What a PT PMA is
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited liability company in which at least one shareholder is foreign. It is licensed through the national risk-based licensing system (OSS) under one or more business classification codes (KBLI). Each code defines what the company is allowed to do and whether foreign ownership is permitted.
A PT PMA can hold land rights that individuals cannot, such as Hak Guna Bangunan (HGB, right to build) and Hak Pakai, but never freehold (Hak Milik).
When you need one — and when you don’t
- You probably need a PT PMA if you plan to rent out villas or rooms, develop units for sale or rent, operate hospitality, or hold HGB land for a project.
- You may not need one if you are buying or leasing a single residence for your own use. In that case personal Hak Pakai (within the minimum price and size limits) or a lease may be simpler.
Choosing a company when a lease would do adds cost and reporting obligations. Choosing a lease when you actually run a business exposes you to licensing problems. We decide this with you before anything is registered.
The 2025 capital rules
BKPM Regulation 5 of 2025 replaced the 2021 investment regulations on 2 October 2025. In summary:
- Minimum paid-up capital reduced from IDR 10 billion to IDR 2.5 billion.
- Total investment must still exceed IDR 10 billion per business code, excluding land and buildings — except for property development and accommodation, where land and buildings are counted.
- Quarterly investment reports (LKPM) are due by the 15th of the month after each quarter.
Some interpretations differ on how the paid-up capital applies across several business codes and to investor visas. We confirm the position for your structure with the notary and in OSS rather than relying on general summaries.
Bali-specific restrictions (2026)
In July 2026 the Governor of Bali announced, with the approval of the Minister of Investment, a restriction on new foreign-company registrations for 18 business codes in Bali. The list reported includes small hotels, other accommodation, real estate owned or leased, vehicle rental, management consulting, cafés, salons and fitness. Existing companies continue to operate and report.
Whether a specific villa-rental code is affected must be checked case by case, and the policy may change. This is the first thing we verify before recommending a PT PMA in Bali.
What we do
- Confirm that the business model fits an open business code and that foreign ownership is permitted.
- Design the shareholding, the capital plan and the governance between partners (shareholders’ agreement), and coordinate the notary deed and OSS registration.
- Align the company with the land strategy: lease to the company, HGB, or Hak Pakai.
- Set up the post-registration obligations: tax registration, LKPM reporting calendar, licences linked to the building (PBG, SLF).
Common mistakes
- Registering a company under a code that does not match the real activity.
- Using an Indonesian nominee to “hold” shares or land. Such arrangements are void and, in Bali, prohibited by regional regulation.
- Treating the capital requirement as a formality, then failing the investment realisation and reporting obligations.
See also: building permits PBG and SLF and land and zoning checks.