Our Team Is Your Team

Can a foreign investor and an Indonesian partner operate together lawfully?

Yes, through a genuine joint venture. A foreign investor takes shares in a PT PMA, and an Indonesian partner may take shares in the same company or operate a separate PT PMDN within a documented commercial arrangement.

The ownership recorded on the deed and in the AHU system must reflect the real economic arrangement between the parties.

An arrangement that records an Indonesian owner while a foreign party retains hidden control is a nominee arrangement, which is unlawful and now carries criminal exposure in Bali.

Our team structures joint ventures so that each party’s rights, contributions, protections, and exit terms are recorded accurately and lawfully.

Can a foreigner serve as director or commissioner of a PT PMA?

Yes. A foreign national may be appointed as a director or as a commissioner of a PT PMA, and the appointment is recorded on the deed of establishment at AHU.

The office itself does not require a work permit. A director who works within the company’s operations inside Indonesia is a working director, and that person requires a foreign worker plan (RPTKA) and an Employment KITAS tied to it.

A director who exercises board oversight from outside Indonesia, without performing work in the country, needs neither, though a taxpayer identification number is required where Indonesian tax obligations arise.

A commissioner supervises the board and may reside outside the country.

We assess whether a proposed appointee will perform work in Indonesia, and we arrange the RPTKA, the Employment KITAS, and the tax registration only where that function makes them necessary.

What are the risks of nominee arrangements for property or company ownership?

Nominee arrangements are unlawful. Under Article 26(2) of the Basic Agrarian Law (Law No. 5 of 1960), an arrangement that transfers control of land to a foreign party through an Indonesian name is void from the outset.

As of 24 February 2026, Bali Provincial Regulation No. 4 of 2026 adds criminal sanctions, and the exposure extends to the foreign party, the Indonesian nominee, any intermediary or facilitator, and the advisers who prepare or authenticate the documents.

A foreign party in a nominee arrangement has no enforceable claim to the land in an Indonesian court.

We advise on the lawful alternatives, namely Hak Pakai for individuals and Hak Guna Bangunan through a PT PMA, and we assist owners who need to restructure an existing nominee position.

How can foreign investors and companies acquire land or property in Indonesia?

Freehold land is reserved for Indonesian citizens, and a foreign individual cannot own it.

A foreign individual may register property in their own name under Hak Pakai (Right to Use), valid for up to 80 years under Government Regulation No. 18 of 2021.

A PT PMA may acquire land under Hak Guna Bangunan (HGB, Right to Build) for its premises and projects.

Before any acquisition, the zoning and permitted use must be confirmed through the Informasi Tata Ruang (ITR, Spatial Planning Information), and the physical boundaries, the access rights, the utility connections, and any encumbrances verified.

We conduct the full land due diligence ourselves, because a notary’s review does not extend to zoning verification, boundary survey, access confirmation, or utility checks.

What tax and ongoing compliance obligations apply to companies in Indonesia?

Companies pay corporate income tax at 22 percent, register for and charge value added tax where turnover requires it, withhold tax on certain payments, and file monthly and annual returns.

Companies with annual revenue above IDR 50 billion undergo an annual audit. Registered investment activity is reported to BKPM through the LKPM (Investment Activity Report) each quarter.

Corporate changes to directors, commissioners, shareholders, address, or business activity must be recorded at AHU and in OSS to keep the records aligned.

We manage the tax registration, the periodic filings, the corporate secretarial updates, and the investment reporting, so obligations are met on schedule and records stay consistent across the systems.

We already operate a business or project in Indonesia. Can TraceWorthy help regularise it?

Yes. Many operators run projects that were established with defects in land title, zoning, licensing, or ownership structure.

We begin with a fixed-scope review that examines the deed and shareholding, the land title and its zoning under the Informasi Tata Ruang, the licences recorded in OSS, and the tax position.

The review produces a remediation plan that sets out what must be corrected and in what order.

Once your project is regularised, our team advises on the next stage of investment, which is the point at which existing clients most often ask us for cross-border and expansion support.