Local Company (PT PMDN)
Overview
What it is
- Ownership : Indonesian shareholders
- Use case: sectors closed to foreign investment, or local-structure investors
- Capital : lighter capital expectations than a PT PMA
- Licences : full operating licences via the OSS system
What we handle
Handled end to end
Deed & legal entity
We prepare the deed and establish your company.
NIB & licences
We obtain your business identification number and licences.
Tax (NPWP) & bank account
We register for tax and assist with banking.
Ownership & structuring advice
We advise on a compliant, secure ownership structure.
Related structures
Compare other entity types
Foreign Investment Co. (PT PMA)
The route for foreign-owned investment.
Representative Office
Establish a presence to test the market.
Market advisory
Strategy, research and expansion support.
FAQ
Frequently Asked Questions
Can a foreigner own a PT PMDN?
A PT PMDN is a domestic limited liability company owned by Indonesian shareholders, so it is not the vehicle for foreign ownership. Foreign-owned investment goes through a PT PMA instead. If you are unsure which applies to your business, ILA confirms whether a PT PMDN or PT PMA fits before you proceed.
When should a business use a PT PMDN instead of a PT PMA?
A PT PMDN is often used for business lines that are closed to foreign ownership, or where a fully local structure suits the investment. It also carries lighter capital expectations than a PT PMA. The right choice depends on your business line and ownership, which ILA reviews with you.
How much capital does a PT PMDN need?
A PT PMDN has lighter capital expectations than a PT PMA. The figure that applies to you is confirmed once ILA has looked at your activity, ownership and capital plans, as part of recommending the right entity and handling the setup.
What licences can a PT PMDN get?
A PT PMDN can obtain full operating licences through the OSS system. ILA prepares the deed and establishes the company, obtains the NIB and licences, registers the company for tax (NPWP) and assists with opening the bank account.
Is this the right structure for you?
Tell us your activity, ownership and capital, we’ll confirm the best entity and handle setup.
