Setting Up a PT PMA in Indonesia: The 2026 Guide
The PT PMA (Perseroan Terbatas Penanaman Modal Asing) is Indonesia's foreign-owned limited company: the only vehicle that lets a non-Indonesian legally own and operate a real business on the island, a restaurant, a villa management operation, an agency or a studio. Big news: since October 2025, the entry ticket has dropped sharply. Here is the up-to-date guide.
What changed in 2025-2026
Mind the nuance that traps people: the investor KITAS (E28A) still requires roughly IDR 10 billion of shares personally. A 2.5 billion PT PMA can be perfectly legal without qualifying its founders for the investor visa. Structure both questions together, not one after the other.
The machine, step by step
- Choose the KBLI codes: every activity (villa rental, F&B, consulting...) has its code, requirements and sometimes foreign investment restrictions. This is THE structuring choice: everything else follows.
- Check the sector list: most activities expats target (hospitality, F&B, consulting, tech) are open to 100 percent foreign ownership; a few remain capped or closed.
- Incorporate: notarial deed, Ministry of Law validation, registration through the OSS system which issues the NIB (business identification number). Minimum structure: two shareholders, one director (who can be foreign) and one commissioner.
- Sector licenses: depending on the KBLI, licenses are added via OSS. For short-term villa rental, operating requires the appropriate accommodation license (Pondok Wisata type for small structures) attached to the property and its zoning.
- Corporate bank account, NPWP tax number, employer BPJS: the administrative trio that makes the company operational.
- Living with compliance: quarterly investment reports (LKPM), bookkeeping, monthly and annual tax filings. Budget a local accounting firm from day one.
Realistic end-to-end timeline: 3 to 6 weeks with a serious agent, excluding specific sector licenses.
What running a PT PMA costs
| Line | Annual order of magnitude |
|---|---|
| Setup (agent, notary, base licenses) | 1,500-4,000 $ once |
| Accounting + tax filings | 1,200-3,600 $ |
| Legal address / office | 500-2,000 $ |
| Investor KITAS (if eligible) | 800-1,500 $ per person |
| Corporate tax | 22% standard; a 0.5% of turnover regime exists for small companies |
A company or operated-villa project in Bali?
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Describe my projectFrequently asked questions
PT PMA or simple leasehold for my villa?
For living or a simple patrimonial investment, a well-drafted leasehold is often enough. The PT PMA earns its keep with real professional rental operation, several properties, or the need for an investor KITAS. Our leasehold vs freehold guide lays the groundwork.
Can I be an employee of my own PT PMA?
A foreign director holding an investor KITAS can run the company without a separate work permit. An operational salaried role beyond directorship requires a proper work permit, with its contributions.
A local nominee is cheaper, why not?
Because a company in a nominee's name is not yours, legally and permanently. The capital drop to 2.5 billion made the legal route accessible: no excuses left.