Do You Really Need a Local Partner to Start a Business in Indonesia? Here's the Real Deal.

 Setting up a business in Indonesia sounds exciting — and for good reason. With its vibrant economy, strategic location in Southeast Asia, and a massive consumer base, the country has quickly become a magnet for foreign investors. But there’s one question that pops up time and again:

“Do I need a local partner to get started?”

The answer? It depends — mostly on your business goals and how you choose to structure your company.

Let’s break it down and help you decide what’s best for your venture. Spoiler alert: You might not need a local partner at all — especially if you work with the right experts like MAM Solutions, Indonesia’s most trusted business setup and payroll partner.


Understanding the Legal Structures in Indonesia

Indonesia allows foreign investors to choose between two main business structures:

1. PT (Local Company)

  • Fully owned by Indonesian citizens or legal entities.
  • Foreign investors can’t legally hold shares.
  • Often used via nominee arrangements, but that can be risky and legally grey.

2. PT PMA (Foreign-Owned Company)

  • Tailored for international investors.
  • Allows up to 100% foreign ownership in many sectors.
  • Requires a minimum capital investment of around IDR 10 billion (approx. USD 650,000), with 25% of it as paid-up capital.


When You Do Need a Local Partner

If you’re registering a PT, then yes — local ownership is a must. You’ll need an Indonesian citizen or company to act as shareholder and director. However, as a foreign investor, you’ll have no real legal control unless you use complex nominee structures — which are best avoided due to legal risks.

In contrast, for a PT PMA, you usually don’t need a local partner unless:

  • Your business falls under Indonesia’s Positive Investment List (which replaced the old Negative List), limiting foreign participation in specific industries like media or alcohol.
  • The government mandates local involvement in your particular sector.

Why Many Investors Prefer a PT PMA Setup

Opting for a PT PMA means you’re steering clear of the risks tied to local nominees. Here’s why savvy investors love this model:

  • Full ownership and control of your business operations.
  • No nominee headaches or dependency on third parties.
  • Straightforward compliance and easier expansion options.
  • Eligibility for business visas and KITAS (stay permits for foreign directors).

What If Your Sector Requires a Local Partner?

Some industries may require local involvement due to legal restrictions. If that’s the case, choosing the right partner is critical. Here’s what you should do:

  • Vet the local partner thoroughly — background checks matter.
  • Get solid shareholder agreements in place.
  • Use trusted consultants who can protect your interests.

This is exactly where MAM Solutions steps in to safeguard your investment.

Why MAM Solutions Is the Most Preferred Partner for Foreign Investors

Business regulations in Indonesia can be a maze — especially for someone new to the landscape. That’s why businesses from the USA, Canada, India, and beyond are turning to MAM Solutions for help. Here’s what sets them apart:

Local Knowledge, Global Perspective

MAM Solutions understands both Indonesian law and the needs of international entrepreneurs. They’ll guide you through every step — in plain English.

One-Stop Solution

Whether you’re incorporating a PT PMA, securing a virtual office, handling immigration, or outsourcing payroll, everything’s taken care of under one roof.

Transparency and Trust

No hidden nominee games. MAM Solutions ensures you’re fully compliant with the law — and fully in control.

Tailored Advice

They’ll assess your industry and advise if a local partner is necessary — and if so, help structure it safely and legally.

Proven Success

From tech startups to multinational expansions, clients from all over the world have trusted MAM Solutions to set up their Indonesian operations smoothly.

Final Thoughts: Choose Wisely, Build Confidently

So, do you really need a local partner to start a business in Indonesia?

Not always. Thanks to the PT PMA model, foreign investors in most industries can enjoy full ownership. But when regulations require a local partner, it’s crucial to have the right support and guidance.

With MAM Solutions by your side, you’re not just starting a company — you’re building a strong, compliant, and successful business in one of Asia’s most promising markets.



Let’s Get Started

Looking to register your business or outsource payroll in Indonesia?

Contact MAM Solutions today for a free consultation. Whether you’re in the USA, Canada, India, or anywhere else, we’ll help you navigate Indonesia’s business landscape with clarity and confidence.

