Indonesia remains one of Southeast Asia’s most attractive destinations for foreign direct investment. With its large domestic market, strategic location, and continued infrastructure development, interest from foreign investors has stayed strong going into 2026. At the same time, Indonesia’s regulatory framework for business licensing has continued to evolve, particularly through the government’s push to centralize and simplify procedures under a risk-based licensing system.
This 2026 Guide to Company Registration in Indonesia is designed to help foreign investors understand what has changed in recent years, what remains fundamentally the same, and how to navigate the process with fewer surprises. Rather than focusing only on legal theory, this guide emphasizes practical realities—how regulations are applied in practice and what authorities are paying closer attention to today.
Indonesia’s Investment Landscape in 2026: The Big Picture
Since the introduction of the Online Single Submission – Risk Based Approach (OSS-RBA), Indonesia has steadily shifted away from fragmented, ministry-by-ministry licensing. By 2026, OSS-RBA is no longer “new”; it is the backbone of how companies are registered, licensed, and monitored. Nearly all business activities must now be initiated and classified through this system before any operational permits can be issued.
At the policy level, Indonesia continues to balance two priorities. On one hand, it aims to attract foreign capital by opening more sectors and reducing unnecessary bureaucracy. On the other, it maintains firm control over strategic industries, compliance standards, and capital accountability. This balance is reflected in how company registration works today: faster and more centralized, but also more data-driven and verification-heavy.
What’s New for Foreign Company Registration in 2026
OSS-RBA as the Mandatory Entry Point
One of the most important realities for 2026 is that OSS-RBA is no longer optional or partial. All foreign investors must start their company registration and licensing journey through OSS, including determining their business classification, risk level, and initial license eligibility.
The system automatically assesses business activities based on the Indonesian Standard Business Classification (KBLI) and assigns a risk level—low, medium-low, medium-high, or high. This classification directly affects how many additional permits, verifications, or technical approvals are required. While low-risk activities can proceed relatively quickly, higher-risk sectors still require deeper scrutiny, often involving sectoral ministries.
Greater Scrutiny of KBLI Selection and Business Scope
Authorities have become increasingly strict about KBLI accuracy. In 2026, selecting an overly broad or inappropriate KBLI is one of the most common causes of delays. The OSS system is now closely aligned with sectoral regulations, meaning mismatches between stated activities and actual operations are more likely to be flagged.
Foreign investors are expected to clearly articulate what the company will do, how revenue will be generated, and how this aligns with the selected KBLI. This has made the planning stage more important than ever, especially for companies with hybrid or digital business models.
Capital Verification and Use-of-Funds Clarity
While Indonesia has become more flexible in how minimum capital requirements are applied across sectors, enforcement around proof of capital has become tighter. In 2026, regulators focus less on nominal numbers and more on whether capital commitments are realistic, traceable, and aligned with the proposed business activities.
Certain sectors—such as property development, construction, and regulated services—may still be subject to capital lock-up or staged investment requirements. Authorities may request bank references, capital injection evidence, or explanations of how funds will be deployed over time.
Ongoing Adjustments to the Investment Priority List
Indonesia’s Investment Priority List (often still referred to as the Negative Investment List or DNI in practice) continues to evolve. By 2026, more sectors are open to full or majority foreign ownership, particularly in manufacturing, technology, and export-oriented services. However, restrictions remain in sensitive areas such as natural resources, media, certain agricultural activities, and sectors linked to national security.
For foreign investors, this means ownership structure must always be reviewed against the latest version of the list, even if a similar business was allowed in previous years.
What Has Stayed the Same
PT PMA Remains the Standard Vehicle
For most foreign investors, the Foreign Investment Limited Liability Company (PT PMA) remains the primary legal structure. It allows foreign shareholding, supports commercial operations, and is recognized by banks, regulators, and business partners.
The fundamentals of PT PMA formation have not changed: a notarial deed of establishment, articles of association, shareholder and director details, and registration with the relevant ministries are still required. What has changed is how these steps are sequenced and integrated with OSS.
Core Corporate and Tax Obligations Continue
Regardless of how streamlined registration becomes, companies must still comply with Indonesia’s core corporate obligations. These include tax registration, ongoing tax filings, employment compliance, and social security enrollment (BPJS Kesehatan and BPJS Ketenagakerjaan).
