Indonesia is one of the most popular destinations for foreign investment in Southeast Asia. The country offers many business opportunities, especially in sectors such as tourism, technology, and international trade.
Because of these opportunities, many Russian entrepreneurs and investors are interested in starting businesses in Indonesia, especially in cities and tourism areas such as Bali and Jakarta.
This often raises an important question: Can Russian citizens legally start a business in Indonesia?
The answer is yes. Indonesia does not prohibit Russian citizens from investing or opening businesses in the country. Russian investors can participate in the Indonesian economy under the same legal framework that applies to other foreign investors.
However, foreign investors must still follow:
• Indonesian investment regulations
• company laws
• business licensing requirements
• immigration rules
These rules apply to all foreign investors regardless of nationality.
Understanding these requirements is an important first step for anyone who wants to start a business in Indonesia, including Russian entrepreneurs who plan to open a company or invest in the Indonesian market.
Are There Any Legal Restrictions for Russian Nationals Doing Business in Indonesia?
Indonesia does not prohibit Russian citizens from doing business or investing in the country. Russian investors are treated the same as other foreign investors under Indonesian law.
However, some business sectors have limits on foreign ownership. These limits depend on the type of business, not the nationality of the investor.
The sectors open or restricted to foreign investors are regulated under Presidential Regulation No. 49 of 2021, also known as the Positive Investment List.
For example, foreign investors can open businesses such as:
- Restaurants
- consulting services
- IT services
- Trading companies
However, some small businesses are reserved for Indonesian citizens, such as:
- Small retail shops
- Traditional market stalls
- Small local food stalls
Because of this, investors should always check whether their business sector allows foreign ownership before starting a company.
How Can Russian Citizens Open a Business in Indonesia?
The most common way for foreigners to open a business in Indonesia is by establishing a PT PMA (Foreign Investment Company). A PT PMA allows foreign investors to legally own and operate a company in Indonesia.
A PT PMA usually requires:
• at least two shareholders
• one director
• one commissioner
Shareholders can be foreign individuals or foreign companies.
The basic steps to establish a company include:
- Choose the business activity using the KBLI classification system
- Prepare company documents and shareholder information
- Create the Deed of Establishment through an Indonesian notary
- Obtain approval from the Ministry of Law and Human Rights
- Register the company through the OSS system (Online Single Submission)
- Obtain the Business Identification Number (NIB)
Business licensing in Indonesia is regulated under Government Regulation No. 5 of 2021, which introduced the OSS system.
In most cases, setting up a PT PMA takes around 3–6 weeks, depending on the type of business and licenses required.
Example:
A Russian entrepreneur who wants to open a hotel in Bali can establish a PT PMA and obtain the necessary business licenses through the OSS system.
What Investment Regulations Apply?
Foreign investment in Indonesia is mainly regulated by Investment Law No. 25 of 2007 and related regulations.
These regulations explain:
- How foreign investors can establish companies
- Which sectors are open to foreign investment
- What requirements must be fulfilled
Minimum Investment Requirement for PT PMA
Foreign investors who open a company in Indonesia (PT PMA) must meet the minimum capital requirements set by Indonesian law.
Minimum Capital Requirements
• Minimum Investment Plan: IDR 10,000,000,000 per business activity
(approximately USD 590,000 or RUB 53–55 million)
• Minimum Paid-Up Capital: IDR 2,500,000,000
(approximately USD 147,000 or RUB 13–14 million)
Important Note
• Investment plan requirement
(The IDR 10 billion represents the total planned investment for the business, such as equipment, property development, or operational costs.)
• Paid-up capital requirement
(The IDR 2.5 billion is the portion of capital contributed by shareholders when the company is established.)
Example:
For example, if a Russian investor opens a hotel in Bali, the business should plan to invest about IDR 10 billion. When the company is created, the owners usually provide IDR 2.5 billion as starting capital.
What Residence and Business Permits Are Required?
Foreign investors who want to run a business in Indonesia usually need two types of permits:
- Business permit
- Residence permit
Business Permit
The main business permit is the Business Identification Number (NIB).
The NIB is issued through the OSS (Online Single Submission) system and serves as the company’s official registration to operate legally in Indonesia.
The NIB allows a company to:
• operate legally in Indonesia
• register its business with the government
• apply for additional business licenses if required
Residence Permit
Foreign investors who want to live in Indonesia while managing their business can apply for an Investor KITAS.
The Investor KITAS is a temporary residence permit for foreign shareholders or directors of a company.
This permit allows investors to:
• live in Indonesia
• manage their company
• open local bank accounts
Residence permits for foreign investors are regulated under Immigration Law No. 6 of 2011 and related regulations.
Conclusion
Indonesia does not have special restrictions for Russian nationals who want to start a business or invest in the country.
Russian investors can establish companies and participate in many sectors of the Indonesian economy through foreign investment structures such as PT PMA.
However, foreign investors must still follow investment regulations, licensing requirements, and immigration rules when operating a business in Indonesia.
Understanding these rules is an important first step for Russian entrepreneurs who want to enter the Indonesian market and build successful businesses in Indonesia.
