How to Set Up a PT PMA in Indonesia in 2026: Steps, Capital, Costs and the New Bali Rules

Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.

Short answer: A PT PMA is an Indonesian limited liability company with foreign shareholders, and it is the standard way for a foreigner to own and run a business in Indonesia. In 2026 you need at least two shareholders, a director and a commissioner, a business activity code (KBLI) that is open to foreign investment, a real business address, and IDR 2.5 billion (about USD 140,000) of paid-up capital against an investment plan of IDR 10 billion per business activity, under BKPM Regulation No. 5 of 2025 (Withers). The company is created by notarial deed, approved by the Ministry of Law, licensed through the OSS system with an NIB, registered for tax, and then funded through its own bank account. In Bali, 18 business codes have been closed to new foreign companies since May 2026, so check your activity before you spend anything (ANTARA).

If you read an older guide that says a PT PMA needs IDR 10 billion paid up, or that cites the 2016 or 2018 “negative list”, it is out of date. This page replaces four older ILA articles and reflects the rules in force in October 2026.

Dollar figures use one rate, IDR 17,900 to USD 1 (5 October 2026, Databoks Katadata), so treat them as rough.

If you would rather hand the whole file to someone who does this every week, our PT PMA company formation team checks your activity code in OSS first, then runs the deed, licences, tax registration and bank account in one sequence.

What is a PT PMA, and do you actually need one?

PT stands for Perseroan Terbatas (limited liability company) and PMA for Penanaman Modal Asing (foreign investment). Any Indonesian company with at least one foreign shareholder, individual or corporate, is a PT PMA. It can sign contracts, invoice clients, employ staff, sponsor stay permits, hold building and land use rights, and repatriate profits as dividends.

You need one if a foreigner (or a foreign company) will own shares in a business that earns money in Indonesia. You do not need one if:

• Your Indonesian partner will own 100% of the company. That is a PT PMDN (Penanaman Modal Dalam Negeri, domestic investment company), covered in our page on the local company PT PMDN.
• Your foreign company only wants a presence for market research, liaison or supervision, without local revenue. A representative office may be enough.
• You only work remotely for clients abroad. That is a visa question, not a company question; see which visa to live or invest in Bali.

For the full menu of structures, our overview of company registration in Indonesia compares every option.

What changed for PT PMA setup in 2025 and 2026?

Four changes make most PT PMA articles written before late 2025 wrong. If you are comparing advice, check it against this table.

The BPK legal database still shows Perpres 10/2021 as in force, amended only by Perpres 49/2021, as of October 2026. No new positive list has replaced it.

What are the requirements to set up a PT PMA?

Here is the full requirement list, then the documents you prepare.

Documents checklist (carried over from our former requirements article and still current):

• Passport copy of each foreign shareholder, director and commissioner (more than 18 months of validity left is advisable)
• KTP (Indonesian ID card) and NPWP of each Indonesian shareholder, director or commissioner
• Deed of establishment, register extract and board resolution of any corporate shareholder, legalised or apostilled where required
• Proposed company name and two alternatives (names are usually three words or more and must not copy an existing company)
• List of KBLI codes with a short activity description
• Lease or ownership certificate for the business premises
• Capital structure: authorised, issued and paid-up capital and each shareholder’s split
• Email address and Indonesian phone number for the OSS and Coretax accounts
• Power of attorney if someone signs the deed on your behalf

How much capital does a PT PMA need in 2026?

This is where most founders get bad information, so here is the rule as written.

Paid-up capital: IDR 2.5 billion per KBLI (about USD 140,000). BKPM Regulation No. 5 of 2025, issued on 1 October 2025 and in force since 2 October 2025, cut the cash deposit from IDR 10 billion to IDR 2.5 billion per business activity (BPK legal database; Withers).

The 12 month rule. That IDR 2.5 billion must stay in the company’s bank account for 12 months unless it is spent on capital expenditure or working capital. Keep invoices and bank statements for every use of it, because LKPM reports and audits compare the money with what the company says it did.

Investment plan: IDR 10 billion per KBLI (about USD 559,000). This is not deposited up front. It is the total the company commits to invest, and the remaining IDR 7.5 billion can be made up of qualifying assets and spending such as machinery, equipment, vehicles, feasibility studies, permits, construction and operating costs (Withers).

Two reliefs worth knowing:

• Related KBLI codes within the same group (several wholesale, food and beverage, construction or manufacturing codes, for example) can now share one investment value instead of IDR 10 billion each.
• Land and building costs count toward the investment value in sectors such as property, accommodation, agriculture, plantation, farming and aquaculture.

