How to Set Up a PT PMA Company in Batam: The Money Tests and the Licence

A Singaporean sets up a business in Batam through a PT PMA, an Indonesian limited company with foreign shareholders. Since October 2025, a PT PMA in Batam faces two money tests: investment above Rp10 billion, and at least Rp2.5 billion of paid-up capital. In the free trade zone, BP Batam issues its licences.

This guide is written from the regulation texts, checked on 4 November 2026. BatamGems is an independent guide, not an agent or a law firm. We take no fee and file nothing. BP Batam is the body that licenses businesses in Batam.

The short answer

• Company form: foreign investment must be an Indonesian PT based in Indonesia.
• Two money tests: investment above Rp10 billion (land and buildings excluded), and paid-up capital of at least Rp2.5 billion.
• The capital stays put: it may not leave the company account for 12 months, except to buy assets, build or run the business.
• Founders: two or more, by a notarial deed in Indonesian.
• No nominees: holding shares in someone else's name is void by law.
• Licences: BP Batam issues them, through OSS and I-BOSS.

What changed in October 2025

The rulebook for investment licensing changed on 2 October 2025. That is when Permen Investasi dan Hilirisasi 5/2025 came into force. It was set on 1 October 2025 and revokes BKPM Regulation 4/2021 in Pasal 398.

Under the current text, Rp10 billion is the investment value. The deposit floor is lower, at Rp2.5 billion, and it is a separate test.

We found no Batam-specific change to either test. The free trade zone changes who issues your licence, not how big the company must be.

The three numbers people mix up

Three different rules use a Rp figure, and two of them say Rp10 billion. Keep them apart.

The first test is about the size of the project. The second is about money placed in the company. Under Pasal 27(1), the capital has to sit in the company's account for 12 months or more. It may be spent earlier only on assets, construction or running the business.

The third test is personal. It decides which visa the owner can get, and we cover it below.

Two sector rules change the first test. For hotels and other accommodation, land and buildings are counted. For food and drink, the test is counted per 2-digit code per city. See our hotel and restaurant guides for those.

Who can own the shares (two founders, no nominees)

Foreign investment must take the form of a PT under Indonesian law, based in Indonesia (Perpres 10/2021, Pasal 7(2)). The same article limits foreign investors to large businesses.

A PT needs at least two founders, who sign a notarial deed in Indonesian (UU 40/2007, Pasal 7(1)). That law has been amended since 2007, so check the founder rule with PTSP before you plan around a single founder.

Now a common shortcut: putting the shares in a local friend's or partner's name. UU 25/2007, Pasal 33 bans any agreement that holds shares for another person, and declares such an agreement void by law. If the friendship ends, you have no contract to rely on. Our view is simple: if the plan needs a nominee, it is the wrong plan.

Step by step: from deed to licence in the Batam FTZ

Each step below comes from a rule or an official page. We give no timeline or total cost, because none is published.

1. Size the plan. Check that the project clears the Rp10 billion investment test for its business code, and that you can pay up Rp2.5 billion (Permen 5/2025, Pasal 26).
2. Agree the founders. At least two, signing a notarial deed in Indonesian. Every shareholder holds shares in their own name.
3. Check and register on OSS. OSS (oss.go.id) is one of the two online channels PTSP names. Its KBLI pages show the risk level of each business code. Under Permen 5/2025, Pasal 186(3), that level sets your licence: an NIB alone at low risk, and an NIB plus a standard certificate or a permit at higher levels.
4. Get the Batam licences from BP Batam. In the free trade zone, BP Batam issues the basic requirements, the business licences and the licences that support them (PP 25/2025, Pasal 20(2)). Permen 5/2025 says the same in Pasal 29(1)(f). PTSP takes applications online through OSS and I-BOSS (PTSP service page (ptsp.bpbatam.go.id)).
5. Pay up the capital. Place it in the company account and leave it there for 12 months, apart from the allowed spending (Pasal 27(1)).
6. Apply for your stay permit. See the next section.

The zone has a practical benefit once you trade. Under PP 41/2021, goods supplied inside the zone are VAT-exempt (Pasal 49), and zone businesses are not made VAT collectors (Pasal 48).

Your visa as the owner

A visa-free visit is not enough. It cannot be used for work or trade, as our Batam entry requirements guide explains.

The investor stay permit is the E28A. According to Imigrasi, you need proof of shares worth at least Rp10 billion in the sponsoring company. You choose a stay of 1 year (government fee Rp7,000,000) or 2 years (Rp9,500,000), and a sponsor is required.

If your shares are worth less, the same page says a director or commissioner needs a work visa instead. Plan the share split and the visa together, before the deed is signed.

Before you sign anything

• Write down which of the three numbers each quote refers to.
• Ask who the founders are, and confirm each holds shares in their own name.
• Check your business code on OSS for its risk level and any reserved status.
• Budget for the capital to sit in the account for a year.
• Keep money matters in rupiah; see money in Batam.

Where to file and ask

BP Batam runs a one-stop licensing office (PTSP) for businesses in the zone.

• Counter: Mal Pelayanan Publik Kota Batam, Batam Centre, Batam 29400.
• Licensing WhatsApp: +62 855-6670-011.
• Email: tuptsp@bpbatam.go.id.
• Online: apply through OSS (oss.go.id) or I-BOSS (iboss.go.id).
• Hours: Monday to Friday. The PTSP site (ptsp.bpbatam.go.id) shows two different times, so confirm on WhatsApp first.

Details are from the PTSP service page (ptsp.bpbatam.go.id). The ferry to Batam Centre is covered in our Singapore to Batam ferry guide. For the wider picture, start with investing in Batam from Singapore.