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Thread: Questions about requesting IMB PMA and Melati hotel licence

  1. #1
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    Cool Questions about requesting IMB PMA and Melati hotel licence

    Hi everybody,

    Still busy with my plans, and i want to start a new post, my old post is here:
    Pondok Wisata licence for a guesthouse

    I'll explain my situation:

    I want to build a small resort in the Sanur area.

    I rented a piece of land with a landcertificate, contract have to be signed in januari.
    I need to request a IMB.
    I need to request a melati license.
    I need to startup a PMA for supplying a kitas for me.

    When i want to startup a PMA i need an IMB.

    I want to do the following:
    Because my friend has good influence in Sanur, i want that he request the IMB and Melati hotel license for me.
    After that i can setup a PMA with the IMB and melati hotel license.

    Is this possible?

    Also is it a problem that the lease contract is on my name?

    Or should the lease contract be first in the name of my friend and afterwards i rent it all (land,imb,melati) from him?
    Should it be done again by the notary? (thinking about the taxes again then...)

    And yes i know, you should go to a lawyer for this kind of questions, and i did but everybody as usual are advising different options..... so i like to hear your opinions...

    Everybody thanks again.

    Greetings,

    Hugo
    Last edited by heerhugo; 06-12-2010 at 08:54 PM.

  2. #2
    Addicted spicyayam's Avatar
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    My very unqualified opinion is to keep it in your name since you have already leased the land in your name. Your friend will still be of assistance to get your IMB, but I think you keep doing it in your name.

    I am unsure about the business structure you would need for a small hotel. I wonder if you really need a PMA? A PMA is good that you can buy the land in the company's name, but you have already said that you are leasing it.

    I would suggest trying to find out from other foreign hotel owners how they set up their operations. I know of people you could speak to in Lovina but not Sanur.
    Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.

  3. #3
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    Thanks for your reply.

    I'am only setting up the PMA to supply a kitas for me so i can work in my own business.
    If i use another company to sponsor me for a kitas, i'am afraid of the problem that the sponsor adress is different of the adress of my resort, if you know what i mean.

    For a resort i don't have to setup a pma, but i need a 'legal' kitas.
    I can aslo setup a PT, but whith that little difference i'll go for a PMA.
    CV is very difficult right now, because of changing the rules from 2011 for sponsoring foreign workers.

  4. #4
    T.J
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    I have just completed setting up our PT Company which has supplied us with business visas. The only problem with business visas is that they only last for 3 months and then can be extended to 6 months before having to do the "visa run". We can work and earn money within Bali from our company and we just report tax (yeah.... as if). With Kitas you must pay some tax upfront ($1200 USD) every year. To complete our PT Company we needed an IMB for our place of business which happens to be a local freinds house. The problem arised that he did not have an IMB and the developer has vanished. We paid our agent 5.5juta for an IMB to magically appear from the bank. I guess there is no perfect business structure but the PMA was just too expensive for a family of 6 to be involved with............

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    Hi TJ,

    Can you tell me in which point of the progress you need to supply the IMB?
    Mayby i can startup the PMA and IMB at the same time...and supply the IMB at the moment it is needed for the setup of the PMA.

    thanks

  6. #6
    T.J
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    Quote Originally Posted by heerhugo View Post
    Hi TJ,

    Can you tell me in which point of the progress you need to supply the IMB?
    Mayby i can startup the PMA and IMB at the same time...and supply the IMB at the moment it is needed for the setup of the PMA.

    thanks
    The company was set up, named and registered with only the final location left blank. To arrange any visa or kita's from the company we had to have the IMB. The setting up of the companies seems to be a little LOOSE. You can register a name, get operational permits for different areas of the business (eg Sales/advertising/developing etc) and just fill in the rest of the blanks as you go along.
    While it could be done a lot cheaper on your own with local help, invest in a reliable agent, we all want to try and reduce stress hence our love of Bali.

