Scenario: Indonesia or Vietnam for the next entity — the two largest ASEAN setups by ambition. Indonesia’s OSS system promises single-submission simplicity; Vietnam’s IRC/ERC promises licensing clarity. Both take weeks; the friction sits in different places.
Indonesia: the PT PMA timeline (roughly 4–8 weeks)
Foreign investors set up a PT PMA (foreign-owned limited liability company) through the OSS-RBA system: name reservation, notarial deed of establishment, Ministry of Law approval, tax ID (NPWP), then the Business Identification Number (NIB) — which for low-risk business classifications doubles as the operating license. Practitioners quote roughly 4–6 weeks for straightforward low-to-medium-risk cases, stretching to 8 weeks for higher-risk sectors needing ministerial permits. Two structural facts shape the timeline: the capital bar (IDR 2.5 billion minimum paid-up capital, with a IDR 10 billion investment plan per business line — real money, not nominal) and the risk-based licensing (your KBLI classification decides whether the NIB alone lets you operate or a sector license must follow). The bank account and capital deposit run after incorporation and add their own weeks.
Vietnam: the IRC/ERC timeline
Vietnam’s sequence — IRC first, then ERC, under Law 143/2025/QH15 (in force 01/3/2026) — completes in a matter of weeks for open sectors, longer for conditional ones. The structural contrast: Indonesia’s system is capital-gated (prove the money first, then the licenses follow the risk classification), while Vietnam’s is project-gated (prove the project’s merit first, then the company exists). Indonesia asks “how much are you investing”; Vietnam asks “what are you building.” For large industrial projects, Indonesia’s capital bar is rarely the binding constraint — the sector licensing is. For smaller entrants, the IDR thresholds can be the reason to choose Vietnam instead.
The decision: which gate fits your project
Choose Indonesia when the investment is large enough that the capital thresholds are background noise and the prize is the domestic market — the OSS system is genuinely efficient for well-capitalized, low-risk entries. Choose Vietnam when the project is mid-sized, export-oriented, or needs FTA-advantaged market access (CPTPP in force 14/01/2019, EVFTA 01/08/2020, RCEP 01/01/2022) — the project-gated system rewards well-designed investments regardless of ticket size. And budget honestly in both: neither country’s “registered” means operational — the bank account, sector permits and (in Indonesia) the capital-deposit lock-in all sit beyond the incorporation date.
This article has been quality-reviewed by the FLAW AI Legal Council
Frequently Asked Questions
How long does it take to set up a PT PMA in Indonesia?
Roughly 4–6 weeks for straightforward low-to-medium-risk PT PMA cases via OSS-RBA (name, notarial deed, Ministry of Law approval, NPWP, NIB), up to 8 weeks for higher-risk sectors needing ministerial permits. Shaped by the capital bar (IDR 2.5B paid-up, IDR 10B investment plan per line) and risk-based licensing (KBLI classification decides if the NIB alone suffices).
How does Vietnam’s IRC/ERC timeline compare?
IRC first, then ERC, under Law 143/2025/QH15 (in force 01/3/2026) — a matter of weeks for open sectors. Indonesia is capital-gated (prove the money first); Vietnam is project-gated (prove the project’s merit first). Indonesia asks ‘how much’; Vietnam asks ‘what are you building.’
Which gate fits which project?
Indonesia when the ticket is large enough that capital thresholds are noise and the prize is the domestic market. Vietnam when the project is mid-sized, export-oriented, or needs FTA-advantaged access — the project-gated system rewards well-designed investments regardless of size.