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Setting up a company in Indonesia (PT PMA): 2026 guide to investing in Bali
How to set up a PT PMA, Indonesia's foreign-capital company: minimum capital (IDR 2.5bn since 2025), structure, timelines, taxes and the Investor KITAS. Data verified to 2026. Incorporation is handled by a local partner in Bali.
If your plan in Bali involves running a holiday rental, building a business or holding assets through a structure, sooner or later the same acronym appears: PT PMA. It is Indonesia’s foreign-capital company, and understanding it properly avoids surprises. This guide explains what it is, when you need it and what it requires in 2026, with the legal data up to date. The incorporation itself is carried out by a local partner in Bali.
What a PT PMA is
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing: a limited liability company with foreign capital. It is the main corporate route for a foreigner to run a business in Indonesia fully legally, and the only structure that allows you to operate a holiday rental or a hospitality activity in line with the law.
For the property investor it has a second key function: a PT PMA can hold the HGB right of construction (Hak Guna Bangunan) over a property —30 years, extendable up to 80— which gives far greater control over the asset than a simple personal lease.
Capital and structure: what the law requires in 2026
There is one important recent change here, and a nuance worth not confusing:
| Requirement | 2026 | Note |
|---|---|---|
| Paid-up share capital | IDR 2.5bn (~USD 150,000) | Reduced in 2025 (BKPM Reg. 5/2025), previously IDR 10bn |
| Investment plan | ~IDR 10bn | Excludes land and buildings; still in force |
| Shareholders | Minimum 2 | Individuals or legal entities |
| Director | Minimum 1 | Resident, with NPWP (tax number) |
| Commissioner | Minimum 1 | Supervisory body |
The distinction between paid-up capital (lowered to IDR 2.5bn) and investment plan (still around IDR 10bn, not counting land or construction) is the one that causes the most confusion. You do not need to pay it all in at once: at incorporation a capital statement letter is accepted, and the actual payment comes later. This is exactly the kind of detail worth pinning down with your advisor before signing.
The process, step by step
- Define the economic activity according to the classification list (KBLI) and check that it allows foreign capital.
- Reserve the company name.
- Notarial incorporation deed before an Indonesian notary.
- Registration with the Ministry of Justice and obtaining the NIB via the OSS system.
- Tax registration (NPWP).
- Sector licences, if the activity requires them.
- Corporate bank account opening.
- Investor KITAS application, where applicable.
The core incorporation is usually completed in around 10 business days; the full process, with bank account and licences, takes roughly 6 weeks. Regulated activities can add 14 to 60 days for permits.
Indicative costs
Taxation and ongoing obligations
A PT PMA is not set up and forgotten: it is a living company with recurring obligations.
- Corporate income tax (PPh Badan): 22% on profit, with a reduced regime of 0.5% on turnover for small companies (revenue below ~IDR 4.8bn).
- Monthly local accounting.
- Monthly and annual tax filings.
- Reporting of effective investment to the regulator.
- Labour compliance, if you hire local staff.
Who handles it
Setting up and maintaining a PT PMA is work for local specialists: notary, incorporation consultant and tax advisor. Arunadamai does not incorporate companies or give legal advice; we are an informational and contact website. If you decide to move forward, we put you in touch with the local firm in Bali that handles the entire process —from the KBLI list to the monthly filing— and stands behind it.