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    Hi Hugo,
    I have been following your posts for the last 2 weeks and it feels like i m watching Jail Break. :)
    i m really happy for you and that you came so far with your plans and seeing them developing starting in 2009 with the idea of the guest house till your last post with the PMA/Land/Resort and IMB.
    you have inspired me in a way ! *op een dag zal het zijn vruchten afwerpen *
    and also a lot of thanks to spicyayam, matsaleh, Ronb and all the others that have contributed to this post with their valuable comments and advices.

    If i can make a conclusion:
    To start a small resort (8 rooms) business in Bali you need to apply for a PMA.
    with the PMA you can :
    -Get a KITAS.
    -Rent or buy a property (Land/Villa)
    My questions:
    1/ Are you allowed as a Direct Foreign Investor to 100% own your PMA for this line of business? If not what is the max percentage that you can own?
    2/ can you please explain step by step how to get the license for the PMA, costs involved and time?

    Thanks in Advance for your valuable answers,
    Mickey
    Last edited by Mickey; 10-12-2010 at 04:28 AM.

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    @ hugo...just hoping your land is comercial zoned?
    don't read between the lines..i think the words are clear enough...:)

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    Default Steps to get the PMA licence

    Hi All,

    Gilbert, thanks for the remark on the zoning. any idea how to check that in advance?

    Great new, i have found the steps that you need to follow to obtain a PMA license, see link:
    http://www.kadin-indonesia.or.id/en/...stment_Law.pdf

    i m still searching for the costs involved, i have found something but i don't know if it's credible. Total costs are (+/- 5,256.816 IDR), see link:
    Doing Business in Indonesia - World Bank Group

    well that's it for now, i will keep you posted.

    P.S: if anybody has experience with dealing with a contractor and can share some valuable info, it will be appreciated.

    Thanks in Advance

    Regards,
    Mickey

  10. #10
    T.J
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    Default PMA Information from my agent

    Heres some info about PMA's from my agent;

    PMA Indonesian Foreign Owned Company - This Indonesian company formation can be registered in the name
    of a non Indonesian citizen and offers the foreign national direct ownership and director title. The PMA company is a
    limited liability company and offers limited liability protection for foreign national director. The PMA company awards
    full ownership, full business rights and full asset ownership directly to and in the name of the foreign national director.

    Main Pros & Cons: PMA Indonesian Foreign Owned Company - $6,500.00 ($6,000.00 if prepaid)
    This fully foreign owned company formation offers limited liability for the director/s. A PMA can sponsor six foreign
    nationals to work and conduct business on behalf of the PMA company and within permitted company authorizations.
    PMA sponsored foreign nationals can enjoy immigration Indonesia work and resident privileges in Bali and Indonesia.
    The PMA company owners, investors, directors and any sponsored foreign nationals can obtain kitas or working visa
    issued directly from the foreign owned company. Depending on certain criteria and activity kitas visas can be avoided.
    Time needed for fully complete PMA Indonesian foreign held company formation is fourteen weeks. However we can
    commence proceedings and complete the PMA company formation before the foreign investor/s even arrive in Bali or
    Indonesia for final signing of contracts. Full and total payable charges for a foreign held and controlled PMA company
    are US$6,500.00. Our PMA foreign owned company formations are large (full scale) and fully registered in both Bali,
    Jakarta and able to operate Indonesia wide. The approved and permitted Bali business activities are limited and defined.

    NOTE: Due to new government Indonesia regulations as of July 2007 some defined PMA (foreign owned) companies
    now must partner with an Indonesian national who must hold a share in the company stocks. We however use a legal
    name-only partner to enable full compliance and still ensure total control & protection for the foreign national client.
    Some defined PMA business activities have not been effected by the new government regulations. We can still produce
    a 100% fully foreign owned PMA company for certain defined business operations. A PMA company seeking rights to
    conduct Import/Export orientated business activities can still be fully 100% foreign owned without additional contract.

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