Foreign investors sometimes assume that OSS approval alone means a company is “fully operational.” In reality, OSS licensing is only one part of a broader compliance ecosystem that remains largely unchanged in structure.
Sectoral Permits Still Matter
While OSS centralizes licensing, sector-specific permits have not disappeared. Industries such as healthcare, finance, logistics, food and beverage, and education still require technical approvals from relevant authorities. OSS acts as the gateway, but compliance with sectoral standards remains essential.
Step-by-Step Overview: Company Registration in Indonesia (2026 Version)
The process of company registration in Indonesia can be understood as a structured sequence rather than isolated tasks. It begins with pre-registration analysis—confirming whether the intended business activity is open to foreign investment and determining ownership limits. This stage is critical because mistakes here often lead to restructuring later.
Once the business scope is clear, the next step involves preparing incorporation documents, including shareholder details, director appointments, and a clear description of business activities. These documents are formalized through a notarial deed and then uploaded to OSS as part of the registration process.
OSS registration itself involves selecting KBLI codes, submitting corporate data, and receiving a Business Identification Number (NIB). Depending on the risk level, additional licenses or commitments may be required before operations can begin.
After licensing, companies must complete tax registration, open corporate bank accounts, and fulfill employment and social security obligations. For companies employing expatriates, immigration and work permit processes follow a separate but related regulatory track.
Common Challenges Foreign Investors Still Face
Despite improvements, company registration in Indonesia is not entirely frictionless. One recurring issue is underestimating how long compliance alignment can take, especially for regulated sectors. Another is assuming that regulatory interpretations are uniform across regions or ministries, when in practice there may be procedural nuances.
Foreign investors also sometimes struggle with aligning global corporate structures with Indonesian requirements, particularly around beneficial ownership disclosure and director responsibilities. These are not new rules, but enforcement has become more consistent.
Frequently Asked Questions (FAQ)
Is OSS mandatory for all foreign investors in 2026?
Yes. All foreign-owned companies must use OSS-RBA as the primary system for registration and licensing. Manual or parallel processes outside OSS are no longer recognized for most business activities.
Has the minimum capital requirement for PT PMA changed?
There is no single universal minimum that applies to all sectors. While flexibility has increased in practice, some sectors still impose specific capital thresholds or lock-up requirements. Capital planning should always be aligned with the chosen KBLI.
How long does company registration usually take?
For straightforward, low-risk businesses, registration can be completed within a few weeks. For regulated sectors or complex ownership structures, timelines may extend to several months due to additional approvals.
Can foreign investors own 100% of an Indonesian company?
Yes, in many sectors. However, ownership limits still apply in certain industries. Always check the latest Investment Priority List before finalizing shareholding arrangements.
Why Strategic Guidance Matters More Than Ever
While Indonesia’s regulatory framework is more transparent than in the past, it is also more interconnected. Decisions made at the planning stage—such as KBLI selection, capital structuring, and ownership composition—can have long-term compliance implications.
This is why many foreign investors choose to work with local professionals who understand not only the written regulations but also how they are applied in practice. Firms like CPT Corporate, which specialize in company registration in Indonesia, help investors navigate these complexities efficiently while reducing compliance risks.
Conclusion
The process of company registration in Indonesia has undeniably improved. By 2026, OSS-RBA has made licensing more centralized, more predictable, and more transparent. At the same time, authorities have raised expectations around accuracy, documentation, and capital accountability.
For foreign investors, success lies in understanding both sides of this equation: embracing the efficiencies of the new system while respecting the regulatory discipline that underpins it. With proper planning and the right local support, Indonesia continues to offer significant opportunities for long-term business growth.
If you are planning to enter the Indonesian market or restructure an existing investment in 2026, getting the registration process right from the start is critical. CPT Corporate provides end-to-end support for foreign investors, from feasibility checks and KBLI analysis to PT PMA incorporation and post-registration compliance.
Reach out to CPT Corporate to ensure your 2026 company registration in Indonesia is handled professionally, efficiently, and in full alignment with the latest regulations.
