PMA Set Up

PMA set up allows you to open your own business in Indonesia/Bali and to get KITAS (Temporary residency permit)

PMA Set Up

What is a PMA?

A PMA (Penanaman Modal Asing) is a type of legal entity which foreigners can choose to conduct commercial activities in Indonesia established under the Indonesia Law.

It allows you to run Business in Indonesia/ Bali and to benefit of the KITAS (Temporary residency permit).

In PT PMA, foreign investors can be registered as shareholders in the form of legal entities and individuals.

Unlike Local Company (Local PT) where the company shareholdings must consist of 100% local citizens only, with the PMA, foreigners can hold up to 100% ownership of the company in Indonesia.

However, if you aim to only represent an overseas company in Indonesia and you will not generate any income from local activities, you can set up a representative office instead.

How much do I need to invest to open a PMA?

The minimum authorized capital of the company must be at least 10 billion rupiahs written in the company documents. 

But in the realization or common practice, you have to put at least 1 Billion Indonesian Rupiah (IDR 1,000,000,000) into your company business account within the first year since the company was set up.

Please note that there is no limited time to make the investment. However, it is advisable to allocate the funds in the first year from the date of the setup of the PMA  to avoid any problems in case of inspections from the government. 

Detail Perseroan PMA Documents
Detail Perseroan PMA Documents

What type of Company/ Business can I set up with a PMA?

There are more than 500 business sectors in Indonesia that are classified under the KBLI.

The Indonesia Standard Industrial Classification (KBLI) is an official code system that organizes the types of business fields for companies in Indonesia.

Check our blog for the best business sectors in Bali.

Companies wishing to register their line of business on the Deed or in the NIB must use the code according to the classification in the KBLI.

The KBLI was issued by BPS (Central Bureau of Statistics) with reference to the International Standard Classification of All Economic Activities (ISIC), ASEAN Common Industrial Classification (ACIC), and East Asia Manufacturing Statistics (EAMS).

The KBLI standardizes business activities in Indonesia into a uniform classification.
This standardization serves as a reference for legal registrations, such as in the Company Deed or NIB (Business Identification Number).

Business Identification Number (NIB)

NIB, better known as the Business Identification Number (Nomor Induk Berusaha/NIB), is a 13-digit registration number. It serves as a business owner’s identity to conduct business activities.

Every business owner must obtain an NIB before processing all the necessary licenses to legally conduct their business.

However, foreign investors are subject to the Negative Investment List in Indonesia, which specifies the maximum ownership percentage a foreigner can hold in certain business classifications.

The Negative Investment List is regularly updated by the Indonesia Investment Coordinating Board (BKPM).


Can I own Property/Land in Indonesia with PMA?

The only way for foreigners to safely invest in property or buy land in Bali is by owning an Indonesian legal entity, such as a PT or PMA.

While property owned by a PT PMA cannot be freehold, the Right to Build and Right to Use titles provide clear legal standing. These titles grant you 30 years of ownership, with the option to extend for two additional 20-year periods.

If you plan to own property, we can assist you with Legal Due Diligence to ensure all property documents are genuine, not disputed, and not fake. We also provide assistance with the notary process.

The Due Diligence service costs IDR 10,000,000 (Ten Million Indonesian Rupiah).

How long will I own the PMA for?

The validity period of a business license is stipulated to last as long as the company continues its business activities. Therefore, there are no set deadlines for the duration of your company.

How to set up a PMA?

Setting up a PMA requires a minimum of two shareholders, one Director, and one Commissioner.

The Director is responsible for the company’s operations and overall management. The Commissioner acts as the supervisor of the company and the Director but is not allowed to be involved in the company’s operations.

During the setup process, all foreign individuals do not need to be in Indonesia. We can handle the company setup while you are abroad.

What are the documents required for set up the PMA?

These are the required documents for the PMA:

  1. You must choose a company name. This name can be in any language, without symbols, and must have a minimum of 3 words and 3 letters. Please note that terms like ‘company,’ ‘co,’ ‘community,’ ‘LTD,’ ‘Ent,’ and ‘Enterprise’ are not allowed in a PT PMA name.

