Indonesia – Self-Employment

How does self-employment work for expats in Indonesia?

The rules governing self-employment in Indonesia draw a firm line between foreign and domestic workers. Rather than allowing foreign nationals to simply register as sole traders or freelancers — as is common in many Western countries — Indonesia requires foreigners to operate within clearly defined legal frameworks. To work lawfully in the country, a foreigner must have a valid work permit and be sponsored by a locally registered company. Working informally or while holding a tourist visa has no legal standing whatsoever.

Under the Omnibus Law, foreigners may only perform work in Indonesia within specific roles designated by the Minister of Manpower and for defined periods. This means the familiar concept of operating as an independent worker — comparable to a UK sole trader registered with HMRC or a French auto-entrepreneur — simply does not exist in Indonesian law. For most expats with entrepreneurial ambitions, the practical solution is to incorporate a foreign-invested limited liability company, referred to as a PT PMA.

Foreign employment and commercial activity in Indonesia falls under the purview of several governmental bodies. The Ministry of Manpower (MoM) is responsible for labour policy, including the granting of work permits. Immigration matters such as visas and stay permits are handled by the Directorate General of Immigration. The Ministry of Investment (BKPM) oversees the registration of companies and ensures compliance with foreign investment regulations.

To preserve domestic control over employment administration and human capital development, Indonesian law restricts 18 specific roles exclusively to Indonesian citizens — all of which relate to core human resources and employment management functions. Expats should review both the current Positive Investment List and the list of restricted positions before finalising any business plans. Up-to-date information can be found at the Ministry of Investment (BKPM) and the Ministry of Manpower.

What are the different self-employment and business structures available in Indonesia?

Indonesia provides a range of legal frameworks for conducting business, though the options accessible to foreign nationals are considerably narrower than those available to Indonesian citizens. Understanding each structure before making a commitment is essential.

• PT PMA (Perseroan Terbatas Penanaman Modal Asing): A PT PMA is a limited liability company that accommodates any degree of foreign ownership — whether partial or complete. It is open to foreign individuals, overseas corporations, and foreign governments investing in Indonesia, and represents the most widely used legal vehicle for foreign direct investment. For the vast majority of expat entrepreneurs, this is the structure of choice.
• PT (Perseroan Terbatas — Local Limited Liability Company): This structure is reserved entirely for Indonesian-owned enterprises, with lower minimum investment requirements and unrestricted access across all business sectors. Foreign ownership is categorically prohibited, and any attempt to use nominee shareholders to work around this restriction is explicitly unlawful under Indonesian law.
• Representative Office (KPPA/KP3A): Representative offices are unable to conduct direct sales or generate revenue within Indonesia, but they serve a useful function for foreign businesses that wish to assess the market before committing to full incorporation. They allow companies to carry out research, establish relationships, and gauge commercial conditions. The two main types are the KPPA (Foreign Company Representative Office) and the KP3A (Foreign Trading Representative Office).
• UMKM (Micro, Small, and Medium Enterprise): This category provides a simplified tax arrangement for qualifying small businesses, with a flat final tax rate of 0.5% of gross turnover. It is primarily intended for Indonesian nationals, though expats operating through a PT PMA may be able to access certain UMKM-related tax benefits in specific circumstances. Professional advice is recommended before assuming eligibility.

For most expats who intend to conduct business operations, generate revenue, or employ staff in Indonesia, the PT PMA is the most appropriate and legally recognised option — it grants foreign investors full commercial rights, including the ability to enter contracts and participate actively in the Indonesian economy. The structure chosen will have a direct bearing on tax obligations, personal liability, and administrative requirements, making consultation with a qualified local lawyer an important first step.

How do you register as self-employed in Indonesia?

Because sole trader or freelancer registration is not available to foreign nationals in Indonesia, “registering as self-employed” in practice equates to forming a legal business entity — in almost all cases, a PT PMA. There is one notable exception: foreign nationals holding an E33G Remote Worker Visa whose income is generated entirely outside Indonesia are not required to establish a local company. The process outlined below applies to those who wish to conduct business and earn income within Indonesia, for whom establishing a PT PMA is the standard path.

The Indonesian government has made considerable efforts to modernise and liberalise its investment environment. Reforms under the Omnibus Law on Job Creation, enacted through Government Regulation No. 5/2021 and subsequently revised through 2023, have dramatically reduced the time needed to register a foreign-owned company. As of 2024, a PT PMA can typically be established within four to six weeks — a significant improvement over the months-long timelines of earlier years.

