Setting up a PT PMA in Bali has become significantly more accessible: since October 2025, the paid-up capital has dropped from 10 to 2.5 billion IDR (~142.000 €), a 75% reduction. For a rental villa project, it is the only structure that allows a foreigner to legally own, build and rent out. Behind this reform, the real subject remains the method: choosing the right KBLI codes, securing the HGB title, and deciding between an individual or a pooled PT PMA. In this guide, I explain the 2026 legal framework, the concrete steps, the real costs (setup + annual) and the alternatives (leasehold, shared investment) to invest without carrying the capital alone.
À retenir
- Since October 2025, the paid-up capital of a PT PMA drops to ~142.000 €, within reach of a villa project starting at 169.000 € turnkey.
- A PT PMA holds an HGB title of up to 80 years cumulative, allows short-term rental and legal construction.
- Entry ticket possible from 25.000 € through a pooled PT PMA in shared investment.
Contents (6 chapters)
- 01What is a PT PMA in Bali and why is it necessary?
- 02What are the steps to create a PT PMA in 2026?
- 03How much does a PT PMA in Bali cost: setup and annual fees?
- 04PT PMA, leasehold or nominee: which structure to choose?
- 05What property rights and tax obligations for a PT PMA?
- 06How does Balimmo integrate the PT PMA into a turnkey villa project?
What is a PT PMA in Bali and why is it necessary?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company, governed by Indonesian Law 25/2007 and supervised by the BKPM through the OSS system. For a foreign investor, it is the only structure that allows you to hold a commercially operated real estate asset in Bali, without resorting to an illegal nominee arrangement.
In 2024, Indonesia recorded 114.3 billion USD in foreign direct investment, up +20.8% year on year (BKPM, 2024). The PT PMA is the legal vehicle that channels this momentum.
In concrete terms, a foreigner cannot hold the Hak Milik title (full freehold ownership), which is reserved for Indonesian citizens. The PT PMA, however, holds an HGB title (Hak Guna Bangunan), which allows construction, legal tourist rental and the repatriation of dividends. This is the framework validated by Law 25/2007, operated by our legal team.
What are the steps to create a PT PMA in 2026?
Creating a PT PMA in 2026 involves 8 administrative steps over 4 to 8 weeks, for around 2.000 € in fees depending on the number of KBLI codes and sector licenses (Investland Bali, 2026). The timeline mostly depends on how fast the notary works and on opening the corporate bank account.
The typical sequence:
- Choosing the KBLI codes (activities: rental, construction, F&B)
- Drafting the articles of association with an Indonesian notaris
- OSS registration and obtaining the NIB (business identification number)
- Obtaining the NPWP tax number
- Sector licenses (rental, food and beverage if applicable)
- Opening the corporate bank account and paying in the capital
- Physical registered address (mandatory since May 2026)
- Quarterly LKPM report to the BKPM
How much does a PT PMA in Bali cost: setup and annual fees?
The paid-up capital of a PT PMA has dropped to 2.5 billion IDR (~142.000 €) since October 2025, a 75% reduction from the previous 10 billion requirement (Cekindo, 2026). Be careful not to confuse this paid-up capital with the total declared investment plan, which remains at 10 billion IDR (~570.000 €) per KBLI code, excluding land and buildings.
On top of this capital come the setup fees: 2.500 € to 6.800 € for the notary, OSS, NPWP and licenses. For a standard rental villa, you stay at the lower end of the range.
The annual costs are often underestimated. They include:
- Monthly accounting and tax filings
- Mandatory audit above a certain revenue threshold
- Quarterly LKPM report to the BKPM
- Renewal of sector licenses
PT PMA, leasehold or nominee: which structure to choose?
Three options exist for a foreigner: the PT PMA (HGB title of up to 80 years, legal commercial operation), the leasehold (25-30 year renewable lease, simple but time-limited), and the nominee arrangement through an Indonesian frontman (illegal under Agrarian Law 5/1960, with a risk of total loss of the asset).
In 2025, property prices in Bali are rising by 7% per year on average, with annual peaks of 12 to 18% in Canggu and Seminyak (Investland Bali, 2025). On that trajectory, the holding period becomes decisive: a 25-year leasehold caps the capital gain, whereas the HGB of a PT PMA compounds over 80 years.
