Thread: Questions about PMA

i cant speak for other agents, but i have used balimode, jl srwijaya, bali.

setting up a PMA is a long and expensive process, however the highest form of company possible in indonesia. it will also put you well and truly under the radar with immigration and tax offices.

virtually none of the processes can run concurrently as they require the previous processes documentation. delays are common, this is government offices in indonesia. i experienced many delays, not my agents fault, government offices fault. eg a document that requires to be sent from jakarta to bali, should be next day or 2 days max, 3+ weeks.

a PMA will not protect you against corruption fees, protection fees or harassment of competitors.

your agent may have to make donations to certain government bodies on route to your application for PMA.

in terms of protection, get a very good notaris to call on for advice if needed.

please seek advice from as many people as possible, then make up your own mind.

Originally Posted by sakumabali

Peter mentioned some interesting points, a PMA gonna cost you around 50 million rupiah NOT included the "donations" to the kepala desa, the (sub)district and the kabupaten, they all want "donations" as they know they won´t get anything from jakarta. In a way understandable...

A PMA might not protect you from paying corruption fees but it puts you on top off all the other visa applicants, no worries any more with immigration or visa employees. Police, POLPP & village security will treat you with more respect as they worry about your "network"!

I think it´s a good idea if you want to develop a business in Indonesia, you can legally operate, you contribute to society in paying taxes, just the fact that you have a NPWP is a good thing for the locals and they gonna pay tribute....the disadvantage is of course that you´ve to pay taxes in good and bad times cause nobody gonna believe you if you say that business is bad (as a tourist, KITAS or working permit holder - you´ll stay a cash cow but with a PMA you could be a cash bull )

Hi Sakumabali,

Thanks for your info, it's very helpful. So you reckon that getting a PMA isn't a simple task, getting one shows you have "connections" and that would cause the officials to think twice before trying to squeeze some cash outta my business? I appreciate all the advices i've been getting in this board.