Since October 2025, a PT PMA needs at least IDR 2.5 billion (≈ USD 150,000) of paid-up capital, down from IDR 10 billion, and still needs an investment plan above IDR 10 billion (≈ USD 600,000) per business code. Typical quotes for the setup itself run from about USD 1,700 to USD 3,500 for an incorporation package, or roughly IDR 45–113 million all-in excluding capital, and the company can usually be formed in a few weeks — longer once operating licences are needed. Information only.
What is a PT PMA?
A Perseroan Terbatas Penanaman Modal Asing — an Indonesian limited company with foreign shareholders. It is the standard way for foreigners to own and run a business in Indonesia, and the usual vehicle for holding HGB (building rights) on land. See how foreigners hold property in Bali.
What is the minimum capital now?
Two different numbers, which are often confused:
| Requirement | Rule as reported, 2026 | What it means |
|---|---|---|
| Paid-up capital | IDR 2.5 billion (≈ USD 150,000) | Cash actually put into the company’s bank account |
| Investment plan | Above IDR 10 billion (≈ USD 600,000) per five-digit KBLI per location | Total the company commits to invest over time |
The paid-up figure was cut from IDR 10 billion by BKPM Regulation No. 5 of 2025 (the Ministry of Investment), issued in early October 2025. The cash must stay in the company account for at least 12 months, except where it is spent on assets, construction or running the business. The investment plan is reported and realised over time, and related codes can now be grouped under one plan rather than IDR 10 billion each.
Land and buildings are generally excluded from the investment calculation, but advisers report that the 2025 regulation lets them count in some sectors, including property and accommodation. Confirm how it applies to your project with counsel. Information only.
So what does that mean for a villa project?
Worked example: a PT PMA set up to build and operate villas puts IDR 2.5 billion (≈ USD 150,000) into its bank account at incorporation. It can spend that money on the build and on running costs during the first year — it just cannot move it out of the company. Its investment plan must show more than IDR 10 billion (≈ USD 600,000) for the accommodation code; how much of the land and construction cost counts towards that depends on the sector rules. Illustrative — not financial advice.
What does setting it up cost?
Typical quotes from Indonesian incorporation consultants in 2025–26:
| Item | Typical quote |
|---|---|
| Notary and deed | IDR 5–15 million |
| Government fees (name, ratification) | IDR 1.7–3 million |
| Incorporation package (deed, Ministry of Law approval, NIB) | USD 1,700–3,500, or IDR 25–50 million |
| Office address (first year) | IDR 2–15 million |
| Environmental statement (SPPL) | IDR 2–5 million |
| Total, excluding capital | About IDR 45–113 million |
Packages that bundle a resident director, work permits (KITAS) or monthly accounting cost considerably more. Sector licences — tourism, environmental assessment — are extra and vary widely. Information only.
How long does it take?
Typical quotes are two to four weeks to form the company and obtain its NIB (business identification number) on OSS, the online licensing system. Operating licences take longer: a simple environmental statement can take one to two weeks, a fuller environmental assessment months. Choosing the right business code at the start saves the most time — see what a KBLI code is.
What does it cost to keep it compliant?
- LKPM reports. A quarterly investment activity report to the Ministry of Investment through OSS, showing how the investment plan is being realised. Missing them is one of the commonest compliance failures.
- Tax. Monthly tax filings and an annual corporate tax return, even in a year with no revenue. Typical quotes for basic reporting run from about USD 80 to 300 a month.
- Payroll and social security (BPJS) once there are staff, and licence renewals.
Budget for these from day one; they continue whether or not the project is earning.
Can I still open a new PT PMA in Bali?
Not for every activity. Since May 2026 the OSS system has blocked new PT PMA registrations in Bali for low-risk and medium-low-risk business codes, which catches many everyday activities and some accommodation codes. Larger hotels and other sectors remain open. Check the current position before paying any fees — see what foreigners can still open in Bali and which sectors are open to 100% foreign ownership. Not legal advice — verify with Indonesian counsel.
Sources: BKPM / Ministry of Investment Regulation No. 5 of 2025, as summarised by Withers, A&O Shearman and Emerhub (Oct 2025–2026); setup quotes from Emerhub (Dec 2025, updated Sept 2026) and xpnd.co.id (2026); Emerhub on the Bali OSS closure (May 2026). Figures are typical quotes, not fixed prices. Rules move: verify with Indonesian counsel. Not legal advice. General information about the Indonesian market, not legal, tax or financial advice.
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