# Should Foreign Investors Operate Through One Entity or Multiple Subsidiaries in Indonesia?

- Link: https://www.thailand-business-news.com/business/322279-should-foreign-investors-operate-through-one-entity-or-multiple-subsidiaries-in-indonesia
- Published: 2026-09-09T02:05:00+07:00
- Author: ASEAN Briefing

**Most foreign investors start with a single PT PMA in Indonesia; expansion depends
on business complexity, legal, and regulatory considerations, affecting management,
compliance, and tax obligations.**

### Establishing and Expanding PT PMA in Indonesia

Most foreign investors start with a single PT PMA when entering Indonesia. As their
business grows, they often face the decision of whether to expand within the same
company or create additional subsidiaries. This choice depends on how they plan 
to structure and scale their operations over the long term, especially when venturing
into new industries, acquisitions, or joint ventures.

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### Suitable Use of a Single PT PMA

A single PT PMA is suitable when new activities can be integrated under existing
operations using compatible KBLI classifications. This approach is practical when
the new activities do not require separate licenses or distinct regulatory oversight.
Expanding within one company can streamline administrative processes while accommodating
related business growth.

### Considerations for Establishing Multiple Entities

However, certain transactions and strategic decisions may necessitate creating new
companies due to legal, commercial, or regulatory reasons. It’s important to weigh
the benefits of maintaining separate subsidiaries against the increased regulatory
obligations. Each PT PMA operates as a distinct legal and tax entity, responsible
for its own compliance, accounting, and reporting requirements.

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  |  This article was first published by _[ASEAN Briefing](https://www.aseanbriefing.com) _, which is produced by [Dezan Shira & Associates](https://www.dezshira.com/). The firm assists foreign investors throughout Asia from offices [across the world](https://www.dezshira.com/office), including in in [China](https://www.dezshira.com/office/china), [Hong Kong](https://www.dezshira.com/office/hong-kong.html), [Vietnam](https://www.dezshira.com/office/vietnam), [Singapore](https://www.dezshira.com/office/singapore.html), and [India](https://www.dezshira.com/office/india) . Readers may write to [info@dezshira.com](https://www.thailand-business-news.com/business/info@dezshira.com) for more support. |

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