PT PMA Incorporation
REQUIRED for foreign ops
Foreign companies must operate via PT PMA (foreign investment company). Requires BKPM approval, minimum capital, and at least 1 local shareholder in some sectors.
Regional Deep Dive/APAC
Tax & Regulatory // Indonesia
Entity type: PT PMA (Perseroan Terbatas Penanaman Modal Asing)
Core Compliance
Corporate Tax
22%
Standard rate; listed companies may qualify for lower rate
PPN (VAT)
11%
Increased from 10% in 2022. Apply to all taxable goods and services above IDR 4.8B revenue.
Data Localisation
GR 71 / 2019
Government Regulation 71 requires strategic data to be stored in-country. Enforcement is evolving.
Regulatory Vectors
urgent
OJK Licensing (fintech)
REQUIRED for fintech
Otoritas Jasa Keuangan (OJK) regulates all financial services. P2P lending, payments, and investment products require OJK licence — lengthy and complex process.
PDPB Compliance
REQUIRED
Personal Data Protection Bill (PDPB) enacted 2022. Requires data processing agreements, breach notification within 14 days, and DPO appointment for large processors.
Data Localisation (GR 71)
SECTOR-SPECIFIC
Government Regulation 71 requires strategic data (government, public interest) to be stored in-country. Enforcement active for government-facing products.
Key Legislation
Personal Data Protection Law (PDP Law 2022)
Comprehensive data protection law enacted 2022 with 2-year implementation period.
Government Regulation 71/2019
Electronic system and data localisation requirements for public electronic systems.
OJK Regulation 77/2016
IT-based lending services regulation (P2P fintech).
Entry Recommendation
ID has the most complex regulatory environment in SE Asia for foreign tech entrants. Engage a local Indonesian law firm before committing to market entry. A trusted local partner dramatically reduces regulatory risk and timeline.
Regulatory Flashpoints — Evidence Base
Primary regulatory flashpoint
confidence 40Indonesia PDP Law obligations on consent, rights, and processing controls.
Needs human review