Can a Foreign Director Run Multiple Companies in Indonesia?

A foreign director already running a manufacturing company in Batam is offered a board seat at a sister company opening in Cikarang. This scenario plays out often among expatriate executives, private equity partners, and corporate groups expanding across Indonesia.

This guide is written for foreign investors, expatriate executives, and corporate group structuring teams deciding whether a foreign director can legally hold more than one directorship in Indonesia. After reading, the audience will understand the legal basis, the criteria, and the compliance steps involved.

Indonesian company law does not prohibit one person from serving as a foreign director in multiple companies. In Business Hub Asia’s experience advising cross-border groups, the practical constraint is rarely the law itself. It is whether the second company’s business activity closely matches the first.

A director’s work authorization is tied to the company’s approved business classification, not the individual alone. This distinction, drawn from hands-on casework rather than the statute text, is what determines whether a second directorship proceeds smoothly or stalls at the immigration and licensing stage.

Can a Foreign Director Legally Hold Multiple Directorships in Indonesia?

Yes. Law No. 40 of 2007 on Limited Liability Companies (UU PT), as amended by Law No. 6 of 2023 on the Job Creation Omnibus Law, contains no article barring a person from sitting as director in more than one Perseroan Terbatas, Indonesia’s term for a limited liability company.

Every directorship is bound by fiduciary duty under UU PT and Multiple directorships lose their footing when they breach the Articles of Association of an existing company when the second businesses that he/she is serving competes directly against the former, or when a foreign director cannot match the second company’s approved business classification to a valid work permit.

In short, a foreign director may lead more than one Indonesian company as long as the appointment is disclosed to shareholders, does not breach the first company’s Articles of Association, and aligns with an approved business classification for immigration purposes.

Article 93 of UU PT No. 40 of 2007 disqualifies anyone who was declared bankrupt, or convicted of a crime causing state financial loss, within the five years before appointment. This disqualification applies to every directorship the individual holds, not just the newest one.

Related article : Director vs Commissioner in a Foreign-Owned Company in Indonesia

What Is Indonesia’s Company Structure?

Every Perseroan Terbatas (PT), Indonesia’s term for a limited liability company, is governed by three organs under UU PT No. 40 of 2007. These are the RUPS (Rapat Umum Pemegang Saham, or General Meeting of Shareholders), the Direksi (Board of Directors), and the Dewan Komisaris (Board of Commissioners).

The RUPS holds ultimate authority over major decisions, including appointing and dismissing directors. The Direksi manages daily operations and represents the company legally. The Dewan Komisaris supervises the Direksi’s management and general course of the business, without directly running operations.

A foreign-owned company, known as a PT PMA (Penanaman Modal Asing, or Foreign Investment Company), follows the same three-organ structure but layers on additional rules tied to foreign shareholding, negative investment list, minimum investment amount, and work authorization for foreign directors and commissioners.

Figures reflect BKPM Regulation No. 5 of 2025, effective October 2, 2025, current as of this 2026 update.

Business Hub Asia regularly helps foreign investors decide between a local PT and a PT PMA structure before a director is even appointed. Getting this choice right at incorporation avoids costly restructuring later, particularly when a second directorship is already being planned through our business setup service.

Related article

Indonesia AGMS Compliance 2026: New Annual Reporting Rules Every PT PMA Must Know Now

What Are Indonesia’s Minimum Company Structure Requirements for a Director?

UU PT No. 40 of 2007 sets minimum structural requirements that apply regardless of sector or ownership. A PT PMA needs at least two shareholders, at least one director, and at least one commissioner.

When the majority of a company’s directors are foreign nationals, the President Director must be an Indonesian resident. Foreign directors are also barred from handling human-resources-related tasks under Indonesian Manpower Law, regardless of how many companies they serve.

• At least one director, appointed through an RUPS resolution
• At least one commissioner, distinct from the director role and can be held by shareholders
• President Director must be an Indonesian resident if directors are majority-foreign
• No HR-related duties assigned to a foreign director, in any of their companies.

What Are the Criteria to Become a Foreign Director in a Foreign-Owned Company in Indonesia?

A foreign director must be a legally competent individual under Article 93 of UU PT, meaning of sound mind and not declared bankrupt or convicted of a financial crime within the past five years. Nationality alone is not a barrier. However, Indonesia does not have diplomatic relations with 3 countries such as Taiwan, Kosovo and Israel. And this condition may pose additional barriers for the said person.

Beyond corporate law eligibility, a foreign director who works hands-on in Indonesia needs an Investor KITAS (Kartu Izin Tinggal Terbatas, or Limited Stay Permit) tied to a minimum share value of IDR 10 billion, or a Working KITAS if not a qualifying shareholder.

A foreign director holding shares worth at least IDR 10 billion can generally obtain an Investor KITAS without RPTKA (Rencana Penggunaan Tenaga Kerja Asing, or Foreign Worker Utilization Plan) approval. A non-shareholder director typically needs RPTKA, a Notification, and a Working KITAS.

The sponsoring company must also hold an active NIB (Nomor Induk Berusaha, or Business Identification Number) issued through OSS-RBA (Online Single Submission, Risk-Based Approach), with the relevant KBLI (Klasifikasi Baku Lapangan Usaha Indonesia, or Indonesian Standard Business Classification) code activated and BPJS obligations settled.

According to BKPM’s press release on the third quarter of 2025, foreign direct investment reached Rp212.0 trillion, or 43.1 percent of Indonesia’s total investment realization that quarter, up 4.9 percent from the prior quarter.

