# id-formation

## Indonesia Company Formation Skill v1.0

## Verified rates & thresholds (accountant-reviewed)

> Reviewed against the cited tax authorities by **RILIA PUTRI** on 2026-06-03.
> Items flagged for further clarification are tracked separately and excluded here.
> This block is generated from verified `skill_facts` — edit the facts, not the prose.

### Formation

- **UD / OP tax treatment** — Individual businesses (UD/OP) are generally subject to progressive individual income tax rates ranging from 5%–35% under UU PPh Art. 17. Eligible taxpayers may utilize UMKM final income tax regime at 0.5% of gross turnover under PP 55/2022, including exemption for the first IDR 500 million annual turnover for eligible individual taxpayers.  _(UU PPh Art. 17 as amended by UU HPP; PP 55/2022 Art. 56–60.)_
- **CV tax treatment** — CV is generally treated as a corporate taxpayer (subjek pajak badan) under Indonesian income tax law. Standard corporate income tax rate generally 22% under prevailing UU PPh provisions. Eligible CVs may utilize UMKM final tax regime at 0.5% of gross turnover for up to 4 years if qualification requirements are satisfied.  _(UU PPh Art. 2(1)(b) & Art. 17; UU HPP; PP 55/2022 Art. 59.)_
- **PT tax treatment** — PT entities are generally subject to corporate income tax rate of 22% under prevailing Indonesian tax regulations. Eligible taxpayers may obtain Article 31E facility (50% reduction of standard CIT rate on qualifying taxable income portion) and/or utilize UMKM final tax regime at 0.5% of gross turnover for up to 3 years if statutory requirements are satisfied.  _(UU PPh Art. 17 & Art. 31E as amended by UU HPP; PP 55/2022 Art. 59.)_
- **PT Perorangan tax treatment** — PT Perorangan is generally treated as a corporate taxpayer under Indonesian income tax regulations and generally subject to the prevailing 22% corporate income tax rate. Eligible MSME PT Perorangan may utilize UMKM final income tax regime at 0.5% of gross turnover for up to 4 years if eligibility requirements are satisfied. "No time limit" should not be stated as absolute because prevailing utilization period under PP 55/2022 for corporate taxpayers generally remains subject to statutory time limitations.  _(UU PPh Art. 17 as amended by UU HPP; PP 55/2022 Art. 59.)_
- **PMA tax treatment** — PMA companies are generally subject to prevailing Indonesian corporate income tax rules, including the standard corporate income tax rate currently generally 22% under UU PPh as amended by UU HPP. Qualifying investments in pioneer industries may obtain Tax Holiday facilities in the form of 50%–100% corporate income tax reduction for 5–20 tax years depending on investment value under PMK 130/PMK.010/2020. Certain qualifying investments may also obtain Tax Allowance facilities including 30% investment allowance over 6 years, accelerated depreciation/amortization, extended loss carry-forward, and reduced dividend withholding tax under PP 78/2019.  _(UU PPh Art. 17 as amended by UU HPP; PP 78/2019; PMK 130/PMK.010/2020.)_

## Section 1 -- Quick Reference

**Quick Reference**

| Field | Value |
| --- | --- |
| Country | Republic of Indonesia (Republik Indonesia) |
| Currency | IDR (Indonesian Rupiah) |
| Company registrar | Ministry of Law and Human Rights (Kementerian Hukum dan HAM, "AHU") for legal entities; OSS RBA (Online Single Submission Risk-Based Approach) for business identity and licensing |
| Investment authority | Ministry of Investment / BKPM (Kementerian Investasi / Badan Koordinasi Penanaman Modal) |
| Tax authority | Directorate General of Taxes (Direktorat Jenderal Pajak, "DJP") |
| Key legislation | UU 40/2007 (Company Law / Perseroan Terbatas); UU 11/2020 (Job Creation Law / Cipta Kerja); PP 8/2021 (PT Perorangan implementing regulation); UU 25/2007 (Investment Law); Perpres 49/2021 (Positive Investment List) |
| OSS portal | oss.go.id |
| Typical formation time | 1--3 working days for PT Perorangan; 1--3 weeks for full PT; 4--12 weeks for PMA (including BKPM coordination and bank capital injection) |
| Standard corporate tax rate (PPh Badan) | 22% (UU 7/2021 / HPP Law) |
| Skill version | 1.0 |

