PT PMA in Bali: Foreign Investment Guide

December 3, 2024

Bali has always been a sweet escape, whether for a retreat or starting a business. If you are considering foreign investment, you might wonder: Can a foreigner create a company in Indonesia? The answer is yes. This article will explore the requirements, restrictions, and benefits of starting a PT PMA in Bali and the stay permits available under this company structure.

How Can a Foreigner Start a PT PMA in Bali?

Foreigners can establish a company in Bali through a PT PMA. Indonesia allows for foreign ownership and provides legal protection under Indonesian law. However, certain business sectors are restricted or limited to foreign investment, as detailed in the Indonesian Negative Investment List (Daftar Negatif Investasi).

Restricted Business Sectors for PT PMA in Bali

Several businesses prohibited for PMA holders are:

Narcotics Industry: All activities related to the production and distribution of narcotics.
Alcoholic Beverages Industry: Including wine & malt.
Gambling Activities and Casinos: All forms of gambling and casino operations.
Coral Extraction: Utilization or extraction of coral for building materials, aquariums, souvenirs, and jewellery, including live or recently deceased coral from nature.
Chemical Weapons Manufacturing: Production of chemical weapons.
Ozone-Depleting Chemicals: Industries produce chemicals harmful to the ozone layer.

Foreign ownership percentages are often limited, so collaborating with local entities is necessary to fulfil legal requirements. These restrictions are in place due to several important considerations:

Ensuring Control: Maintaining control over critical infrastructure and resources.
Cultural Protection: Safeguarding local culture and media from foreign dominance.
Economic Support: Supporting local businesses and preventing monopolies.
Environmental Management: Managing the environmental impact of certain industries.

Key Requirements for Starting a PT PMA in Bali

Capital Investment: The minimum paid-up capital for a PT PMA is IDR 10 billion. This capital can be in the form of cash or assets and must be invested to start and run the business.
Ownership and Stakeholders: A PT PMA must have at least two shareholders as Directors and Commissioners, with at least one Director mandatory on the board.

Stay Permits for a PT PMA Investors

You can use any visa to set up a PT PMA in Bali. However, investors or shareholders typically need one of the following visas to stay and manage business in Indonesia:

1. Investor ITAS

Purpose: Issued to foreign investors who own shares in a PT PMA.
Validity: Up to 2 years and can be extended.
Benefits: It does not require a work permit (IMTA) and allows investors to stay and manage their business in Indonesia.

The Director of the PT PMA must be resident in Indonesia with the Investor ITAS sponsored by the PT PMA.

2. Multiple Entry Business Visa

Purpose: Intended for business-related activities. Ideal for boards of directors, commissioners, or shareholders outside of Indonesia.
Validity: Available for one year, two years, or five years. Extendable.
Benefits: It does not require a work permit (IMTA) and allows investors to stay and manage their business in Indonesia.

Hiring Foreign Workers in PT PMA

Yes, a PT PMA can hire foreign workers. The company needs to obtain an IMTA (Permit to Employ Foreign Workers) and Working KITAS for foreign employees.

Working KITAS

Purpose: Issued to foreigners employed by a PT PMA.
Validity: Typically 6-12 months (depending on the worker’s position in the company), renewable.
Benefits: Allows the holder to work in Indonesia legally.

Contact Usaha Expat today to start your PT PMA in Bali effortlessly!

Usaha Expat is here to guide you through every step, from company establishment services to visa applications. For personalized assistance and to discuss your investment plans, consult with us. We are committed to helping you achieve your business goals for your PT PMA in Bali, providing peace of mind and allowing you to focus on growing your business.