What is a PT PMA, when do property investors in Bali use one, and what capital does it need?

This is information, not legal or tax advice. It summarises the regulation texts listed under sources, as read on 2026-10-22. Capital rules have changed before (the 2021 BKPM rules were replaced in October 2025), so confirm the current rule with a company-setup firm or lawyer before you commit money.

What a PT PMA is

PMA (penanaman modal asing) means foreign investment. Permen Investasi/BKPM 5/2025 Art. 23(11) says a PMA must take the form of a limited company (perseroan terbatas, PT) under Indonesian law and domiciled in Indonesia. A company with any foreign individual or foreign company among its shareholders is treated according to the nationality of its owners (Art. 23(12)); a foreign individual is identified by the passport used when the company is founded (Art. 23(13)).

Why property investors use one

• Land rights. As an Indonesian-law company domiciled in Indonesia, a PT PMA is the kind of legal entity that can hold Hak Guna Bangunan (UUPA Art. 36; PP 18/2021 Art. 34) and Hak Pakai (PP 18/2021 Art. 49(2)). A foreign individual cannot hold HGB. See Can a foreigner own land in Bali?
• Running a business. Renting out a villa, developing property for sale or lease, or running accommodation are business activities that need a business licence through OSS. A PT PMA is how a foreign investor holds that licence.

Capital and investment value (Permen Investasi/BKPM 5/2025, Art. 26 and 27)

• Paid-up capital. A PMA in the form of a PT must have issued and paid-up capital of at least IDR 2,500,000,000 per company, unless another regulation sets otherwise (Art. 26(10)).
• Total investment. A PMA is classed as a large business and must meet a minimum investment of more than IDR 10,000,000,000, excluding land and buildings, per business line (5-digit KBLI code) per project location (Art. 26(1) and (2)).
• Property and accommodation count land and buildings. For property businesses (building, selling and/or leasing), short and long-stay accommodation, and some farming activities, land and buildings are included in that investment value (Art. 26(5)).
• Property development detail. For a whole building or an integrated housing complex, the test is more than IDR 10,000,000,000 including land and buildings. For property units that are not in one whole building or one integrated complex, it is more than IDR 10,000,000,000 excluding land and buildings (Art. 26(6)).
• Lock-in. Paid-up capital may not be moved out of the company’s account for at least 12 months from payment, except to buy assets, construct buildings or run the business. The company commits to this by a self-declaration in OSS, and breaking it brings administrative sanctions (Art. 27).
• Other thresholds apply to wholesale trade, food and drink, construction services and some special economic zones (Art. 26(3) and (8)).

Registration through OSS

Business licences are issued through OSS, the government’s online single submission system (oss.go.id), under PP 28/2025 on risk-based business licensing and its implementing rule, Permen Investasi/BKPM 5/2025. The NIB (Nomor Induk Berusaha) is the proof of a business’s registration and its identity when it does business (BKPM 5/2025, Art. 1 point 22). Which further permits a business needs depends on the risk level of its activity.

Questions to ask a company-setup firm

• Which KBLI codes will the company register, and does each one match what you will actually do (renting a villa, building to sell, accommodation)?
• How will the IDR 10,000,000,000 investment test be met for those KBLI codes and that location?
• Who will file the company’s tax returns and its investment activity reports (LKPM), which BKPM 5/2025 defines as reports a business must make and submit periodically (Art. 1 point 63)?
• Which land right will the company hold, and for what term?

Who does this work

• Company setup firms form the PT PMA and register it in OSS.
• Notaries make the deed of establishment.
• Tax and accounting firms handle ongoing filings.
• Property lawyers check the land right the company will hold.