PT PMA Bali Property: When a Foreign-Owned Company Makes Sense

PT PMA Bali property explained: when a foreign-owned company makes sense, the 2026 capital rules, HGB titles, licensing, Bali’s new limits and risks.

A PT PMA, an Indonesian company with foreign shareholders, can legally hold Bali property as HGB (Hak Guna Bangunan, right to build), but never as freehold. It suits a real business such as rental accommodation or development, not a private home, and since May 2026 Bali has closed 18 business lines to new foreign-owned applications. Here is how it works as of October 2026: capital, land, licensing, setup, yearly duties, costs and risks.

PT PMA Bali property: when it makes sense

A PT PMA must be a limited liability company (PT, perseroan terbatas) under Indonesian law, domiciled in Indonesia (BKPM Regulation 5/2025 art. 23(11)). The company holds the land title; you hold shares. The investment rules apply per business line (KBLI code) and location, and the company reports its investment activity, so it is a vehicle for a business, not a private home.

It can make sense for a licensed business, such as accommodation or developing and selling a whole building or complex, but only in a business line still open to foreign-owned companies in Bali: renting out owned or leased property (68111) has been closed to new foreign-owned applications since May 2026. For your own home, Hak Pakai or a lease fits better; our guide to buying property in Bali as a foreigner compares the routes.

How much capital does a PT PMA need in 2026?

Under BKPM Regulation 5/2025, in force since 2 October 2025, a PT PMA needs at least IDR 2.5 billion in paid-up capital and an investment plan above IDR 10 billion per five-digit business line (KBLI) per project location. The old IDR 10 billion paid-up minimum (BKPM Regulation 4/2021) has been revoked, though older guides still quote it.

The company commits to the lock-up by a self-declaration in OSS, the government’s online licensing system; breaking it brings administrative sanctions. Have a licensed consultant confirm how the rules apply to your plan.

Which land titles can a PT PMA hold?

A PT PMA can hold HGB or Hak Pakai, never Hak Milik. HGB on State land runs for up to 30 years, extendable by up to 20 and renewable by up to 30; HGB over someone’s Hak Milik runs for up to 30 years and is renewed only by a new deed with the owner (Government Regulation, PP, 18/2021 art. 37). Extensions are not automatic (art. 41), and a holder that no longer meets the conditions for holding HGB must transfer it within one year (art. 35).

How the company acquires land:

• Land with HGB: by a deed of sale (AJB, Akta Jual Beli) signed before a PPAT (Pejabat Pembuat Akta Tanah, land deed official).
• Land with Hak Milik: a transfer of Hak Milik to a company is void (Basic Agrarian Law, UUPA, art. 26(2)). Either the owner grants HGB over the Hak Milik by a PPAT deed and keeps the freehold (PP 18/2021 art. 38(3)), or the Hak Milik is changed into HGB at the land office. Ask the PPAT which route your deal uses and what term results.
• A lease: the company can lease land or a villa without holding HGB; it then withholds the owner’s 10% tax on the rent.

Acquiring HGB, including a new grant over Hak Milik, costs BPHTB (land and building acquisition duty) of up to 5%; see our guide to Bali property taxes and buying costs.

Licensing a villa business through a PT PMA

Owning a villa does not mean the company may run it as a business. It needs:

1. Zone: a KKPR (confirmation that the use fits the spatial plan) through OSS; see our Bali zoning guide.
2. Building: a PBG (Persetujuan Bangunan Gedung, building approval) matching what is built and an SLF (Sertifikat Laik Fungsi, certificate of fitness for use), both basic requirements for a business license under PP 28/2025.
3. License: a business ID number (NIB) from OSS for the right KBLI code. Under the 2020 classification, villas (55193) and homestays, called Pondok Wisata (55130), had their own codes; OSS was due to switch to a new classification, KBLI 2025, by 18 June 2026, so ask which code applies now.
4. A line open to foreign investment: villas and Pondok Wisata may be reserved for micro, small and medium businesses (not confirmed officially), and the 2021 list of business fields open to investment can change.

Short stays in a villa also carry the regency’s tax on hotel services (PBJT) of up to 10%; whether monthly or yearly rentals do is not settled. More in our guide to renting out a villa in Bali.

