Why Bali PT PMA Company Needs a Resident Director

December 13, 2024

When starting a PT PMA Company in Bali, one of the important requirements is having a Resident Director. So, what does this role actually involve? Do they have to be local, or can you hire a foreigner? And why is having a Resident Director important for your foreign company business here?

Let’s break it down!

What is a Resident Director?

Under Indonesian regulations, every company must have at least one director, one commissioner, and two shareholders. Among these roles, the director will be in managing daily operations. So, a Resident Director is a key person in your PMA company who is responsible for representing the company and ensuring it complies with local laws.

A Resident Director can be a local person or a foreigner. However, make sure they meet these criteria:

How to Choose the Right Person for This Role

Since this person will be a key person for your company and play an important role in your business, consider these factors when choosing:

Understanding Indonesian corporate and tax laws. It involves knowledge of regulations such as reporting requirements, employment laws, tax filing, and corporate governance standards.
Have a strong sense of responsibility. This means being reliable, accountable, and committed to fulfilling the duties.
Hold a valid permit to earn in Indonesia. Only hire a person with legal permits to work in this country to prevent serious issues for your company.
Understand your industry. Having in-depth knowledge of your company’s business sector, including its regulations, market trends, and best practices.
Familiar with Indonesian or Balinese business culture. Cultural awareness helps foster smooth communication with local authorities, partners, and employees while ensuring decisions align with local expectations and customs.
Familiar with Indonesian or Balinese business culture. Cultural awareness helps foster smooth communication with local authorities, partners, and employees while ensuring decisions align with local expectations and customs.

Choosing a Resident Director Impacts Business Success

Having a Resident Director is crucial. It ensures your PT PMA company in Bali complies with Indonesian laws and operates smoothly. Whether you take on the position yourself or appoint someone else, choosing the right person will directly impact the success and credibility of your business. Therefore, take the time to evaluate who will fill this position carefully. The right decision now will give you peace of mind.