A foreigner's company (PT PMA) in Bali: what changed in 2025–2026
AB
Andrei Balinsky
Founder of Balinsky
For anyone opening a company in Bali or already running one, a lot has changed over the past year. Here are the key points.
Capital: 2.5 billion instead of 10 billion
- Investment Ministry Regulation No. 5/2025 has been in force since 2 October 2025.
- You need to pay in at least 2.5 billion rupiah of capital, and you cannot withdraw this money for 12 months.
- A separate requirement remains for the investment plan: more than 10 billion rupiah per business activity per location. Land and buildings are usually not counted, but there are exceptions for real estate and hotels - check for your own case.
- An investor KITAS requires the investor's own stake to be at least 10 billion rupiah. According to consultants, this rule has not changed.
- You cannot declare capital at a notary without actually paying it in. That is false information in documents, and it leads to a revoked KITAS and deportation.
Main and supporting business activities
A supporting activity that does not generate income does not need separate capital or a change to the articles of association. More details are in the article on Regulation No. 5/2025.
The new business activity classification (KBLI 2025)
- Approved by Statistics Agency Regulation No. 7/2025 in December 2025.
- Live in the OSS licensing system since mid-June 2026.
- Old licences remain valid. The articles of association are changed only if the nature of the activity changes (joint circular of 25.03.2026).
Short-term rentals
- From 1 April 2026, Booking, Airbnb and other platforms delist properties without the "Registered and licensed" status (Terdaftar dan Berizin).
- Under Presidential Regulation No. 49/2021, the "villa" code is reserved for small businesses and cooperatives. Hotels are open to foreign-owned companies.
- The Pondok Wisata licence is for guesthouses run by local residents; it does not work for a foreigner.
- In 2026, Bali restricted the registration of new foreign-owned companies for some business activities. There is no complete official list - check your code in OSS before buying.
Reports
- The investment activity report (LKPM) - every quarter.
- The company's annual report - by 30 June, under Ministry of Law Regulation No. 49/2025. From November 2026, failure to file leads to blocked access to the company register.
The 0.5% tax is no longer available to PT PMA
More details are in the article on the 0.5% tax in 2026.
Editorial note
Balinsky editorial team · 12 October 2026. The text has been checked against Indonesian laws in force on this date.
Update: one review (October 2025) said that the minimum capital stayed at 10 billion and there were "no changes". This is wrong: you need to pay in at least 2.5 billion, and the 10 billion threshold remains only for the investment plan.
Materials the article is based on: https://t.me/BaliLawyer/158, https://t.me/BaliLawyer/159, https://t.me/BaliLawyer/170, https://t.me/BaliLawyer/171, https://t.me/BaliLawyer/172, https://t.me/BaliLawyer/185, https://t.me/BaliLawyer/186, https://t.me/BaliLawyer/187
Sources
- SSEK on Regulation No. 5/2025: https://www.ssek.com/blog/indonesia-issues-bkpm-regulation-no-5-of-2025-to-implement-updated-risk-based-business-licensing-framework/
- Withers on the lower capital requirement: https://www.withersworldwide.com/en-gb/insight/read/indonesia-eases-foreign-capital-rules-key-takeaways-from-bkpm-regulation-no-5-of-2025
- Presidential Regulation No. 49/2021 (official legal database): https://peraturan.bpk.go.id/Details/168534/perpres-no-49-tahun-2021
- OSS licensing system: https://oss.go.id
- Tourism Ministry on licences for platforms (Bisnis.com): https://ekonomi.bisnis.com/read/20260204/12/1950141/menpar-beri-tenggat-vila-cs-wajib-berizin-per-31-maret-2026
- DDTC on the annual report: https://news.ddtc.co.id/berita/nasional/1819732/
- DDTC on the switch to KBLI 2025: https://news.ddtc.co.id/berita/nasional/1820175/