Setting Up a PT PMA for Property Ownership

What is a PT PMA?

PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. It allows foreigners to own property with permanent title rights.

Requirements

Capital Requirements

• Authorized Capital: IDR 10 billion (~$650,000)
• Paid-up Capital: IDR 2.5 billion minimum (~$160,000)
• Note: Capital can be shown via assets, not just cash

Shareholders

• Minimum 2 shareholders (can be same person + spouse)
• 100% foreign ownership allowed for most sectors
• Directors don't need to be shareholders

Business Activities

• Must include property/real estate in business scope
• Can include other activities (consulting, trading, etc.)

Setup Process

Step 1: Choose Company Structure

• Determine shareholders and percentages
• Appoint directors (at least 1)
• Appoint commissioner (at least 1)

Step 2: Reserve Company Name

• Must include "PT" prefix
• Name approval from Ministry
• Takes 1-3 days

Step 3: Prepare Documents

• Shareholder passports
• Investment plan
• Company structure
• Registered office address

Step 4: Notarial Deed

• Deed of Establishment
• Articles of Association
• Signed before Indonesian notary

Step 5: Government Registration

• Ministry of Law approval
• Tax registration (NPWP)
• Business licenses (NIB/OSS)

Step 6: Operational Licenses

• Domicile letter
• Company registration certificate
• Industry-specific permits if needed

Timeline

StageDurationName reservation1-3 days Document preparation3-5 days Notarial process2-3 days Government approval2-3 weeks License issuance1-2 weeks Total4-6 weeks

Costs

ItemCostGovernment fees$200-400 Notary fees$500-800 Agent/consultant$800-1,500 Virtual office (annual)$300-600 Total Setup$1,500-3,000

Ongoing Obligations

Annual

• Financial statements
• Tax returns
• Company annual report
• OSS/licensing updates

Costs

• Registered agent: $300-500/year
• Accountant: $300-600/year
• Virtual office: $300-600/year
• Total: $500-1,000/year

Property Purchase Process

Once PT PMA is established:

Company signs purchase agreement

Due diligence on property

Transfer via notary (PPAT)

HGB title issued in company name

You control company = you control property

Important Considerations

• Plan ahead - Set up PT PMA before finding property
• Use professionals - Legal and accounting support essential
• Stay compliant - Annual reporting required
• Exit strategy - Selling company is more complex than selling property