PT PMA — Foreign-Owned Company (Freehold equivalent)
A PT PMA is a foreign-investment Indonesian limited company. It can hold the closest equivalent to freehold available to foreigners — Hak Guna Bangunan (HGB, Right to Build) — and is the structure of choice for serious investors and commercial operators.
How it works
You incorporate a PT PMA with a minimum paid-up capital (typically IDR 10 billion declared, with a smaller actual injection). The company purchases the land under HGB title, valid for 30 years, extendable to 50, then renewable for another 30 — up to 80 years of secure usage.
Who it's for
Investors building rental villa portfolios, developers, hospitality operators, and anyone planning a commercial activity (villa rentals, restaurant, retreat). Required if you want to legally invoice rental income in Indonesia.
Costs & taxes
Setup: USD 2,500–4,000 plus capital injection. Annual: corporate tax (22%), accounting, and reporting. BPHTB acquisition tax of 5% on purchase. Notary fees 1%.
Pros & cons
Pros: closest thing to freehold, full commercial rights, resellable as HGB, can own multiple properties. Cons: ongoing accounting and tax compliance, higher setup cost, requires Indonesian directors/commissioners depending on structure.