1. Check the Positive Investment List: Before taking any further steps, verify that your intended business activity qualifies for foreign investment under Indonesia’s current Positive Investment List. Under Presidential Regulation Number 10 of 2021 (as amended by Presidential Regulation Number 49 of 2021), more than 200 sectors are now fully accessible to foreign investors. Consult the Online Single Submission (OSS) portal or the BKPM for the most current sector-level guidance.
2. Choose and reserve a company name: Once you have confirmed that foreign investment is permitted in your chosen sector, select a name for your PT PMA. The name must consist of at least three words, must not be deceptive or resemble the name of an existing company or government body, and must not contain any inappropriate or obscene language. Reservation is processed through the Ministry of Law and Human Rights.
3. Prepare and notarise the Deed of Establishment: A Deed of Incorporation must be drawn up before a licensed public notary and must include the company’s Articles of Association. This deed sets out shareholder details, director appointments, business activities (using the appropriate KBLI classification code), and the company’s stated objectives. Legal recognition cannot be obtained without completing this step.
4. Obtain Ministry of Law and Human Rights approval: The notarial deed is submitted to the Ministry of Law and Human Rights, which then formally ratifies the company’s legal standing. This approval marks the point at which the PT PMA comes into existence as a legal entity.
5. Register for a Tax Identification Number (NPWP): An NPWP is required for all banking transactions, licence applications, and tax compliance purposes. It is obtained from the Directorate General of Taxes (DJP). Without one, the company cannot progress to the next stage of operations. Foreign individuals receive distinct NPWP numbers separate from the company’s registration.
6. Secure a registered business address: A valid commercial address at an office building in Indonesia must be in place prior to incorporation. Residential addresses cannot be used for company registration purposes, though virtual offices are a widely accepted and legally permissible alternative.
7. Submit via the OSS system and obtain your NIB: The entire company registration process is channelled through Indonesia’s Online Single Submission (OSS) platform, which consolidates licensing, registration, and post-establishment compliance into a single integrated system. The resulting Business Identification Number (NIB) functions simultaneously as the company registration number, customs identifier, and import licence.
8. Deposit paid-up capital: Under BKPM Regulation No. 5 of 2025, the minimum paid-up capital for a PT PMA is IDR 2.5 billion (approximately USD 150,000), forming part of a total investment plan of IDR 10 billion. These funds must remain in the company’s Indonesian bank account for at least 12 months from the date of deposit, though they may be drawn upon for legitimate business expenditure during this period.

Government registration fees are processed through the OSS system; current charges should always be confirmed directly at oss.go.id or via the BKPM. Despite the improvements made in recent years, navigating all the required procedures can remain genuinely challenging for foreigners unfamiliar with the language and local administrative culture. The majority of foreign investors choose to engage a local firm specialised in PT PMA establishment to manage the process on their behalf.

How do you set up a company in Indonesia as an expat?

For a foreign national, establishing a company in Indonesia means incorporating a PT PMA. This is the legally recognised vehicle for foreign commercial operations and confers full operational rights — including the capacity to enter contracts, take on employees, and generate revenue within Indonesia. Below is a detailed breakdown of the core requirements and the incorporation process.

Minimum capital requirements: Effective from 2 October 2025, the minimum paid-up capital requirement for a PT PMA fell by 75% — dropping from IDR 10 billion to IDR 2.5 billion — a change that positions Indonesia among the more accessible destinations for foreign direct investment in Southeast Asia. This revision was introduced under BKPM Regulation Number 5 of 2025, which establishes a two-part framework distinguishing total planned investment from minimum paid-up capital. Capital thresholds are subject to regulatory revision, so the most current figures should always be verified at bkpm.go.id.

Shareholders and directors: Indonesian company law requires a PT PMA to have at least two shareholders (who may be natural persons or corporate entities), at least one resident director, and at least one commissioner. The resident director requirement is an important practical consideration: a foreign founder who wishes to serve in this role must hold the appropriate work and residency permits in the form of a KITAS (Investor ITAS), which carries its own application requirements and processing timeline.

