What to Prepare to Establish a PT PMA in Bali Indonesia

Establishing a PT PMA (Foreign Investment Company) in Indonesia requires a minimum paid-up capital of over IDR 10 billion (excluding land/buildings) and adherence to the Positive Investment List.

Key preparations include: 3 proposed company names, valid passports for shareholders/directors, a local registered address (physical or virtual), a defined KBLI business code, and a detailed business plan.

Quick Preparation Checklist Before Incorporation

Before starting the PT PMA registration process, you should prepare:

• Three proposed company names (in Bahasa Indonesia, compliant with AHU naming rules)
• Minimum two shareholders (individual or corporate)
• Valid passports for foreign shareholders and directors
• Proposed company structure (Director and Commissioner)
• Registered business address (physical office or eligible virtual office)
• Selected KBLI business codes
• Investment plan exceeding IDR 10 billion (excluding land/building)

Preparing these items early will help prevent delays during notary drafting and OSS registration.

Selecting the Correct KBLI (Business Classification Code)

Every Indonesian company must select its business activity codes under the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) system.

The latest reference is issued under BPS Regulation No. 7 of 2025, which provides standardized classifications for economic activities.

The selected 5-digit KBLI codes will determine:

• Whether the business is open to foreign investment
• The applicable licensing category
• Risk classification level
• Required operational permits

Choosing the correct KBLI is one of the most strategic decisions in structuring a PT PMA.

Business Location and Spatial Compliance (Zoning)

Since the implementation of the Omnibus Law framework, business location compliance has become more structured.

Companies must ensure that their business premises align with:

• Regional Detailed Spatial Plans (RDTR)
• Local zoning regulations

Before applying for operational licensing through OSS RBA, companies must obtain confirmation of spatial conformity known as:

• KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang)
• KKPR confirms that the intended business activity is permitted in the chosen location.

This is particularly important in Bali, where zoning regulations are strictly enforced.

Founder and Responsible Person Data

A PT must be established by at least two founders through a notarial deed drafted in Bahasa Indonesia. Founders may be:

• Indonesian individuals
• Foreign individuals
• Indonesian legal entities
• Foreign legal entities

Indonesia’s business licensing system is integrated across ministries and government institutions. Identification data will be verified electronically.

For Indonesian founders:

• National ID Number (NIK) must be valid
• Tax status confirmation (KSWP) must be valid

If either is invalid, updates must be completed before proceeding with registration through the Online Single Submission – Risk Based Approach (OSS RBA) system.

For foreign founders:

• A valid passport is required

For foreign corporate shareholders:

• Deed of establishment
• Articles of association and amendments
• Legalized corporate documents issued by the relevant authority in the country of origin

Preparing complete and accurate founder documentation is critical to avoid delays during incorporation.

Understanding Restricted and Closed Business Sectors

Indonesia regulates foreign ownership through the Positive Investment List, issued under Presidential Regulation No. 10 of 2021 as amended.

This regulation classifies business sectors into:

• Open without conditions
• Open with specific requirements (such as foreign ownership limits or mandatory partnerships)
• Closed to foreign investment

Before establishing a PT PMA, investors must confirm that their selected KBLI is permitted under this framework.

Certain sectors remain closed to PMA, including:

• Cultivation and production of Category I narcotics
• Gambling and casino operations
• Fishing of species listed under CITES Appendix I
• Extraction of natural coral for construction or commercial purposes
• Chemical weapons manufacturing
• Production of ozone-depleting substances
• Manufacturing of alcoholic beverages under specific KBLI classifications

Some sectors are open with conditions, such as:

• Foreign ownership limitations
• Mandatory partnerships with Cooperatives or MSMEs
• Special compliance obligations

There are also priority sectors that may benefit from fiscal or non-fiscal incentives.

A thorough sector eligibility assessment is essential before incorporation.

Paid-Up Capital Requirements

A PT PMA must also comply with minimum capital requirements.

The general requirement is:

• Minimum issued and paid-up capital of IDR 10 billion, unless sector-specific regulations determine otherwise.

Capital must be declared during incorporation and reflected in the company’s structure. Compliance with capital regulations is fundamental for maintaining legal standing.

Investment Value Requirements

Foreign investment companies in Indonesia must meet a minimum total investment value exceeding IDR 10 billion, excluding land and buildings.

This requirement applies:

• Per 5-digit KBLI code
• Per project location

However, this threshold does not apply to technology-based startup businesses operating within designated Special Economic Zones (KEK), where different rules may apply.

Investment planning must align with regulatory requirements from the outset.

Business Licensing Through OSS RBA

Once the PT PMA is legally established, the company must obtain risk-based business licensing through the OSS RBA system.

Licensing categories are determined based on risk level:

• Low Risk
  NIB (Business Identification Number) only
• Medium-Low Risk
  NIB + Standard Certificate
• Medium-High Risk
  NIB + Verified Standard Certificate (verified by central or regional authority)
• High Risk
  NIB + Business License + Standard Certificate (if applicable)

The issued license determines the company’s ability to operate legally.

Read more: What is NIB in Indonesia and What Foreign Investors Need to Know

Additionally, certain activities require Supporting Business Licenses (PB UMKU).

For example:

• A construction company operating under a specific KBLI must obtain a Construction Business Entity Certificate (SBU).

Failure to secure required supporting permits can prevent operational activity.

Basic PT PMA Establishment Process

The standard incorporation process generally follows this sequence:

• Company name reservation through the AHU system
• Drafting and signing of Deed of Establishment before a Notary
• Approval from the Ministry of Law and Human Rights (MoLHR)
• Tax registration (NPWP)
• Registration through OSS RBA to obtain NIB
• Issuance of risk-based business licenses
• Initial LKPM investment reporting to BKPM

The exact timeline depends on business sector, structure, and document readiness.

Establishing a PT PMA in Bali with Confidence

Indonesia’s business regulations change frequently. Licensing rules, capital requirements, zoning compliance, and foreign ownership policies continue to evolve and are becoming more strictly enforced.

Setting up a PT PMA is not only about registering a company. It requires proper structure, correct KBLI selection, accurate licensing, and ongoing compliance to avoid future issues.

BaliEasy helps you handle the process clearly and correctly from the beginning.

We provide:

• End-to-end PT PMA setup
• Guidance on choosing the right business structure and KBLI
• Full handling of incorporation, OSS registration, and licensing
• Assistance with Investor KITAS
• Ongoing compliance support as regulations change
• Transparent process with no hidden fees
• 24/7 human customer support

Our team understands Bali’s local regulations and practical requirements, so your company is structured properly from day one.

The goal is simple: make the process clear, compliant, and smooth, so you can focus on running your business.