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New Regulations for Investor & Working KITAS Applications With PMA
Author By Claudia Watson Posted on Categories KITAS, PT PMA, Set up Business in Bali

New Regulations for Investor & Working KITAS Applications With PMA

Indonesia Immigration has updated regulations concerning visas and stay permits. The full update is detailed below and the key aspects are as follows:


  • Those wanting to apply for Investor KITAS must have more than 10 billion shares in the company (before only 1 bill)

  • If an investor has less than 10 billion in shares, they can apply for working KITAS (would need to pay USD 1.200/ 12 months)


 





MINISTRY OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF IMMIGRATION

Dear. 1. Head of the Regional Office of the Ministry of Law and Human Rights and Head of the Immigration Division throughout Indonesia

2. Head of Immigration Offices throughout Indonesia

CIRCULAR LETTER NUMBER IMI-0315.GR.01.01 OF 2023

ABOUT

IMPLEMENTATION OF STAY PERMIT SERVICES
POST DETERMINATION OF THE MINISTER OF LAW AND HUMAN RIGHTS REGULATION

NUMBER 22 OF 2023 CONCERNING VISAS AND STAY PERMITS

1. Background

In order to implement the delegation of several articles in Government Regulation Number 40 of 2023 concerning the Fourth Amendment to Government Regulation Number 31 of 2013 concerning Implementing Regulations of Law Number 6 of 2011 concerning Immigration, Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas has been promulgated. and Residence Permit on August 24 2023.

The implementation of this regulation has an impact on changes to visa and residence permit services, including problems with adjusting service systems and business processes due to the transition from Minister of Law and Human Rights Regulation Number 29 of 2021 concerning Visas and Residence Permits to Minister of Law and Human Rights Regulation Number 22 of 2023 regarding Visas and Residence Permits.

In this regard, in order to ensure the smooth implementation of Residence Permit services during the transition period, it is necessary to stipulate a Circular Letter from the Director General of Immigration as a guideline for implementing applications and providing residence permit services.

2. Aims and objectives

a. The purpose of this circular letter is to provide legal certainty in the implementation of Stay Permit services during the transition period from Regulation of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Stay Permits to Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Residence Permit; And









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b. The purpose of this circular is as a guideline for those implementing the duties and functions of the Stay Permit service in providing services to the community.

3. Scope
The scope of this Circular Letter is to confirm the implementation of residence permit services on transition period from Regulation of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Residence Permits to Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Residence Permits.

4. Basic
a. Law Number 25 of 2009 concerning Public Services;
b. Law Number 6 of 2011 concerning Immigration as has been amended several times,

most recently by Law Number 6 of 2023 concerning the Determination of Government Regulations in Lieu of Law Number 2 of 2022 concerning Job Creation into Law;

c. Government Regulation Number 31 of 2013 concerning Implementing Regulations of Law Number 6 of 2011 concerning Immigration as amended several times, most recently with Government Regulation Number 40 of 2023 concerning Fourth Amendment to Government Regulation Number 31 of 2013 concerning Implementing Regulations of Law Number 6 of 2013 2011 concerning Immigration;

d. Government Regulation Number 28 of 2019 concerning Types and Tariffs for Non-Tax State Revenues Applicable to the Ministry of Law and Human Rights;

e. Presidential Regulation of the Republic of Indonesia Number 18 of 2023 concerning the Ministry of Law and Human Rights;

f. Regulation of the Minister of Law and Human Rights Number 44 of 2015 concerning Procedures for Checking Entry and Exit Indonesian Territory at Immigration Checkpoints;

g. Regulation of the Minister of Law and Human Rights Number 28 of 2018 concerning Immigration Stamps as amended several times, most recently with Regulation of the Minister of Law and Human Rights Number 20 of 2022 concerning the Second Amendment to Regulation of the Minister of Law and Human Rights Number 28 of 2018 concerning Immigration Stamps ;

h. Minister of Law and Human Rights Regulation Number 41 of 2021 concerning Organization and Work Procedures of the Ministry of Law and Human Rights;

i. Regulation of the Minister of Finance Number 9/PMK.02/2022 concerning Types and Rates of Non-Tax State Revenue Urgent Needs for Immigration Services Applicable to the Ministry of Law and Human Rights;

j. Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Stay Permits; And

k. Minister of Finance Regulation Number 82 of 2023 concerning Types and Tariffs for Types of Non-Tax State Revenue Urgent Needs for Golden Visa Services Applicable to the Ministry of Law and Human Rights.