Bali’s 2026 limits on new foreign-owned companies

Since the third week of May 2026, with the investment minister’s approval, Bali has closed OSS to new applications from foreign-owned companies in 18 business lines “until further policy”.

• Closed: renting out owned or leased property (68111), hotels under 6,000 m² (55110, 55120) and other accommodation (55900), plus lines such as vehicle rental, retail and cafés. Villas (55193) and homestays (55130) were not listed.
• Why: the aim is to stop foreign-owned operators from using low-risk classifications to avoid the IDR 10 billion minimum investment.
• Unclear: no regulation number was given, and the closure may reach further than the listed lines, so check your exact case.
• Existing companies: not ordered to close. Licenses issued before the closure stay valid, but new licenses in the closed lines are blocked, and LKPM reports continue.

Setting up a PT PMA: the steps

A PT PMA is founded by a notarial deed, registered with the Ministry of Law and licensed through OSS. In outline (your consultant sets the exact order):

1. Plan: business line, location, investment plan and people.
2. Deed of establishment: at least two shareholders sign before a notary, in Indonesian, each taking shares (Company Law, UU 40/2007, art. 7); the articles name the company’s domicile, a city or regency in Indonesia.
3. Ministry registration: the notary files the deed online with the Ministry of Law’s legal-entity system (AHU) within 60 days of signing; under the Company Law as amended by the Job Creation Law, the company becomes a legal entity once it is registered and receives proof of registration.
4. Tax number: registration as a taxpayer (NPWP).
5. OSS: the NIB, the KKPR, the licenses and the capital self-declaration.
6. Capital: a company bank account with at least IDR 2.5 billion paid in.

Directors and visas

The company needs at least one director (Company Law art. 92). Foreigners may be directors and commissioners, but positions dealing with personnel (HR) are closed to foreign workers (Government Regulation 34/2021).

As employer, the company sponsors the work KITAS (limited stay permit) of a foreigner it employs. An investor KITAS on the two-year tier needs a shareholding of at least IDR 10 billion (immigration regulation Permenkumham 22/2023, art. 38). Ask a licensed visa agent which permit fits your role, and see our guide to visas for living in Bali.

Running a PT PMA: reports, taxes and accounts

A company has reporting and tax duties all year, so plan for an accountant from the start. The main duties as of 2026 (for the LKPM, ask which group your company is in):

Corporate income tax is 22% of taxable income. With turnover up to IDR 50 billion, the income from the first IDR 4.8 billion of turnover is taxed at half the rate, so with turnover up to IDR 4.8 billion the effective rate is 11% (Income Tax Law art. 31E). In 2026, the 0.5% final tax on turnover applies only to cooperatives and single-founder companies, so do not plan on it.

What does a PT PMA cost to set up and run?

No reliable source for typical 2026 costs could be verified, so ask several licensed consultants for written quotes and a timeline, and compare what each includes. The main cost drivers are the deed and ministry approval; licensing, including the zoning check, PBG and SLF; bookkeeping, tax returns, LKPM reports and any audit; visas; and buying the land (BPHTB and deed fees). On top comes the capital itself: at least IDR 2.5 billion, tied to the company for at least a year.

Risks to weigh before you choose a PT PMA

• Nominees: an agreement that someone holds shares for you is void under the Investment Law (UU 25/2007). Land held for you in an Indonesian’s name is void too, and Bali’s regional regulation (Perda) 4/2026 bans nominee land ownership. You may lose the property and your money.
• Capital: tied to the company for at least a year.
• Compliance: filings come whether business is busy or quiet.
• Changing rules: Bali’s 2026 closure, KBLI 2025 and possible changes to the investment list.
• Title terms: HGB over Hak Milik needs a new deed with the owner after up to 30 years.

PT PMA vs Hak Pakai vs leasehold: which fits your goal?

Hak Pakai suits a home at or above the minimum price, a lease suits a home below it or land, and a PT PMA suits a real business.

More on the home route in our guide to Hak Pakai in Bali.

Next steps

1. Define the goal: a home, rental income or development.
2. Check the business line in writing with a licensed consultant, including Bali’s 2026 closure.
3. Check the property: certificate (through a PPAT), zone, PBG and SLF.
4. Agree the land route and term with the PPAT.
5. Budget for the capital, buying taxes and a year of compliance.

Browse our villas for sale and land for sale. We work with independent notaries; tell us what you are planning before you commit.