PT PMA
Also called foreign investment company, Penanaman Modal Asing
A PT PMA is an Indonesian limited company with foreign shareholding, and it is the main legal vehicle a foreigner uses to hold buildable land rights and run a property business in Indonesia.
Foreigners cannot hold freehold land in Indonesia, and cannot apply for a building permit in their own name. A PT PMA is the structure that solves both. It is a normal Indonesian limited company that happens to have foreign shareholders, and it can hold Hak Guna Bangunan, the right to build, which is what a construction project actually needs.
In practice a villa project owned by a foreigner usually runs like this: the PT PMA is set up, it acquires or leases the land under a title it is allowed to hold, and it applies for the building approval as a corporate entity. The company owns the building rights, and the foreigner owns the company.
A PT PMA is a real company with real obligations. It has minimum capital requirements, monthly and annual tax reporting, and a business classification that has to actually match what it does. It is not a paper wrapper, and treating it as one is where people get into trouble.
Where people get caught
People set up a PT PMA for a single villa without costing the ongoing compliance, then let the reporting lapse. A dormant or non-compliant company is a problem when you come to sell, because the buyer's lawyer will look at it. Budget for the accountant, not just the setup.
Where this comes up
This is general information, not legal advice. Indonesian property law changes, and how it applies depends on your situation, your visa status and the specific plot. Always take advice from a qualified notaris before you commit money. Last checked 2026-07-30.