Quick answer — PT PMA in Indonesia. Foreigners in Indonesia set up a PT PMA (foreign-investment limited company) through the OSS online licensing system, obtaining a business identification number (NIB) and selecting activity codes (KBLI). Foreign ownership is allowed up to 100% in many sectors, but a PT PMA needs an investment plan above IDR 10 billion per activity code and location, excluding land and buildings, and at least IDR 2.5 billion of paid-up capital. Corporate tax is 22%. Spending more than 183 days in Indonesia in 12 months can make you a tax resident, whatever your visa.
Bali is one of the world's best-known destinations for remote workers, and many founders who stay for months eventually ask whether they should open a company there — to rent a villa business, run a café, hire local staff, or simply stay longer on an investor visa. The legal vehicle for foreigners is the PT PMA.
A PT PMA is a serious investment, not a formality. It requires a business plan that meets minimum investment thresholds per activity, paid-up capital, and real operations. In return, it gives foreigners a legal way to own a business in Indonesia and qualify for an investor KITAS (stay permit). For remote workers serving foreign clients, Indonesia's remote worker visa is usually the better fit — but managing tax residency remains essential.
It does not suit remote workers whose clients are all abroad, or founders unable to meet investment requirements. It is not designed for locally employed expats or retirees.
Comparing Asian options? See our guide to company setup in Asia for foreigners.
If you are comparing destinations, see the Thai company for LTR visa holders and Philippine OPC registration.
A PT PMA must present an investment plan above a minimum threshold for each activity code (KBLI) and location, excluding land and buildings, and must pay up its issued capital. Under BKPM Regulation 5/2025, the investment plan must exceed IDR 10 billion per 5-digit KBLI per project location, excluding land and buildings, with different counting rules for some activities such as wholesale trade and construction. Paid-up capital must be at least IDR 2.5 billion per company and must stay in the company account for 12 months, except to buy assets, build premises or fund operations.
Each business activity has a KBLI code with its own ownership limits, licensing requirements and risk level. Some activities are closed to foreigners or reserved for small local businesses. Choosing the wrong KBLI can block licences later.
The remote worker visa allows working for foreign employers or clients but not for Indonesian companies. An investor KITAS through your PT PMA lets you live in Indonesia as a shareholder or director. In either case, more than 183 days in Indonesia in 12 months, or intent to reside, can make you an Indonesian tax resident.
Amounts are indicative.
For a small PT PMA, the key costs are the capital you must commit and the ongoing compliance, not the tax rate. Corporate tax is 22% (with a reduction on part of the income for smaller companies), and dividends to non-resident shareholders face 20% withholding, reduced by treaty. For founders who simply want to live in Bali and work for foreign clients, a remote worker visa and careful day-counting often costs far less than a PT PMA.
Indonesian banks open accounts for PT PMAs with the deed, Ministry approval, NIB, NPWP and directors' passports and KITAS. Expect in-person visits and documents in Indonesian.
The Indonesia Business Bank Comparison Guide compares the main banks for PT PMAs — get it when you start your Indonesian setup with Heavnn.
It is a limited liability company with foreign shareholding in Indonesia, set up under the investment law and licensed through the OSS system.
Under BKPM Regulation 5/2025, you need an investment plan above IDR 10 billion per 5-digit KBLI and project location, excluding land and buildings, and at least IDR 2.5 billion of paid-up capital. Some activities, such as wholesale trade and construction, follow different counting rules.
Yes, for foreign employers or clients. The remote worker visa does not allow working for Indonesian companies or running a local business.
If you spend more than 183 days in Indonesia in 12 months, or intend to reside there, you can become an Indonesian tax resident, whatever your visa.
The standard corporate income tax rate is 22%, with a 50% reduction on part of taxable income for smaller companies.
In Bali, the right answer may be a PT PMA — or no company at all. Heavnn checks your visa, residency and capital needs first.
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This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
