Detailed Guide to Start a Trading Company in Indonesia

Indonesia has opened its doors wider to global investors, making it easier than ever for foreigners to establish trading companies. 

With 100% ownership now permitted in the sector, entrepreneurs can operate independently as long as they meet the legal requirements and follow the right setup process. 

From securing licenses to managing daily operations, knowing the right steps how to start a trading company in Indonesia can save both time and resources.

Foreigner can own and start a trading company in Indonesia

Foreign investors are allowed to own 100% of shares in a trading company, as the sector is fully open under Indonesia’s Positive Investment List.

This marks a significant shift from previous rules where foreign ownership in certain trading activities was restricted. 

The key is to register under the right business classification (KBLI) and follow the required procedures.

Read more: 10 Things you Should Know Before Doing Business in Indonesia

Legal requirements & shareholding structure

To start a trading company in Indonesia as a foreign investor, you must follow specific legal and structural requirements. These rules cover the type of company you can establish, how much shareholding is allowed, the capital you must prepare, and even the office location.

1. Company type

Foreign investors must establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing), which is the official legal entity for foreign-owned businesses in Indonesia.

• Any level of foreign ownership, even as little as 1%, requires the company to be registered as a PT PMA.
• This structure provides legal certainty and allows foreigners to operate in compliance with Indonesian investment regulations.

2. Shareholding ownership

Based on the Positive Investment List, foreigners can now own up to 100% of shares in the trading sector.

• This is a major change, as previously foreign ownership was capped under the Negative Investment List.
• To establish a PT PMA, you must have at least two shareholders, which can be individuals or corporate entities.

3. Capital requirements

To demonstrate financial readiness, foreign investors must commit to specific capital thresholds:

• Minimum investment plan: IDR 10 billion (~USD 633,000) per KBLI (business activity code).
• Minimum paid-up capital: IDR 2.5 billion (~USD 178,000).
• Proof of capital injection may be required during the licensing process to ensure compliance.

4. Management structure

A PT PMA must appoint at least one director and one commissioner.

• At least one of these positions must be held by a resident of Indonesia to facilitate local compliance and day-to-day operations.
• Both foreigners and Indonesians are eligible to serve as directors or commissioners.

5. Business address

Every PT PMA must provide a valid registered office address.

• In Jakarta, the company’s address must be located in a commercial area, as residential addresses are not accepted for licensing purposes.
• The office address will also be used for correspondence with government institutions.

Read more: Foreign Company Registration in Indonesia: Process and Requirements

Step-by-step process to start a trading company

Starting a trading company in Indonesia involves several legal and administrative steps. While the process may seem lengthy, breaking it down into clear stages makes it much easier to follow. Here’s a structured guide from company setup on how to start a trading company in Indonesia:

Step 1: Name reservation & deed of establishment

The journey begins with securing your company’s identity.

• Reserve a unique company name through the Ministry of Law and Human Rights (Ditjen AHU).
• A notary then drafts the Deed of Establishment, which includes essential details such as Articles of Association, capital structure, and shareholder information.

Step 2: Legal entity registration

Once the deed is ready, your company must be formally registered.

• Submit documents to the Ministry of Law and Human Rights to obtain the Decree of Establishment.
• Apply for a Tax Identification Number (NPWP) from the local tax office to handle tax obligations.

Step 3: Obtain business identification number (NIB)

Next comes your all-in-one license through the OSS system.

• Apply for a Business Identification Number (NIB) online.
• The NIB now serves multiple functions: it is your main business license, it replaces the old Company Registration Certificate (TDP), and it automatically registers your company for social security programs (BPJS).

Step 4: Secure trading and import licenses

To legally trade, you need the Surat Izin Usaha Perdagangan (SIUP), issued by the local trade office. The type of SIUP depends on your company’s net worth (excluding land and buildings):

Additional requirements may apply:

• Apply for an Importer Identification Number (API-U for general importers or API-P for producer-importers) if you plan to import goods.
• Obtain sector-specific licenses if necessary (e.g., BPOM for food products, SNI certification for regulated goods).

Step 5: Customs registration

If your business involves international trade, register with the Directorate General of Customs and Excise. This gives you a customs identification number, allowing you to conduct import and export activities.

Step 6: Operational setup

The final step is to get your company up and running.

• Secure contracts for your office or warehouse.
• Hire staff, set up proper accounting systems, and ensure compliance with ongoing tax and reporting duties such as the LKPM investment report.

Managing trading company in Indonesia

Running a trading business doesn’t stop at getting the licenses — daily operations can be complex, and Mekari helps streamline them all in one platform:

• Procurement & supplier: Automate purchase requests, approvals, and supplier management to save time and reduce errors.
• Inventory & warehouse: Track stock in real time, manage multiple warehouses, and avoid overstock or shortages.
• Sales & order: Handle orders from quotation to delivery, sync across sales channels, and track performance easily.
• Finance & accounting: Automate invoicing, tax reporting, and financial statements while keeping cash flow visible.
• Workforce management: Simplify payroll, attendance, and employee management while staying compliant with labor rules.

With Mekari, trading companies gain an all-in-one business solution that cuts manual work and boosts efficiency. Let’s discover Mekari’s trading industry solutions.