Establishing a PT PMA (foreign-owned company) in Bali solely to obtain an Investor KITAS, without genuine investment or legitimate business activity, can lead to serious immigration and business licensing consequences. Indonesian authorities may investigate the company, revoke its Business Identification Number (NIB), cancel immigration permits, and impose deportation or entry bans when violations are established.
This is not just a theoretical risk. During Indonesia’s Operasi Wira Waspada in 2025, Immigration investigated 267 foreign investment companies whose business identification numbers had been revoked. Of these, 74 companies in Bali were still registered as guarantors for 126 foreign nationals.
The issue has also been highlighted by the Denpasar Immigration Office (@imigrasidenpasar), which warned about fictitious foreign investment companies, also called PMA Fiktif or PMA Cangkang, being used to obtain residence permits without genuine business investment.
If you already hold an Investor KITAS or are considering establishing a PT PMA in Bali, make sure your company, investment records, business licenses, and actual activities meet Indonesian regulations. Visa BaliEasy can help review your immigration status and explain the relevant Investor KITAS requirements.
What Is a Fake PT PMA or Shell Company in Bali?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited liability company with foreign investment.
A legitimate PT PMA is established to carry out permitted business activities in Indonesia, subject to the country’s investment and business licensing requirements.
A fictitious PT PMA, however, may exist primarily on paper without genuine business activities or the investment represented in its documentation.
Common warning signs include:
- A company is established primarily to obtain Investor KITAS permits.
- The declared investment or shareholding is not supported by actual financial records.
- The company has no verifiable business location or credible investment activity.
- Its registered business activities do not match the operations actually conducted.
- Foreign nationals are listed as investors without genuine qualifying ownership.
- The company sponsors multiple foreigners whose roles and activities cannot be properly explained.
An inactive or newly established company is not automatically a fictitious company. Legitimate businesses may still be preparing operations, obtaining additional licenses, or developing an investment project.
The critical distinction is whether the company’s registration, investment commitments, financial records, and activities genuinely comply with the law.
Before engaging a formation agent, review our PT PMA preparation checklist to understand which ownership, address and business-planning documents you should be able to verify.
Real Immigration Enforcement Against Fake PT PMA in Bali
Indonesia has already taken enforcement action against foreign investment companies suspected of violating business and immigration regulations.
According to an official Immigration announcement dated 22 February 2025, Operasi Wira Waspada investigated companies whose NIB registrations had been revoked by the Ministry of Investment and Downstream Industry/BKPM.
The operation reported:
- 267 foreign investment companies whose NIBs had been revoked.
- 74 companies in Bali that were still sponsoring 126 foreign nationals.
- 15 foreign nationals who had already received deportation and entry-ban measures at that stage.
- A further 111 foreign nationals identified for similar follow-up action.
In a subsequent enforcement phase, authorities also examined foreign nationals associated with other problematic or allegedly fictitious companies.
The investigation involved Immigration, BKPM, and other relevant authorities.
The announcement illustrates how problems with a company’s investment or licensing status can also affect foreigners whose residence permits depend on that company.
Source: Directorate General of Immigration – Operasi Wira Waspada 2025.
PT PMA Investment and Capital Requirements in 2026
Foreign investors should understand three different financial requirements before establishing a PT PMA or applying for an Investor KITAS.
Under BKPM Regulation No. 5 of 2025, the minimum investment plan, minimum paid-up capital, and Investor KITAS shareholding requirements are not the same.
| Requirement | General threshold | What it means |
|---|---|---|
| PT PMA investment plan | More than IDR 10 billion | Planned investment, generally excluding land and buildings, per five-digit KBLI and project location, subject to exceptions |
| Minimum paid-up capital | IDR 2.5 billion | Minimum placed/paid-up capital for a PT PMA, unless another rule applies |
| E28A Investor KITAS shareholding | At least IDR 10 billion | Qualifying shareholding evidence required under the published E28A immigration requirements |
Minimum Investment Plan: More Than IDR 10 Billion
Under Article 26 of BKPM Regulation No. 5 of 2025, a PT PMA generally must have a planned investment value of more than IDR 10 billion per five-digit KBLI business classification and project location.
Certain sectors, including wholesale trade, food and beverage services, construction, and property-related activities, have special rules governing how the investment threshold is calculated.
The investment plan is not necessarily the same amount that must be deposited into a bank account on the day the company is established.
Minimum Paid-Up Capital: IDR 2.5 Billion
The same regulation establishes a general minimum placed/paid-up capital of IDR 2.5 billion for a PT PMA, unless another applicable regulation requires otherwise.