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5. Contents of the Circular Letter
a. To all those implementing the duties and functions of the residence permit service (executing staff to

structural officials) to:
1) Providing excellent service to the community;
2) Not committing corruption, collusion and nepotism;
3) Carry out supervision in stages; And
4) Coordinate and socialize with stakeholders and immigration guarantors regarding

this Circular Letter.
b. To the Head of the Immigration Division to:

1) Carry out guidance, control, supervision and evaluation of the implementation of immigration policies regarding Stay Permit services during the transition period from Regulation of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Stay Permits to Regulation of the Minister of Law and Human Rights Number 22 of 2023 regarding Visas and Residence Permits; And

2) Report the results of evaluation of policy implementation periodically every 30 (thirty) days to the Director General of Immigration.

c. To the Head of the Immigration Office to:
1) Instruct structural and implementing officials in charge of immigration residence permits to

accept applications for residence permit services through the Immigration Information Management System (SIMKIM) V2 residence permit application originating from visas issued from the Molina application as long as the residence permit service in question is not yet available in the Molina application ;

2) Receive applications for residence permit services in the context of: a) Foreign Investors (PMA) with:

(1) Carrying out extensions, transfer of status, reporting, changes, granting and other services for Limited Stay Permits or Permanent Stay Permits for foreign investors abroadGolden Visawhich have been issued or have submitted applications before this circular comes into force with the requirements in accordance with the Regulation of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Stay Permits based on the share value as regulated in the Investment Coordinating Board Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Capital Investment Facilities until the deadline of 31 December 2024;

(2) Carrying out extensions, transfer of status, reporting, changes, granting and other services related to Limited Stay Permits or Permanent Stay Permits for foreign investors abroadGolden Visaafter 31 December 2024 in accordance with Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Stay Permits;

(3) Implementing the granting of new Limited Stay Permits and changing the status of Visit Stay Permits to Limited Stay Permits in the context of foreign investors outsideGolden Visain accordance with Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Stay Permits








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since this circular letter came into force;
(4) Carry out a change of position in the context of work if the provisions in number 2

do not meet the requirements for limiting the value of shares in accordance with the Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Stay Permits;

(5) Limitation on Share Value for PMA based on Minister of Law and Human Rights Regulation Number 29 of 2021 concerning Visas and Stay Permits and Investment Coordinating Board Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities:






Directors / Commissioners ITAS ≥ 1 billion rupiah ITAP ≥ 1 billion rupiah




Not holding office
≥ 1.125 billion rupiah

≥ 10 billion rupiah






(6) Limitation on the value of shares for PMA based on Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Stay Permits:






Directors / Commissioners ITAS ≥ 10 billion rupiah ITAP ≥ 15 billion rupiah




Not holding office
≥ 10 billion rupiah ≥ 15 billion rupiah






(7) Accept special requirements for applications for Limited Stay Permits and Permanent Stay Permits for overseas foreign investorsGolden Visa based on the provisions on share value and documents which include:
a. Business Identification Number along with an attachment containing a list of business fields;
b. Deed of Incorporation;
c. Decree of the Minister of Law and Human Rights regarding ratification of the

establishment of a limited liability company legal entity; And d. Company statement for the last 2 (two) months.

b) Elderly foreign tourists with:
(1) Carrying out extensions, transfer of status, reporting, changes, granting and

other services related to Limited Stay Permits or Permanent Stay Permits for elderly foreign tourists with guarantors whose stay permits have been issued or applications have been submitted before this circular comes into force based on the requirements in accordance with the Regulation of the Minister of Law and Human Rights Number 27 of 2014 concerning Technical Procedures for Granting, Extension, Rejection, Cancellation and Expiration of Visit Stay Permits, Limited Stay Permits and Permanent Stay Permits as well as Exemptions from the Obligation to Have a Stay Permit or Regulations of the Minister of Law and Human Rights Human Number 22 of 2023 concerning Visas and Residence Permits while continuing the minimum age requirement of 55 years;








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(2) Carry out the granting of new Limited Stay Permits and change the status of Visit Stay Permits to Limited Stay Permits for elderly foreign tourists with guarantors in accordance with the Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Stay Permits since this circular came into force






(3) Requirements for elderly foreign tourists with Guarantor:

Permenkumham 27/2014




Permenkumham 22/2023















Condition



1. Travel agency trade business license appointed by the ministry that handles government affairs in the tourism sector

2. Proof of the availability of funds to meet his living needs while in Indonesia from a pension fund institution or bank in his country of origin or in the territory of Indonesia

3. Proof of health insurance policy, death insurance

4. Proof of staying in the available accommodation facilities while in Indonesia, whether obtained by renting, rent-purchasing or purchasing

5. Proof of having employed informal workers who are Indonesian citizens as housemaids, drivers, security guards or gardeners



Proof of income or allowances worth US$ 3000/month or equivalent




Age ≥ 55 years old




≥ 60 years old






c) Second House with:
(1) Carrying out extensions, transfer of status, reporting, changes, granting and other

services related to Limited Stay Permits or Permanent Stay Permits in the context of second homes for which a residence permit has been issued or an application has been submitted before this circular letter comes into force based on the requirements in accordance with the Regulation of the Minister of Law and Human Rights Number 29 of 2021 concerning Visas and Stay Permits or Regulation of the Minister of Law and Human Rights Number 22 of 2023 concerning Visas and Stay Permits;

(2) Carry out the granting of new Limited Stay Permits and change the status of Visit Stay Permits to Limited Stay Permits in the context of a second home in accordance with Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Stay Permits since this circular came into force;








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(3) Second House Requirements:
Permenkumham 29/2021 Minister of Law and Human Rights Regulation 22/2023















Condition



1. Depositing funds in a State- Owned Bank in the name of a foreigner ≥ 2 billion rupiah; or






2. Purchase regulation

invitation ATR/BPN




property in accordance legislation

in field



1. Deposit funds in a State- Owned Bank in the name of a foreigner worth ≥ US$ 130,000 or equivalent; or

2. Buy a house
flat/apartment worth ≥ US$ 1,000,000 or equivalent




3) In the event that there are problems with the issuance of a Limited Stay Permit at the Immigration Checkpoint for Foreigners holding a Limited Stay Visa,:
a) settlement throughhelpdesk; or
b) re-process the issuance of a new Limited Stay Permit at the immigration office without

making another PNBP payment.
4) Carrying out identification in accordance with applicable laws and regulations or settlement

through the mediahelpdeskfor problems or errors in the products of residence permits,

visas and entry certificates that have been issued;
5) Do not require a Certificate of Domicile/Residence Certificate (SKTT) for all types of

services granting/extending/transferring status/change/duplicate/reporting in the immigration residence permit application and replacing it with a statement and guarantee/information or data submitted by Foreign Person, Guarantor or Responsible Person:

6) Granting a stay permit period for an application for an immigration stay permit, without the need to adjust it to the validity period of the applicant's Travel Document;

7) Applications for granting, transferring status and extending a residence permit must be made when foreigners are in Indonesian territory;

8) Receive requests for changes to Travel Document data for Foreigners holding Limited Stay Permits or Permanent Stay Permits located outside the territory of Indonesia submitted electronically/on lineby Foreigners, Guarantor or Person in Charge;

9) Receive applications for re-entry permits for Foreigners holding Permanent Stay Permits who are outside the territory of Indonesia submitted electronically/on line by Foreigners, Guarantor or Person in Charge;

10) Carry out the issuance of Limited Stay Permit and Permanent Stay Permit cards in a new format if all infrastructure is available and there are further instructions from the Directorate General of Immigration;

11) Implement the types and rates of immigration stay permit services in accordance with:

a) Government Regulation Number 28 of 2019 concerning Types and Tariffs for Non-Tax State Revenues Applicable to the Ministry of Law and Human Rights;








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b) Regulation of the Minister of Finance Number 9/PMK.02/2022 concerning Types and Rates of Non-Tax State Revenue for Urgent Needs for Immigration Services that Applies to the Ministry of Law and Human Rights; And

c) Regulation of the Minister of Finance Number 82 of 2023 concerning Types and Tariffs for Types of Non-Tax State Revenue Urgent Needs for Services Golden VisaApplicable to the Ministry of Law and Human Rights; as listed attached.

6. Conclusion
a. At the time this Circular Letter comes into effect, the Director General of Immigration's

Circular Letter Number IMI-0076.GR.01.01 of 2023 concerning Immigration Policy Regarding Electronic Arrival Visit Visa Services (Electronic Visa on Arrival/E-Voa), Visitor Visa on Arrival (Visa on Arrival), and Visa Free Visits to Support Sustainable Tourism during the PandemicCorona Virus Disease2019 is revoked and declared invalid; And

b. This circular letter comes into effect on the date of stipulation.

