PT PMA Bali: The Complete 2026 Guide for Real Estate Investors
A PT PMA is a 100% foreign-owned Indonesian limited liability company used by international investors to hold and operate Bali real estate with full legal certainty. Under BKPM Regulation 5/2025, the minimum paid-up capital was reduced from IDR 10 billion to IDR 2.5 billion (approximately USD 150,000). Total investment plan must still exceed IDR 10 billion. Setup takes 4 to 8 weeks and costs $3,000 to $5,000. Investland Bali has structured 60+ property acquisitions through PT PMA for international investors.
What Is a PT PMA Bali?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited liability company with foreign shareholding. It is the primary legal vehicle for foreign direct investment in Indonesia. For Bali real estate investors, the PT PMA is the structure that allows a foreigner to legally hold, develop, rent, and operate property under Leasehold, Right to Build (HGB) or Right to Use (Hak Pakai) title.
The company is governed by Law No. 40/2007 (Limited Liability Companies), Law No. 25/2007 (Capital Investment), and the 2025 Positive Investment List. Under the Omnibus Law framework, 100% foreign ownership is permitted for most property, tourism, and hospitality classifications. This makes PT PMA the default structure for serious property investors who need legal security, business rights, and long-term asset control.
PT PMA is not a workaround. It is the legally mandated vehicle. Indonesian law prohibits foreigners from holding freehold land (Hak Milik) directly. Nominee arrangements, where an Indonesian citizen holds freehold title on a foreigner’s behalf, are illegal and unenforceable. The PT PMA replaces the nominee trap with a compliant, transparent, and scalable structure.
For the full comparison of ownership options, see our guide: How to Buy Property in Bali as a Foreigner.
Why PT PMA Is the Right Vehicle for Real Estate Investors
Five reasons make PT PMA the right choice for most international investors entering the Bali property market in 2026.
Legal ownership of property. The PT PMA holds the Leasehold, HGB or Hak Pakai title directly. You own the company. The company owns the property. You control the asset through your shareholding without any legal grey zone.
Rental business operation. PT PMA is the only structure that allows a foreigner to legally operate a short-term rental, villa management business, or hospitality venture in Indonesia. Running a rental under personal leasehold alone is legally risky. Operating through a PT PMA creates a compliant business.
Investor KITAS eligibility. Shareholders and directors of a PT PMA qualify for the Investor KITAS, Indonesia’s investor residency permit. This unlocks easier travel, banking, and long-term presence in the country.
Bank account and financial infrastructure. A PT PMA can open Indonesian bank accounts, process rental income in local currency, and handle tax obligations through proper channels. None of this is available to a foreigner operating without an entity.
Exit optionality. PT PMA shares can be sold, transferred, or restructured. The property stays with the company, the ownership changes at the shareholder level. This is cleaner than assigning a leasehold and faster than converting ownership structures at exit.
From Investland Bali’s portfolio, PT PMA is the chosen structure for 80% of investors with a rental business thesis and 100% of investors acquiring multi-property portfolios.
PT PMA Ownership: Leasehold vs Hak Pakai vs HGB
Each structure suits a different buyer profile. The table below compares the three.
| Feature | Leasehold (Hak Sewa) | Hak Pakai | HGB |
|---|---|---|---|
| Ownership model | Fixed-term lease from lessor (individual and PT PMA) | Individual right to use | Company holds title |
| Title duration | 25 to 30 years + extensions | 30 + 20 + 30 years (80 total) | 30 + 20 + 30 years (80 total) |
| Residency permit required | No (with PT PMA for NIB) | Yes (KITAS or KITAP) | No |
| Rental business allowed | Limited / Legal with PT PMA | Limited | Yes |
| Capital requirement | None / IDR 2.5B paid-up with PT PMA | None | IDR 2.5B paid-up |
| Setup time | 1 to 4 weeks | 2 to 6 weeks | 4 to 8 weeks |
| Buyer transfer tax (BPHTB) | No tax | 5% | 5% |
| Seller tax (PPh) | Lessor pays 10% of lease value | 2.5% | 2.5% |
| Annual compliance | None / $600 to $1,000 with PT PMA | None | $600 to $1,000 |
| Best for | Lifestyle buyers, long-term rent, short-term rent | Residential ownership with residency | Portfolio investors, rental operators |
If you are buying for personal lifestyle use and have no rental ambitions, personal leasehold is simpler. If you have a KITAS and want residential ownership in your own name, Hak Pakai fits. For everyone else, especially investors above $400,000 and anyone running a bigger rental, PT PMA is the right structure.
