PMA Indonesia (Penanaman Modal Asing) or PT PMA (Perseroan Terbatas Penanaman Modal Asing) is also known as a Foreign Owned Company. This is a form of legal entity created under the Indonesian Law in which foreign investors can choose to conduct business in Indonesia to generate revenues or profit.

Many business sectors in Indonesia are open to foreign investment and for that reason, investment value has continued to rise rapidly in recent years. Furthermore, the Indonesian Government through Presidential Regulation No. 10 of 2021 which contain a Positive Investment List, has made the investment process become easier for foreign investors.

Before the Presidential Law, every foreign investor should know whether the business sector is fully open or partially closed or fully closed for foreign investment. The business sectors are listed in the Negative Investment List (Daftar Negatif Investasi or DNI). If you see this as an opportunity and plan to generate revenues, and profit or engage in sales directly in Indonesia, then you need to establish a PT PMA.