## Section 2 -- Entity Types Comparison

**Entity Types Comparison**

| Feature | UD (Usaha Dagang) | CV (Commanditaire Vennootschap) | PT (Perseroan Terbatas) | PT Perorangan | PMA (PT with foreign capital) |
| --- | --- | --- | --- | --- | --- |
| Legal personality | No (owner = business) | No (treated as Badan for tax) | Yes | Yes | Yes |
| Liability | Unlimited personal | Unlimited for active partner; limited for silent partner | Limited to share capital | Limited to share capital | Limited to share capital |
| Min. founders | 1 (sole owner) | 2 (one active + one silent) | Historically 2; relaxed to 1 for micro/small under UU 11/2020 | 1 (must be WNI / Indonesian citizen) | 2 founders (can be foreign individuals or entities); shareholding subject to KBLI |
| Foreign ownership | Not available (WNI only) | Restricted in practice | Yes via PMA route | No (WNI only) | Yes, subject to Positive Investment List |
| Min. paid-up capital | None statutory | None statutory | Per UU 11/2020 / PP 8/2021: founders agree; no fixed floor for micro/small | Founders agree; aligned with micro/small thresholds | IDR 10,000,000,000 issued and paid-up per KBLI (typical floor under BKPM Reg. 4/2021); investment plan typically > IDR 10B excluding land and buildings |
| Tax treatment | PPh OP (individual income tax, progressive) | PPh Badan (treated as Badan) | PPh Badan (22%) | PPh Badan (22%); may opt into PP 55/2022 final-tax MSME regime if eligible | PPh Badan (22%) |
| NPWP | Issued under owner's individual NPWP | Separate Badan NPWP | Separate Badan NPWP | Separate Badan NPWP | Separate Badan NPWP |
| Notarial deed (akta) required | No | Yes (akta pendirian) | Yes (akta pendirian + AHU approval) | No -- electronic statement via AHU/OSS | Yes (akta pendirian + AHU approval) |
| Admin burden | Low | Low--Medium | Medium--High | Low | High |
| Audit | Not required | Not required | Required if meets PT criteria (public, financial sector, large) | Not required | Required if meets PT criteria |

**Recommended defaults:**

- Solo Indonesian founder, small operations, individual income preferred: **UD** or **Orang Pribadi** registration.
- Solo Indonesian founder wanting limited liability and Badan tax treatment: **PT Perorangan**.
- Two or more Indonesian founders, growth-oriented: **PT** (standard).
- Any foreign shareholder: **PMA** (a PT with foreign capital, subject to BKPM).

## Section 3 -- Required Inputs and Refusal Catalogue

### Required intake before recommending an entity

- **Intake checklist** — 1. Nationality of each founder (WNI vs WNA). 2. Number of founders and whether single-founder shortcuts are sought. 3. Intended KBLI code(s) (5-digit industry classification). 4. Expected annual turnover (omzet) and asset base. 5. Sector risk under OSS RBA: Low / Medium-Low / Medium-High / High. 6. Capital available for paid-up share capital and investment plan. 7. Whether founders need a working visa (KITAS) -- flagged, out of scope. 8. Domicile city/regency (kabupaten/kota) -- determines local zoning (RDTR).

