PT PMA Explained: How Foreigners Can Own Property in Bali
Key Takeaway
A PT PMA (Penanaman Modal Asing) is a foreign-owned Indonesian company that can hold property rights (HGB) for up to 80 years. It costs approximately $1,600 AUD to set up, takes 14 working days, and requires minimum capital of $170,000 USD. It's the strongest legal structure for foreign property investors in Bali.
What is PT PMA?
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing — a limited liability company with foreign investment, established under Indonesia's Investment Law No. 25 of 2007 and Government Regulation No. 5 of 2021.
Unlike a leasehold (which is a private contract), a PT PMA holds a registered land right — Hak Guna Bangunan (HGB) or Right to Build — recorded in Indonesia's national land registry (BPN). This provides significantly stronger legal protection.
A PT PMA can be 100% foreign-owned for property investment activities. No Indonesian partner is required.
PT PMA at a Glance
| Legal Basis | Investment Law No. 25/2007, GR No. 5/2021 |
| Foreign Ownership | 100% (for qualifying sectors) |
| Minimum Capital | IDR 10 billion (~$170,000 USD / ~$260,000 AUD) |
| Setup Cost | IDR 25,000,000 (~$1,600 AUD) |
| Setup Time | 14 working days |
| Property Right | Hak Guna Bangunan (HGB) — Right to Build |
| HGB Duration | 30 + 20 + 30 = up to 80 years |
| Registered in BPN? | Yes |
| Can Hold Multiple Properties? | Yes |
| Can Operate Business? | Yes (rental, hospitality, etc.) |
| KITAS Eligible? | Yes (company directors/employees) |
| Annual Compliance | Tax returns, LKPM investment report, company registration |
Step-by-Step: Setting Up a PT PMA
Choose Your Business Activity (KBLI Code)
For property investment, the relevant KBLI codes are 68111 (real estate with own or leased property) or 55110 (hotel/villa accommodation). Your legal advisor will select the appropriate code based on your plans.
Prepare Documents
Required: passport copies of all shareholders, proof of address, company name options (3 alternatives), articles of association draft. Our legal team prepares everything.
Company Registration (OSS System)
Filed through Indonesia's Online Single Submission (OSS) system. Includes: Deed of Establishment (Akta Pendirian) by notary, Ministry of Law approval (SK-Kemenkumham), NIB (business identification number), and tax registration (NPWP).
Open Corporate Bank Account
Open a company bank account at an Indonesian bank (BCA, Mandiri, BNI recommended). Deposit the required capital. This account will be used for property transactions and operational income.
Acquire Property Under HGB
The PT PMA acquires Hak Guna Bangunan over the land. This involves: due diligence on the land title, agreement with the landowner, conversion from Hak Milik to HGB at the local BPN office, and registration in the land registry.
Ongoing Compliance
Annual requirements: corporate tax returns, LKPM investment activity report (quarterly), annual financial statements. Our team can handle all compliance for approximately $500-1,000/year.
PT PMA vs Leasehold: When to Choose Which
Choose PT PMA When...
- ✓ Investment exceeds $170K USD
- ✓ You want maximum legal protection
- ✓ You plan to operate a rental business
- ✓ You want KITAS residency
- ✓ You're buying multiple properties
- ✓ You want the option to mortgage
- ✓ You plan to build on land
Choose Leasehold When...
- ✓ Budget under $170K USD
- ✓ First time buying in Bali
- ✓ Personal use / holiday home
- ✓ Want simplest possible structure
- ✓ Not planning to operate a business
- ✓ Shorter investment horizon (10-15 years)
Common Questions About PT PMA
What is PT PMA in Indonesia?
PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered under Indonesia's Investment Law No. 25/2007. It allows foreigners to legally own property, operate businesses, and employ staff in Indonesia. For property investors, it provides the right to hold Hak Guna Bangunan (Right to Build) for up to 80 years.
How much does it cost to set up a PT PMA?
Setup cost is approximately IDR 25,000,000 (~$1,600 AUD). This covers: notary fees for the Deed of Establishment, Ministry of Law registration (SK-Kemenkumham), NIB through OSS, and NPWP tax number. The minimum required capital is IDR 10 billion (~$170,000 USD), which can be the property investment itself.
Can I use a PT PMA for Airbnb rental?
Yes. With the appropriate KBLI code (55110 for accommodation or 55194 for homestay), your PT PMA can legally operate short-term rental activities. You'll also need a Pondok Wisata license for secondary market properties. Our legal team handles all permit applications.
How do I sell property held by a PT PMA?
Two options: (1) Sell the property directly — the HGB is transferred to the buyer's entity. (2) Sell the company shares — the buyer takes over the PT PMA, which still holds the HGB. Share transfer is often more efficient as it avoids property transfer taxes and can be completed faster.
Do I need to live in Indonesia to have a PT PMA?
No. You can be a shareholder and director of a PT PMA while residing overseas. However, if you want a Working KITAS (residence permit) through the company, you need to be appointed as a director or commissioner. The company itself must have a registered address in Indonesia — our team provides this.
Continue Reading
Leasehold vs Freehold →
Compare all ownership structures for foreigners in Bali.
Legal Guide →
Complete legal guide covering ownership, contracts, compliance.
Tax Guide →
ATO obligations, double tax treaties, and CGT for Bali property.
Due Diligence Checklist →
8-point document verification for every Bali property purchase.
Ready to Set Up Your PT PMA?
Our in-house legal team handles the entire process — from company registration to property acquisition. 14 working days, fully managed.