PT PMA vs Local PT: the Honest Comparison
Short answer: a foreigner legally owns a business in Indonesia only through a PT PMA. A Local PT is a company for Indonesian citizens: simpler and cheaper, but foreign ownership is not allowed — and “nominee” schemes with shares parked on locals risk losing the business overnight.
Updated: 22 August 2026 · Verified by the Malina Visa team
The key differences
- ✓PT PMA: direct foreign ownership, the basis for an Investor KITAS, hiring foreigners
- ✓Local PT: owners must be Indonesian citizens; simpler requirements and launch
- ✓Capital and licensing requirements differ — driven by the activity (KBLI)
- ✓Both forms require accounting and filings — nil returns included
On nominee schemes — bluntly
The “register a Local PT on an Indonesian friend” scheme is popular for its price — and regularly ends the same way: legally the business belongs to whoever holds the shares. A dispute with a nominee is you arguing over “your” asset in someone else’s jurisdiction. If the business is yours — own it yourself via a PMA: pricier at the start, incomparably cheaper in a crisis.
When a Local PT makes sense
- ✓You have a genuine Indonesian partner and the structure reflects reality
- ✓The activity is closed to foreign capital — then a local partnership is the only path
- ✓Otherwise, for a foreigner — the PT PMA: the opening stages are covered in a separate article; our Local PT service for partner structures is here
FAQ
Can a foreigner be a director of a Local PT?
A foreigner’s roles in a Local PT are limited and need separate permits; ownership is citizens-only. Let’s discuss your configuration.
Can a Local PT be converted into a PMA later?
Restructuring is possible but is a project of its own — often opening a PMA outright is simpler. We’ll assess both routes.
What should I pick for a villa/café/studio in Bali?
It depends on the KBLI codes and your role: send the inputs and we’ll say plainly which form fits.