### Refusal catalogue

- **R-ID-F1 -- Nominee structures to circumvent foreign ownership limits** — Using a nominee Indonesian shareholder to hold shares on behalf of a foreigner in a sector closed or restricted on the Positive Investment List (Perpres 49/2021) is void under Article 33 of UU 25/2007 (Investment Law). This skill will not draft or advise on nominee arrangements designed to bypass DNI/Positive Investment List restrictions. Escalate to an Indonesian advokat (advocate).  _(Article 33 of UU 25/2007 (Investment Law); Perpres 49/2021)_
- **R-ID-F2 -- Sectors closed to foreign investment** — Sectors fully closed under the Positive Investment List (e.g., narcotics cultivation, gambling, chemical weapons, certain cultural heritage activities) cannot be entered via PMA. This skill will not assist.  _(Positive Investment List)_
- **R-ID-F3 -- KITAS / immigration sponsorship** — Working visa (KITAS), RPTKA, and IMTA processes are out of scope. The skill flags that a PMA director who works in Indonesia generally requires a KITAS sponsored by the PMA, but the user must engage an immigration consultant.
- **R-ID-F4 -- Bank account opening for foreigners without local presence** — Indonesian bank KYC for PMA accounts typically requires in-person attendance by directors or a properly notarised PoA. This skill flags the requirement but does not guarantee any specific bank's onboarding.
- **R-ID-F5 -- Crypto, fintech, payment, and lending sectors** — Crypto-asset trading is regulated by Bappebti; payments and lending by OJK and Bank Indonesia. Formation alone is insufficient. Refuse to advise on operations until sectoral licensing is mapped.
- **R-ID-F6 -- Tax avoidance via UD vs PT switching** — Recommending UD purely to access lower individual progressive rates while operating de facto as a corporate entity, when substance points to PT, is refused. Document substance and apply general anti-avoidance principles (Pasal 18 UU PPh).  _(Pasal 18 UU PPh)_

## Section 4 -- UD (Usaha Dagang) / Sole Proprietorship (Perseorangan)

### Nature

- **UD nature** — UD is the simplest form of doing business in Indonesia. It is not a separate legal person. The owner trades in their own name (or under a trade name) and is fully liable.

### Key features

- **UD key features** — - Owner must be WNI (Indonesian citizen). - No notarial deed required to form. Optional notarised statement (Surat Keterangan Usaha) from the local kelurahan/kecamatan is still common practice. - NPWP: the owner uses their **personal NPWP (NPWP Orang Pribadi)**; the business is not a separate taxpayer. - NIB (Nomor Induk Berusaha / Business Identification Number) can still be obtained via OSS by selecting "Perseorangan" -- this is now the modern way to formalise a UD. - Tax: profits taxed as personal income under PPh Orang Pribadi at progressive rates (5% / 15% / 25% / 30% / 35% per UU 7/2021 / HPP Law brackets for 2025). - MSME final-tax regime (PP 55/2022 successor to PP 23/2018): individual MSME with gross turnover up to IDR 4.8 billion may elect 0.5% final tax for a limited window (typically 7 years for Orang Pribadi from registration). Effective only on first IDR 500,000,000 of gross turnover per year under the HPP Law amendment for individuals.  _(UU 7/2021 / HPP Law; PP 55/2022 successor to PP 23/2018)_

### When to use

- Single Indonesian founder, micro turnover, low-risk activity (retail, services, food stall, freelancing).
- Founder accepts unlimited personal liability.

### When to avoid

- Liability-sensitive activities.
- Foreign capital required.
- Plans to raise external equity.

## Section 5 -- CV (Commanditaire Vennootschap / Persekutuan Komanditer)

### Nature

- **CV nature** — A CV is a partnership formed by notarial deed between **sekutu komplementer** (active/general partners, fully liable) and **sekutu komanditer** (silent/limited partners, liable only up to capital contribution). It is **not** a separate legal personality, but Indonesian tax law treats a CV as a **Badan** for income tax purposes (subject to PPh Badan).

