Opening a Logistics Company in Indonesia

Opening a logistics company in Indonesia means setting up a PT PMA, the foreign-owned limited liability company structure, with an investment plan of at least IDR 10 billion per business line, excluding land and buildings. You then register through the OSS system under the correct KBLI code for freight forwarding, trucking, warehousing or customs brokerage. Most logistics sub-sectors now allow 100 percent foreign ownership following the 2021 Positive Investment List, but domestic shipping and parts of land transport still carry local ownership conditions. Realistic setup time, once documents are in order, is 6 to 12 weeks.

Contents

• What counts as a logistics company under Indonesian law
• Can foreigners own 100 percent of a logistics company in Indonesia
• PT PMA setup process for a logistics business
• Licenses you need beyond the NIB
• Capital requirements and real costs
• The mistake that costs the most
• How long it actually takes
• Hiring foreign staff and work permits
• FAQ

What Counts as a Logistics Company Under Indonesian Law

Indonesia does not have one single "logistics license". It has a set of KBLI codes (the Indonesian business classification system) and each one covers a narrow slice of the supply chain. Freight forwarding, trucking, warehousing and customs brokerage are treated as separate businesses even when one client contracts you to do all four.

The codes that come up most often: 52291 for freight forwarding and transport management services (known locally as JPT, Jasa Pengurusan Transportasi), 49431 and 49432 for road freight transport, 52101 and 52109 for warehousing and storage, and 50 and 51 series codes for water and air cargo transport. If you are also acting as a customs broker you need a code tied to PPJK activity, which is licensed separately again.

Pick the wrong code and your business license will technically exist, but you will not be able to issue the specific permits your clients and Customs require. This is the single most common reason a new logistics PT PMA stalls three months after incorporation.

Can Foreigners Own 100 Percent of a Logistics Company in Indonesia

For most logistics activities, yes. Since Presidential Regulation 10/2021 reshaped the Positive Investment List, freight forwarding, warehousing and most land transport support services are open to 100 percent foreign ownership. This was a real shift from the earlier regime, where freight forwarding was capped and required a local shareholder.

Two areas still carry restrictions worth knowing before you commit capital. Domestic shipping between Indonesian ports falls under the cabotage principle, which requires Indonesian-flagged vessels and majority Indonesian ownership of the shipping entity itself, even if the logistics company arranging the cargo is foreign owned. And some land transport operating licenses at provincial level still ask for an Indonesian director or a local operational partner in practice, even where the national regulation says foreign ownership is open. Confirm the current position for your specific sub-sector with BKPM or a licensed advisor before you sign a lease or order equipment, because policy here has moved more than once in the last decade.

PT PMA Setup Process for a Logistics Business

The structure is the same PT PMA process used for any foreign-owned company in Indonesia, with logistics-specific steps layered on top.

1. Name reservation and deed of establishment with a notary, naming your shareholders, directors and commissioner.
2. Ministry of Law and Human Rights approval of the legal entity.
3. Tax registration (NPWP) and company domicile confirmation.
4. NIB registration through OSS, selecting the correct KBLI code or codes for your actual activity.
5. Risk-based licensing follow-up: logistics activities involving transport safety or customs handling are usually classified medium-high or high risk, which means the NIB alone is not enough. You need a supporting certificate or license on top.
6. Sector license application: SIUJPT for freight forwarding, warehouse operating permit for storage, land transport business permit for trucking, PPJK registration for customs brokerage.
7. Import license (API-U or API-P) if the business will import its own equipment or goods on behalf of clients.

None of these steps are optional add-ons. A PT PMA with an NIB but no SIUJPT cannot legally issue a bill of lading or act as a forwarder for an import client, even though the company itself is validly incorporated.

Licenses You Need Beyond the NIB

This is where most delays happen, because each license sits with a different directorate and has its own document set.

If your business touches more than one of these, you apply for each separately. A company offering both warehousing and customs clearance needs both permits in place before it can legally invoice for both services, not just one.

Capital Requirements and Real Costs

The baseline rule for PT PMA companies, logistics included, is an investment plan of IDR 10 billion per KBLI code per project location, excluding land and buildings. In practice at least 25 percent of that, roughly IDR 2.5 billion, needs to show as paid-up or issued capital at incorporation. These thresholds move with regulation, so confirm the current figure before you wire funds.

Skip the LKPM investment activity report and BKPM can suspend your business license. It is a quarterly or six-monthly filing depending on company size, and it is the compliance item foreign owners forget most often because nothing about it feels urgent until an inspection happens.

