A PT PMA is a foreign-owned Indonesian company. It is the structure that allows a foreigner to hold a right to build and to run a tourist rental business directly. It was made more accessible in late 2025, but it remains demanding to manage. Here is when it makes sense.
Quick answer
- Since BKPM Regulation No. 5 of 2025, the minimum paid-up capital of a PT PMA is IDR 2.5 billion per business activity, down from 10 billion.
- The minimum investment value remains IDR 10 billion per activity; in real estate, land and buildings can count.
- A PT PMA can hold a right to build (HGB) and the tourist accommodation licence in its own name.
- For a single villa managed by an operator, it is rarely essential.
A villa project in Bali? Ask Mago your question on WhatsApp, in English.
Ask my question on WhatsApp1. What is a PT PMA?
PT stands for limited liability company (Perseroan Terbatas) and PMA for foreign investment (Penanaman Modal Asing). A PT PMA is therefore an Indonesian company wholly or partly owned by foreigners, in sectors open to foreign investment. It registers through the OSS system, which issues a business identification number (NIB) and its activity codes.
2. Capital: what changed in late 2025
BKPM Regulation No. 5 of 2025, published on 2 October 2025, cut the minimum paid-up capital of a PT PMA from 10 billion to 2.5 billion rupiah per activity code (KBLI). According to the analysis by the law firm Withers:
- the minimum investment value remains IDR 10 billion per activity code;
- the balance can be made up of eligible assets and expenditure; in real estate, land and building costs can be counted;
- the IDR 2.5 billion paid in cash must stay in the company's account for 12 months, unless used for capital expenditure or working capital;
- related activities can be grouped under a single investment value.
These thresholds remain significant: a PT PMA suits a sizeable project (several villas, a small resort) rather than buying a single villa.
3. What a PT PMA allows
- Holding a right to build (Hak Guna Bangunan, HGB) on land, for a total of up to 80 years through successive renewals, or holding leases.
- Holding the tourist accommodation licence and running the villas directly, which a foreigner cannot do personally.
- Invoicing, hiring and sponsoring work and stay permits for its foreign directors.
4. What it involves
- At least two shareholders (individuals or companies), a director and a commissioner.
- Bookkeeping and monthly and annual tax filings; corporate income tax at the standard rate of 22%, local accommodation taxes and withholding taxes where applicable.
- The investment activity report (LKPM) to be filed every quarter with the investment authorities.
- Sector licences suited to the tourism business, in addition to the NIB.
- Recurring costs: accountant, legal advice, registered address, work permits for foreign directors.
- Tax on dividends paid to foreign shareholders, with a withholding tax that may be reduced by your country's tax treaty.
5. PT PMA or a simple leasehold?
| Your project | Usually suitable structure |
|---|---|
| One villa in a managed resort | Leasehold in your name; licence held by the operator or the lessor |
| One villa for personal use and occasional rental | Leasehold, with a compliant management contract |
| Several villas you run yourself | PT PMA holding the licence |
| Building on land over the long term | PT PMA with a right to build (HGB) or a lease |
In all cases, refuse nominee arrangements: they are illegal and give you no enforceable rights. The three legal routes are compared in buying a villa in Bali as a foreigner.
6. Set-up steps
- Check that the intended activity (tourist accommodation, rental) is open to foreigners and identify the activity codes.
- Draft the articles of association and have them executed by a notary, then registered with the Ministry of Law.
- Obtain the NIB and licences through OSS.
- Open the bank account and pay in the capital.
- Obtain work and stay permits for foreign directors.
- Set up bookkeeping and filings from the first month.
These rules change regularly: have your project validated by an independent Indonesian firm before committing funds.
Before setting up a PT PMA
- Does the project justify an investment of IDR 10 billion per activity?
- Is the intended activity open to foreigners?
- Who will handle bookkeeping, filings and LKPM reports?
- What annual running cost, on top of the capital?
- Would a simpler structure (managed leasehold) be enough?
Frequently asked questions
What is the minimum capital of a PT PMA in 2026?
Since BKPM Regulation No. 5 of 2025, the minimum paid-up capital is IDR 2.5 billion per activity code. The minimum investment value remains IDR 10 billion per activity, with land and buildings counting in real estate.
Do you need a PT PMA to buy a villa in Bali?
No. Most investors buy a leasehold villa whose rental licence is held by the operator or the lessor. A PT PMA is useful to run several villas yourself or to hold a right to build.
Can a PT PMA own land in Bali?
It cannot hold freehold (Hak Milik), which is reserved for Indonesians, but it can hold a right to build (HGB) or long-term leases.
What are the obligations of a PT PMA?
Bookkeeping, monthly and annual tax filings, a quarterly investment report (LKPM), business licences and permits for foreign directors.
Sources (accessed 28 October 2026)
Mago Kitaev, real estate investment consultant in Dubai, based in Business Bay. A former project manager in banking and IT, he has been advising French-speaking investors since 2024. See his background
This article is for information purposes and was published on 28 October 2026. It does not constitute legal, tax or financial advice. Indonesian regulations change frequently: have every project checked by an independent PPAT notary and an independent lawyer.