Foreigners can own 100% of non-hotel businesses in Bali through a PT PMA, leveraging Indonesia’s Positive Investment List (Presidential Regulation No. 10/2021). This regulation opened 246 priority business fields to foreign capital. Bali’s significant foreign investment (IDR 25.60 trillion in 2025) across sectors like wellness and digital services underscores the viability of this ownership structure.
Why Foreigners Can Own 100% of Non-Hotel Businesses in Bali in 2027: The PT PMA Advantage Compared to Traditional Local Structures
Establishing a company in Bali remains a strategic decision for foreign investors in 2026–2027. While regulatory scrutiny, particularly on PT PMA “paper companies,” is increasing, Bali continues to attract a substantial share of Indonesia’s foreign-investment entities. New regulations are reshaping how and where foreign-owned companies can be established. This briefing outlines the advantages of the PT PMA structure for 100% foreign ownership in non-hotel sectors, comparing it with traditional local structures.
1. Market Size and Growth: Company Formation and Foreign Investment
Foreign-Investment Companies (PT PMA) in Bali
Between 2021–2025, Bali registered 19,262 PT PMA business actors, representing approximately 40% of all Business Registration Numbers (NIB) issued nationally. These Bali-based PT PMA entities initiated 55,458 registered projects during the same period. This concentration makes Bali one of Indonesia’s densest provinces for foreign-investment corporate presence, especially when considering its population and land area.
Foreign Investment Realisation in Bali
Bali recorded IDR 25.60 trillion of realized foreign investment (PMA) in 2025. This investment spanned hospitality, wellness, digital services, F&B, and other sectors. At an exchange rate in the IDR 15,000–16,000 per USD range, this corresponds to approximately USD 1.6–1.7 billion in realized PMA inflows for Bali in 2025.
Indonesia-Wide Investment and Sector Growth Context
Indonesia transitioned from a Negative Investment List to a Positive Investment List (Presidential Regulation No. 10/2021). This regulation opened 246 priority business fields to foreign capital, including sectors such as hospitals, commercial digital platforms, and logistics. Key growth sectors nationally include health and wellness, with a Compound Annual Growth Rate (CAGR) of 10–15%, experiential travel at approximately 12% CAGR, and sustained demand growth in premium/luxury goods within major retail centres. The digital economy is experiencing significant expansion, with an estimated market size of USD 146 billion in 2025, projected to reach USD 330 billion by 2030. E-commerce, particularly cross-border transactions, is a primary driver of this growth. The logistics sector benefits from this expansion, with a projected CAGR of 7–9%.
2. The PT PMA Advantage: 100% Foreign Ownership
The primary advantage of a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the ability for foreign investors to hold 100% ownership in many business sectors. This contrasts sharply with traditional local structures, such as a PT (Perseroan Terbatas) without foreign investment status, which typically requires Indonesian shareholders to hold a majority stake or imposes restrictions on foreign participation. The Positive Investment List directly facilitates this full foreign ownership in non-hotel sectors, provided the business field is open to foreign capital. This direct ownership provides foreign investors with complete control over management, strategy, and profit repatriation, simplifying corporate governance and reducing potential conflicts of interest often associated with local partnerships.
How to get business visa for Bali company
Securing a business visa for a Bali company typically involves several steps once the PT PMA is established. The process generally starts with obtaining a single-entry business visa (B211A or B211B) for initial visits, which allows for business meetings and exploration but not employment. For long-term presence and employment, a work permit (IMTA) and a temporary stay permit (KITAS) are required. The PT PMA acts as the sponsor for these permits. The investor or employee must apply for a visa at an Indonesian Embassy or Consulate abroad after receiving approval from the Ministry of Manpower in Indonesia. Required documents typically include a valid passport, company documents (NIB, Article of Association), a sponsorship letter from the PT PMA, and proof of funds. The specific type of KITAS, such as an investor KITAS (C313/C314) or a work KITAS (C312), depends on the applicant’s role and investment value in the company.
3. Regulatory Landscape and 2027 Outlook
Bali is implementing stricter regulations, particularly targeting PT PMA “paper companies” – entities established without substantive operational presence or investment. This indicates a shift towards encouraging genuine economic activity. The 2027 outlook suggests a continued focus on attracting high-quality foreign investment that aligns with Bali’s sustainable development goals. Investors should anticipate increased scrutiny on business plans, physical office presence, and adherence to local employment laws.