PT PMA Setup Requirements in 2026
The regulatory landscape changed materially in 2025. BKPM Regulation 5/2025 reduced the paid-up capital requirement, making PT PMA significantly more capital-efficient. PP No. 28/2025 streamlined business licensing through a digital-first framework. Here is what you need in 2026.
Shareholders. Minimum two. Can be individuals or legal entities. Both can be foreign. One shareholder cannot hold 100% of shares, but one can hold 99% while the second shareholder holds 1%.
Directors and commissioners. Minimum one director and one commissioner. Both can be foreign. The director is the operational executive. The commissioner provides oversight.
Capital. Paid-up capital of IDR 2.5 billion at incorporation (reduced from IDR 10 billion under BKPM Regulation 5/2025). The total investment plan must still exceed IDR 10 billion over a reasonable timeframe, typically 3 to 5 years. The paid-up capital must be deposited in an Indonesian bank account in the company’s name. Capital can be used to purchase a property.
KBLI business codes. You select one or more Indonesian Standard Industrial Classification (KBLI) codes that describe your business activity. For real estate, common codes include 68100 (real estate owned or leased), 68200 (real estate on fee or contract basis), 55130 (villa rentals), and 55900 (other accommodation). Code selection affects permitted activities and ownership limits.
Registered address. A physical address in Indonesia. Virtual office services are acceptable for most real estate classifications and reduce setup cost.
Tax ID (NPWP) and business ID (NIB). Issued through the OSS (Online Single Submission) system after incorporation.
Sources:
OSS System/KBLI codes: https://oss.go.id/id/kbli?q=real%20estate
The Step-by-Step Setup Process
Investland Bali has completed 60+ PT PMA setups for property acquisitions. The process runs in a predictable sequence.
Step 1: Company name reservation. Submit three name options to the Ministry of Law and Human Rights. Names must be unique and meet Indonesian naming conventions. Timeline: 1 to 3 days.
Step 2: KBLI code selection. Choose the industrial classification codes that match your business plan. Real estate and rental operators typically select 2 to 4 codes. Timeline: immediate with advisor input.
Step 3: Draft the Deed of Establishment. A registered Indonesian notary drafts the articles of association, shareholder structure, director and commissioner appointments, and capital commitments. Timeline: 1 week.
Step 4: Ministry approval. The deed is submitted to the Ministry of Law and Human Rights for validation. Once approved, the PT PMA exists as a legal entity. Timeline: 1 to 2 weeks.
Step 5: OSS registration. Register through the Online Single Submission system to obtain the NIB (Business Identification Number) and sector-specific licensing. Timeline: 1 to 2 weeks.
Step 6: Tax ID (NPWP). Apply for the company tax identification number through the local tax office. Timeline: 1 to 2 weeks.
Step 7: Bank account opening. Open a corporate bank account in the PT PMA’s name. Deposit the IDR 2.5 billion paid-up capital. Indonesian banks require physical presence for signatory setup, though power of attorney arrangements are available. Timeline: 1 to 2 weeks.
Step 8: Sector licensing. Depending on your KBLI codes, additional licenses may apply. Villa rentals require Pondok Wisata or similar accommodation licenses. Tourism-adjacent operators need TDUP or SIUP. Timeline: varies by licence type, typically 2 to 4 weeks.
Total timeline: 4 to 8 weeks end-to-end for a straightforward property-holding PT PMA. Complex structures with multiple sector licenses add 2 to 4 weeks.
