PT PMA: what it is and when it pays off if you invest in villas.
Written by Nacho Jorrín, partner at Agmakina Group, building and managing villas in Uluwatu since 2019 · Reviewed 7 October 2026
The PT PMA is sold a lot and explained little. Here is what it is, what it requires today with its source, and the question that really decides whether you need one.
A PT PMA is an Indonesian company with foreign capital. Since 1 October 2025, BKPM Regulation 5/2025 requires investing more than IDR 10 billion per activity and location (excluding land and buildings) and a minimum paid-up capital of IDR 2.5 billion. For a single villa that is usually too much; at scale, it can pay off.
What a PT PMA is
PT PMA is the Indonesian limited company with foreign investment (Penanaman Modal Asing). It can be 100% yours, with no local partner. It is the route by which a foreigner obtains building rights (HGB) and, under the conditions Immigration sets, an investor visa. How it fits among the ways to buy is in can a foreigner buy property in Indonesia?.
What the regulation requires today
The current rule is BKPM Regulation 5/2025, issued on 1 October 2025, which replaces 4/2021. According to A&O Shearman's analysis, this is what matters:
- Minimum investment: more than IDR 10 billion per business activity (five-digit KBLI code) and per project location, excluding land and buildings. Some sectors are exempt from that threshold, such as construction and food and beverage.
- Issued and paid-up capital: lowered from IDR 10 billion to IDR 2.5 billion per company, unless sector rules require more.
- Locked capital: it cannot be withdrawn from the company account for at least 12 months, except to buy assets, build or pay operations.
The question that decides whether you need one
A PT PMA is cheap inside and costly to maintain: accounting, periodic investment reports, its own taxes. It pays off when there is volume behind it or when you need what only the company gives:
- You will hold several properties in Indonesia.
- You want to reinvest inside the country.
- You want the investor visa through that route. See investor visas in Indonesia.
For a single leasehold villa, it is usually not needed. We compare it with numbers in the tax guide and the HGB is explained in leasehold and freehold.
What people ask us most.
What does PT PMA mean?
Perseroan Terbatas Penanaman Modal Asing: an Indonesian limited company with foreign investment. It can be 100% foreign-owned.
How much capital does a PT PMA need?
Under BKPM Regulation 5/2025 (1 October 2025): an investment of more than IDR 10 billion per activity and location excluding land and buildings, and minimum paid-up capital of IDR 2.5 billion, except for sectors with their own rules.
Do I need a PT PMA to buy a villa?
Not necessarily. A leasehold is bought without a company. A PT PMA makes sense with volume, reinvestment in Indonesia or if you want the investor visa.
Can I withdraw the capital from the company?
Not for at least 12 months, except to buy assets, build or pay operations.
How much does it cost to maintain?
It depends on the adviser and the activity. We give no figures we cannot back: ask for a written quote for setup and annual upkeep.
The other guides.
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