PMA Set Up
PMA set up allows you to open your own business in Indonesia and Bali, and to obtain a KITAS (Temporary Stay Permit) along the way
What is PMA?
A PMA (Penanaman Modal Asing) is the legal entity structure foreigners use to run commercial activities in Indonesia, established under Indonesian law.
Through a PT PMA, foreign investors can be listed as shareholders either as individuals or as legal entities. This is different from a Local PT, where shareholding must be 100% Indonesian. With a PT PMA, foreign investors can hold up to 100% ownership of the company, depending on the business classification.
If your goal is simply to represent an overseas company in Indonesia without generating local income, a Representative Office may be the more suitable structure instead.
How much do I need to invest to open a PMA?
The authorized capital stated in the company’s legal documents must be at minimum IDR 10 billion. 🔍
In common practice, investors are expected to place at least IDR 1 billion into the company’s business account within the first year of operation. 🔍 There’s no strict deadline for completing this investment, but allocating the funds within the first year is advisable to avoid complications during government inspections.
Capital requirements are reviewed periodically by regulators, so it’s best to confirm the current applicable threshold for your specific business sector before finalizing your structure our team can verify this for you ahead of registration.
What type of Company/Business can I set up with a PMA?
Indonesia recognizes more than 500 business sectors under the KBLI (Indonesia Standard Industrial Classification) an official coding system that organizes business fields for companies operating in the country.
The KBLI references international classification standards (ISIC, ACIC, EAMS) and is issued by Indonesia’s Central Bureau of Statistics (BPS). Every company must register its business activity under the correct KBLI code, both in the Deed of Establishment and the NIB.
Foreign investors should also be aware of the Negative Investment List (now referred to as the Positive Investment List), which determines the maximum foreign ownership percentage allowed for certain business classifications. This list is reviewed and updated periodically by Indonesia’s Investment Coordinating Board (BKPM).
Business Identification Number (NIB)
The NIB (Nomor Induk Berusaha) is a 13-digit registration number that serves as a company’s official business identity in Indonesia.
Every business owner is required to obtain an NIB before processing the additional licenses needed to legally operate. The NIB is issued through the OSS (Online Single Submission) system and is one of the first compliance steps after a PT PMA is legally established.
Can I own Property/Land in Indonesia with PMA?
For foreigners, holding an Indonesian legal entity such as a PT PMA is the structured, legal pathway to use property or land in Bali.
While property under a PT PMA cannot be freehold, it can be held under Right to Build (Hak Guna Bangunan) or Right to Use (Hak Pakai) titles. These titles provide clear legal standing for up to 30 years, with the option to extend for two additional 20-year periods.
For clients planning a property purchase, we recommend a Legal Due Diligence process to confirm that documents are authentic, undisputed, and free of irregularities, along with coordination support through the notary process.
How long will I own the PMA for?
A business license under a PT PMA remains valid for as long as the company continues its business activities there is no fixed expiry date. As long as your company stays active and meets its reporting obligations, it can operate indefinitely.
How to set up a PMA?
Setting up a PT PMA requires a minimum of two shareholders, one Director, and one Commissioner.
The Director is responsible for the company’s day-to-day operations and overall management, while the Commissioner supervises the Director and the company but does not take part in operational decisions.
Foreign shareholders are not required to be physically present in Indonesia during the setup process. Bright Solution can manage company formation on your behalf while you remain abroad, using Power of Attorney where needed for document signing.
What are the documents required for set up the PMA?
- Company Name – Must be at least 3 words and 3 letters, can be in any language, and cannot include restricted terms such as “company,” “co,” “community,” “LTD,” “Ent,” or “Enterprise.”
- KBLI / Business Fields – A PT PMA can typically register up to 5 different business sectors, each with its own code under the OSS system.
- Company Positions – A minimum of 2 people is required: 1 Director and 1 Commissioner, with a minimum shareholding requirement of 2% each.
- Shareholder Documents – A passport photo or scan from each shareholder, valid for at least 12 months, is required for KITAS-related applications. Note that a 2% shareholding alone does not automatically qualify a shareholder for KITAS.
PMA Tax & Report
Once your PT PMA is established, you’re required to submit two key reports:
LKPM (Investment Activity Report) – Submitted quarterly, detailing investment realization made during the period.
Annual Tax Report – Submitted yearly, typically between March and April, requiring a company bank statement covering the full prior fiscal year (January-December).
If you’d like Bright Solution to manage your annual tax reporting, we recommend confirming your request by February at the latest. You’re also welcome to use your own tax consultant we’re happy to provide any supporting documents needed for a smooth handover.
Tax in Details
Corporate tax obligations for a PT PMA depend on annual revenue and the regulation in force at the time of filing.
Under previous regulation, companies with annual revenue below IDR 4.8 billion could apply a 0.5% final tax rate on total revenue during their first 3 years of operation, with an 11% rate on net profit applying afterward or once revenue exceeds that threshold.
Please note: this facility has been affected by recent regulatory updates (2026), and the applicable rate may differ from the figures above. We strongly recommend confirming your company’s current tax obligations directly with our accounting team before relying on this structure for financial planning.
Our Price
Our service fee for PT PMA Set Up start at IDR 25,000,000.
What’s included:
- Company name approval
- Deed of Establishment from a licensed Notary
- Legal Entity Approval from the Ministry of Law and Human Rights (SK KEMENKUMHAM)
- Tax ID (NPWP) registration for the company
- Virtual office address in the Badung area
- NIB and Business License registration through OSS (including SPPL, PKKPR, K3L, and similar permits)
- Assistance with opening a company bank account
All company documentation is issued in Bahasa Indonesia. Sworn translation into other languages can be arranged separately, at the client’s own expense, once the PT PMA is established.
Note: Prices are listed as per the source for a draft to be reviewed and confirmed by the team prior to publication, please adjust them to reflect Bright Solution’s current pricing.
Payment Methods for PMA Set Up
Accepted payment methods include Wise, Credit Card, Revolut, and Western Union.
A few notes on payment:
- PayPal and international bank transfers are not accepted, due to processing delays and high fees.
- For Wise transfers, please use our official email as the Wise recipient address for faster processing.
- For Revolut, processing begins once the full invoice amount is received; any shortfall due to deductions or underpayment will need to be settled separately.
- Credit card payments incur an additional 3% processing charge a payment link can be issued upon request.
- Payments made through an Indonesian company bank account may be subject to a 2% expense tax if the transaction is reported.
What kind of Stay Permit KITAS can you have under PMA sponsorship?
Investor KITAS (E28A – General Investment) Available to shareholders holding personal shares valued at a minimum of IDR 10 billion. 🔍 This KITAS is valid for 2 years and allows the holder to serve as Director or Commissioner.
Working KITASÂ For individuals who wish to work full-time within the company in a specific position. This KITAS is valid for 1 year and is renewable.
Both KITAS types include a Multiple Exit and Re-entry Permit (MERP), allowing holders to enter and leave Indonesia freely throughout the permit’s validity.
Process for PMA Set Up
License to OSS
Includes BPJS Insurance (health and employment), Commercial/Operational License, Business Permit, Environmental Permit, and Building Permit.
Once your KITAS is issued complete with MERP you’re free to enter and leave Indonesia as you build your business in Bali.
Contact our friendly team