The Mistake That Costs the Most

The expensive mistake is registering under a general trading or transportation KBLI code instead of the specific freight forwarding, warehousing or customs code your business actually performs. The company incorporates fine, the NIB issues fine, and three months later the owner discovers they cannot get a SIUJPT, cannot open a Customs access account, and cannot legally sign a bill of lading. Fixing it means amending the deed, re-filing the NIB, and reapplying for every sector license from scratch. That is lost months and a second round of fees, not a quick edit.

Confirm your KBLI code against the actual services you will invoice for before you sign the deed, not after.

How Long It Actually Takes

Assuming documents are complete and there is no back-and-forth on KBLI selection, a realistic sequence looks like this:

Add time if you are also sourcing a commercial warehouse or depot, since some sector licenses require the premises to be confirmed and zoned correctly before the license office will approve.

Hiring Foreign Staff and Work Permits for Logistics Managers

If you plan to bring in an expatriate operations manager or a specialist in customs compliance, the company needs a work permit and KITAS for each foreign employee, tied to a specific position on the approved expatriate manpower plan (RPTKA). This runs parallel to, not instead of, the business licensing above. Our work visa and KITAS guide covers the sponsorship steps and the ratio rules between foreign and local staff that logistics companies often trip over when they scale a fleet or warehouse team quickly.

For the company's director and commissioner, residence and work permit requirements differ depending on whether they are actively working day to day or holding a supervisory role only. Our page on work permits and residence visas in Indonesia breaks down which role needs which permit, since getting this wrong at the shareholder level is a common and avoidable compliance gap.

If you are still deciding on the right legal structure for your logistics venture, or weighing a joint venture against a wholly foreign-owned entity, our firm's background and approach is worth reading before your first meeting with a notary, since the structure you choose at incorporation is expensive to change later.

FAQ

Can a foreigner own 100 percent of a freight forwarding company in Indonesia?

In most cases yes. Since the 2021 Positive Investment List, freight forwarding and most logistics support activities are open to full foreign ownership through a PT PMA. Domestic shipping under the cabotage principle and some provincial land transport licenses still carry local ownership conditions, so confirm the current rule for your specific KBLI code before committing capital.

What is the minimum capital to open a logistics company in Indonesia?

The standard PT PMA threshold is an investment plan of IDR 10 billion per business line, excluding land and buildings, with roughly 25 percent of that, around IDR 2.5 billion, required as paid-up or issued capital at incorporation. This figure applies per KBLI code and per location, so a company registering multiple logistics activities may need to meet the threshold more than once.

Do I need a separate license for customs brokerage in Indonesia?

Yes. Customs brokerage requires PPJK registration with the Directorate General of Customs, separate from the NIB and separate from a freight forwarding SIUJPT. A company can hold a valid business license and still be unable to clear goods through Customs on a client's behalf without this specific registration in place.

What KBLI code should I use for a logistics company?

It depends on the actual service. Freight forwarding and transport management use 52291, road freight transport uses 49431 or 49432, and warehousing uses 52101 or 52109. Companies offering more than one service need more than one code. Choosing a general trading code instead of the specific logistics code is the most common and costliest registration error.

How long does it take to register a PT PMA for logistics?

Realistically 6 to 12 weeks from signed deed to a fully licensed, operational company, assuming the KBLI code is correct from the start and documents are complete. Sector licenses like SIUJPT or a warehouse permit are usually the slowest step, taking 2 to 6 weeks depending on completeness of the submission.

Can a foreign-owned logistics company operate trucks in Indonesia?

Generally yes, trucking and road freight fall under KBLI codes open to foreign ownership. In practice, some provincial transport offices still expect an Indonesian director or local operational contact for day-to-day fleet licensing, even though the national regulation permits full foreign ownership. Confirm the local office's current practice before finalizing your structure.

Do I need an Indonesian partner for a warehousing business?

Not under current national regulation. Warehousing under KBLI 52101 and 52109 is open to 100 percent foreign ownership through a PT PMA. A local partner may still be useful commercially for land access or distribution relationships, but it is not a legal requirement for the ownership structure itself.

What happens if I operate without the correct business license?

Operating logistics activities without the matching sector license, such as handling freight without SIUJPT or clearing customs without PPJK registration, exposes the company to fines, suspension of the NIB, and inability to legally invoice for the service performed. Clients and ports also tend to require proof of the correct license before accepting cargo, which stops operations faster than any government inspection does.