Buying Property Through a PT PMA
Once the PT PMA is incorporated and the NIB is issued, the property acquisition runs through the same PPAT-led process used across Indonesia. The PT PMA is the legal buyer. The Leasehold, HGB or Hak Pakai title is registered in the company’s name.
Due diligence. Title verification at BPN, zoning confirmation through KKPR (Spatial Usage Confirmation), permit review, and physical inspection. Budget $1,000 to $4,000. Timeline: 2 to 4 weeks. Check our blog post on Due Diligence to get a full overview of the process.
Leasehold Purchase:
Deposit to notary escrow. Usually around 10% of the lease price.
The Leasehold Agreement is prepared and signed at the local Notary Office (the buyer should be the one that chooses the Notary). The payment for the leasehold property is done and the property is handed to the buyer. The purchase is registered in the National Land Agency (PBN).
Taxes and fees. Seller is responsible for the Leasehold Tax (10% of the lease value). Notary fees is usually covered by the buyer (1-2% of the sale price).
Freehold Purchase:
Deposit to notary escrow. Typically 10% of purchase price. Held by the PPAT (Land Deed Office) until due diligence clears.
AJB (Sale and Purchase Deed). Signed in front of the PPAT (Land Deed Official) needed to transfer ownership in National Land Agency (PBN). The PT PMA’s director signs on behalf of the company, either in person or through power of attorney.
Taxes and fees. On Freehold deals buyer pays 5% BPHTB on declared value. Seller pays 2.5% PPh. Notary and PPAT fees run 1% of transaction value.
HGB title registration. The PPAT submits the AJB and company documents to BPN/ATR. The HGB is registered in the PT PMA’s name. Initial term is 30 years, extendable by 20, renewable for a final 30. Total legal tenure: 80 years.
For the full buying-process walkthrough including area selection, costs, and timeline, see our pillar guide: Buying Property in Bali: The Complete 2026 Guide.
Licensing and Construction Approvals
Owning the land is not enough. Bali construction and rental operations require specific permits. Skipping these exposes the investment to enforcement action.
PBG (Building Approval). The PBG (Persetujuan Bangunan Gedung) replaced the old IMB permit system in 2021. PBG approval is mandatory before any construction begins. Retroactive permits are not issued. Budget 3 to 6 months for approval on a villa-scale project.
Pondok Wisata or similar accommodation license. Any short-term rental operation requires a Pondok Wisata licence under the Indonesian accommodation framework. The March 2026 compliance deadline pushed 40% of non-compliant operators to regularise or exit. Getting this right before launch is mandatory.
AMDAL or UKL-UPL environmental assessment. Required for larger developments, typically above a specific land area or room count. Most single-villa builds fall under UKL-UPL. Larger resort developments require the fuller AMDAL process.
SIUP or TDUP. Tourism and trading licences. Required depending on how the PT PMA’s revenue is generated.
Ongoing Compliance Obligations
A PT PMA is not a one-time setup. It is a live Indonesian entity with continuous obligations. These are the non-negotiable items every year.
LKPM (Investment Activity Report). Filed quarterly through the OSS system. Reports actual investment deployed, project status, and operational updates. Non-filing triggers escalating warnings and eventually NIB suspension.
Annual tax filings. Corporate income tax (PPh Badan) at 11-22% on profit. If your company turnover is under IDR 4.8 B (around 300,000 USD) you pay 11% income tax. For the first 3 years of operating you get a small to medium size company benefit of Final tax 0.5% of gross turnover.
Monthly VAT (PPN) applicable at 11% if turnover if turnover exceeds IDR 4.8 billion.
Withholding tax on dividends, rentals, and service payments. A qualified Indonesian tax advisor is mandatory, not optional.
When reinvesting capital for 3 years into your company your dividend tax on year 4 is 0%.
Annual financial statements. Audited financial statements are required for PT PMAs above certain thresholds and for companies in regulated sectors. Budget $600 to $1,500 for the audit.
