How a PT PMA Works for Villa Buyers in Indonesia (2026)
The short answer
A PT PMA is an Indonesian company that foreigners can own, and it is the main legal way for a foreign buyer to hold a villa and rent it out. The company holds the land under a Right to Build (HGB) title of up to 80 years in total, and earns the rental income.
Since October 2025, a new PT PMA needs IDR 2.5 billion (about USD 150,000) in paid-up cash capital, down from IDR 10 billion. The total planned investment must still reach IDR 10 billion per business line (Withers). From 2026, booking platforms also require villas to show a business licence that matches villa rental, which a PT PMA can hold.
PT PMA vs Hak Pakai vs leasehold
For a villa you plan to rent out, a PT PMA is the only one of the three routes that lets you own the title and run the rental business in your own structure.
PT PMA with HGB | Hak Pakai (Right to Use) | Leasehold | |
Who holds it | Your foreign-owned company | You personally, as a KITAS or KITAP holder | You, under a notarised lease |
Term | Up to 30 years, then 20, then 30 (80 in total) on state land | 30 years, extendable to 80 | Typically 25–30 years plus options |
Can it run a rental business? | Yes, with the right business code and licence | No, residential use | Only through a separate licensed operator |
Upfront cost | Highest: company setup and IDR 2.5 billion paid-up capital | Lower | Lowest |
Ongoing admin | Quarterly and yearly reporting, accounting, tax | Light | Light |
Best for | Investors renting the villa | Residents living in the home | Lower budgets with a fixed time horizon |
Terms from XPND (Government Regulation 18/2021) and InCorp Indonesia. HGB granted on converted freehold land works differently: a single term of up to 30 years, renewed by a new deed with the former owner.
What a PT PMA needs in 2026
A PT PMA needs at least two shareholders, one director, one commissioner, the right business code, and IDR 2.5 billion in paid-up capital.
Requirement | What it means |
Shareholders | At least two, individuals or companies; they can all be foreign |
Management | At least one director and one commissioner |
Paid-up capital | IDR 2.5 billion in cash, kept in the company's bank account for 12 months unless spent on the business (Withers) |
Total investment plan | At least IDR 10 billion per business code. Under the October 2025 rules, land and buildings count toward this for accommodation and property businesses; some advisers still read it differently, so confirm with your notary |
Business code (KBLI) | Villa accommodation is KBLI 55193. Development (68111) and property rental (68200) are separate codes (XPND) |
Business ID (NIB) | Issued through Indonesia's OSS online licensing system |
Accommodation licence | Villa rentals also need tourism accommodation licensing |
The rental licence now matters in practice: since February 2026, Airbnb has asked Indonesian hosts for their NIB and business code, and listings without them may be delisted (House of Reservations).
Step by step: from PT PMA to villa keys
Buying a villa through a PT PMA takes seven steps, and the company has to exist before the title can be put in its name.
Reserve your villa. Pay the deposit and get the specification and payment schedule in writing.
Check the land and permits. Your notary or lawyer confirms the land certificate, zoning (PKKPR) and building approval (PBG).
Set up the PT PMA. A notary drafts the deed of establishment, the Ministry of Law approves it, and the company gets its tax number (NPWP) and business ID (NIB) through OSS, with the villa accommodation code.
Open a bank account and pay in capital. Deposit the IDR 2.5 billion paid-up capital in the company's Indonesian bank account.
Sign the sale agreement (PPJB). The company signs the binding sale agreement with the developer and pays according to the construction schedule.
Transfer the title. At completion, the deed of sale (AJB) is signed before a land deed official (PPAT). The company pays BPHTB transfer tax of 5%, and the land office registers the HGB title in the company's name (XPND).
License and launch the rental. Complete the accommodation licensing, appoint a manager and list the villa with the company's NIB.
Running a PT PMA: yearly obligations
A PT PMA must report every quarter, file a yearly tax return and hold an annual shareholders' meeting, so most owners hire an accountant or corporate service firm.
Obligation | How often | Notes |
Investment activity report (LKPM) | Every quarter | Filed online through OSS |
Corporate tax return | Yearly | Standard corporate tax is 22% of net taxable profit |
Annual shareholders' meeting (RUPS) | Yearly, within six months of year-end | Recorded by notary |
Land and building tax (PBB) | Yearly | Charged on the villa |
HGB title renewal | Before each term ends | Apply to the land office in good time |
Staff social security (BPJS) | Monthly, if the company has employees |
Obligations from XPND. Budget for an accountant and a corporate service firm from the start; their fees vary, so get quotes.