### Formation

- **CV formation steps** — 1. Notarial deed of establishment (Akta Pendirian) by a Notaris. 2. Registration with the Ministry of Law and Human Rights via SABU (Sistem Administrasi Badan Usaha) -- since 2018 CVs are recorded centrally rather than at the District Court (Pengadilan Negeri). 3. NPWP Badan for the CV. 4. NIB via OSS. 5. KBLI selection and sectoral licensing as required.

### Key features

- **CV key features** — - Two classes of partners; only komplementer may bind the partnership. - No statutory minimum capital. - Taxed as a Badan (PPh Badan 22%); profits distributed to partners are not taxed again at partner level (PPh 23 / dividend rules do not apply in the same way as PT dividends -- see Pasal 4(3) UU PPh). - Limited recognition in cross-border transactions; foreign counterparties often prefer a PT.  _(Pasal 4(3) UU PPh)_

### When to use

- Two or more Indonesian founders wanting Badan tax treatment without the formality and capital flexibility issues of a PT.
- Family businesses where one partner is the active operator and others are passive investors.

### When to avoid

- Foreign capital is needed (use PMA).
- The active partner cannot accept unlimited liability.
- Public-facing brand or future fundraising plans.

## Section 6 -- PT (Perseroan Terbatas) -- Standard Limited Liability Company

### Nature

- **PT nature** — A PT is a separate legal person established by notarial deed and approved by the Ministry of Law and Human Rights under UU 40/2007. It has full limited liability, shares, organs (RUPS / shareholders' meeting, Direksi / board of directors, Komisaris / board of commissioners), and corporate-tax treatment.  _(UU 40/2007)_

### Founders

- **PT founders requirements** — - Historically required at least **2 founders** under UU 40/2007 Article 7. - UU 11/2020 (Cipta Kerja) and PP 8/2021 introduced a **single-founder PT for micro and small businesses** -- this is the "PT Perorangan" (see Section 7). A standard PT still requires 2+ founders.  _(UU 40/2007 Article 7; UU 11/2020; PP 8/2021)_

### Capital

- **PT capital requirements** — - UU 40/2007 originally required minimum authorised capital of IDR 50,000,000. UU 11/2020 amended this -- founders may now **agree** on the authorised capital; the IDR 50M floor is no longer fixed in the statute for non-PMA PTs (subject to founders' agreement and sectoral rules). - At least **25% of authorised capital must be issued and fully paid up** at incorporation (UU 40/2007 Article 33). - Sectoral rules (banking, insurance, mining, etc.) impose higher minimums.  _(UU 40/2007 Article 33; UU 11/2020)_

### Governance

- **PT governance structure** — - Direksi (one or more directors) -- manages day-to-day. - Komisaris (one or more commissioners) -- supervisory. - RUPS (Rapat Umum Pemegang Saham) -- shareholders' meeting; AGM within 6 months of fiscal year-end.

### Formation steps

- **PT formation steps** — 1. Name reservation via AHU Online (ahu.go.id). 2. Notarial deed of establishment (Akta Pendirian) -- includes Anggaran Dasar (Articles of Association). 3. AHU approval (Surat Keputusan Menkumham) -- legal personality from date of SK. 4. NPWP Badan from DJP. 5. NIB and licences via OSS RBA. 6. Sectoral licences as required by KBLI risk class. 7. Domicile / location compliance (Surat Keterangan Domisili where still required at local level).

### Tax

- **PT tax** — PPh Badan 22% (UU 7/2021). 50% rate reduction on the portion of taxable income up to IDR 4.8B if gross turnover does not exceed IDR 50B (Pasal 31E UU PPh). Eligible MSME PTs may use PP 55/2022 final-tax regime at 0.5% on turnover up to IDR 4.8B for a limited window (3 years for PT from registration), after which they revert to standard PPh Badan.  _(UU 7/2021; Pasal 31E UU PPh; PP 55/2022)_