Thus, this circular letter is intended to attract attention and be implemented properly and responsibly. Thank you for your attention and cooperation.

Set in Jakarta
on November 02, 2023

DIRECTOR GENERAL OF IMMIGRATION,

SILMY KARIM

Copy:
1. Minister of Law and Human Rights;
2. Deputy Minister of Law and Human Rights;
3. Plh. Secretary General of the Ministry of Law and Human Rights of the Republic of Indonesia; 4. Inspector General of the Ministry of Law and Human Rights of the Republic of Indonesia; And 5. Primary High Leadership within the Directorate General of Immigration.



How To Create A Property PMA In Bali & Invest In The Bali Property Market
Author By Claudia Watson Posted on Categories Property, PT PMA, Set up Business in Bali

How To Create A Property PMA In Bali – Invest In Bali Property Market

Investing in the Bali property market can be an incredibly lucrative business. There are several ways you can go about it but the main routes are buying or leasing land, building from scratch and then selling or leasing the property, or buying an existing property and renovating then renting or selling it.

Whichever option you choose, you will need a company to operate your business legally in Bali. Today we will explain the process of setting up a Property PT PMA so you can legally buy land, build property and sell or lease it.

Setting Up Property PMA in Bali


You will need to set up a PT PMA in the category 'OWNED OR RENTAL REAL ESTATE':

"This group includes the business of buying, selling, renting and operating real estate, both owned and leased, such as apartment buildings, residential buildings and non-residential buildings (such as storage/warehouse facilities, malls, shopping centres and others) as well as the provision of houses and flats or apartments with or without furniture for permanent use, either monthly or yearly. These include the activities of selling land, developing a building for self-operation (for leasing spaces in the building), dividing real estate into land plots without developing land and operating a residential area for movable houses."

how to invest in bali property market

Cost of Property Investment PMA


The majority of real estate PMAs are considered Medium Risk and the price for setting up the company will be IDR 35,000,000. This is a one-off cost so once you have the PMA set up it is yours until you close it down.

Requirements For Registering A Property PT PMA


It is possible to register a property PMA from outside of Indonesia or from within Indonesia. We will need the following:

  1. Copy passport shareholders (full pages)

  2. Copy ID and tax register number of local shareholder (if any)

  3. Overseas and Indonesia address of each investor

  4. Company name (3 variations in case they are not available)

  5. Company address (in most cases will be the VO)

  6. Line of business (which will be OWNED OR RENTAL REAL ESTATE)

  7. The share of capital for each investor (total capital min. US $ 1.000.000 and issued capital min. US $250.000)

  8. Position of each investor in the company (Director, Commissioner)


You need to have at least 2 shareholders, 1 director and 1 commissioner. There can be up to 3 people for each position, which later can be called as Board of Directors and Board of Commissioners.

The company address for your property business needs to be registered as an office with the relevant local authorities, so in most cases cannot be your house or an alternative place of business you might be affiliated with. The simplest solution is to use a Virtual Office. We have connections with VO's in all districts of Bali and prices range from IDR 7,000,000 - IDR 14,000,000 per year.

How Long Does It Take To Create A Real Estate Company In Bali?


The process of starting a property company in Bali takes 3-4 weeks.

build and rent property in Bali

Applying For Investor Visa Through Your Property Company


Once you have your Property PMA set up you can use it to sponsor several Investor KITAS. The Investor Visa is valid for two years and available onshore for IDR 20,000,000 with a processing time of 3 months, or offshore for IDR 17,500,000 + USD 150 with a processing time of 7-10 business days.

There is also a one-year version available for IDR 12,500,000 (+ USD 150 if processing offshore.)

For more information on what you can and can't do with an Investor KITAS, take a look at this blog post.

Operating a PMA - Important Information


Visa Agency Bali is partnered with an accounting firm that is available to help with both of these requirements at an additional cost.

Company Tax in Bali


For every company in Indonesia, it is mandatory to report the annual tax. The general income tax rate is around 12.5-25% of the net profit if the company’s gross revenue is above IDR 4.8 billion. A flat rate of 25% is applied when the yearly revenue of the company is above IDR 50 billion. If the company’s gross income is below IDR 4.8 billion, the final income tax rate is 0.5% of the monthly gross income.