The founder visa trap. The capital rule and the visa rule are different tests. To hold an investor KITAS (stay permit, index E28A), you personally need shares worth at least IDR 10 billion (Directorate General of Immigration, E28A). A founder with a compliant IDR 2.5 billion company usually takes a working KITAS (E23) as director instead. If the investor KITAS matters to you, design the share capital for it on day one, because increasing capital later means a new deed, a new approval and an OSS update. Our visa guide for living or investing in Bali walks through both routes.

Which business activities can a foreigner own, and what is closed in Bali?

The national rule

Since 2021, Indonesia uses a positive list. Everything is open to foreign investment unless a law closes it, caps foreign ownership or reserves it. A short list is closed nationwide by the Investment Law as amended by Law No. 6 of 2023 (for example gambling, class I narcotics and chemical weapons) (UU 6/2023). Perpres 10/2021 as amended then lists priority sectors, activities reserved for cooperatives and small businesses, and activities with a foreign ownership cap or special conditions (Perpres 10/2021). Most trade, tech, services and hospitality codes are 100% open at national level.

The Bali rule since May 2026

On 22 and 23 July 2026, Governor Wayan Koster announced that Bali had closed OSS access for foreign investment companies in 18 business classifications, a block he said had applied since the third week of May 2026 with the approval of the Minister of Investment (NusaBali; Periskop). The reasons given: foreign companies using low risk codes, which need only an NIB, to compete with local small businesses, and companies operating from virtual offices (ANTARA).

The closed codes cover small hotels under 6,000 m2 (55110, 55120), other accommodation such as villas and guesthouses (55900), owned or leased real estate (68111), management consultancy (70209, 70204), car and scooter rental (77100, 77311), several retail lines (47711, 47511, 47249, 47991), cafés and bars (56303), traditional medicine shops (56305), tailoring (14120), and stadiums, gyms and sports promoters (93111, 93116, 93191). The full table, and the sectors that remain open, are in our guide to business opportunities in Bali.

What this means for your setup:

• A new PT PMA in Bali cannot get an NIB for those codes, and adding one of them to an existing company is blocked too.
• Existing licences are not automatically revoked, but those companies must keep filing LKPM reports.
• OSS has at times refused Bali PMA applications for low risk codes outside the published 18. Never sign a lease before OSS accepts your code.
• The rule is Bali only. Lombok, Jakarta and the rest of Indonesia are not covered.

Virtual offices in Bali

Bali no longer accepts a virtual office as the registered address of a new PT PMA, and the provincial government named virtual offices as one of the abuses behind the 2026 restrictions (ANTARA). Our files show the change applied from 13 May 2026. Outside Bali, a virtual office in a zone that allows office use is still workable for many service companies, but the address must fit the activity and the tax office it falls under.

KBLI risk levels

Each KBLI also carries a risk level under PP 28/2025, which decides what you need after the NIB (PP 28/2025):

How do you set up a PT PMA, step by step?

The order matters. Doing a step early, especially the bank account or the lease, is the most common way to waste money.

1. Confirm the activity, structure and address. Check each KBLI against the positive list, the Bali closed list if relevant, its risk level and the zoning of your intended address. Decide who holds shares, who is director and commissioner, and whether anyone needs an investor KITAS, because that sets the share capital.

2. Reserve the company name. The notary reserves the name through the Ministry of Law’s AHU system (Administrasi Hukum Umum, the legal entity register).

3. Sign the deed of establishment. An Indonesian notary drafts the articles of association (akta pendirian) with the shareholders, capital, board and KBLI codes. You can sign in person or through a power of attorney, so you do not have to be in Indonesia for this step.

4. Ministry of Law approval. The notary files the deed in AHU and the Ministry issues the decree that gives the company legal personality (still widely called the SK Kemenkumham). Since 1 August 2026 the government fee follows PP 30/2026 (BPK legal database).

5. NIB through OSS RBA. The company registers on OSS RBA (Online Single Submission, Risk Based Approach, at oss.go.id), enters its KBLI codes, location and investment plan, and receives its NIB (Nomor Induk Berusaha, the business identification number). For low risk codes the NIB is the operating licence.

6. Tax registration. The company’s tax number (NPWP) is now handled in Coretax, the tax office’s online system (Coretax DJP). Each director must also be linked as the person in charge. Our guide to getting an NPWP explains the personal side.

