Bali has become the world’s favorite home base for digital nomads. The island offers everything remote workers look for warm weather, stable Wi-Fi, low living costs, and a thriving global community.
But after a few months of enjoying the island, many digital nomads start asking the same question:
“Can I legally open a company in Indonesia?”
The short answer:
✔️ Foreigners can open a company in Indonesia, but not in the form of a regular PT or CV.
There are strict rules, specific structures, and compliance steps that foreigners must follow.
This guide explains how foreigners can start a business in Indonesia, the difference between PT, CV, and PT PMA, and what digital nomads in Bali need to prepare before setting up their own company.
PT vs CV vs PT PMA : What Foreigners Need to Know
In Indonesia, not all business structures are available to foreigners. Understanding the differences is essential:
1. CV (Commanditaire Vennootschap)
CV is a local partnership.
Foreigners cannot open or own a CV, even partially.
CV ownership must be 100% Indonesian citizens.
2. PT (Perseroan Terbatas)
A regular PT (local company) is also not allowed for foreign ownership.
Foreigners cannot be:
– Shareholders
– Directors
– Commissioners
Local PT is strictly for Indonesian nationals.
3. PT PMA (Foreign-Owned Company)
This is the only structure foreigners can legally own.
A PT PMA (Penanaman Modal Asing) allows foreign individuals or foreign companies to be shareholders.
For digital nomads, entrepreneurs, or freelancers who want to legally run a business in Indonesia, PT PMA is the correct and only compliant option.
Why Digital Nomads Can’t Simply “Use” a Local Friend’s Company
A common misconception among newcomers in Bali is that they can operate using a local’s PT or CV.
This is extremely risky.
Operating under a nominee arrangement:
⚠️ is illegal
⚠️ creates serious immigration risk
⚠️ can cause asset loss (you don’t legally own the company)
⚠️ may trigger tax violations
Indonesia has tightened enforcement. If you run an unregistered business, accept payments locally, or promote services without the correct permit, you can face fines or deportation.
What a Digital Nomad Can Legally Do in Indonesia
Before starting a company, nomads usually operate under:
1. Tourist Visa or Visa on Arrival (VoA)
This does not allow working locally or conducting business.
2. Social/Visit Visa
Still does not allow commercial activity.
3. Remote Worker / Digital Nomad Visa (in progress)
Allows working for foreign clients but not running a business inside Indonesia.
If you want to:
– Sell services in Indonesia
– Hire staff
– Collect payments locally
– Sign clients
– Lease office space
→ You need PT PMA + the correct work permit (KITAS).
What Is Required to Start a PT PMA? (2025 Overview)
Setting up a PT PMA is straightforward but regulated. Here’s what foreign founders must prepare:
- Minimum paid-up capital: IDR 10 billion (there is new policy that you can put IDR 2.5 Bio, will post it in future)
- Two shareholders (foreign individuals or companies)
- One director and one commissioner (foreigners allowed)
- Registered business address
- Business licensing (OSS RBA)
- Tax registration (NPWP & NIB)
- Appropriate business classification (KBLI)
Some industries allow 100% foreign ownership others require partial Indonesian ownership under the Negative Investment List.
Should Digital Nomads Actually Open a PT PMA?
A PT PMA is ideal for digital nomads who have transitioned from “solo freelancer” to building a real business.
It makes sense if you:
– Want to sign Indonesian clients
– Need a legal stay permit (Investor KITAS)
– Plan long-term operations in Indonesia
– Want to invoice globally through a local entity
– Need to hire Indonesian or foreign staff
– Want tax clarity and long-term security
But it may be unnecessary if you:
– Only work for foreign clients
– Stay short-term
– Don’t need a legal entity inside Indonesia
In those cases, maintaining a foreign company (US LLC, SG company, etc.) is often simpler.
Tax Considerations for Foreign-Owned Companies
A PT PMA is taxed like any Indonesian company:
- 22% corporate tax
- Possible VAT (11%) depending on revenue
- Withholding tax for certain payments
- Reporting obligations every month & year
For nomads used to very light tax administration, Indonesia may feel more structured but it brings long-term stability and legal certainty.
Conclusion: Yes, Digital Nomads Can Start a Business But Only Through a PT PMA
Yes, Digital Nomads Can Start a Business But Only Through a PT PMA, but Foreigners cannot open a PT or CV in Indonesia.
They can legally own and operate a PT PMA, which is the government-approved structure for foreign entrepreneurs.
If you’re a digital nomad building a serious business in Bali
Building a consulting, creative agency, coaching, SaaS, trading, hospitality, PT PMA is the safest and most compliant way to operate.
The key is understanding the structure, compliance, and long-term commitments before starting.
