Setting up a PT PMA in Bali: capital, KBLI codes, OSS and NIB, notary and tax registration

This guide is for foreigners who want to run a business in Bali through a foreign investment company, known as a PT PMA (perseroan terbatas penanaman modal asing). It explains the steps, the capital and investment figures, the role of the notary and the online licensing system (OSS), and the usual taxes. Business licensing rules changed in 2025 and 2026, and several figures below come from a law firm summary rather than the regulation itself, so confirm the numbers that apply to your business lines with a notary or a licensed adviser before committing money. Recent changes: Government Regulation 28 of 2025 replaced the earlier risk based licensing rules; Ministry of Investment Regulation 5 of 2025 took effect on 2 October 2025 and, according to a law firm summary, lowered the minimum issued and paid-up capital of a foreign investment company to Rp 2.5 billion (previously Rp 10 billion); the 2025 edition of the business classification (KBLI) took effect on 18 December 2025 with an adjustment deadline of 18 June 2026; and in September and October 2026 the government announced that foreign worker permits will run through OSS as well.

What a PT PMA is

A PT PMA is a limited liability company set up under Indonesian law with foreign shareholders and licensed as a foreign investment company. Under the Company Law (Law 40 of 2007, Article 7) a company is founded by two or more people through a notarial deed written in Indonesian, and it becomes a legal entity on the date the Minister of Law issues the decision ratifying it. The Company Law also requires authorised capital of at least Rp 50 million, with at least 25% issued and fully paid, but foreign investment companies face higher figures under investment rules (see below).

Single-person companies (perseroan perorangan) are a separate legal form with their own portal. Government Regulation 34 of 2021 leaves them out of the list of limited liability companies that may employ foreign workers.

The key numbers

Item	Published figure	Where it comes from
Founders	Two or more	Company Law, Article 7
Minimum authorised capital	Rp 50 million, with at least 25% paid up	Company Law, Articles 32 and 33
Minimum issued and paid-up capital of a foreign investment company	Rp 2.5 billion (previously Rp 10 billion)	Law firm summary of Ministry of Investment Regulation 5 of 2025
Withdrawing paid-up capital	The summary says capital cannot be transferred out of the company's bank accounts within 12 months after it is paid in, except to run the business	Same summary
Investment value	More than Rp 10 billion, excluding land and buildings, per business line	Law firm summaries of Government Regulation 28 of 2025 and the 2025 ministry regulation
Ratification fee (government)	Rp 200,000 up to Rp 25 million authorised capital, Rp 500,000 above that up to Rp 1 billion, Rp 1,000,000 above Rp 1 billion	AHU Online, Ministry of Law

The Rp 10 billion figure is an investment value that is realised and reported over time through the periodic investment reports, and it is different from the paid-up capital. The law firm summaries say supporting activities (a different KBLI code) may generate revenue under Government Regulation 28 of 2025 and may have investment below Rp 10 billion each, but the 2025 ministry regulation adds requirements: for foreign investment companies the supporting activity must be written into the company's articles and meet the minimum investment rule if it earns revenue. Restaurants and cafes have their own rule: the Rp 10 billion minimum applies across food and beverage codes that share the same first two digits in one location, and the summary says the 2025 ministry regulation gives more leeway by treating "one location" as a whole city or regency.

