The Complete PT PMA Setup Guide for Foreign Investors in Indonesia (2026)

Disclaimer: This article is part of Bali Property Ownership Guide, and for informational purposes only. We recommend consulting a legal advisor before making any decisions, as regulations related to PT PMA and foreign investment in Bali may change.

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Key Takeaways

• A PT PMA is a foreign-owned Indonesian legal entity that allows foreign investors to operate a business legally in Indonesia.
• A PT PMA is not freehold ownership, but it can hold certain registered land rights such as HGB or Hak Pakai.
• The minimum paid-up capital for a PT PMA is IDR 2.5 billion, while the project investment value generally must exceed IDR 10 billion excluding land and buildings.
• Choosing the correct KBLI is essential because it affects foreign ownership limits, licenses, and business permissions.
• Many sectors allow 100% foreign ownership, but some industries are restricted, closed, or subject to special conditions.

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If you are a foreigner seeking to run a business legally, safely, and profitably in Bali, you will need to set up a PT PMA, or foreign-owned limited liability company.

This structure allows you to do business under an Indonesian legal entity, sign contracts, hire staff, apply for business licenses, and hold certain registered land rights, such as HGB (Hak Guna Bangunan) or Hak Pakai.

In other words, a PT PMA gives your business a stronger legal structure to operate in Bali.

In this guide, we will explain the legal framework of PT PMA and how to establish one in Bali, including the main requirements and estimated costs.

Legal Framework and Rights That a PT PMA Holds

A PT PMA is not the same as freehold ownership. Foreign individuals still cannot personally own Hak Milik, but a PT PMA gives foreign investors a stronger and more formal legal position because the company is treated as an Indonesian legal entity, even when the capital comes from foreign shareholders.

This means the company can conduct business, acquire certain land rights, build, operate, and use assets according to its approved business classification and licenses. That is why a PT PMA is often considered one of the best legal structures for foreign investors who want to invest in Bali.

The establishment and operation of a foreign-owned limited liability company in Indonesia are mainly regulated by several key laws and regulations:

• Job Creation Law / Omnibus Law Framework: The Job Creation framework was introduced to simplify business regulations and investment procedures in Indonesia. Today, it is better referenced under the current Job Creation Law framework, including Law No. 6 of 2023.
• Investment Law, Law No. 25 of 2007: This provides the general legal foundation for investment activities in Indonesia, including foreign investment.
• Company Law, Law No. 40 of 2007: This governs the incorporation, structure, management, shareholders, directors, and commissioners of limited liability companies in Indonesia.
• Positive Investment List: This determines which business sectors are open, restricted, or closed to foreign investment.

Requirements for Setting Up a Foreign-Owned Company (PT PMA) in Indonesia

Investors must meet several key PT PMA criteria set by the Investment Coordinating Board (BKPM):

1. Minimum Paid-Up Capital

According to BKPM Regulation No. 5 of 2025, the minimum paid-up capital for a PT PMA in Indonesia is IDR 2.5 billion. In addition, the total investment value for the business project must generally be more than IDR 10 billion, excluding land and buildings.

This means foreign investors should prepare both the required paid-up capital and a realistic investment plan based on the business activity they want to operate.

2. Shareholders and Company Structure

A PT PMA must have at least:

• Two shareholders
• One director
• One commissioner

The director can be an Indonesian citizen or a foreigner with the proper stay and work permit, such as a KITAS.

Shareholders may also need to sign a capital declaration letter confirming that they have sufficient funds to meet the company’s capital requirement.

Read More: Can You Make Money in Bali Without a Work Permit?

3. Registered Business Address

Every PT PMA must have a registered business address in Indonesia. And per May 13, 2026, Virtual Office is not allowed for PT PMA in Bali.

Your business address is required during the company incorporation process and must match the company’s business activity, zoning, and licensing requirements. In Bali, this is especially important for property, tourism, hospitality, construction, and villa rental businesses.

4. Business Classification (KBLI)

Choosing the correct KBLI is one of the most important parts of setting up a PT PMA. Your KBLI will determine:

• Whether your business activity is open to foreign ownership
• The maximum foreign ownership percentage allowed
• The type of business license you need
• Whether extra approvals are required
• Whether your NIB can be activated immediately or needs further verification

If you choose the wrong KBLI, your company may face licensing issues later, especially when applying for permits, opening a bank account, hiring staff, or using the company for property-related activities.

Read More: Most Profitable Business to Invest in Bali for Foreigners (2026 Update)

How to Register a PT PMA in Indonesia

The PT PMA registration process is mostly completed through Indonesia’s Online Single Submission (OSS) system and usually takes around 3 to 6 weeks.

The duration may vary depending on the completeness of your documents, such as your ID or passport, capital structure, investment plan, and business classification.

1. Prepare Documents and Reserve Your Company Name (Estimated time: 1-2 Working Days)

The first step is preparing the required documents and company details. This usually includes:

• Passport or identity documents of shareholders
• Proposed company name
• Shareholder structure
• Capital structure
• Business address
• Business activity and KBLI
• Investment plan

During this stage, your company name will be reserved with the Ministry of Law and Human Rights.

