mrrre

New Member
Nov 8, 2016
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Hello,

we are looking to start up a 100% foreign owned PMA for a new business. This business will be a small scale guesthouse with 10 rooms.
We would like to invest 100.000 US$ for this.

We read it's getting more complicated to achieve this with only this small investment, that you need 750.000 on your bank account and that BKPM is checking this, if it's not at the start, then after some years before handing out a permanent PMA.

an article on indosight says:

In recent years, BKPM has become very serious about revoking the principal licenses of the companies that don’t realise the investment plan. Therefore make sure you only apply for the principal license (essentially that you even register a foreign owned company) if you are confident that you are able to invest the required capital.
If Rp. 10 billion is more than you are able or ready to invest, a representative office or nominee company are a better choice.



We consulted a lawyer for this matter, she says it's possible to do this with less capital. Just deposit 50.000 and retrieve it from the bank, do this 5 times untill you virtualy have 250.000 which is enough to start with the principal licence. We feel this is a bit dodgy. Is it still possible to obtain the PMA with this trick or do you think it really is that hard to get the PMA ?
 

spicyayam

Well-Known Member
Jan 12, 2009
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Just to clarify, do you mean $100,000 investment for the whole business or just to start the PMA?
 

mrrre

New Member
Nov 8, 2016
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Just to clarify, do you mean $100,000 investment for the whole business or just to start the PMA?

whole business, buildings included. not so long ago you just needed a letter from the notary that stated once the company was registered the money would be transfered, but there was no follow up on this. We would like to be sure of the situation now.
 
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spicyayam

Well-Known Member
Jan 12, 2009
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There are some good articles here: Minimum Capital Requirement for PT PMA

My personal feeling is that $100K won't get you very far. Land prices are pretty much out of control. Maybe just a basic building cost would be $100K.

The cheapest guesthouses I have seen for sale were on Lombok and Gilli islands. They might be a place to look.
 

mrrre

New Member
Nov 8, 2016
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Hi, thanks for your point of view, but my questions is not if 100.000 takes me far. We already found some land to lease for 15 years + extention and payable by year (35.000.000 per year). We are sure we can built the place we want for 100.000. Our question is if BKPM will check the investments or if you just need to have the requested amount on paper like it was possible a few years ago.

We found the articles on indosight, while informative, they are a commercial company. We need to know the experiences that people have these days.
 
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sakumabali

Well-Known Member
Apr 2, 2010
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Ok my point on this is similar as spicy. I've been building here for more than 10 years. It's been more and more difficult to get a VILLA on a PMA. LEGALLY of course. A Villa costs way more than 100k. So I agree 100 k won't get you very far but good luck ;) you need to check the zoning too!! some areas you can't get pondok wisata or even an IMB! it's a jungle out here. Don't believe a word anybody tells you. Get legal support. Verify every little detail. Like ACCESS for example. You can have everything in order but somebody block you out from entering "your" land

Hi, thanks for your point of view, but my questions is not if 100.000 takes me far. We already found some land to lease for 15 years + extention and payable by year (35.000.000 per year). We are sure we can built the place we want for 100.000. Our question is if BKPM will check the investments or if you just need to have the requested amount on paper like it was possible a few years ago.

We found the articles on indosight, while informative, they are a commercial company. We need to know the experiences that people have these days.
 
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mrrre

New Member
Nov 8, 2016
4
0
1
Ok my point on this is similar as spicy. I've been building here for more than 10 years. It's been more and more difficult to get a VILLA on a PMA. LEGALLY of course. A Villa costs way more than 100k. So I agree 100 k won't get you very far but good luck ;) you need to check the zoning too!! some areas you can't get pondok wisata or even an IMB! it's a jungle out here. Don't believe a word anybody tells you. Get legal support. Verify every little detail. Like ACCESS for example. You can have everything in order but somebody block you out from entering "your" land

This has all been checked before by our lawyer. Due diligence is done. IMB and hotel licences are possible.
We don't want to build a villa, just 10 bamboo bungalows 4*4, a swimming pool and small place to have the breakfast (not a restaurant)
 

Fred2

Well-Known Member
Oct 13, 2010
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Surabaya/Australia
Before you do anything have the owner apply for the IMB & licenses, It will be cheaper & easier for them than you.
The Deposit/withdraw is a old trick and has been used in the past with no problems.
Depending on your skills $ can go along way. Local 3 bedroom house on 1are Rp20-30,000,000. good luck.
 

Markit

Well-Known Member
Sep 3, 2007
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Karangasem, Bali
If you only build bamboo huts you won't need an IMB as they aren't permanent buildings. The pool probably is but not sure if the regs say house/rumah or suchlike?

I've heard of people transferring 100k in and getting a bank statement and then emptying the account the next business day.
 

BestofBali

Member
Nov 9, 2016
141
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Kerobokan
This has all been checked before by our lawyer. Due diligence is done. IMB and hotel licences are possible.
We don't want to build a villa, just 10 bamboo bungalows 4*4, a swimming pool and small place to have the breakfast (not a restaurant)

Sounds like it will be a unique experience, make sure you share it with us once it’s done. Good luck :)