In 2026, Indonesia is not only a market for entrepreneurs and investors seeking growth in Southeast Asia; it is also one of the countries offering a practical route to obtain residency by establishing a company. However, the critical point is this: establishing a company in Indonesia does not automatically grant residency. Nevertheless, once the setup is completed with the right type of company (especially PT PMA), you will gain a status that allows you to apply for investor residency/work permits such as Investor KITAS.
In this guide, along with the 2026 updates; we comprehensively address which type of company is more appropriate for residency goals, the establishment steps through OSS RBA, capital/compliance requirements, durations, and costs, as well as the logic of “linking company establishment to residency” from end to end.
Why is the “Residency by Establishing a Company” Model So Popular?
For foreigners wishing to stay long-term in Indonesia, options often get stuck on visa types: business, investment, family, or retirement-based routes. The advantage of progressing based on company establishment is that it provides the investor with both a strong justification for operational rights and residency application.
Still, it is important to know that the process runs on two separate axes:
- Company establishment axis: Establishing the company and obtaining licenses through the OSS RBA system.
- Immigration axis: Applying for and obtaining Investor KITAS with company documents and proof of investment.
Types of Companies for Foreigners with Residency Goals: PT PMA vs RO vs Local PT
The most critical difference among the options for foreigners to establish companies in Indonesia in terms of residency goals is the operational authority and visa sponsorship potential.
PT PMA (Foreign Capital Limited Company): The Strongest Path for Residency
PT PMA allows foreign investors to establish a structure that can generate income and operate fully in Indonesia. As of 2026, 100% foreign ownership has become possible in over 200 sectors; in some sectors, a partnership model may be required. The point that highlights PT PMA for those aiming for residency is that it provides the most suitable corporate ground for applying for Investor KITAS.
The investment threshold for PT PMA is an important filter:
- Minimum investment plan: IDR 10 billion (approximately USD 650,000–700,000 range)
- Paid-up capital expectation: Generally, 25% of the plan (USD 170,000+ levels) and proof of this through the Indonesian banking system
Representative Office (RO): Low Barrier, Limited Authority
A representative office may be attractive for testing the market and conducting research. However, it cannot generate income and its commercial activities are limited. On the residency side, it usually only serves as a basis for a narrower permit like “Chief Representative.” If the residency goal is to “stay long-term as an investor,” RO often remains secondary in most scenarios.
Local PT: Not Suitable for Foreigners
Local PT is a structure entirely owned by Indonesian citizens. Therefore, it is practically unsuitable for foreigners to establish a residency/business model through direct ownership.
Establishing a Company in Indonesia in 2026: End-to-End Process with OSS RBA System
The processes of company establishment and licensing in Indonesia are managed through OSS RBA (Online Single Submission – Risk Based Approach). This system accelerates the process by digitizing investment and license applications. With the regulations published in 2025 and coming into effect on June 5, 2025 (reflected in 2026 practices), the OSS RBA approach has become even more centralized.
The “standard” total duration for company establishment in most files is typically 4–6 weeks. With proper preparation and professional coordination, it can sometimes be reduced to 2–3 weeks. However, if your sector falls into the “high risk” category, additional permits may extend the duration.
1) Company Name Reservation (AHU Online)
The first step is to reserve the company name. In Indonesia, names are generally at least 3 words, written in the Latin alphabet, and must be compatible with your chosen KBLI (activity code). This step usually concludes within 1 day in most scenarios.
2) Preparation of Articles of Association / Establishment Deed and Notary Process
You prepare the establishment deed of the company at a notary. Since Bahasa Indonesia is mandatory in Indonesia, bilingual texts are preferred in most files. This document includes the shareholder structure, management (director/commissioner), capital, and the subject of activity (KBLI). The average duration is around 3–5 days.
3) Acquisition of Legal Entity Status with Kemenkumham Approval (SK Decree)
The notary submits the application to the relevant ministry system and a decision letter is obtained for the company’s legal entity status. This stage usually takes 1–2 days.
4) Obtaining Tax Number (NPWP)
The company needs an NPWP to enter banking and tax processes. The application can be made online, and in most cases, you can receive results on the same day. NPWP is also the key for future processes such as payroll, withholding, VAT, and corporate tax.
5) OSS RBA Registration and Issuance of NIB (Business Identification Number)
The backbone of the establishment is the NIB. The NIB takes on roles such as business license, importer identity, and customs identity in many scenarios. The process generally takes 4–8 days; however, in “high risk” KBLI, this stage may extend due to additional permits to 30+ days.
The official portal for accessing the system is OSS RBA. (The application flow and license production are managed through this platform.)
6) Domicile (Business Address) and Office Setup: Physical or Virtual Office?
Especially in locations like Jakarta and Bali, the requirement for a commercial address for the company is one of the most frequently encountered issues. In many regions, it is not possible to register a company with a residential address. Therefore, in 2026, the virtual office model is widely used. The important thing is the compliance of the address with regulations and the correct preparation of the required documents (e.g., notary letter).