The decision criterion is simple. The PT PMA is the obvious choice as soon as there is rental activity or ownership of several properties. The leasehold suits a personal residence with no rental. The nominee should be ruled out without discussion.
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What property rights and tax obligations for a PT PMA?
A PT PMA holds an HGB title valid for 30 years, renewable for 20 years then 30 years, that is 80 years cumulative. The total declared investment plan must exceed 10 billion IDR per KBLI, excluding land and buildings (Cekindo / BKPM, 2025). This title allows construction, short and long-term rental, and the transfer of company shares.
On the tax side, the framework is readable but compliance-heavy:
- Corporate income tax: 22% on net profit
- VAT (PPN): 11% on revenue
- Withholding tax on dividends paid to the foreign shareholder
- Monthly + annual filings, audit, quarterly LKPM
An interesting specificity worth noting: the PT PMA benefits from a simplified regime of 0.5% of revenue for the first 3 years on the rental activity, before switching to the standard regime. On a villa project, that changes the short-term return calculation.
Back home, check the double taxation treaty between Indonesia and your country of residence: repatriated dividends are then taxed under your local rules. Details in our rental management service.
How does Balimmo integrate the PT PMA into a turnkey villa project?
In 2025, Bali welcomed around 7 million foreign tourists (+10-11% vs 2024), supporting an observed net yield between 10 and 13% on well-positioned villas (BPS Bali, 2025). In this market, the PT PMA is only one link in the chain: it has to work together with land sourcing, PBG permits, architecture, construction and rental management.
Based on our experience in Kerobokan, coordinating 4 or 5 independent providers (lawyers, notaris, architects, contractors, managers) adds 3 to 6 months to the timeline and multiplies the grey areas. Integrating the PT PMA into a turnkey villa project brings the time to operation down to 6 to 9 months depending on the complexity of the case.
For investors who do not want to carry the 142.000 € paid-up capital alone, shared investment gives access to a collective PT PMA from 25.000 €, on pre-selected villa projects.
Frequently asked questions
The paid-up capital is 2.5 billion IDR (~142.000 €) since October 2025 under BKPM Regulation 5/2025, a 75% reduction from the previous requirement. Not to be confused with the total declared investment plan (10 billion IDR per KBLI, excluding land), which remains an accounting commitment spread over time. Details in our legal management service.
Yes, through an HGB (Hak Guna Bangunan) title valid for up to 80 years cumulative (30 + 20 + 30). The Hak Milik title (perpetual freehold) remains reserved for Indonesian citizens, but the HGB allows construction, commercial rental and the transfer of company shares. It is the functional equivalent of a freehold for a foreign investor. See our land sourcing method.
The complete setup takes 4 to 8 weeks depending on the chosen KBLI codes and the required sector licenses. The timeline mainly depends on the number of declared activities, the notary, and the opening of the corporate bank account (often the longest item). Detailed procedure on our legal management and PT PMA page.
Yes, through a pooled PT PMA. Our shared investment solution offers an entry ticket from 25.000 €, versus ~142.000 € of paid-up capital solo. The PT PMA is held collectively, and compliance and rental management are pooled. See our shared investment.
The standard regime: 22% corporate tax on net profit and 11% VAT on revenue. For rental, a simplified regime of 0.5% of revenue applies for the first 3 years, before switching to the standard regime. Add withholding tax on dividends, quarterly LKPM and an annual audit above a threshold. Details on our rental management service.
Conclusion
The PT PMA in Bali is the only structure that allows a foreigner to invest legally in rental real estate. BKPM Regulation 5/2025 has just lowered its paid-up capital by 75%, to ~142.000 €, bringing the ticket close to a 169.000 € turnkey villa budget.
For an investor who does not want to carry the capital alone or manage the monthly compliance, shared investment opens access to a pooled PT PMA from 25.000 €. Beyond the legal vehicle, what decides the net yield is integration: land, PBG permits, construction and rental management coordinated under a single framework. To compare areas, see our Bali property guide 2026 or our analysis on investing in Canggu.
With an observed net yield between 10 and 13% on well-positioned villas, the real question in 2026 is no longer whether the PT PMA is useful, but whether to hold it individually or pooled.