Related articles 

• Investor KITAS: Your Easiest Path to Live and Own a Business in Indonesia
• Types of KITAS in Indonesia: The Complete Guide for Expats and Foreign Nationals
• How to Sponsor a Foreign Employee in Indonesia: The Complete Work KITAS Guide

How Does Company Registration in Indonesia Work for a Foreign-Owned Business?

Company registration in Indonesia for a PT PMA follows a defined sequence. It begins with reserving a company name and signing a deed of establishment (akta pendirian) before a licensed notary, based on at least three proposed name options.

The deed then goes to the Ministry of Law and Human Rights for AHU (Administrasi Hukum Umum, or General Legal Administration) ratification, which formally creates the legal entity and issues the company’s NPWP (Nomor Pokok Wajib Pajak, or Tax Identification Number).

Once ratified, the company applies for its NIB through OSS-RBA, selects its KBLI codes, determine zonation for the address and secures any sector-specific licenses tied to its risk classification. Only after these steps can directors, including foreign nationals, be formally registered and sponsored for a KITAS.

1. Reserve a company name and sign the deed of establishment before a notary
2. Obtain AHU ratification and NPWP from the Ministry of Law and Human Rights
3. Register the NIB and KBLI codes through OSS-RBA
4. Secure sector-specific licenses based on risk classification
5. Register directors and commissioners, including any foreign appointees
6. Apply for Investor KITAS, or process RPTKA and Working KITAS

Business Hub Asia’s business setup team manages this sequence end to end for foreign investors, from notarial deed to OSS-RBA licensing, through our business setup service, so a director appointment does not stall on a missing document or an mismatched KBLI code.

What Does Indonesia Company Incorporation Involve for a PT PMA?

Indonesia company incorporation for a PT PMA is anchored to KBLI selection. BKPM Regulation No. 5 of 2025 requires each primary and supporting business activity that generates revenue to carry its own five-digit KBLI code and its own investment plan above IDR 10 billion.

Minimum paid-up capital sits at IDR 2.5 billion, deposited into the company’s Indonesian bank account, and locked for at least twelve months except for verified asset purchases, construction, or operational costs, declared through OSS.

BKPM Regulation No. 5 of 2025 also sets a general one-year deadline to commence operations after incorporation, extendable to 18 months or up to five years for high-risk or construction-dependent sectors. Missing the declared date increases regulatory supervision, including site visits.

For a director already serving another PT PMA, the new company’s KBLI selection at this incorporation stage becomes the anchor for evaluating whether the two directorships share a similar business activity, the same test immigration authorities apply when reviewing a second appointment.

When Do Foreign Directors Need Business Document Revision Services in Indonesia?

A second directorship almost always triggers paperwork on the first company as well. The Articles of Association may need amending to reflect a new business activity, and AHU records must be updated whenever a director’s role or company affiliation changes.

Common triggers for business document revision services in Indonesia include adding a supporting KBLI once it starts generating revenue, correcting a notarial deed after restructuring, and updating LKPM (Laporan Kegiatan Penanaman Modal, or Investment Activity Report) filings to reflect a shared director across entities.

Business Hub Asia’s consultation and outsourcing team routinely helps foreign-invested companies amend their Articles of Association, refresh AHU filings, and reconcile OSS records so a new directorship does not stall on an outdated clause or a mismatched KBLI entry.

Do’s and Don’ts When Choosing a Director in Indonesia

Do

• Check the Articles of Association of the existing company for restrictive clauses before accepting a second seat
• Confirm the two companies’ KBLI codes are the same or closely related
• Disclose the second appointment to shareholders through a formal RUPS resolution
• Verify the director’s KITAS category so that matches the scope of the new role
• Keep AHU and OSS records updated within the applicable filing deadline
• Consult all of the above with a proper licensing expert.

Don’t

• Assume approval for one sector transfers automatically to an unrelated sector
• Skip updating the RPTKA or Notification when a director’s scope of work or domicile of address changes
• Overlook UU No. 5 of 1999 on the Prohibition of Monopolistic Practices when the two companies compete directly
• Leave LKPM reporting inconsistent across entities that share a director
• Finalize a second directorship without checking sector-specific foreign ownership caps under the Positive Investment List

What Other Facts Should Foreign Directors Keep in Mind?

Indonesia’s investment realization for the third quarter of 2025 reached Rp491.4 trillion, with foreign direct investment absorbing 696,478 direct jobs, according to BKPM’s official press release. Singapore remained the largest source of foreign investment that quarter.

Commissioners can generally reside outside Indonesia if they do not perform executive functions locally, while directors who actively manage operations in Indonesia need proper immigration documentation, regardless of how many companies they represent.

KBLI 2025 reclassification requires existing PT PMA companies to align their registered codes at renewal. A director holding multiple appointments should confirm each sponsoring company’s KBLI reflects its actual, current business activity before the next LKPM filing cycle.

Building a Compliant Multi-Company Directorship in Indonesia

Holding more than one directorship in Indonesia is legally possible and increasingly common among expatriate executives and corporate groups. The path stays smooth when the business activities align, the paperwork stays current, and shareholders are kept informed at every step.

Business Hub Asia’s Corporate Structuring and Director Compliance Advisory service helps foreign directors map a second appointment against KBLI alignment, KITAS category, and Articles of Association restrictions before the appointment is filed, reducing the risk of a rejected filing or a stalled work permit.

Book a consultation with Business Hub Asia’s Corporate Structuring and Director Compliance Advisory service through the form below to review a planned second directorship before it is filed.