  2. KBLI / Business Fields: Under a PT PMA, you can register up to 5 different types of business sectors. Each business field has a code in the government system called OSS. We have attached the link here: OSS.

  3. Positions in the company: A PT PMA requires a minimum of 2 people — 1 Director and 1 Commissioner. The minimum shareholding is 2%.

  4. We need a passport photo or scan from all shareholders. The passport must be valid for at least 12 months for applying for the KITAS (note that a 2% shareholding does not qualify for KITAS).

OSS Registratio picture
OSS Registration

PMA Tax & Report

Once your company is set up, you are obligated to report the company’s LKPM (Investment Activity Report) and income tax report.

The LKPM report is submitted quarterly, every 3 months, detailing all investments made during that period.

The tax report is submitted annually, between March and April, requiring a company bank statement covering January to December of the previous year.

If you wish to use our services, please make your request by February at the latest.

However, you are welcome to use your own tax consultant, and we will be happy to provide any necessary documents.

Tax in Details

For the first 3 years, your company tax rate is 0.5% of the total revenue, provided that your revenue is less than IDR 4.8 Billion per year.

If your revenue exceeds IDR 4.8 Billion or after 3 years, your company tax rate will be 11% of the net profit.

Our Price

Our price for setting up PMA is IDR 20,000,000 (twenty million Indonesian rupiahs)

Included in the price

  1. Approval of Company Name
  2. Deed of Establishment from Notary
  3. Approval of Legal Entity from The Ministry of Humanity Law and Rights of Indonesia (SK KEMENMHAM )
  4. Registration of Tax ID (NPWP) for company
  5. Virtual office address in Badung area.
  6. NIB and Business License registration from OSS (SPPL, PKKPR, K3L, etc.)
  7. Assistance with opening a company bank account

Please note that all company paperwork or documents will be only in Bahasa. 

If you require translation into other languages, you can engage a sworn translator at your own expense once the PMA is set up.


What kind of Stay Permit KITAS can you have under PMA sponsorship?

If you hold personal shares worth a minimum of IDR 10,000,000,000 (Ten Billion Indonesian Rupiahs), you are eligible to apply for the E28A General Investment KITAS.

This KITAS is valid for 2 years and allows you to work as a Director or Commissioner in the company.

If you wish to work full-time in the company or hold specific positions, you can apply for a Working KITAS. This KITAS is valid for 1 year.

Process for PMA Set Up

Meeting Coordination
The purpose of this meeting is to discuss about your company name, sector of business and all the company details (Directors, Shareholders, Commissioners)
Meeting Coordination
Register company name
Our notary will register your company name to the Ditjen AHU (Director General of Administration of General Laws). Once it has registered we will send you the confirmation within 2 business days
Register company name
Notary process
It includes the deed incorporation approval of the legal entity, registration of tax ID and domicile letter (7 business days)
Notary process
Deed Company Signing
We will arrange a meeting with you and all your business partners (Directors, Commissioner, Shareholders) to sign up the deed in front of our Notary. If you are abroad, we will just sent you the draft of company that you will check and we will use Power of attorney to Sign the documents to Notary
Deed Company Signing
Register NIB and Business License to OSS
After these registrations you will get the BPJS Insurance (health and employment), Commercial/Operational License, Business Permit, Environment Permit and Building Permit
Register NIB and Business License to OSS
Your PMA is ready
We will handover to you all the documents regarding your brand new company
Your PMA is ready
KITAS Registration
The KITAS application process starts

Once we have received all the required documentation a letter of confirmation will be sent to your sponsor/ company

We process the KITAS recommendation from Investment Board Jakarta (BKPM Office Jakarta).

We process e-Visa Investor at General Immigration Jakarta. Estimated duration: based on the type of KITAS you are applying

Once the KITAS is finished, you will be able to enter and leave Indonesia freely, as all KITAS comes with a Multiple Exit and Re-entry Permit - MERP
KITAS Registration
All good
All the documents are now ready for you to start making business in Indonesia and with Visa you can leave and come back to Bali without any issue
All good

Start PMA Set Up With Us!

PMA Set Up

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