Article 27 also places restrictions on transferring this capital out of the company’s account during the first 12 months, while allowing certain legitimate uses, including asset purchases, building construction, and business operations.
The company must comply with the applicable capital and investment reporting requirements.
Investor KITAS Shareholding Requirement
The E28A Investor KITAS has a separate immigration eligibility requirement.
According to published Indonesian Immigration information, applicants generally need proof of share ownership worth at least IDR 10 billion in a qualifying company registered with the investment authorities.
If the foreign national’s shareholding is below the required threshold and they hold a director or commissioner position, a different visa category based on that position may be required.
Meeting the minimum capital requirement to establish a PT PMA does not automatically make every shareholder eligible for an E28A Investor KITAS.
These distinctions are important when evaluating promises made by company formation agents or visa service providers.
Sources: BKPM Regulation No. 5 of 2025 and Indonesia Immigration Visa Information.
Why an OSS NIB Does Not Automatically Prove a Company Is Compliant
The Online Single Submission (OSS) system is Indonesia’s official platform for risk-based business licensing.
A company obtains its Business Identification Number (NIB) through OSS after completing the applicable registration process.
However, having an NIB does not automatically prove that a PT PMA has fulfilled every investment, operational, or immigration requirement.
Depending on its activities and risk classification, a company may need additional business licenses, standard certificates, technical approvals, or sector-specific permits.
The company must also maintain compliance with its investment and reporting obligations.
If you are still setting up the business, follow our company-establishment guide to see how incorporation, OSS registration and ongoing reporting fit together.
Choosing the Correct KBLI
Each PT PMA registers its business activities under the relevant Klasifikasi Baku Lapangan Usaha Indonesia (KBLI).
The KBLI determines the classification of the business and helps identify the applicable licensing and regulatory requirements.
For example, a company registered for one type of business should not assume that its registration automatically permits unrelated business activities.
An investor who establishes a company for management consulting but later operates a tourism business, restaurant, or accommodation service may need to review and update the company’s KBLI and obtain the relevant approvals.
Indonesia has also introduced KBLI 2025 classifications. Existing companies should check whether their registered activities have been affected by classification changes.
You can review the latest classification information through the official OSS KBLI system.
LKPM Reporting: An Important Obligation for PT PMA
PT PMA companies are generally subject to investment activity reporting through Laporan Kegiatan Penanaman Modal (LKPM), according to the applicable reporting rules.
LKPM reporting provides information about the company’s investment realization and business development.
Depending on the company’s stage, this may include:
- Investment realized during the reporting period.
- Business development and project progress.
- Capital expenditure and relevant investment costs.
- Employment information.
- Operational or commercial activity.
LKPM reports must accurately reflect the company’s circumstances.
In an announcement dated 28 March 2026, BKPM warned that late or inaccurate LKPM reporting could lead to administrative warnings and sanctions, including revocation of the NIB.
A company should not report fictitious investment realization merely to match the investment value stated in its original business plan.
Source: BKPM – LKPM Reporting Announcement.
What Happens If Your PT PMA Is Found to Be Fictitious?
If authorities determine that a PT PMA has violated investment, business licensing, or immigration regulations, several consequences may follow.
Business License or NIB Revocation
BKPM and other competent authorities may impose administrative sanctions against companies that fail to meet applicable legal obligations.
Depending on the violation and enforcement process, these measures may include warnings, suspension, or revocation of business licenses or the NIB.
Investor KITAS Cancellation
Foreign nationals holding an Investor KITAS through a problematic company may face additional immigration examination.
If the legal basis for the residence permit is invalid, false, or otherwise affected by the findings, Immigration may take action against the permit.
NIB revocation should therefore be treated as a serious matter, but it is not accurate to assume that every foreign investor’s KITAS is automatically cancelled in every case.
Deportation and Entry Ban
Where immigration violations are established, foreign nationals may be subject to administrative immigration measures, including deportation and entry bans.
In the 2025 Bali enforcement operation, Immigration reported deportations and entry-ban measures against foreign nationals linked to problematic company sponsorship arrangements.
Additional Legal Consequences
Providing false information in immigration applications or engaging in activities inconsistent with the authorized stay permit may also create additional legal exposure.
The outcome depends on the facts, evidence, applicable laws, and decisions of the relevant authorities.
How to Check Whether Your PT PMA and Investor KITAS Are Compliant
If you already hold an Investor KITAS, review the following matters before your next permit extension or immigration verification.
1. Verify Your Company’s Legal Documents
Check that your company registration and ownership records are accurate.
Important documents include:
- Deed of Establishment and any amendments.
- Ministry of Law company approval.
- Current shareholder records.
- Company NIB.
- Registered company address.