## Section 7 -- PT Perorangan (Single-Founder Micro/Small PT)

### Origin

- **PT Perorangan origin** — Introduced by **UU 11/2020 (Cipta Kerja / Job Creation Law)** and operationalised by **PP 8/2021** on Authorized Capital of Companies and Registration, Establishment, Amendment and Dissolution of Companies Meeting the Criteria for Micro and Small Businesses.  _(UU 11/2020; PP 8/2021)_

### Definition (PT Perorangan)

- **PT Perorangan definition** — - Single founder, who must be a **WNI (Indonesian citizen)** aged 17+ and legally capable. - Each WNI may establish **only one** PT Perorangan per year (PP 8/2021 Article 6). - Must meet micro or small business criteria (see thresholds below).  _(PP 8/2021 Article 6)_

### Micro and Small business thresholds (PP 7/2021)

**Micro and Small business thresholds (PP 7/2021)**  _(PP 7/2021)_

| Class | Capital (excl. land & buildings) | Annual turnover (omzet) |
| --- | --- | --- |
| Micro (Mikro) | up to IDR 1,000,000,000 | up to IDR 2,000,000,000 |
| Small (Kecil) | > IDR 1B and up to IDR 5,000,000,000 | > IDR 2B and up to IDR 15,000,000,000 |
| Medium (Menengah) | > IDR 5B and up to IDR 10,000,000,000 | > IDR 15B and up to IDR 50,000,000,000 |

- **Conversion requirement** — A PT Perorangan must remain within **Micro or Small** thresholds. Once thresholds are exceeded, it must convert into a standard PT (akta pendirian, AHU approval, etc.) within the time prescribed by PP 8/2021.  _(PP 8/2021)_

### Formation

- **PT Perorangan formation steps** — 1. Registered **electronically** via the AHU portal (ahu.go.id) -- no notarial deed required. 2. The founder files a **Surat Pernyataan Pendirian** (Statement of Establishment) containing the company name, address, purpose, capital, share data, and founder/director details. 3. Ministry of Law and Human Rights issues a registration certificate. 4. NPWP Badan and NIB via OSS follow.

### Capital

- **PT Perorangan capital** — No statutory minimum -- the founder declares the issued and paid-up capital in the Surat Pernyataan, consistent with the micro/small business profile.

### Tax treatment

- **PT Perorangan tax treatment** — Treated as a Badan -- subject to **PPh Badan 22%**. May opt into the **PP 55/2022** final-tax MSME regime (0.5% on turnover up to IDR 4.8B) for up to 3 years from registration if eligible.  _(PP 55/2022)_

### Annual obligations

- **PT Perorangan annual obligations** — - File an annual **Laporan Keuangan** (financial report) via the AHU portal. - File annual SPT Tahunan PPh Badan (Form 1771) with DJP by 30 April (default for calendar year).

### When to use

- Solo Indonesian founder who wants limited liability and Badan tax treatment.
- Micro or small turnover.
- Speed and cost are priorities (formation is materially cheaper and faster than a standard PT because no notaris is required).

### When to avoid

- Multiple founders -- use a standard PT.
- Foreign capital -- PT Perorangan cannot be a PMA.
- Expected breach of micro/small thresholds -- start as a standard PT.

## Section 8 -- PMA (Penanaman Modal Asing) -- Foreign-Owned PT

### Nature

- **PMA nature** — A PMA is a PT (regulated by UU 40/2007) with at least one foreign shareholder (individual or entity). It is governed in addition by **UU 25/2007 (Investment Law)** and supervised by the **Ministry of Investment / BKPM (Badan Koordinasi Penanaman Modal)**.  _(UU 40/2007; UU 25/2007)_

