Can a Foreigner Start a Business in Indonesia Without a KITAS?
Yes — you can own 100% of a PT PMA from abroad with no KITAS. What's legal, what isn't, 2026 costs under the new IDR 2.5B capital rule, and the remote-founder playbook.
Quick answer: yes — a foreigner can incorporate and 100% own an Indonesian PT PMA without holding any KITAS, entirely from abroad. What you can’t do without the right permit is physically operate it in Indonesia. Here’s where the legal line sits in 2026, and the sequence smart founders use.
What you CAN do with no KITAS
Own 100% of the shares. Incorporate remotely (power of attorney to our notary). Be listed as director/commissioner while resident abroad. Invoice international clients through the company. Hire Indonesian staff (they work; you direct remotely).
What you CANNOT do without a KITAS
Live in Indonesia while managing the company (that’s work). Serve customers on the ground. Sign daily operations off from a co-working space in Canggu on a tourist visa — this is the classic bust. Immigration + tax offices now cross-reference OSS company data with visa records.
The 2026 remote-founder playbook
Step 1: Reserve company name + KBLI business codes (some sectors remain restricted — we check the Positive Investment List). Step 2: Notary deed + Ministry approval via OSS — possible by power of attorney, no travel. Step 3: Deposit IDR 2.5B paid-up capital (12-month lock-up applies under BKPM 5/2025). Step 4: NPWP tax number + NIB licenses. Step 5: When ready to relocate, the company sponsors your investor KITAS (E28A) — 2 years, no separate work permit needed.
Costs to expect
| Item | Typical 2026 range |
|---|---|
| Incorporation (notary, deed, approvals) | IDR 15-30M via law firm |
| Paid-up capital (stays your money) | IDR 2.5B deposited |
| Registered office / virtual office | IDR 5-15M / year |
| Investor KITAS when relocating | IDR 15-20M / 2 years |
Incorporate your PT PMA remotely — deed to bank account — without flying in.
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Related: company setup service · PT annual reporting · video explainers
Frequently Asked Questions
Can a foreigner own an Indonesian company without living in Indonesia?
Yes. You can incorporate and own 100% of a PT PMA from abroad — shareholders and even directors don’t need Indonesian residence. A KITAS becomes necessary only when you want to live here or actively manage on the ground.
Do I need a KITAS to be a director of a PT PMA?
A non-resident director is legal, but if you’re physically in Indonesia running the company you need an investor or work KITAS. Many founders appoint themselves director, stay abroad, and get the E28A when they relocate.
Can I open a company bank account without a KITAS?
It’s harder but possible: some banks accept passport + company documents for corporate accounts, though signatory visits are usually required. A KITAS makes banking far smoother.
What’s the minimum capital to start a PT PMA in 2026?
IDR 2.5 billion paid-up capital (BKPM Regulation 5/2025, effective October 2025) — down from IDR 10 billion. The total investment plan per business line must still exceed IDR 10 billion.
Can I run a business on a tourist or remote-worker visa?
Owning shares is fine on any visa. Operating — serving Indonesian customers, managing staff on the ground — is not. E33G explicitly forbids Indonesian-source income.