Do you want to invest safely in Bali real estate as an international investor? Then setting up a local company is highly recommended. Establishing a PT PMA is the best legal route to gain full ownership and control over your business and real estate in Indonesia. In this article, we explain step-by-step how to set up this corporate structure, what the costs are, and why it is highly attractive from a tax perspective for international investors
What exactly is a PT PMA on Bali?
A PT PMA stands for ‘Perseroan Terbatas Penanaman Modal Asing’, which translates to a Limited Liability Company for Foreign Investment. Unlike local companies (PT), the Indonesian government allows foreigners to own 100% of the shares in most sectors (including real estate management and rentals). This means you no longer need a local ‘nominee’ or middleman, making your investment legally watertight.
Why set up a PMA for your property in Bali?
Many international investors at BPA choose a PMA, primarily for the security it offers. These are the main advantages:
- 100% Ownership (Right to Build / HGB): A PMA can purchase real estate under the Hak Guna Bangunan (HGB) title. This is a corporate ownership right that is virtually equivalent to Freehold. You fully own the property and can sell, rent, or bequeath it to your children. (Note: The most common structure, however, remains leasehold).
- Residence Permit (KITAS): As a director or shareholder of your own PMA, you are eligible for an Investor KITAS (typically 2 years), allowing you to legally live in Bali to manage your business.
- Tax Optimization: For many international tax authorities, your property is no longer considered a direct privately-held foreign asset; instead, you are taxed on the shares of your PMA. Depending on the Double Taxation Agreements (DTAs) between Indonesia and your home country, this can yield significant tax benefits.
Tip: We often see investors view the setup costs of a PMA as a hurdle. However, these costs are frequently recouped quickly through the associated tax advantages.
What are the requirements for a PT PMA on bali?
In 2026, the rules for establishing a PMA are strictly enforced to prevent ‘shell’ companies. Registration regulations frequently change, so ensure you always seek up-to-date advice from legal professionals.
- Minimum of 2 Shareholders: This can be two individuals, or one individual and a foreign holding company.
- Investment Plan: You must have a total investment plan of 10 billion IDR (approx. $600,000 / €550,000). Note: This does not mean you have to deposit this amount immediately. You just need to demonstrate that you will invest this amount in the future (the purchase value of your land and villa counts towards this!).
- Paid-up Capital: In practice, 25% of the authorized share capital must be deposited into the corporate bank account shortly after incorporation (a minimum of 2.5 billion IDR).
The steps to establish a PMA on Bali
Applying for a PMA is usually done through a legal firm and a notary. You generally do not need to be present in Bali to register a company. The following steps are taken:
- Name Check: We verify if your desired company name is available (it must contain 3 words, e.g., “Bali Property Holdings”).
- Deed of Establishment: The notary drafts the Articles of Association.
- Ministry Approval: The AHU (Ministry of Law and Human Rights) approves the deed. From this moment on, your company is an official legal entity.
- Tax Number (NPWP): Your company receives its own tax identification number.
- OSS System: Through the Online Single Submission (OSS) system, we obtain your business license (NIB).
Conclusion: Why open a PT PMA to invest on Bali?
Registering a company in Bali is a smart move if you plan to invest or do business. Besides offering unparalleled security, it can also provide substantial tax benefits. If you want to take this step, it is crucial to partner with reliable professionals. Do you have questions about this process? Please contact us.
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- The exact steps to secure 100% ownership via a PMA.
- How to smartly navigate local and international property taxes.
- The 5 most common legal mistakes made by foreign investors.
Frequently Asked Questions about setting up a PT PMA on Bali
Yes, the entire process can be arranged remotely via a Power of Attorney. You do not need to be physically present in Indonesia to sign the documents.
In 2026, the process is highly digitized. The turnaround time can vary depending on current processing capacities, but it is generally a swift process.
Disclaimer: This article contains general information and does not constitute financial or tax advice. Returns on investment may fluctuate. Always consult with a qualified professional before making any investment decisions.