2027 Note:
By 2027, the Indonesian government is expected to have further refined regulations concerning foreign investment, with an emphasis on transparency and local economic contribution. The trend indicates that PT PMAs demonstrating tangible operational presence and employment generation will face fewer regulatory hurdles compared to entities perceived as shell companies. Specific requirements for minimum capital, local content, and environmental compliance are likely to be more strictly enforced.
4. Typical Cost Ranges and Key Hubs for Company Formation
Cost Ranges (Approximate)
The cost of establishing a PT PMA in Bali varies based on the chosen business classification (KBLI), share capital requirements, and professional service fees. General ranges are as follows:
- Company Registration Fees: IDR 20–50 million (excluding share capital).
- Minimum Paid-Up Capital: IDR 10 billion for most PT PMAs, though some sectors may have lower requirements. This capital does not need to be fully deposited upfront but must be declared.
- Office Rental: Varies significantly, from IDR 5 million/month for virtual offices to IDR 20 million+/month for physical offices in prime locations.
- Visa and Work Permit (KITAS/IMTA): IDR 15–30 million per person per year.
- Legal and Consulting Fees: IDR 30–100 million for comprehensive setup services.
Key Hubs
Key hubs for foreign-investment activity and company formation in Bali include:
- Denpasar: The provincial capital, offering access to government offices and administrative services.
- Badung (Seminyak, Canggu, Pererenan, Kerobokan): Popular for hospitality, F&B, retail, and digital nomad communities.
- Ubud: A centre for wellness, arts, and creative industries.
- Sanur: Emerging as a hub for health tourism and marine activities.
5. Main Players and Buyer/Investor Profiles
Main Players in Corporate Services
The corporate services landscape in Bali includes a range of providers from local law firms and notaries to international consulting agencies. Open Company In Bali specialises in PT PMA registration, offering comprehensive services including legal advice, company setup, and visa processing.
Buyer/Investor Profiles
Investors in Bali typically fall into several categories:
- Hospitality and Tourism Investors: Developing hotels, villas, restaurants, and related services.
- Digital Nomads and Tech Entrepreneurs: Establishing digital agencies, software development firms, and e-commerce businesses.
- Wellness and Health Sector Investors: Opening clinics, spas, yoga studios, and health retreats.
- F&B Operators: Setting up cafes, restaurants, and food production facilities.
- Retail and Lifestyle Brands: Launching boutiques, concept stores, and lifestyle businesses.
6. Comparison: PT PMA vs. Traditional Local Structures
The table below outlines key differences between a PT PMA and a traditional local PT without foreign investment status, particularly concerning foreign ownership and operational control.
| Feature | PT PMA (Foreign-Owned) | Traditional Local PT (Indonesian-Owned) |
|---|---|---|
| Foreign Ownership | Up to 100% in permitted sectors | Typically limited to 49% or less; often requires majority Indonesian ownership |
| Minimum Capital | IDR 10 billion (declared) for most sectors | IDR 50 million (declared) for small businesses |
| Business Scope | Broader access to sectors on Positive Investment List | Restricted to sectors not on Positive Investment List or those requiring local ownership |
| Investor Visa/Work Permit | Company can sponsor investor KITAS (C313/C314) and work KITAS (C312) | Limited options for foreign employees; typically requires specific expertise not available locally |
| Reporting Requirements | More stringent reporting to BKPM (Investment Coordinating Board) | Less extensive reporting |
| Access to Incentives | Eligible for certain tax holidays, import duty exemptions, etc. | Generally not eligible for foreign investment incentives |
| Control & Management | Full foreign control and management | Shared control, potentially with local partners |
The PT PMA structure provides a robust legal framework for foreign investors seeking full ownership and control in Bali’s non-hotel business sectors. While the regulatory environment is evolving, the advantages of direct ownership, access to a wide range of business fields, and the ability to sponsor foreign visas make the PT PMA the preferred choice for serious foreign investment.
For assistance in navigating the complexities of company formation in Bali and securing your PT PMA, request a free company-setup assessment on WhatsApp.