer in an Indonesian secondary has to confirm the target's PT PMA structure and applicable sector caps before a deal can close β the Indonesian equivalent of Vietnam's foreign ownership limit.
How it works in practice
A PT PMA is the Indonesian company form used where foreign shareholding is involved, and it carries its own capital requirements, licensing and reporting obligations. Its shareholding is registered, and changes are documented through notarial deeds and filings rather than by private transfer alone.
A concrete illustration
A foreign fund acquires shares from an existing holder in a PT PMA. Completion involves notarial documentation, updates to the company's registered particulars and any approvals attaching to the sector β a longer path than a simple share transfer agreement suggests.
What people most often get wrong
The PT PMA form determines what the company may do and what its shareholders must comply with, so buying into one means inheriting an ongoing compliance position, not just an economic interest. Confirm the company is current on its obligations as part of diligence.
Frequently asked questions
Can any Indonesian company have foreign shareholders?
Does converting to a PT PMA change the business?
Orientation for investors and allocators, not legal or financial advice. Rules in this market change β confirm the current position with a licensed adviser in Indonesiabefore acting on anything here.