Foreign ownership limits: In contrast to standard PT entities, which are confined to Indonesian shareholders, PT PMAs permit majority or full foreign ownership in eligible sectors, offering greater control and operational flexibility to overseas investors. That said, a number of sectors — including certain media activities, small-scale retail, and specific areas of agriculture — remain partially or fully closed to foreign participation. The current Positive Investment List should be reviewed via the OSS portal before any business plan is finalised.

The step-by-step incorporation process follows the sequence described in the previous section, from name reservation and notarisation through to OSS submission and capital deposit. Beyond those core steps, PT PMA founders should also attend to the following:

• Register with BPJS (Indonesia’s social security system) if the business will employ staff.
• Obtain any sector-specific licences relevant to the industry — for example, in tourism, education, or financial technology.
• Apply for an Investor KITAS (Limited Stay Permit for Investors) if the founder intends to reside in Indonesia and serve as a director. Investor ITAS permits are valid for two years and are renewable.
• Register for VAT (PPN) if annual taxable turnover is expected to exceed IDR 4.8 billion (approximately USD 300,000) — the current threshold should be confirmed with the Directorate General of Taxes at pajak.go.id.

PT PMA directors may be foreign nationals or Indonesian citizens. However, directors who are not resident in Indonesia do not hold the authority to execute documents on the company’s behalf. Founders intending to manage the business remotely, at least during an initial phase, must ensure that a qualifying resident director is properly appointed and in place.

Can you work as a digital nomad in Indonesia?

Indonesia now offers a formal immigration pathway specifically designed for location-independent workers. The concept of a digital nomad visa evolved considerably over time before reaching its current form, and what exists today is the E33G Remote Worker Visa — the dedicated legal framework for professionals who wish to base themselves in Indonesia while working for employers or clients overseas.

The E33G Remote Worker Visa: By 2025, the government had formalised this pathway under the official designation Remote Worker Visa (Index E33G). It offers digital nomads a structured and legally clear residency option — distinct from the standard tourist visa — for those whose livelihood originates entirely from outside Indonesia. Rather than requiring constant short-term extensions or leaving workers in an ambiguous legal position, the Remote Worker Visa provides a recognised basis for medium-term residence without necessitating local company incorporation.

Key requirements (as of 2025):

• Applicants must demonstrate a minimum annual income of at least USD 60,000 (equivalent to more than IDR 1 billion), must be employed by or contracted to a company based outside Indonesia, and may not be remunerated in Indonesian Rupiah (IDR).
• Required documents include a passport with at least 12 months of remaining validity, a recent colour photograph, a personal bank statement covering the preceding three months and showing a minimum balance of USD 2,000 (or equivalent) — clearly displaying the holder’s name, the statement period, and account balance — and a curriculum vitae.
• E33G visa holders are authorised to work exclusively for entities registered outside Indonesia. Receiving income from any Indonesian company or individual is not permitted under this visa category.

Duration and fees: Processing generally takes between 5 and 15 working days, subject to document completeness and immigration workloads. The Remote Worker Visa supports stays ranging from 6 months to 2 years, depending on the permit type selected. Costs differ based on whether a single-entry permit or a KITAS is chosen, with fees ranging from approximately USD 150 to USD 1,500. Current fee schedules should always be verified directly with the Directorate General of Immigration, as government charges are periodically revised.

Tax implications: Digital nomads holding an E33G visa who earn income exclusively from overseas sources typically fall into a tax-residency category where foreign income must be declared but may be offset by foreign tax credits. However, the act of residing in Indonesia — as evidenced by holding a KITAS, including the E33G Remote Worker Visa — means that Indonesian tax law applies to worldwide income regardless of the number of days physically spent in the country. Applicable tax treaties may provide relief; the tax section below covers this in more detail. Independent tax advice should be sought before applying for the visa.

Digital nomads who do not meet the E33G income threshold and instead remain on tourist visas often encounter complications, including the need for frequent renewals, uncertain legal standing, and potential scrutiny from immigration authorities. Continuing to work remotely while on a tourist visa occupies a legal grey area and is not officially endorsed by Indonesian authorities.

What taxes and social contributions apply to self-employed expats and business owners in Indonesia?

Indonesia operates a self-assessment tax model in which individuals and companies bear personal responsibility for calculating, reporting, and remitting their tax obligations. For those who employ staff, this brings with it significant duties relating to the withholding of employee income tax (PPh 21) and mandatory social security contributions. A clear understanding of these requirements is indispensable for maintaining compliance and ensuring smooth business operations.