Five mistakes to avoid
Most villa ownership problems in Indonesia come from shortcuts taken at the start.
Using an Indonesian nominee. Putting land in a local friend's name so it can be freehold leaves you with no legal ownership. Nominee arrangements are not recognised by Indonesian law, and the land legally belongs to the nominee.
Choosing the wrong business code. A company set up for property development cannot automatically run short-term rentals. Get the villa accommodation code (KBLI 55193) from the start.
Renting without a licence. Since 2026, booking platforms check for a matching NIB and business code, and unlicensed listings may be removed.
Ignoring the reporting. Missed quarterly reports and tax filings bring penalties and can put the company's licences at risk.
Leaving land unused. HGB land must be put to active use; land left idle for too long can be reclaimed by the state.
A good notary and a local accountant cost far less than fixing any of these later.
Manuka Villas at a glance
Manuka Villas is a development of eight A-frame villas for sale in Kuta, Lombok, Indonesia, five minutes from Kuta Beach. Setting up your PT PMA is a standard step in our buying process.
Fact | Detail |
Location | Quiet street in Kuta, South Lombok, near the Mandalika Special Economic Zone |
Distance | 5 minutes to Kuta Beach, 2 minutes to Kuta's main road, about 30 minutes to Lombok International Airport |
Number of villas | 8 |
Each villa | Double-height living space, loft bedroom, spa-style bathroom, private plunge pool |
Rental-ready option | Guest Ready package: hotel linen, TV, Wi-Fi, smart lock, listing photos and management onboarding |
Add-ons (selected villas) | Private sauna and cold plunge set up with Soma House; furnished outdoor terrace |
Buying process | Select villa, pay deposit, set up PT PMA, sign agreements, construction, handover |
Payment schedule | 10% deposit, 50% at signing, 30% at foundation, 10% at structural completion |
Price | [From USD ___] |
Contact | Andrew McFarlane, WhatsApp +1 818 288 0565, salesmanukavilla@gmail.com |
Frequently asked questions
What is a PT PMA?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited company that foreigners can own. Foreign investors use it to hold land under an HGB title and run businesses such as villa rentals in Indonesia.
How much capital does a PT PMA need in 2026?
Under BKPM Regulation 5 of 2025, a PT PMA needs IDR 2.5 billion (about USD 150,000) in paid-up cash capital, held for 12 months unless spent on the business. The total planned investment must still reach IDR 10 billion per business code.
Can a PT PMA own a villa in Indonesia?
Yes. A PT PMA can hold a villa's land under a Right to Build (HGB) title, up to 80 years in total on state land. It cannot hold full freehold (Hak Milik), which is reserved for Indonesian citizens.
Is a PT PMA better than leasehold for a villa?
For a villa you plan to rent out, a PT PMA is usually better because the company holds the title and can legally run the rental. Leasehold costs less upfront but ends after a fixed term and needs a separate licensed operator to rent.
What business code does a villa rental PT PMA need?
Villa short-term accommodation uses KBLI 55193. Property development (68111) and property rental (68200) are separate codes, so choose the right one when you set up the company.
Do I need a PT PMA to rent my villa on Airbnb in Indonesia?
Foreign owners are generally expected to rent through a PT PMA with a suitable business code. Since 2026, Airbnb has asked Indonesian hosts for a business ID (NIB) and code, and listings without them may be removed.
Buying a villa in Lombok?
We can walk you through the PT PMA process and introduce you to notaries and accountants in Lombok who handle it. Message Andrew on WhatsApp at +1 818 288 0565 or email salesmanukavilla@gmail.com for the Manuka Villas brochure, floor plan and buying steps.
More reading:
Buying a Villa in Lombok as a Foreigner: 2026 Guide
Bali vs Lombok: Where to Buy a Villa in 2026
How Much Can a Villa in Kuta, Lombok Earn?
This article is general information, not legal or tax advice. Indonesian rules change often; confirm the current position with a licensed notary or lawyer before you act.
Sources
Withers: Indonesia eases foreign capital rules – BKPM Regulation No. 5 of 2025, October 2025
XPND: Setting up a property PT PMA in Indonesia (2026), updated September 2026
House of Reservations: New regulations for Airbnb and Booking.com in Indonesia, February 2026
InCorp Indonesia: Buying land in Lombok, November 2025
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