7. Bank account and capital deposit. Open the corporate account once the deed, approval, NIB and NPWP are final, then transfer the IDR 2.5 billion from each shareholder’s own account with a clear reference. Paying capital from a third party’s account breaks the paper trail. The bank wants the directors in person; see our guide to opening a bank account in Indonesia.

8. Sector licences. For medium-high and high risk codes, complete the verified standard certificate or permit, plus any building approval (PBG and SLF) or environmental document the activity needs.

9. Stay permits and staff. Apply for the director’s KITAS, register employees with BPJS (the national health and employment insurance schemes), and set up payroll tax.

10. First LKPM report. Start quarterly investment reporting from the first quarter after the NIB is issued.

How long does it take?

For a low risk activity with documents ready, plan on 3 to 6 weeks from instruction to a funded company, before sector licences and KITAS. The old claim of “3 days” only covers the deed, approval and NIB.

How much does it cost to set up a PT PMA?

Government fees are a small part of the budget. The capital, the lease and professional fees are where the money goes. Here are the official figures.

Not set by the government, so budget them from quotes: the notary’s fee, the office or shop lease (often paid a year or more in advance in Bali), fit-out, accounting, and your adviser’s fee. Ask any provider to separate government fees from service fees in writing.

PT PMA, PT PMDN or representative office: which one fits?

The PMDN column needs one warning. A side agreement in which an Indonesian holds shares “on behalf of” a foreigner is void under Article 33 of the Investment Law (UU 25/2007). If the relationship sours, no contract will protect you.

What do you have to do after the company exists?

Setup is the cheap part. Most fines and blocked visa renewals we see come from what happens next.

• LKPM every quarter. The LKPM (Laporan Kegiatan Penanaman Modal, investment activity report) is filed in OSS each quarter, by the 15th day of the month after the quarter ends under BKPM Regulation 5/2025 (15 April, 15 July, 15 October and 15 January). For the third quarter of 2026, the deadline is 15 October 2026. File it even if nothing happened.
• Monthly and annual tax. Monthly withholding and VAT returns where relevant, and an annual corporate return, even with no income. The standard corporate rate is 22%, with a 50% discount on part of the profit for companies with turnover up to IDR 50 billion (PwC). The 0.5% final tax on turnover is no longer open to a new PT PMA: since PP 20/2026 took effect on 22 April 2026 it is limited to individuals, single-founder companies and cooperatives (PP 20/2026, JDIH BPK). Our guide to company taxation in Indonesia covers which regime fits.
• Dividends. Profits paid to a foreign shareholder carry 20% withholding tax unless a tax treaty reduces it (PwC).
• People and permits. BPJS for staff, KITAS renewals, and the annual shareholders’ meeting.

The full calendar is in our PT PMA compliance guide.

What are the most common mistakes when opening a PT PMA?

These are the problems we fix most often, kept from our former Bali setup article and updated for 2026:

1. Choosing a KBLI that does not match the real business. A villa company registered as “consulting” fails its first audit, and in Bali both codes are now closed anyway.
2. Signing a lease before OSS accepts the code and address. In Bali this has left founders paying rent on premises they cannot license.
3. Never verifying the NIB. For medium-high and high risk codes, the NIB alone does not let you operate.
4. Skipping nil returns. Tax and LKPM reports are due even when there is no income. Missing them blocks KITAS renewals and company amendments.
5. Capital from the wrong account. Paid-up capital sent by a friend, a relative or a different company breaks the link between shareholder and capital.
6. Building for the wrong visa. A founder who wanted an investor KITAS but set up a company with IDR 2.5 billion has to recapitalise before applying.
7. Using a nominee. Void by law, as above, and the most expensive mistake on this list.

Can you set up a PT PMA from abroad, and do you need a resident director?

You can start remotely. The deed can be signed through a power of attorney, and the approval, NIB and tax steps are online. Two steps need people in Indonesia: the corporate bank account, where banks want to meet the directors, and the director’s tax registration, which in practice requires a stay permit. So the first director is usually an Indonesian resident or a foreigner who obtains a KITAS through the company.

Running a PT PMA from France? Watch where decisions are made

This point is for our French readers, but it applies to anyone tax resident outside Indonesia. If the director lives in France and takes the real management decisions there, the French tax office can argue that the company’s place of effective management (siège de direction effective) is in France. The result can be French corporate tax on profits you thought were taxed only in Indonesia, or a French permanent establishment. The France and Indonesia tax treaty settles dual residence of companies by reference to the place of effective management (France and Indonesia tax treaty, impots.gouv.fr). Hold board meetings in Indonesia, keep minutes there, and make sure an Indonesian based director signs. Our tax declaration team can review the setup with your French adviser.

