If you’re a foreigner looking to buy property in Indonesia — especially for business or long-term investment — setting up a PT PMA (foreign-owned company) is often the most secure and legal path. It allows you to lease or build property under titles not normally available to individuals, like Hak Guna Bangunan (Right to Build).
This article walks you through the steps, costs, and benefits of using a PT PMA to invest in Indonesian real estate.
What Is a PT PMA?
PT PMA stands for Perseroan Terbatas Penanaman Modal Asing — an Indonesian Limited Liability Company with foreign capital. It is legally recognized and registered under Indonesia’s investment law and can own long-term usage rights over land.
Why use a PT PMA?
- It’s the only way for foreigners to obtain Hak Guna Bangunan (HGB) or Hak Pakai titles
- Can own and operate a business legally in Indonesia
- Offers better legal protection than nominee agreements or informal leases
What a PT PMA Can Own
A properly set up PT PMA can:
- Lease land long-term (up to 80 years with extensions)
- Build and own structures (under HGB)
- Operate commercial activities (e.g. villas, resorts, restaurants)
- Sponsor work permits for foreign staff (including yourself)
Note: The company does not own freehold land (Hak Milik), but it can secure strong legal rights over property use.
How to Set It Up: Step-by-Step
1. Choose Your Business Activity
The company must have a clearly defined business purpose. For real estate, common sectors include:
- Property development
- Property rental
- Hospitality (villas, hotels, guesthouses)
Each activity must be properly licensed.
2. Prepare Required Documents
You’ll need:
- Passport copies of all foreign shareholders
- Indonesian tax ID (NPWP)
- Office address in Indonesia (can be virtual or physical)
- Minimum capital declaration (see below)
3. Meet the Capital Requirement
Officially, a PT PMA must declare a minimum paid-up capital of USD 700,000 (~IDR 10 billion). However:
- This amount can be invested progressively
- In practice, authorities focus on declared, not fully deposited, capital
- You’ll also need to show a business plan
4. Register the Company
This process involves:
- Company name approval
- Articles of association (via notary)
- Deed registration
- Tax ID and business number (NIB)
- OSS (Online Single Submission) licensing system
Usually takes 2–4 weeks with the help of a legal consultant.
5. Acquire Property Under the Company’s Name
Once your PT PMA is active, it can:
- Sign lease or construction agreements
- Hold Hak Guna Bangunan or Hak Pakai titles
- Register contracts with the Land Office (BPN)
Make sure the property is:
- In the correct zoning (commercial, tourism, etc.)
- Free of encumbrances
- In compliance with building permits and usage rights
Costs to Expect
- Company setup: IDR 25M – 50M (varies by agent)
- Legal advice and documentation
- Land/lease acquisition cost
- Office address or co-working fee
- Ongoing taxes and company reporting (yearly)
Is It Worth It?
A PT PMA is ideal if you:
- Want to invest more seriously or operate rentals
- Prefer long-term security and legal ownership
- Plan to do business or employ staff in Indonesia
But for a simple villa purchase or lifestyle buy, a personal leasehold might be more practical.
Conclusion
Setting up a PT PMA is a clear, legal path for foreigners to acquire property rights in Indonesia — but it must be done right. With the right guidance, it opens the door to real estate investment, development, and business opportunities across Bali.
At Mata Property Bali, we work with trusted legal partners to help you set up your company and secure your assets with confidence. Contact us to get started.