BKPM compliance. Maintain compliance with the investment plan registered at incorporation. Material changes in business activity, shareholding, or capital require BKPM notification.
Corporate governance. Annual shareholders’ meetings, director reports, and commissioner oversight are required. Most Investland Bali clients outsource this to corporate secretarial services.
PT PMA Costs: Setup and Annual
Budget for the full PT PMA lifecycle, not just the incorporation fee. The table below shows the full cost stack.
Setup Costs
| Item | Cost |
|---|---|
| Notary deed and ministry approval | |
| OSS registration and NIB | |
| Tax ID (NPWP) | |
| Bank account opening | |
| Virtual office (12 months) | |
| Total setup | $2,000-$3,000 |
Add paid-up capital of IDR 2.5 billion (approximately $150,000 to $170,000 at current rates), deposited in the company bank account. This is not a fee. It is your capital.
Annual Costs
| Item | Annual Cost |
|---|---|
| Corporate secretarial and compliance | |
| Tax filings and bookkeeping | |
| Audited financial statements (if applicable) | |
| Virtual office renewal | |
| LKPM quarterly filings | |
| Total annual | $1,000-$2000 |
Investland Bali clients typically budget $1,000 to $2,000 per year for full PT PMA maintenance on a single-property holding company. Multi-property portfolios trend to the higher end.
Common PT PMA Mistakes
Six errors trip up first-time investors. All are preventable.
Wrong KBLI code selection. Choosing codes that do not match actual business activity creates licensing gaps and exposes the PT PMA to enforcement. Select codes during strategy, not after incorporation.
Skipping the capital deposit verification. The IDR 2.5 billion paid-up capital must be deposited and held for at least 12 months. Banks verify this. BKPM can audit it. Using the capital for property acquisition within the first year can trigger compliance issues.
Missing LKPM filings. Quarterly LKPM reports are mandatory. First missed filing triggers a warning. Repeated non-filing leads to NIB suspension and potential corporate dissolution.
Treating the PT PMA as inactive after setup. Even if the property is not yet generating income, the PT PMA has filing, tax, and reporting obligations. Dormant does not mean exempt.
Using a nominee shareholder structure. Asking an Indonesian citizen to hold shares on your behalf to hide foreign ownership is illegal. Real PT PMA shareholding must reflect actual ownership.
DIY setup without specialist advisors. Errors in the Deed of Establishment, articles of association, or KBLI classification create problems that take months and thousands of dollars to fix. Work with advisors who have completed multiple PT PMA setups for foreign property investors.
Why Work with Investland Bali
Investland Bali Properties has structured 60+ property acquisitions through PT PMA vehicles. The team handles the entire lifecycle from initial strategy to ongoing compliance.
PT PMA setup. Legal team handles name reservation, deed drafting, OSS registration, and all sector licensing. Typical end-to-end timeline: 6 weeks.
Property acquisition. The PT PMA becomes the legal buyer for the HGB or Hak Pakai title. Investland Bali runs due diligence, negotiation, and closing through Constructland (for builds) or direct acquisition teams (for existing properties).
Ongoing compliance. Corporate secretarial, tax filings, LKPM reports, and audited financial statements are handled through in-house and partner networks.
Integrated operations. Once the property is acquired, Pellago takes over rental management and the PT PMA becomes a revenue-generating business. The four-brand structure (Investland Bali, Constructland, Luup.design, Pellago) covers every stage without handoffs to external parties.
Over 120M EUR in completed transactions and 100+ investors across 15+ countries have trusted this structure. Every transaction is legal, compliant, and structured for long-term capital protection.
Ready to Set Up Your PT PMA?
Every PT PMA starts with a clear investment strategy. Book a free consultation with Investland Bali. The team will walk through your goals, structure options, and cost model, and map the shortest path from strategy to operational company.
Book a Free Investment Call. 30 minutes, no obligation, honest answers from a team that has closed 120M+ EUR through PT PMA structures.
