The Complete Guide to Setting Up a PT PMA in Bali (2024)

What is a PT PMA?

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the legal vehicle through which foreign nationals and entities can invest in and operate a business in Indonesia. Understanding the structure, requirements, and process is essential for any foreign investor looking to establish a legitimate presence in Bali.

Minimum Capital Requirements

As of the latest BKPM regulations, the minimum investment capital for a PT PMA is IDR 10 billion (approximately USD 650,000), with a paid-up capital of IDR 2.5 billion. However, requirements vary by sector and business activity.

Key Steps in the Process

• Business Sector Eligibility Check – Verify your intended business is open to foreign investment under the current Positive Investment List (DNI).
• Company Name Reservation – Register and reserve your company name through the AHU Online system.
• OSS Registration – Obtain your business license through the Online Single Submission (OSS) system.
• BKPM Approval – Secure investment approval from BKPM (now integrated into OSS for most sectors).
• Deed of Establishment – Execute a notarial deed before a certified notary.
• Ministry of Law Approval – Obtain legal entity status from the Ministry of Law and Human Rights.
• Tax Registration – Register for NPWP and confirm VAT obligations.
• Operational Licensing – Obtain sector-specific operational licenses as required.

Restricted and Closed Sectors

Not all business sectors are open to 100% foreign ownership. Some sectors require local partnership, a minimum Indonesian shareholder percentage, or are entirely closed to foreign investment. Always consult a qualified legal advisor before proceeding.

Timeline and Costs

A standard PT PMA establishment typically takes 4-8 weeks with proper documentation. Professional legal fees, notary fees, government registration costs, and paid-up capital requirements should all be factored into your budget.

Why Professional Assistance Matters

The Indonesian regulatory environment is complex and frequently updated. A qualified legal consultant ensures your investment structure is fully compliant, optimized, and protected from regulatory risk.