### Foreign ownership and the Positive Investment List

- **PMA foreign ownership rules** — - Replaced the old Negative Investment List (DNI). Now governed by **Perpres 49/2021** (as amended) -- the Positive Investment List (Daftar Prioritas Investasi). - Sectors are now generally **open to 100% foreign ownership**, with explicit exceptions: closed sectors, sectors reserved for cooperatives and MSMEs, and sectors open with conditions (foreign cap, partnership requirement, special licensing). - The KBLI code determines the foreign ownership rule. Always cross-check the current Perpres 49/2021 annex and any sectoral Perpres updates.  _(Perpres 49/2021)_

### Capital requirements (BKPM Regulation 4/2021 as updated)

- **PMA capital requirements** — - **Total investment value** must exceed **IDR 10,000,000,000** (ten billion) **per KBLI per business location**, excluding land and buildings. - **Issued and paid-up capital** must be at least **IDR 10,000,000,000**, with each shareholder holding shares of at least IDR 10,000,000. - Exceptions exist for certain sectors (e.g., wholesale trade, food and beverage, construction services) where higher floors apply per BKPM rules -- TBC against the current BKPM regulation when advising.  _(BKPM Regulation 4/2021)_

### Founders

- **PMA founders requirements** — - Minimum **2 shareholders** (at least one foreign). - Foreign shareholders can be individuals or legal entities (a foreign parent company). - Direksi and Komisaris can be foreign nationals; working directors generally need a KITAS sponsored by the PMA (out of scope -- see R-ID-F3).

### Formation steps

- **PMA formation steps** — 1. Pre-check KBLI against the Positive Investment List for foreign ownership and conditions. 2. Reserve company name via AHU Online. 3. Draft and sign **Akta Pendirian** before an Indonesian Notaris. 4. Obtain AHU approval (Surat Keputusan Menkumham). 5. Obtain **NIB via OSS RBA**, with PMA status flagged -- this also generates the legacy "Izin Usaha" equivalent for low/medium-risk sectors. 6. NPWP Badan from DJP. 7. Inject paid-up capital into an Indonesian bank account; obtain bank statement / SKDU as needed. 8. File **LKPM (Laporan Kegiatan Penanaman Modal)** -- quarterly Investment Activity Report to BKPM. 9. Sectoral licences (e.g., for fintech, mining, education) -- mapped via OSS RBA risk class.

### Tax

- **PMA tax** — PPh Badan 22%. Dividends paid to foreign shareholders subject to Pasal 26 withholding (20% statutory, reduced by tax treaty where applicable). Indonesia's **tax holiday** (PMK 130/2020) and **tax allowance** regimes may apply to qualifying pioneer industries -- specialist advice required.  _(Pasal 26; PMK 130/2020)_

### Reporting

- **PMA reporting obligations** — - Quarterly LKPM to BKPM for the first year and ongoing. - Annual SPT Tahunan PPh Badan to DJP. - Compliance with transfer pricing documentation (PMK 213/2016) for related-party transactions above thresholds.  _(PMK 213/2016)_

## Section 9 -- Tax Treatment Comparison

**Tax Treatment Comparison**

| Entity | Income tax regime | Statutory rate | Final MSME option (PP 55/2022) | Reporting form |
| --- | --- | --- | --- | --- |
| UD / Orang Pribadi | PPh Orang Pribadi (progressive) | 5% / 15% / 25% / 30% / 35% on bands per UU 7/2021 | 0.5% final on turnover up to IDR 4.8B (first IDR 500M tax-free for Orang Pribadi); 7-year window | SPT Tahunan PPh OP (1770 / 1770S / 1770SS) |
| CV | PPh Badan (CV treated as Badan) | 22% | 0.5% final on turnover up to IDR 4.8B; 4-year window for non-PT badan | SPT Tahunan PPh Badan (1771) |
| PT (standard) | PPh Badan | 22%; 50% reduction on portion of taxable income up to IDR 4.8B if turnover ≤ IDR 50B (Pasal 31E) | 0.5% final on turnover up to IDR 4.8B; 3-year window for PT | SPT Tahunan PPh Badan (1771) |
| PT Perorangan | PPh Badan | 22% | 0.5% final on turnover up to IDR 4.8B; 3-year window | SPT Tahunan PPh Badan (1771) |
| PMA | PPh Badan | 22%; potential tax holiday/allowance for pioneer sectors | Not normally applicable (capital and turnover exceed MSME thresholds by design) | SPT Tahunan PPh Badan (1771) |