7) Capital Transfer and Corporate Bank Account
If there is a residency goal in the PT PMA model, the “set it up and finish” approach is not sufficient. Since capital/investment proof is critical on the immigration side, the capital transfer must be made in a way that leaves a proper trace through an Indonesian bank. Opening a corporate account is also based on this document set.
8) Sectoral Permits (High-Risk KBLI)
You may need additional licenses in trade, import/export, or highly regulated areas after obtaining the NIB. Although these permits are managed through OSS, their “risk-based” nature may extend the duration due to internal evaluations. At this point, the architecture of the activity code (KBLI), the correct delineation of the scope, and the consistency of the documents become critical.
Linking Company Establishment to Residency: The Logic of Investor KITAS (2026)
After establishing a company, the most commonly used route for residency goals is the Investor KITAS application. It should be emphasized again: Establishing a PT PMA does not automatically grant residency; however, it generates eligibility for applying for Investor KITAS.
Basic Eligibility and Expected Proofs
- Operational PT PMA: Documents proving the NIB and that the company is active/established.
- Investment plan: Demonstration of investment intent and structure at the IDR 10 billion level.
- Paid-up capital: Practically a 25% paid-up capital expectation (USD 170,000+ range), supported by bank proofs.
- Employment/economic contribution: In some scenarios, expectations for 5+ Indonesian employment or similar economic contributions may arise.
Duration and Renewal Dynamics
Investor KITAS is generally obtained with initial durations of 1–2 years and can be renewed depending on the immigration administration’s assessment. If compliance and continuity are ensured, a transition plan to longer-term residency statuses (e.g., KITAP logic) can also be developed. The evaluation period for the application varies between 2–4 weeks in most files.
Family Members
Investor residency status can also lay the groundwork for dependent residency permits (like family KITAS) for spouse and children depending on the conditions. Investors with family planning should design the document set during the establishment phase to also carry the “family file,” reducing the workload.
2026 Cost Items: Establishment, Notary, Office, and Capital
Those aiming for residency by establishing a company in Indonesia need to think of the budget in two separate layers: (1) operational expenses related to establishment, (2) investment/capital requirements.
- Company establishment registration costs: approximately USD 1,000–3,000
- Notary and documentation: approximately USD 500–2,000
- Virtual office: approximately USD 100/month in some regions
- Capital requirement: paid-up capital practically USD 170,000+ levels (may vary depending on sector and structure)
The biggest variable in this table is the risk level of your sector and the set of permits. In high-risk sectors, both permit costs and time costs increase.
Tax and Employment Dimension: Compliance Area Strengthening the Residency File
In strategies that combine company establishment with residency, “compliance” not only reduces penalty risks; it also strengthens the logic of the application by demonstrating that the company is genuinely conducting activities.
- Corporate tax: the common rate is around 22% (may vary depending on the company and regulations).
- Social security registrations for employees: Obligations like BPJS arise when personnel employment begins.
- Payroll and payroll processes: Especially for foreign managers, local employees, and possible “posted worker” models, payroll-tax compliance becomes critical.
At this stage, issues like incorrect payroll, incomplete declarations, or activities outside the scope of the license can create not only financial risks but also query risks in residency renewals.
Common Mistakes (and Points to Pay Attention to in 2026)
- Incorrect KBLI selection: Narrows the scope of the license or places it in the wrong risk class, extending the duration.
- Weakening capital proof: Creates a weak file perception in the Investor KITAS application.
- Address/virtual office incompatibility: Inconsistencies in domicile documents can also affect banking and licensing processes.
- Appearance of a company without activity: May raise questions in residency renewals.
Why Does Professional Support Make a Difference in This Process?
Aiming for residency by establishing a company in Indonesia is much more than “filling out forms.” Establishment, licenses, banking, tax infrastructure, and immigration applications progress interconnectedly. A mistake made in one step can create time loss and re-documentation cycles in subsequent steps.
As Corpenza, with our focus on international business development and mobility; we progress from the company establishment phase to global accounting/compliance, payroll, multinational personnel structures, and tax optimization approaches like posted worker models when necessary. Thus, the goal is not only to “establish the company” but to create a robust and auditable operational structure that supports the residency strategy.
Conclusion: Is it Possible to Obtain Residency by Establishing a Company in Indonesia in 2026?
Yes, in 2026 you can create a strong basis for an investor residency permit by establishing a PT PMA in Indonesia. The process begins with company establishment and obtaining licenses through OSS RBA; then continues with the Investor KITAS application based on capital and compliance proofs. The correct sector selection, appropriate KBLI architecture, proper structuring of bank/capital flow, and tax-compliance foundation make the residency goal realistic and sustainable.
Disclaimer: This content is for general informational purposes; it does not constitute legal, financial, or immigration advice. Regulations and practices may change; application requirements may vary depending on the nature of the file. We recommend checking the announcements of official authorities for the most up-to-date information and evaluating the process with expert professionals.