Ready to set up your PT PMA?

The rules are workable, but 2026 punishes shortcuts: the wrong code in Bali, a virtual office, a nominee or a missed LKPM can stop a business that was otherwise sound. ILA checks your activity in OSS before you commit money, then handles the deed, licences, tax registration, bank account and visas in the right order. Book a consultation with our team or read more about our PT PMA formation service.

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Frequently asked questions

What is the minimum capital for a PT PMA in 2026?

IDR 2.5 billion paid up in cash per KBLI (about USD 140,000), against an investment plan of IDR 10 billion per KBLI, under BKPM Regulation No. 5 of 2025. Related KBLI codes can share one investment value, and some sectors set higher minimums.

Is the IDR 10 billion rule gone?

Not entirely. IDR 10 billion is still the investment plan per KBLI and the share value an investor needs for an E28A investor KITAS. What changed is the cash you must deposit up front, now IDR 2.5 billion.

Can a foreigner own 100% of a company in Indonesia?

Yes, in most sectors. The Positive Investment List (Perpres 10/2021 as amended by Perpres 49/2021) leaves most trade, services, tech and hospitality codes fully open. Some activities have a foreign ownership cap or are reserved for small businesses, and in Bali 18 codes are closed to new PT PMAs.

How long does it take to open a PT PMA?

For a low risk activity with documents ready, the deed, Ministry approval and NIB can be done within days, and a funded company with a bank account typically takes 3 to 6 weeks. Verified licences and the director’s KITAS come on top.

Can I still open a villa rental or café company in Bali?

Not through a new PT PMA. Other accommodation (55900), small hotels under 6,000 m2, owned or leased real estate (68111) and cafés (56303) are among the 18 codes closed in Bali since May 2026. Restaurants, large hotels and many other activities remain open.

Can I use a virtual office for a PT PMA in Bali?

No. Bali no longer accepts a virtual office as the registered address of a new PT PMA. You need a physical place of business with zoning that fits your activity. Outside Bali, virtual offices can still work for some service companies.

Do I need an Indonesian partner?

No, for most activities. A PT PMA can be 100% foreign owned, but it needs at least two shareholders, which can both be foreign. Putting shares in an Indonesian’s name for your benefit is void under the Investment Law.

What is the difference between a PT PMA and a PT PMDN?

A PT PMA has at least one foreign shareholder and follows the foreign investment capital rules. A PT PMDN is owned only by Indonesians, has no PMA capital minimum, and is not affected by Bali’s closed list, but a foreigner cannot own shares in it.

Sources

1. Indonesia eases foreign capital rules: key takeaways from BKPM Regulation No. 5 of 2025, Withers, 10 October 2025
2. Peraturan Menteri Investasi dan Hilirisasi/BKPM No. 5 Tahun 2025, BPK legal database
3. Perpres No. 10 Tahun 2021 tentang Bidang Usaha Penanaman Modal, BPK legal database
4. Perpres No. 49 Tahun 2021, BPK legal database
5. PP No. 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko, BPK legal database
6. PP No. 30 Tahun 2026 on non-tax state revenue at the Ministry of Law, BPK legal database
7. UU No. 40 Tahun 2007 tentang Perseroan Terbatas, BPK legal database
8. UU No. 25 Tahun 2007 tentang Penanaman Modal, BPK legal database
9. UU No. 6 Tahun 2023 tentang Cipta Kerja, BPK legal database
10. PP No. 8 Tahun 2021 tentang Modal Dasar Perseroan, BPK legal database
11. Bali blocks foreign investment in 18 business categories, ANTARA, 23 July 2026
12. Gubernur Koster batasi akses OSS bagi PMA, NusaBali, 22 July 2026
13. Bali tutup akses PMA di 18 bidang usaha, Periskop, 23 July 2026
14. OSS RBA, Online Single Submission portal
15. Coretax DJP, Directorate General of Taxes
16. E28A investor visa, Directorate General of Immigration
17. E23 work visa, Directorate General of Immigration
18. Employer sponsorship and work permits in Indonesia, SSEK
19. Indonesia: Taxes on corporate income, PwC Worldwide Tax Summaries
20. Indonesia: Withholding taxes, PwC Worldwide Tax Summaries
21. Convention fiscale entre la France et l’Indonésie, impots.gouv.fr
22. Rupiah exchange rate at IDR 17,916.4 per US dollar, 5 October 2026, Databoks Katadata