Category: Due Diligence & Risk
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PT PMA Restrictions in Bali: Why the Property Workarounds No Longer Work
Bali now blocks new foreign-owned company registrations in low and medium-low risk classifications, and the familiar workarounds no longer escape it. Switching to an accommodation code meets building-footprint and reserved-field limits. The fee-based management code reserves the broker role to Indonesian citizens. Nominee structures meet beneficial ownership disclosure. Each closure carries its own verification mechanism. READ MORE →
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Invoicing Offshore Clients from a Company in Indonesia
The framework for invoicing offshore clients from a PT PMA in Indonesia: the PMK 32/PMK.010/2019 zero-rated VAT regime, corporate income tax at 22 per cent on worldwide income, Article 24 foreign tax credit, LLD reporting, and transfer pricing exposure under PMK 172/2023. READ MORE →
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Taking Money Out of a Company: Dividends, Fees, Salary and Shareholder Loans
Four routes for extracting cash from a foreign-owned PT PMA: director salary, fees, dividends, and shareholder loan repayments. Worked tax comparisons with treaty rate examples on each. (185) READ MORE →
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Sending Money Offshore: Outbound Payments from a PT PMA
A foreign-owned PT PMA sends money offshore regularly: payments to suppliers, consultants, parent companies, and shareholders. Each transfer carries an Indonesian withholding obligation under PPh Article 26, a treaty rate application process, a Bank Indonesia reporting requirement, and a bank documentation set. READ MORE →
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The IDR 10 Billion Question: Paid-Up Capital for a PT PMA in Indonesia
The IDR 10,000,000,000 paid-up capital requirement is the entry point for a PT PMA. The figure is recorded in the company’s bank account, retained for at least 12 months under Article 27 of BKPM Regulation No. 5 of 2025, and deployed into the licensed business activity over the multi-year investment plan that BKPM measures through… READ MORE →
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A Financial Reporting System that Survives Deadline Season
For a PT PMA, the Indonesian reporting year fills a calendar with deadlines that run through every month, with the quarterly LKPM and the annual cycle overlaid. The financial reporting system that prepares each filing from the company’s own records, in advance of every date, is what survives deadline season. TraceWorthy’s financial services team performs… READ MORE →
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Bali Property in 2026: Perda No. 4 of 2026, the Nominee Prohibition, and the Compliant Investment Structure
Nominee land arrangements in Bali have been void under Indonesian law since 1960. Bali Provincial Regulation No. 4 of 2026 did not create a new prohibition — it added criminal prosecution for both parties to the arrangement and for any intermediary or facilitator. The compliant structure, the risks, and the due diligence requirements are addressed… READ MORE →
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PT PMA Establishment 2026: Pre-Formation Framework for Bali-Based Enterprises
Forming a PT PMA in Bali in 2026 is still viable. The OSS restriction on all low and medium-low risk KBLI classifications for Bali-address companies has raised the pre-formation due diligence requirement significantly. KBLI selection, Positive Investment List verification, physical address confirmation, and capital planning must all be resolved before a notary is engaged. READ MORE →
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PT PMA Compliance 2026: What Existing Bali-Based KBLI Holders Need to Know and Do Before 18 June
Your existing PT PMA licence in Bali is valid and will not be retrospectively cancelled. The compliance obligations that do apply — four OSS trigger points, the KBLI 2025 migration deadline, a substance-based enforcement programme, and LKPM reporting requirements — require assessment before 18 June 2026. This article sets out the action sequence. READ MORE →
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PT PMA Regulations 2026: What Every Bali-Based Foreign Investor Needs to Know
If you have a PT PMA in Bali, or are planning to establish one, 2026 has introduced restrictions that require review before any OSS action is taken. This article covers the Governor’s KBLI letter, the DPMPTSP’s formal proposal to BKPM, Perda No. 4 of 2026, and the 18 June migration deadline. READ MORE →