PMA Investment Reports


Additionally, to paying taxes, you will need to do a quarterly investment report. This report usually contains the profit and loss statement of your company, information on the number of employees, etc. This report is important as the government will see that your company is up and running instead of being a dormant company. Failing to provide such a report will attract the authorities to run an audit of your company.

Running A Property Business In Bali


For more insight into the Bali real estate scene, we have written a post with tips on running a Bali property business here.

If you would like to learn more about setting up a company in Bali, get in touch with us today. You can do so by sending an email to info@visaagencybali.com, by messaging our Facebook page or sending a message on WhatsApp:

+6281338277350 (Claudia)

+628191562006 (Gede Darsana)

+6281338704627 (Agus)

+628123813470 (Gede Arya)

I Have An Investor KITAS – What Work Can I Do With It?
Author By Claudia Watson Posted on Categories FAQ, Immigration Visa, Set up Business in Bali

I Have An Investor KITAS – What Work Can I Do With It?

We get asked this question a lot by Investor KITAS clients in Bali, Indonesia, who have a PT PMA Company.

With the Investor KITAS, you are allowed to manage your company in Indonesia.

Jobs you are permitted to do include:


  • Meetings with suppliers & staff

  • Staff training

  • Online marketing activities

  • Give talks & lectures

  • Manage the business finances

  • Negotiate large business deals

  • Visit the site of your business & potential new business locations


The Investor KITAS does not allow you to do manual work for your company.

Examples of work you cannot do:

  • Serve customers on a small scale. For instance, you cannot work at the cash register, serve food to tables or take orders

  • Teach a class, such as yoga, fitness or surfing

  • Perform at a venue, such as singing or playing an instrument in a band

  • Undertake manual marketing activities, such as doing product photography or setting up your stand at events


If the work you want to do in Bali, Indonesia, falls into these later categories, you will need a working KITAS rather than an Investor KITAS.

For more information on setting up a PT PMA company in Bali (required to sponsor an Investor KITAS), applying for the Investor KITAS, and the associated costs, take a look at our post here.

Do get in touch with your queries and questions.

How to Set Up a Company in Bali – PT PMA and Kitas Explained
Author By Claudia Watson Posted on Categories PT PMA, Set up Business in Bali

How to Set Up a Company in Bali – PT PMA and Kitas Explained

We have helped hundreds of clients to set up a business in Bali. This, along with getting an investor or working visa, allows our clients to live and work in Bali, Indonesia, long term. Today we explain the key benefits of a setting up a PT PMA (Foreign Investment LLC). We will also detail the steps, approximate costs and timescale for the process.


PT PMA Overview:



  • Full foreign ownership is possible, making this the ideal model for foreign investors who want full legal control of their business operating in Indonesia

  • Shareholders, directors and commissioners can all be foreigners - you need to have at least 2 shareholders, 1 director and 1 commissioner. There can be up to 3 people for each position, which later can be called as Board of Directors and Board of Commissioners

  • Your PT PMA can provide direct sponsorship, ie KITAS or Business Visa, to foreign workers and business partners

  • Allows for properties and assets to be owned/leased to the company

  • Highly demanding investment capacity requirement (at least IDR 10B) and you need to inject a paid-up capital/working capital of IDR 2,500,000,000 to the bank account of the company once the company is established. This can be over the course of several years.

  • It will take around 2.5 to 3 months to set up the company until it has ALL the licenses.


The PT PMA Company set up process can be split into 3 parts:


1. Set up PT PMA


These are the steps required for the initial set up of your company. This stage needs to be complete before we can apply for your Kitas with your company as the sponsor. Below we have detailed the documents we need from you.


Numbers 1-4 are for your business address. If you will be delivering services at various locations, you will need a correspondence office address as your administrative office. (We have a partnership with a Virtual Office space you can rent.)



  1. Rent agreement

  2. Land certificate

  3. Receipt of payment building and land tax the last 3 months (PBB)

  4. Building permit (IMB)

  5. Copy passport shareholder (full pages)

  6. Copy ID and tax register number of local shareholder (if any)

  7. Overseas and Indonesia address of each investor

  8. Company name (3 variations in case they are not available)

  9. Company address 

  10. Line of business (we will discuss your options with you in person)

  11. The share of capital for each investor (total capital min. US $ 1.000.000 and issued capital min. US $250.000)

  12. Position of each investor in the company (Director, Commissioner)


This process takes 21 days and at the end of it, you will have the following documents.