- **VAT rate and PKP registration** — VAT (PPN) is currently **12%** from 1 January 2025 (UU 7/2021 / HPP Law; the previous 11% rate applied from 1 April 2022 to 31 December 2024). VAT registration (PKP) is mandatory when turnover exceeds IDR 4,800,000,000.  _(UU 7/2021 / HPP Law)_
- **Withholding obligations** — Withholding obligations under PPh 21 (employment), PPh 23 (services), PPh 26 (cross-border), and PPh 4(2) (final) apply across entity types.

## Section 10 -- Registration via OSS RBA (Online Single Submission Risk-Based Approach)

Since 2021, business licensing is centralised through **OSS RBA** at **oss.go.id**, mandated by UU 11/2020 and PP 5/2021 (Risk-Based Business Licensing).

### Risk classes (per PP 5/2021)

**Risk classes (per PP 5/2021)**  _(PP 5/2021)_

| Risk class | What is issued | Approval pathway |
| --- | --- | --- |
| Low (Rendah) | NIB only | Automatic on submission |
| Medium-Low (Menengah Rendah) | NIB + standard certificate (sertifikat standar) self-declared | NIB issued; commitments self-declared |
| Medium-High (Menengah Tinggi) | NIB + verified standard certificate | NIB issued; standard certificate must be verified by ministry/agency before operations |
| High (Tinggi) | NIB + Izin (full licence) | NIB issued; full licence required from sectoral ministry before operations |

### Core OSS workflow

- **Core OSS workflow steps** — 1. Account creation in OSS using NIK (Orang Pribadi) or director's NIK (Badan). 2. Select entity type (Orang Pribadi, UD, CV, PT, PT Perorangan, PMA, etc.). 3. Enter KBLI codes (5-digit industry codes). 4. OSS classifies each KBLI by risk and lists required commitments. 5. **NIB issued** -- 13-digit Business Identification Number replacing the old TDP, SIUP, and API-U. 6. Sectoral licences / standard certificates pulled through OSS. 7. **NPWP** -- OSS integrates with DJP to issue an NPWP if not already held. 8. **BPJS Kesehatan and Ketenagakerjaan** -- registration triggered through OSS for employers. 9. **Bank account** -- opened separately using NIB, NPWP, akta, and SK Menkumham (for PT/PMA).

### Key documents to keep on file post-registration

- **Key documents post-registration** — - Akta Pendirian (for PT/CV/PMA) -- notarial deed. - SK Menkumham (for PT and PMA) -- AHU approval letter. - Surat Pernyataan Pendirian (for PT Perorangan) -- statement of establishment. - NIB certificate. - NPWP Badan (or NPWP Orang Pribadi for UD). - Sertifikat Standar or Izin per KBLI risk class. - LKPM reports (PMA).

## Section 11 -- Worked Example: Solo Developer in Jakarta

**Scenario:** Andi, WNI, 28, freelance software developer in Jakarta. Expects IDR 900,000,000 gross revenue in 2025, mostly Indonesian SME clients. No employees, home office, wants limited liability.

