Written by Donny Yosua, Real Estate Investment Analyst, Magnum Estate ·
Reviewed by Magnum Estate operations desk ·
Last updated 15 July 2026
How do you set up a PT PMA in Indonesia?
Setting up a PT PMA, Indonesia’s foreign-owned limited company, means reserving a company name, choosing the right KBLI business codes, signing a notarial deed of establishment, getting it approved by the Ministry of Law, then obtaining a tax number and an NIB through the OSS system. Most buyers finish in three to six weeks.
TL;DR: A PT PMA is the compliant way for a foreigner to hold Bali property through a company, under Hak Guna Bangunan or Hak Pakai title, earn rental income and resell. Expect a minimum IDR 10 billion investment plan, at least two shareholders, three to six weeks to incorporate, and ongoing quarterly LKPM reports plus tax filings. If you are not yet sure a PT PMA is the right structure, start with the ownership comparison linked below.
Before you start: do you need a PT PMA at all?
A PT PMA is not the only way to hold Bali property, and it is not always the right one. Foreigners can also lease under Hak Sewa or hold Hak Pakai in their own name, and each route carries a different cost, term and risk profile. This guide assumes you have already weighed those options and decided a company makes sense, usually because you want the closest thing to freehold, plan to earn rental income, or intend to hold several units. If you are not there yet, read our leasehold vs freehold vs PT PMA comparison first, then come back here for the how.
Two things to be clear about before you spend a rupiah. First, a PT PMA can hold Hak Guna Bangunan, the right to build, or Hak Pakai, the right to use, but never Hak Milik, the freehold title reserved for Indonesian citizens. Second, using an Indonesian’s name to hold freehold on your behalf, a nominee arrangement, is not a shortcut around this: it is unenforceable and carries real risk. The PT PMA exists precisely so foreigners do not have to go down that road. For the wider legal picture, see our guide to buying property in Bali as a foreigner, and for the investment context, our invest in Bali hub.
The setup process, step by step
The company itself is a fairly standard sequence handled by a notary and the online business system. What takes time is rarely the paperwork; it is the approvals between the steps. Here is the path from a company name to a live, licensed PT PMA.
What the numbers mean: capital, KBLI and the investment plan
Every Indonesian company registers one or more KBLI codes, the national business classification, through the OSS system. Your codes decide which activities you may run and whether foreign ownership is capped. Property buyers typically register real-estate codes in the 681 range, for buying, selling and renting your own property, and, if you let short-term, accommodation codes in the 55 range. Some sectors are restricted to Indonesian or joint ownership under the Positive Investment List; most standard property and rental activities are open to full foreign ownership, but confirm your exact codes before you file.
The headline figure is a minimum investment plan of IDR 10 billion, around USD 625,000 at an exchange rate near IDR 16,000 to the dollar, per business line and per location, and it excludes the land and buildings themselves. This is a planned-investment commitment recorded with the Ministry of Investment (BKPM) through oss.go.id, not cash you must wire on day one. A portion is issued and paid-up capital; the exact split has shifted with regulation over the years (bkpm.go.id), which is one of several reasons to confirm current thresholds with a licensed consultant rather than an old blog post.
You also need at least two shareholders, one director and one commissioner. Shareholders can be individuals or companies, and for most property structures both can be foreign.
After registration: the obligations most buyers underestimate
Incorporating is the start, not the finish. A live PT PMA carries recurring duties, and Indonesia enforces them:
- LKPM, every quarter. The Laporan Kegiatan Penanaman Modal is an investment-activity report filed through OSS four times a year. Skip it repeatedly and your licences can be frozen.
- Tax filings. Corporate income tax runs at 22%, with monthly and annual returns (SPT) submitted to the tax office (pajak.go.id). Depending on your activity you may also handle VAT and withholding tax.
- Annual financial statements prepared to Indonesian accounting standards.
- Building and staffing permits. The PBG (building approval, formerly IMB) and SLF (certificate of worthiness) for the property, plus RPTKA and KITAS if you employ foreigners.
