Setting up a PT PMA (Penanaman Modal Asing) is the most secure route for foreign nationals to legally invest in Indonesian property. This guide walks through the PT PMA formation process, costs, and common pitfalls in 2027.
Prerequisites Before Starting
Before PT PMA formation: clear business plan (activities the PT PMA will conduct), minimum two shareholders (foreign individuals or entities acceptable), at least one director, a registered Indonesian business address, and minimum stated capital (IDR 10 billion for most property activities).
Step 1: Determine KBLI Business Classification
Every Indonesian business specifies activities using KBLI codes. For Bali property: 68100 (real estate with own/leased property), 68200 (real estate on fee/contract basis), 55100 (short-term accommodation for villa rental). Correct KBLI codes determine licensing requirements and permissible activities.
Step 2: NIB via OSS
Register through Online Single Submission (OSS) portal at oss.go.id. This generates your NIB (Nomor Induk Berusaha), prerequisite for all subsequent licensing. A licensed local lawyer typically handles this step.
Step 3: Notarial Company Deed
Engage a licensed Indonesian Notary (Notaris) to draft and execute the PT PMA company deed (Akta Pendirian). The deed includes company name, shareholders, directors, and objectives. Shareholders can sign via power of attorney if overseas.
Step 4: Ministry of Law Approval
The notary submits the deed to Ministry of Law and Human Rights (Kemenkumham) via SABH system. Approval typically takes 7-14 business days. Upon approval, the PT PMA is a legal entity.
Step 5: Tax Registration and Bank Account
Register with Indonesian tax authority (DJP) for NPWP (tax ID). Then open a corporate bank account at an Indonesian bank (BCA, Mandiri, BNI). Bring all formation documents and shareholder identification.
Common Pitfalls
- Wrong KBLI code: restricts permissible activities and causes licensing problems
- Nominee shareholders: legally risky; use genuine PT PMA structure
- Undercapitalised PT PMA: minimum capital requirements must be met
- Unqualified notary: use only PPAT-certified notaries familiar with foreign investment
Invest Lands Bali guides investors through the entire PT PMA setup process. Contact us via WhatsApp +62 811-3941-4563.