Personal income tax (PPh): Indonesia applies a progressive personal income tax scale ranging from 5% to 35%, depending on total income level (as of 2025). Tax residency is established if an individual spends more than 183 days in Indonesia within any 12-month period, or if they reside there with the intention of remaining — including as a KITAS holder. Indonesian tax residents are liable for tax on their worldwide income, while non-residents face a flat 20% withholding tax applied only to income sourced within Indonesia.

Corporate income tax: The standard corporate income tax rate is 22% for companies operating in Indonesia (as of 2024–2025). Qualifying small and medium enterprises may be eligible for a reduced rate depending on their revenue; current thresholds should be confirmed with the Directorate General of Taxes (DJP). Businesses registered under the UMKM micro-enterprise classification with turnover below the relevant ceiling are subject to a final flat tax of 0.5% of gross turnover rather than the standard corporate rate.

VAT (PPN — Pajak Pertambahan Nilai): Indonesia’s standard VAT rate is 11%, rising to 12% on luxury goods and services (as of tax year 2025). Certain categories — including food and beverages served in hotels and restaurants, as well as healthcare services — are exempt from VAT. Businesses whose taxable turnover exceeds the VAT registration threshold are obliged to register and submit periodic VAT returns.

Social contributions (BPJS): Social security in Indonesia is administered by BPJS (Badan Penyelenggara Jaminan Sosial), which covers health insurance through BPJS Kesehatan and employment insurance through BPJS Ketenagakerjaan. Participation is compulsory not only for Indonesian employees but also for foreign workers who have been employed in Indonesia for six months or more, as required under Manpower Law No. 13 of 2003, Government Regulation No. 44 of 2015 on BPJS Employment, and BPJS Ketenagakerjaan Regulation No. 10 of 2023. Unlike PAYE-based employment systems in many other countries — where the employer manages all deductions automatically — self-employed individuals operating through a PT PMA must handle their own BPJS registration and ongoing compliance. Current contribution rates are available at bpjsketenagakerjaan.go.id.

Tax treaties and double taxation: Indonesia has concluded tax treaties with more than 60 countries for the purpose of preventing double taxation. Indonesian tax residents may claim foreign tax credits for taxes already paid abroad, thereby reducing the total Indonesian tax liability. Whether a relevant treaty is in force between Indonesia and your home country can be verified through the DJP website.

Annual tax return: Individual taxpayers are required to file an annual income tax return (SPT Tahunan) by 31 March of the year following the tax year in question. The Indonesian tax authority (DJP) operates an e-Filing platform that allows taxpayers to submit their returns electronically.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Indonesia?

Indonesia has been making deliberate efforts to draw in foreign investment and talented entrepreneurs, and a number of government-led initiatives hold direct relevance for expat business founders and self-employed workers.

Reduced PT PMA capital threshold (as of 2025): BKPM Regulation No. 5 of 2025 brought about a fundamental change to PT PMA requirements by slashing the minimum paid-up capital from IDR 10 billion to IDR 2.5 billion — a reduction of 75%. The BKPM stated explicitly that this change is intended to lower barriers for startups, service-based businesses, and smaller enterprises, in keeping with the OSS Risk-Based Approach philosophy, which calibrates regulation according to operational risk rather than arbitrary financial thresholds.

The OSS Risk-Based Approach (OSS-RBA): Indonesia has rolled out a revised national business classification system (KBLI Indonesia 2025), prompting businesses nationwide to review and update their registered activity codes. This updated framework supersedes KBLI 2020 and reflects Indonesia’s aim of aligning its economic classification with international standards while also accommodating emerging industries such as digital platforms, renewable energy, and new creative economy sectors. Under the OSS-RBA model, businesses assessed as low-risk benefit from a streamlined approval pathway, reducing both the time and administrative complexity involved.

Tax incentives for strategic sectors: The Indonesian government offers tax holidays and tax allowances to investors in certain priority industries — such as technology, manufacturing, and infrastructure — administered through the BKPM. These incentives may include temporary reductions in the corporate income tax rate. Eligibility criteria, minimum investment levels, and approved sectors are subject to periodic updates; the latest details are available at bkpm.go.id.

UMKM preferential tax rate: The 0.5% small business tax regime for UMKM-classified businesses carries individual sunset provisions — each taxpayer is entitled to a maximum of seven years of eligibility, and individual entrepreneurs (OP UMKM) will lose access beginning January 2026 unless they qualify for an extension. Expats operating through a qualifying structure should consult a local tax adviser to confirm their current eligibility status.