Budget for a local accountant or corporate-services firm from the first month; ongoing compliance commonly runs USD 1,500 to 4,000 a year depending on activity and turnover. Property-specific taxes and holding costs are covered in our Bali property taxes and holding-costs guide.
Where the PT PMA meets your purchase
For most Magnum buyers the PT PMA is a means, not the goal: the goal is a managed apartment or villa that produces income and holds value. In practice the two run in parallel. You reserve the unit, and while the company is being incorporated you complete due diligence on the title and the developer. By handover, the PT PMA is live and the property is held under Hak Guna Bangunan in the company’s name. Our team runs this alongside buyers regularly and can point you to the notaries and consultants who do it properly.
"A PT PMA is not a loophole; it is the legal front door. Set it up properly, keep up the quarterly reporting, and it turns Bali property from a grey-area gamble into a compliant, resellable asset."
The one-line takeaway
Methodology and sources
The process, timelines and thresholds above describe how a standard property-holding PT PMA is set up in 2026, drawn from Indonesia’s public investment and business-registration framework and from the incorporations Magnum’s operations desk sees alongside buyers.
Company registration and NIB issuance run through the government’s Online Single Submission system (oss.go.id); investment planning, the LKPM report and the Positive Investment List sit with the Ministry of Investment and BKPM (bkpm.go.id); corporate tax obligations are set by the Directorate General of Taxes (pajak.go.id); and land-title rules, including Hak Guna Bangunan and Hak Pakai, are administered by the national land agency, ATR/BPN (atrbpn.go.id). Costs are indicative market ranges for notary and corporate-services fees, converted at roughly IDR 16,000 to the US dollar; they vary by provider and business activity. None of this is legal advice, and thresholds change, so verify current requirements with a licensed professional before acting.
Common questions
How much money do you need to set up a PT PMA?
Plan for two layers. The company setup itself, notary and corporate-services fees, commonly runs USD 2,000 to 5,000. Separately, a PT PMA carries a minimum investment plan of IDR 10 billion, around USD 625,000, per business line and excluding land and buildings, of which a portion is paid-up capital. The investment plan is a recorded commitment rather than cash you deposit up front, but confirm the current paid-up requirement with a consultant, as it has changed over time.
How long does it take to register a PT PMA?
The company itself is usually incorporated in about three to six weeks, from name reservation through the notarial deed, Ministry of Law approval, tax number and NIB. Sector-specific licences and building permits can add time on top, so allow longer if your activity needs extra approvals.
Can a PT PMA own property in Bali?
Yes, but not as freehold. A PT PMA can hold Hak Guna Bangunan, the right to build, up to 30 years and renewable, or Hak Pakai, the right to use. Hak Milik, true freehold, is reserved for Indonesian citizens. For most foreign buyers, Hak Guna Bangunan under a PT PMA is the closest compliant equivalent to owning.
Do I need an Indonesian partner or a nominee?
No. A PT PMA can be fully foreign-owned for most standard property and rental activities, which is exactly why it exists. You do need at least two shareholders, one director and one commissioner, but they can be foreign. Avoid nominee arrangements, where an Indonesian holds freehold in their name for you; they are unenforceable and carry real risk.
What are the ongoing costs and obligations?
Every PT PMA files a quarterly LKPM investment report through OSS, monthly and annual tax returns, and annual financial statements. Corporate income tax is 22%. Budget roughly USD 1,500 to 4,000 a year for an accountant or corporate-services firm to keep the company compliant, more if it employs staff or handles VAT.
Should I set up a PT PMA myself or use an agent?
Almost everyone uses a notary and a corporate-services firm. The filings are in Indonesian, the KBLI and capital rules shift, and a single wrong code can stall the company. For a one-off property purchase, the fee for professional setup is small next to the cost and delay of getting it wrong.
About the author
Donny Yosua is a real estate investment analyst at Magnum Estate, an award-winning full-cycle Bali developer (Berawa, Sanur, Umalas, Sky Stars). He writes about the legal, tax and financial mechanics of buying property in Bali as a foreigner. This article is general information, not legal advice.
