What type of business structure do you need for commercial real estate in Indonesia?

One of the most common options is establishing a limited liability company (PT). A PT is an independent legal entity that can be owned by foreign investors. By establishing a PT, you can own land for business purposes, such as constructing an office building or operating a factory.

Another option is establishing a foreign investment company (PMA). A PMA is a company formed by foreign investors specializing in conducting business activities in Indonesia. By establishing a PMA, you can own land for commercial purposes and use it, for example, to build a shopping mall or apartment complex.

There are also other options, such as forming a joint venture with an Indonesian partner or purchasing real estate through an Indonesian entity that you manage. However, these options come with risks. The most common approach is establishing a PMA, where you have 100% ownership.