- Relevant business licenses.
Your name, investment position, and shareholding should match the information used in your Investor KITAS application.
2. Check Your Investment and Financial Records
Confirm that your company’s capital and investment documentation accurately reflects the business’s actual circumstances.
Review the applicable investment plan, paid-up capital, shareholder evidence, company bank records, and financial documentation.
If your investment is still in the preparation stage, make sure the company can substantiate its progress and comply with the relevant reporting requirements.
3. Review Your OSS, KBLI, and LKPM Compliance
Check whether:
- Your NIB remains valid.
- Your registered KBLI matches your intended and actual business activities.
- Required additional business licenses are in place.
- Your LKPM reports have been submitted when required.
- Your reported investment realization is accurate.
Resolve inconsistencies with an appropriately qualified company, licensing, or legal professional.
4. Check Your Investor KITAS Eligibility
Make sure the legal basis for your E28A stay permit is supported by genuine qualifying investment and the required company documentation.
If your shareholding, role, or company circumstances have changed, check whether your current visa category remains appropriate.
5. Review Your Actual Activities in Indonesia
A foreign national’s permitted activities must be consistent with their immigration status.
Being a shareholder does not automatically authorize every type of work or operational activity in Indonesia.
If your main reason for staying is residence rather than investment, compare Bali visa categories and stay limits to identify options that match your actual activities before considering an Investor KITAS.
If your role involves local employment or activities beyond those permitted under your Investor KITAS, additional immigration or manpower requirements may apply.
Red Flags When an Agent Offers an Investor KITAS
Be cautious if a service provider offers an Investor KITAS under arrangements you do not fully understand.
Potential warning signs include:
- You are promised an Investor KITAS without any genuine qualifying investment.
- You are offered a shareholder position but cannot inspect the company’s ownership documents.
- You are told the company exists only to sponsor visas.
- The company has no verifiable address or supporting business records.
- The agent refuses to explain the applicable shareholding requirements.
- You are asked to sign documents containing investment information that does not reflect reality.
- You are promised that owning a small nominal share automatically makes you eligible for an E28A Investor KITAS.
An affordable service fee is not, by itself, evidence of wrongdoing. The key issue is whether the underlying company and visa application genuinely meet legal requirements.
If you already obtained an Investor KITAS through an unfamiliar company, review your legal status before extending or relying on that permit for future travel.
Better Visa Options If You Are Not Yet Ready to Invest
Not everyone who wants to stay longer in Bali needs to establish a PT PMA.
If you are not planning genuine qualifying investment, another visa may be more appropriate.
D12 Pre-Investment Visa
The D12 Multiple Entry Pre-Investment Visa is intended for eligible foreigners who want to explore investment opportunities before making a qualifying investment.
It can be suitable for market research, feasibility studies, meeting potential business partners, and other permitted pre-investment activities.
It does not authorize local employment or unrestricted commercial operations.
Visa BaliEasy services:
- Apply for D12 Pre-Investment Visa – 1 Year
- Apply for D12 Pre-Investment Visa – 2 Years
- Extend Your D12 Pre-Investment Visa
Remote Worker KITAS (E33G)
If you want to live in Bali while working remotely for a company established outside Indonesia, the Remote Worker KITAS (E33G) may be more appropriate.
The E33G offers a one-year stay permit for eligible applicants who meet the applicable employment and financial requirements.
It does not require establishing a PT PMA or obtaining an Indonesian guarantor.
Visa BaliEasy service:
Investor KITAS (E28A)
If you genuinely qualify as a foreign investor, the E28A Investor KITAS may provide a stay permit of up to two years, subject to the relevant investment, ownership, and immigration requirements.
Visa BaliEasy service:
For an existing Investor KITAS that needs extension or an eligibility review, contact Visa BaliEasy before your permit expires.
Can Visa BaliEasy Help?
Yes. Visa BaliEasy can assist foreign investors and long-term residents with reviewing the immigration requirements associated with their PT PMA and Investor KITAS.
Our team can help check your current stay permit, available supporting documents, and appropriate visa category.
If there are concerns about your company’s business licensing, investment records, or legal structure, we can advise which issues need to be reviewed by the relevant company, legal, or investment licensing professionals before an immigration application proceeds.
We can also assist eligible applicants who are considering other options, including the D12 Pre-Investment Visa and E33G Remote Worker KITAS.
Contact Visa BaliEasy for an Investor KITAS eligibility review. Explain your current visa type, whether you have an existing PT PMA, and what assistance you need.
Investment regulations, immigration requirements, company licensing procedures, and service fees may change before this article is updated. Contact Visa BaliEasy to confirm the requirements applicable to your situation.