Investor KITAS: Foreign founders who establish a PT PMA are eligible to apply for an Investor KITAS (Limited Stay Permit for Investors). This permit is valid for two years and is renewable, with a Special ITAS available for periods of up to five years for investors meeting higher thresholds. A practical financial benefit is that Investor KITAS holders are exempt from the DKP-TKA (Manpower Development Fund) levy of USD 100 per month per expatriate, which is otherwise payable by standard work permit holders.

Bali’s evolving startup ecosystem: Bali in particular has developed a well-established infrastructure for digital businesses and early-stage startups, encompassing co-working spaces, entrepreneurial networks, and a substantial expat community. While not a formal government grant programme, this ecosystem provides practical and social support for founders in the early stages of building a business. Over the past decade, Indonesia has grown into one of Southeast Asia’s most dynamic environments for foreign professionals, and with the world’s fourth-largest population and a rapidly developing economy, the country continues to attract skilled expatriates — supported by streamlined immigration and employment regulations that invite qualified specialists to contribute actively to its growth.

What are the practical challenges of being self-employed or running a business in Indonesia?

Even taking recent reforms into account, operating a business in Indonesia as a foreigner involves real-world difficulties that extend well beyond completing the formal paperwork. Awareness of these hurdles before you begin can save considerable time, expense, and frustration.

Language barriers in bureaucratic processes: Bahasa Indonesia is the official language of all government platforms, legal instruments, and regulatory filings. The OSS portal, tax submissions, and notarial deeds are conducted primarily in Indonesian. Documents originating in other languages will typically need to be translated, adding both cost and delay to the process. While the DJP’s e-Filing system incorporates some English-language functionality, most procedural interactions require either Indonesian-language proficiency or the assistance of a professional intermediary.

The essential role of a local notary and legal adviser: The process of obtaining a work permit and stay permit is lengthy and involved, and specialist advice is strongly recommended. Company incorporation also cannot proceed without a licensed Indonesian notary (notaris). Most expat founders engage a local legal or business services firm to handle notarisation, OSS submissions, and continuing compliance. This is not merely advisable — for certain procedural steps, the involvement of a qualified local professional is a legal requirement.

Banking access: Opening a corporate bank account for a foreign-owned PT PMA in Indonesia can be a time-consuming process. Banks typically require a complete set of corporate documents — including the NIB, NPWP, Deed of Establishment, and Ministry of Law approval — in addition to the personal identity documentation of all directors and shareholders. Some institutions have more experience dealing with foreign-owned companies than others; a bank recommendation from your legal adviser is a sensible starting point.

Minimum capital lock-up: The paid-up capital deposited at incorporation cannot be transferred out of the company’s bank account for a minimum of 12 months from the deposit date. While these funds remain available for operational use during this period, the requirement nonetheless represents a significant liquidity commitment — particularly for service-oriented startups with relatively modest capital needs.

Sectoral restrictions and the KBLI classification system: The introduction of KBLI 2025 has made it necessary for companies to revisit and update their registered business activity codes. Selecting an incorrect KBLI code at the point of registration — for instance, one that does not fully encompass the services you intend to provide — can create complications with licensing, VAT registration, and future permit renewals. An adviser with current knowledge of the classification system is genuinely valuable in this regard.

Invoicing foreign clients: PT PMA companies are permitted to issue invoices to international clients in foreign currencies. All invoices should display the company’s NIB and NPWP. Depending on the nature of the services provided and the client’s jurisdiction, incoming payments from abroad may carry withholding tax implications, though applicable tax treaties can reduce or eliminate such obligations. Maintaining comprehensive and well-organised records of all foreign-currency transactions is essential for accurate annual tax reporting.

Ongoing compliance obligations: Following registration, a PT PMA must fulfil annual reporting requirements to the BKPM, file regular and annual tax returns with the DJP, maintain BPJS registrations covering all employees, and comply with manpower reporting obligations. Managing payroll and tax compliance is a complex undertaking due to evolving regulations and specific calculation requirements. Employers must remain across various contribution rates and filing deadlines to satisfy their legal duties. Retaining a local accountant (akuntan) on an ongoing basis is widely regarded as standard practice for foreign business owners.

Frequently asked questions

Can I freelance in Indonesia without setting up a company?