A Deed of Establishment will also be drafted. This document includes the Articles of Association, shareholder details, company structure, capital information, and selected KBLI classifications.

Once everything is ready, an Indonesian public notary will notarize the deed to make it legally valid.

Read More: How to Find Good Notary Services in Bali for Foreigners

2. Get Approval from the Ministry of Law and Human Rights (MOLHR) (Estimated time: 3-7 Working Days after Signing the Deed)

After notarization, your company’s documents are submitted to the MOLHR for review. Once approved, the Ministry issues a legal decree, confirming that your PT PMA is officially recognized as a legal business entity in Indonesia. At this point, your company legally exists.

3. Register for a Tax ID (NPWP) (Estimated time: 1 - 2 Working Days)

Next, your company must be registered with the Directorate General of Taxes to obtain a Tax Identification Number (NPWP). This number is mandatory for financial transactions, tax reporting, invoicing, and to apply for additional business permits later on.

Read More: Understanding Bali Property Taxes for Foreign Buyers

4. Obtain a Business Identification Number (NIB) (Estimated time: 1-3 Working Days through the OSS Systems)

Next, your PT PMA must obtain a Business Identification Number, known as NIB, through the OSS system. This business document can function as:

• Your company’s main business identity
• A general business license for low-risk sectors
• An import identification number
• Customs access, if applicable
• Registration for BPJS Ketenagakerjaan and BPJS Kesehatan (Indonesia’s social and health security programs)

For low-risk business activities, the NIB alone may be enough to start operating. However, medium-risk and high-risk business activities may require additional licenses or approvals.

5. Open a Corporate Bank Account (Estimated time: 5 - 10 Working Days)

Once your company has its Ministry approval, NPWP, and NIB, you can open a corporate bank account in Indonesia. Keep in mind that most banks require a resident director to open the account.

If your director is a foreigner, they may need to secure a valid KITAS before opening the company bank account. This is also the stage where you will deposit your initial capital according to your investment plan.

6. Apply for Additional Licenses and Permits (Estimated time: 10–30+ working days, depending on business risk level)

Your NIB serves as a general business license, but depending on your industry, you may need extra permits before starting operations. For examples:

• IUJK or construction-related licenses for construction services
• BPOM approval for food, cosmetics, or pharmaceutical products
• PSE registration for electronic system operators
• Tourism or hospitality permits for accommodation-related businesses
• Sector-specific permits from relevant ministries or local authorities

Once everything is approved, your PT PMA can start doing business. Now you can purchase property, sign contracts, and start any planned operations (like renting out properties or developing land).

Estimated Cost to Establish a PT PMA in Indonesia

To establish a PT PMA, you should prepare around IDR 2.55 billion – IDR 2.75 billion+ in initial cash (separate from the required investment plan of more than IDR 10 billion, excluding land and buildings). This estimate includes administrative setup costs, minimum paid-up capital, office address costs, and possible additional permits.

Here’s the estimated cost breakdown to give you a clearer picture. Please note that these figures can vary depending on your business type, location, licensing needs, and consultant fees.

Cost Item	Estimated Cost	Notes
Administrative setup cost	IDR 25,000,000 – 100,000,000	Includes notary, company registration, ministry approval, OSS/NIB handling, NPWP, and consultant fees.
Minimum paid-up capital	IDR 2.5 billion	Required company capital. This is not a government fee and can be used for business operations.
Total investment plan	More than IDR 10 billion	Required investment value, excluding land and buildings.
Physical office address	IDR 15,000,000 – 120,000,000+ per year	Required for business domicile, especially in Bali where virtual office use is increasingly restricted.
Additional business permits	IDR 10,000,000 – 30,000,000+	Depends on the company’s business sector and risk classification.
Annual tax and accounting	IDR 15,000,000 – 40,000,000+ per year	Covers ongoing tax reporting and compliance after establishment.

Can Foreigners Own 100% of a PT PMA Business?

Yes. According to Presidential Regulation No. 10 of 2021, as amended by Presidential Regulation No. 49 of 2021, more than 200 business sectors in Indonesia are now open to 100% foreign investment.

However, certain industries remain prohibited or restricted:

Fully Restricted Industries	Partially Restricted Industries	Sectors with Conditional Foreign Ownership
• Narcotics production• Gambling and casinos• Coral extraction• Chemical weapons manufacturing• Alcoholic beverage production	• Mining and energy• Agriculture• Tourism and hospitality• Small-scale retail and services	• Healthcare and pharmaceuticals• Education• Telecommunications and broadcasting

Therefore, you have to verify whether your business activity is eligible for full foreign ownership under the current Positive Investment List.

Conclusion

That’s how foreign investors can set up a PT PMA in Indonesia. While establishing a foreign-owned company may seem complicated, the process can be much easier with the right local guidance.

That's where Bali Villa Realty comes in. With our in-house legal team, we can assist you in preparing the required documents and guiding you through the next steps for your business.

Start by booking your free consultation, and let's discuss your next steps. No commitment required.

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