### Option A -- Orang Pribadi (sole proprietor)

- **Option A calculation** — Register NPWP Orang Pribadi and NIB Perseorangan via OSS. KBLI 62019 (Aktivitas Pemrograman Komputer Lainnya) -- typically low or medium-low risk. Tax: elect PP 55/2022 final 0.5%, first IDR 500M tax-free (HPP individual rule). Estimated final tax: 0.5% × (900M − 500M) = **IDR 2,000,000**. No limited liability.  _(PP 55/2022; HPP individual rule)_

### Option B -- PT Perorangan

- **Option B calculation** — Establishment via AHU portal -- no notaris. Capital agreed: IDR 50,000,000 (illustrative). Tax: PPh Badan 22%, eligible for PP 55/2022 final 0.5% for 3 years. Estimated final tax: 0.5% × 900M = **IDR 4,500,000**. After 3 years, PPh Badan 22% with Pasal 31E 50% reduction on profits up to IDR 4.8B.  _(PP 55/2022; Pasal 31E)_

### Recommendation

- Lowest tax in years 1--3: **Orang Pribadi with PP 55/2022 election** (IDR 500M individual exemption beats Badan final 0.5%).
- Limited liability and corporate brand: **PT Perorangan**, accepting marginally higher tax.

## Section 12 -- Conservative Defaults

- **Conservative defaults list** — When intake is incomplete or ambiguous, default as follows: 1. **Default entity for a solo Indonesian founder:** PT Perorangan, unless turnover is clearly under MSME thresholds and the user explicitly accepts unlimited liability (then UD / Orang Pribadi). 2. **Default entity for 2+ Indonesian founders:** standard PT. 3. **Default entity for any foreign shareholder:** PMA (PT with foreign capital), with KBLI checked against Perpres 49/2021 first. 4. **Default tax regime for newly registered MSME PT or PT Perorangan:** election into PP 55/2022 final 0.5% regime for the first year while modelling the standard regime in parallel, unless deductible costs are high. 5. **Default VAT treatment:** voluntary PKP registration only if customers are PKP and want Faktur Pajak credits; otherwise wait until turnover approaches IDR 4.8B. 6. **Default sectoral check:** always run the KBLI through OSS RBA before quoting timelines, because High-risk KBLIs add 2--8 weeks for sectoral licensing. 7. **Default reporting reminder:** quarterly LKPM is mandatory for PMA from day one, even with zero activity. Failure attracts administrative sanctions up to revocation of the NIB. 8. **Default banking caveat:** the bank account is the practical bottleneck for PMA; budget 4--8 weeks for KYC.

## Section 13 -- Sources

- **UU 40/2007** -- Perseroan Terbatas (Company Law).
- **UU 25/2007** -- Penanaman Modal (Investment Law).
- **UU 11/2020** -- Cipta Kerja (Job Creation Law).
- **UU 7/2021** -- Harmonisasi Peraturan Perpajakan (HPP); PPh Badan 22%, PPh OP brackets, VAT to 12% from 2025.
- **PP 8/2021** -- PT Perorangan implementing regulation.
- **PP 7/2021** -- MSME thresholds (Koperasi dan UMKM).
- **PP 5/2021** -- OSS RBA (Risk-Based Business Licensing).
- **PP 55/2022** -- final 0.5% MSME regime, successor to PP 23/2018.
- **Perpres 49/2021** -- Positive Investment List (amending Perpres 10/2021).
- **BKPM Regulation 4/2021** -- PMA capital floors and licensing procedures -- TBC against latest amendment.
- **PMK 130/2020** -- tax holiday for pioneer industries.
- **PMK 213/2016** -- transfer pricing documentation.
- **Pasal 18 and Pasal 31E UU PPh** (UU 36/2008 as amended).
- Portals: ahu.go.id (AHU), oss.go.id (OSS RBA), bkpm.go.id (BKPM), pajak.go.id (DJP).

Where a specific monetary threshold or sectoral capital floor is uncertain at the time of advice, mark as **TBC** and verify against the current BKPM regulation, Perpres 49/2021 annex, and PMK in force before relying on it.

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute legal, tax, or financial advice under Indonesian law. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified Indonesian advokat, konsultan pajak, or notaris before acting upon. Foreign founders should additionally engage immigration counsel for KITAS / RPTKA matters, which are out of scope.

The most up-to-date version is maintained at [openaccountants.com](https://openaccountants.com).

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