Not lawfully, if your income is being generated within Indonesia. Foreign nationals have no legal basis on which to operate as sole traders or informal freelancers in their own name. If your income derives entirely from clients or employers located outside Indonesia and you hold an E33G Remote Worker Visa, you may live and work in Indonesia without needing to incorporate a local entity. However, if you intend to invoice Indonesian clients or engage in commercial activity within the country, establishing a PT PMA is required. Working informally while on a tourist visa exposes you to significant legal and immigration risks.

Can I be both employed and self-employed at the same time in Indonesia?

In principle, a foreign national can simultaneously serve as a director of a PT PMA and be employed by it, but each role demands the appropriate permits. It is not possible to hold a standard employment work permit (KITAS for employment) while separately operating a business without the correct legal structuring in place. Where the foreign national is both a company owner and its employed director, an Investor KITAS or an appropriately structured combined arrangement is required. Legal advice should always be obtained before attempting to combine ownership and employment roles, as the permit conditions must align precisely.

How do I handle invoicing foreign clients from Indonesia?

If you are operating through a PT PMA, you are entitled to issue invoices to overseas clients denominated in foreign currencies. Each invoice should include the company’s NIB and NPWP. Indonesian VAT (PPN) at 11% applies to services rendered within Indonesia, but the export of services may qualify for zero-rating — your specific situation should be assessed by a professional adviser. All payments received from abroad must be thoroughly documented for annual tax reporting purposes, and any withholding tax obligations that may arise in the client’s home jurisdiction should be checked against Indonesia’s applicable tax treaty.

What happens to my business status if my visa changes or expires?

Your PT PMA remains in existence as a distinct legal entity regardless of changes to your personal visa status. However, if you are serving as the resident director and your Investor KITAS lapses or is not renewed, your authority to execute documents on the company’s behalf may be lost, and the company’s active permits and reporting obligations could be affected as a result. If you plan to depart Indonesia temporarily or permanently, you should ensure that a qualifying resident director is appointed and that all outstanding permits remain current. Work closely with your legal adviser to manage any such transition smoothly.

Do I need to pay Indonesian tax if I am only earning from clients outside Indonesia?

The answer depends on your tax residency status. If you hold a KITAS (including the E33G Remote Worker Visa) or have been physically present in Indonesia for more than 183 days within any 12-month period, you are very likely an Indonesian tax resident subject to tax on your global income. Credits for taxes paid in other jurisdictions may be available under a relevant bilateral tax treaty to prevent double taxation. If you remain in Indonesia for fewer than 183 days and do not hold a KITAS, you are generally treated as a non-resident and taxed only on income sourced from within Indonesia, at a flat 20% withholding rate. Personalised tax advice should always be obtained before concluding that no Indonesian tax liability exists.

Is it possible to set up a PT PMA without living in Indonesia?

Yes, in principle. A PT PMA may be incorporated by foreign individuals who are not resident in Indonesia, and many of the registration steps can be completed remotely or through a local agent. However, the company must have at least one resident director with the authority to sign documents on its behalf — non-resident directors do not carry this authority. Some founders address this by engaging a professional director service on an interim basis while they complete their own Investor KITAS application and arrange their relocation. Current requirements should be confirmed with the BKPM or a qualified local adviser.

What is the DKP-TKA fee and does it apply to me as a business owner?

The DKP-TKA (Manpower Development Fund, formerly known as DKPTKA) is a compulsory levy of USD 100 per month per expatriate employee, payable to the Ministry of Manpower as of 2025 — the current amount should be verified at kemnaker.go.id. Holders of an Investor KITAS — the permit category typically held by foreign founders who serve as directors of their own PT PMA — are exempt from this charge. Standard work permit holders employed by a company do not benefit from this exemption. It is important to verify your permit category carefully in order to determine whether the DKP-TKA applies to your situation.

Are there restrictions on which sectors a PT PMA can operate in?

Yes. Indonesia maintains a Positive Investment List (previously referred to as the Negative Investment List or DNI) that specifies which business sectors are open to foreign investment and defines the maximum permitted level of foreign ownership in each. Some sectors are entirely accessible to 100% foreign ownership, while others require the involvement of a local Indonesian partner holding a minimum stake. A limited number of sectors remain completely closed to any foreign investment. The list is updated periodically, and the current version must always be consulted through the OSS portal (oss.go.id) or the BKPM before finalising any business plan or selecting a KBLI classification code.