Legal · Investment

How to Set Up a PT PMA for Bali Property Investment

November 2024·10 min read

PT PMA: The Professional Path to Bali Property Ownership

A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. It's the most robust legal structure for foreigners who want to own, develop, and sell property in Bali.

Why PT PMA?

Info
Unlike leasehold, a PT PMA can hold HGB (Hak Guna Bangunan / Right to Build) title — the closest a foreigner can get to freehold ownership in Indonesia.

Benefits:

  • Hold HGB title for up to 80 years (30 + 20 + 30 extension)
  • Own multiple properties under one entity
  • Legally sell, transfer, or mortgage property
  • Professional structure for recurring investment

    • Setup Process

    Step 1: Company Registration Register with the Ministry of Investment (BKPM) through the OSS (Online Single Submission) system. Minimum capital requirement: IDR 10 billion (~$630,000 USD) stated capital, with 25% paid-up.

    Warning
    The minimum capital requirement applies to stated capital, not necessarily cash in bank. Your legal advisor can structure this appropriately.

    Step 2: Obtain Business Licenses Apply for the NIB (Nomor Induk Berusaha) and relevant KBLI business classification codes for property development and rental.

    Step 3: Tax Registration Register for NPWP (tax ID) and set up monthly tax reporting obligations.

    Step 4: Property Acquisition Your PT PMA can now acquire land with HGB title, apply for building permits (PBG), and begin development.

    Costs & Timeline

  • Setup cost: $3,000–$5,000 USD (legal fees)
  • Timeline: 4–8 weeks
  • Ongoing: ~$1,500–$2,500/year for accounting and compliance

    • When to Choose PT PMA vs Leasehold

    Choose PT PMA if: You plan to invest $300K+ or develop multiple properties Choose Leasehold if: Single property, shorter time horizon, lower budget

    Our legal team can advise on the best structure for your specific situation and investment goals.

    Ready to start your Bali project?

    Our team can guide you through every legal, architectural, and construction step.

    Book a Free Consultation →

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