Bottom line: The 2024 regulations bring no major changes for doing business (PT PMA foreign-owned companies)—still requiring at least two shareholders and a minimum investment of USD$700,000. However, they get stricter for those applying for an Investor KITAS (investor residence permit)—you must hold company shares worth IDR 1 billion (approximately USD$700,000) and provide proof that the funds have been transferred into the company account, or your KITAS will be revoked.
In late October 2023, Bali announced new regulations for foreigners doing business and obtaining investor residence permits on the island. These rules introduce some important changes, especially for foreigners planning to invest, do business, or live on this beautiful island.
The good news is that for foreigners looking to invest and do business in Bali through a PT PMA (foreign-owned limited liability company), the regulations haven’t changed significantly. A PT PMA still requires at least two shareholders—either all foreign or mixed with locals—and can only operate medium and large-scale businesses, such as restaurants with over 50 seats or resorts larger than 4,000 square meters. Additionally, the minimum investment capital requirement remains at USD$700,000, with the full amount needing to be deposited within one year.
However, the bad news is that for foreigners seeking an Investor KITAS (initially valid for two years and renewable) to live in Bali, the regulations introduce some restrictions. These foreigners must hold company shares worth IDR 1 billion (approximately USD$700,000) and provide proof that the funds have been transferred into the company account to meet this amount. Otherwise, their KITAS will be revoked.
These new regulations are expected to take effect from December 31, 2023, so if you plan to start a business or live in Bali, it’s essential to understand the details and comply with the requirements.
Bali has always attracted people from around the world with its stunning landscapes and unique culture. The implementation of these regulations will impact investors staying on this enchanting island, making it crucial to ensure compliance for a worry-free and enjoyable investment experience in Bali.