Setting up a business in Indonesia sounds exciting — and for good reason. With its vibrant economy, strategic location in Southeast Asia, and a massive consumer base, the country has quickly become a magnet for foreign investors. But there’s one question that pops up time and again:

“Do I need a local partner to get started?”

The answer? It depends — mostly on your business goals and how you choose to structure your company.

Let’s break it down and help you decide what’s best for your venture. Spoiler alert: You might not need a local partner at all — especially if you work with the right experts like MAM Solutions, Indonesia’s most trusted business setup and payroll partner.

Understanding the Legal Structures in Indonesia

Indonesia allows foreign investors to choose between two main business structures:

1. PT (Local Company)

  • Fully owned by Indonesian citizens or legal entities.
  • Foreign investors can’t legally hold shares.
  • Often used via nominee arrangements, but that can be risky and legally grey.

2. PT PMA (Foreign-Owned Company)

  • Tailored for international investors.
  • Allows up to 100% foreign ownership in many sectors.
  • Requires a minimum capital investment of around IDR 10 billion (approx. USD 650,000), with 25% of it as paid-up capital.


When You Do Need a Local Partner

If you’re registering a PT, then yes — local ownership is a must. You’ll need an Indonesian citizen or company to act as shareholder and director. However, as a foreign investor, you’ll have no real legal control unless you use complex nominee structures — which are best avoided due to legal risks.

In contrast, for a PT PMA, you usually don’t need a local partner unless:

  • Your business falls under Indonesia’s Positive Investment List (which replaced the old Negative List), limiting foreign participation in specific industries like media or alcohol.
  • The government mandates local involvement in your particular sector.

Why Many Investors Prefer a PT PMA Setup

Opting for a PT PMA means you’re steering clear of the risks tied to local nominees. Here’s why savvy investors love this model:

  • Full ownership and control of your business operations.
  • No nominee headaches or dependency on third parties.
  • Straightforward compliance and easier expansion options.
  • Eligibility for business visas and KITAS (stay permits for foreign directors).

What If Your Sector Requires a Local Partner?

Some industries may require local involvement due to legal restrictions. If that’s the case, choosing the right partner is critical. Here’s what you should do:

  • Vet the local partner thoroughly — background checks matter.
  • Get solid shareholder agreements in place.
  • Use trusted consultants who can protect your interests.

This is exactly where MAM Solutions steps in to safeguard your investment.

Why MAM Solutions Is the Most Preferred Partner for Foreign Investors

Business regulations in Indonesia can be a maze — especially for someone new to the landscape. That’s why businesses from the USA, Canada, India, and beyond are turning to MAM Solutions for help. Here’s what sets them apart:

Local Knowledge, Global Perspective

MAM Solutions understands both Indonesian law and the needs of international entrepreneurs. They’ll guide you through every step — in plain English.

One-Stop Solution

Whether you’re incorporating a PT PMA, securing a virtual office, handling immigration, or outsourcing payroll, everything’s taken care of under one roof.

Transparency and Trust

No hidden nominee games. MAM Solutions ensures you’re fully compliant with the law — and fully in control.

Tailored Advice

They’ll assess your industry and advise if a local partner is necessary — and if so, help structure it safely and legally.

Proven Success

From tech startups to multinational expansions, clients from all over the world have trusted MAM Solutions to set up their Indonesian operations smoothly.

Final Thoughts: Choose Wisely, Build Confidently

So, do you really need a local partner to start a business in Indonesia?

Not always. Thanks to the PT PMA model, foreign investors in most industries can enjoy full ownership. But when regulations require a local partner, it’s crucial to have the right support and guidance.

With MAM Solutions by your side, you’re not just starting a company — you’re building a strong, compliant, and successful business in one of Asia’s most promising markets.

Let’s Get Started

Looking to register your business or outsource payroll in Indonesia?

Contact MAM Solutions today for a free consultation. Whether you’re in the USA, Canada, India, or anywhere else, we’ll help you navigate Indonesia’s business landscape with clarity and confidence.

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