  1. Article of Association (Deed of Incorporation from a notary)

  2. Ministry of Justice Approval (SK Kemenkumham)


We will also make the application on the OSS system for the following documents. But, they will not be effective until we complete the necessary steps in step 3.



  1. Business License Number NIB

  2. Business Operational License (Ijin Usaha) 

  3. Ijin Lokasi (local permit)

  4. Ijin Linkungan (environmental effect document)

  5. Domicile Letter (SKTU)

  6. Registration of Tax ID (NPWP)


Step 1 costs IDR 25,000,000 for low-risk business


or IDR 35,000,000 for medium-risk business


This cost can be split between the company investors. 


 


2. Apply for Visas (Investor Kitas or Working Kitas)


At this stage, we can apply for the visas for foreigners to live and work in Indonesia. The most cost-effective and straightforward visa to obtain is an Investor Visa. This is valid for 2 years and costs IDR 17,500,000. The process to obtain an Investor Kitas takes 21 days. With an Investor Kitas, you cannot work in Bali, Indonesia. You would however be able to run your company, making decisions on staff and processes. 


The other option is to obtain a Working Visa. Unless your company is entertainment-based, this visa will be valid for 1 year and allow you to earn money in Indonesia. A Working Kitas takes 28 days to process and each one costs IDR 13,500,000. You also need to pay USD 1,200 for tax. 


Step 2 costs IDR 17,500,000 per person


We may be able to offer a discount on additional visas applied for under the same company.


 


3. Complete Company Set Up


We need to complete this stage before you will be able to renew your Visas - so in 1 year for those with a Working Kitas, or 2 years for those with an Investor Kitas. The key documents involved are: 



  1. SPPL or UKL depending on business type

  2. NIB - Effective

  3. Business Operational License (Ijin Usaha) - Effective

  4. Ijin Lokasi (local permit) - Effective

  5. Ijin Linkungan (environmental effect document) - Effective


The requirements of this stage vary dramatically depending on the type of business you are setting up. A consultancy firm that works mostly online will cost a lot less than a large hotel or restaurant.


Step 3 costs at least IDR 20,000,000.


 


Example Company Set Up


For a business such as a marketing agency, with 5 investors, the initial cost per person would be IDR 22.5 million (USD 1,600.) This would get the business set up and 2-year investor visas for the 5 investors.


Step 1: IDR 25 m / 5 people + Step 2: IDR 17.5m


Over the course of the two years, step 3 will have to be completed. For this example, with 5 investors, this would cost another IDR 4m per investor. Without completing step 3 you will not be able to renew your visas when they expire after 2 years. 


 



Operating a PMA - Important Information


Company Tax in Bali


For every company in Indonesia, it is mandatory to report the annual tax. The general income tax rate is around 12.5-25% of the net profit if the company’s gross revenue is above IDR 4.8 billion. A flat rate of 25% is applied when the yearly revenue of the company is above IDR 50 billion. If the company’s gross income is below IDR 4.8 billion, the final income tax rate is 0.5% of the monthly gross income.


PMA Investment Reports


Additionally, to paying taxes, you will need to do a quarterly investment report. This report usually contains the profit and loss statement of your company, information on the number of employees, etc. This report is important as the government will see that your company is up and running instead of being a dormant company. Failing to provide such a report will attract the authorities to run an audit of your company.


Business classification for PT PMA


Every company in Indonesia needs to be registered under at least one business classification. The business classifications are determined by the activities you are planning to do. Based on the Presidential Decree No. 36 Year 2010, not all the business classifications are open 100% for foreign ownership. There are some other classifications that are closed for foreign ownership and require you to have a local partner to incorporate a company.


For example, the business classifications that are still open 100% for foreign ownership are real estate, villa accommodation, business consulting, restaurant or cafe, and trading for export/import among others. On the other hand, business classifications such as retail and beauty salons are closed for foreign ownership.


 


If you would like to learn more about setting up a company in Bali, get in touch with us today. You can do so by sending an email to info@visaagencybali.com, by messaging our Facebook page or sending a message on WhatsApp:


+6281338277350 (Claudia)


+628191562006 (Gede Darsana)


+6281338704627 (Agus)


+628123813470 (Gede Arya)