Step by step

1. Choose the business lines. Every activity needs a five digit KBLI code, and the company's activities must stay inside the scope of its codes. KBLI 2025 replaced KBLI 2020, and the OSS site has a tool for converting codes between the two versions. The code decides the risk level, the licences and any foreign ownership limits. The investment list (Presidential Regulation 10 of 2021 as amended by Presidential Regulation 49 of 2021, according to a law firm) sets which sectors are open, and Government Regulation 28 of 2025 opened some sectors that were earlier reserved for small businesses.
2. Plan the capital and the investment. Decide authorised, issued and paid-up capital, and the investment value per business line. Foreign shareholders and directors give passport details to the notary.
3. Notary deed and Ministry of Law approval. The notary files through AHU Online: buys the voucher, reserves the company name, enters the company data and beneficial owner data, uploads the deed, and prints the Ministry of Law decision of ratification. AHU states this takes about 7 minutes after the notary submits.
4. Tax number (NPWP). The company needs its own taxpayer number. The tax directorate says a number is issued at the latest one business day after a complete application, and registration can be made at a tax office, online, or through a notary appointed by the directorate. Ask the notary how the NPWP is being handled for your company, because systems are being integrated.
5. Business identity number (NIB) and licences through OSS. OSS issues the NIB, the official identity for running a business, and groups businesses into four risk levels that decide the permits needed. A law firm summary says medium low risk activities need an NIB and an unverified standard certificate, and high risk activities need an NIB and a licence.
6. Location approvals. Under Government Regulation 28 of 2025, the confirmation that your business activity suits the spatial plan (KKPR), the building approval (PBG) and the certificate of building function (SLF) are now handled through OSS. In Bali, this is where the zoning of the address matters. The regulations set deadlines, and the law firm summary describes a "fictitious positive" mechanism: for example if a technical consideration needed for KKPR is not issued within 20 working days of a complete file, the KKPR can be issued without it.
7. Bank account and capital payment. The paid-in capital must be shown by valid proof of payment under the Company Law. Keep records, because of the 12 month rule on moving the capital out.
8. Workers and visas. Staff who are foreigners need an approved foreign worker utilisation plan (RPTKA) and a sponsor based work visa, while the owner or director can use an investor visa (E28A requires shares of at least Rp 10 billion) or a work visa for the director role. See the costs below.
9. Reporting. Foreign investment companies report investment realisation periodically (LKPM). A law firm summary says the 2025 ministry regulation adds sanctions for companies that report no additional realisation for four quarters in a row during the construction stage, which means expecting to invest within about a year of getting the NIB. The regulation also includes timelines for starting commercial operation, set by sector.

What it costs and how long it takes

Item	Published figure or time
Ministry of Law ratification fee	Rp 1,000,000 would apply once authorised capital is above Rp 1 billion, and a foreign investment company's capital is expected to be above that
Ratification time	About 7 minutes after the notary submits
Tax number	At the latest one business day after a complete application
Notary and adviser fees	No official price list found, so ask for a written quote and a breakdown that separates government fees from service fees
Foreign director on E28A	Government fees of Rp 7,000,000 for one year or Rp 9,500,000 for two years, about five working days after payment
Work visa for a foreign employee (E23)	Government fees of Rp 5,250,000 (180 days), Rp 7,000,000 (1 year) or Rp 9,500,000 (2 years)
Foreign worker compensation fund	Amount set by other legislation, paid for each foreign worker before RPTKA approval
Foreign worker plan	The manpower ministry's regulation allows 2 working days for the feasibility result and 2 working days for worker data once files are complete
Overall time	Depends on business lines, location approvals and the licensing route, so ask the notary for a realistic schedule

Taxes after setup

A PwC summary reviewed in June 2026 lists these:

• Corporate income tax at a flat 22%. Certain enterprises with gross turnover of up to Rp 4.8 billion are subject to a final tax of 0.5% of turnover.
• VAT at a 12% headline rate, with most taxable goods and services effectively paying 11%.
• Withholding tax is paid by the 15th and reported by the 20th of the following month. VAT is reported by the end of the following month. The annual corporate return is due by the end of the fourth month after the financial year ends.
• Land and building tax (PBB) of up to 0.5% is a regional tax.

Common mistakes

• Choosing a code that does not match what you do. Activities must stay within the KBLI codes in the licence, and the code sets risk, licences and foreign ownership limits.
• Underestimating the investment rule. Plan the Rp 10 billion per business line and the reporting duty, and check whether supporting activities that earn revenue count.
• Moving the paid-up capital out too soon. The 12 month restriction applies except to run the business.
• Ignoring zoning. The KKPR and building approvals depend on the spatial plan of the address.
• Hiring foreigners without an RPTKA. Employers must hold an approved plan and pay the compensation fund, and individuals cannot employ foreigners.
• Using nominees or unclear structures. Ask a licensed professional to explain how ownership and control are recorded, since AHU records beneficial owners.
• Missing the reporting and tax dates. Monthly and annual deadlines run from the start.

Where to get it done

• Notary: drafts and files the deed through AHU Online, reserves the name and records the beneficial owner. A notary is required for the company deed.
• OSS (online) and regional investment service offices: issue the NIB and the licences. The OSS site offers guides, a KBLI tool and contact options by email, in person or by video call.
• Tax office or the tax directorate's online services: for the company tax number, tax registration and returns.
• Immigration office or licensed visa sponsor: for director and employee visas and permits.
• Licensed lawyer or business adviser: for the investment list check, KBLI selection, capital planning and contracts.