PT Penanaman Modal Asing (PMA) is an Indonesian law-governed limited liability company. The Investment Law defines foreign investment as “an investment activity to carry out business in the territory of the Republic of Indonesia carried out by foreign investors, either fully or jointly with domestic investors.” Although both fall into the limited liability category, PT PMA differs from PT in general. Foreign persons and foreign legal organizations can both form a PT PMA in Indonesia.

However, in numerous elements of the business, PT PMA still requires Indonesian citizens and Indonesian legal organizations to operate. For example, provisions in the Presidential Regulation of the Republic of Indonesia (Perpes) Number 20 of 2018 prohibiting foreign workers from holding positions of personnel director and limiting foreigners’ share ownership in the Negative Investment List.

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