Bali’s evolution into a global tech hub is no longer a forecast; it is the 2026 reality. For software architects and digital entrepreneurs, the allure of the island is matched by a significantly liberalized investment climate.
Under the 2025-2026 Positive Investment List, IT development sectors—specifically in application development and software consultancy—are now 100% open to foreign ownership.
This means you can maintain full control over your intellectual property and equity without the need for local nominees.
However, the “Risk-Smart” part of this guide comes from a shift in enforcement. While the doors are open, the Indonesian government has moved from a “set-and-forget” model to a rigorous, data-driven audit phase.
Mid-2026 updates to the OSS-RBA (Online Single Submission Risk-Based Approach) system mean that IT companies are now under tighter scrutiny regarding their actual capital expenditure and investment structures.
If you are operating a “paper company” to secure a visa without real business activity, the risk of a capital lockup or NIB revocation has never been higher.
The solution is a compliant-first architecture. By aligning your PT PMA IT Company Bali with the correct KBLI codes and maintaining a transparent capital roadmap, you can leverage Bali’s lifestyle while operating a legally armored global business.
This guide outlines the essential requirements and step-by-step procedures to ensure your tech venture is built on a foundation as solid as your code.
For official regulatory data, the Ministry of Investment (BKPM) remains your primary source for 2026 investment standards.
Table of Contents
- 100% Foreign Ownership: The 2026 IT Advantage in Bali
- Capital Requirements: Paid-up vs. Total Investment
- KBLI 62011 & 62020: Aligning Your Tech Activities
- Step-by-Step: From Deed to OSS Activation in Bali
- Operational Realities: Virtual vs. Physical Offices
- Expat Hiring: RPTKA and Manpower Compliance
- Real Story: Navigating the Audit in Pererenan
- Risks and Penalties: Avoiding the Blacklist
- FAQs about PT PMA IT Company Bali
100% Foreign Ownership: The 2026 IT Advantage in Bali
In the 2026 landscape, IT development (including mobile apps, web portals, and custom software) remains one of the most attractive sectors for foreign direct investment.
Unlike traditional industries that may require local partners, IT services allow for 100% foreign equity.
This simplifies your shareholder agreements and ensures that your profit-sharing remains exactly as you intended. To qualify, your company must be registered as a PT PMA IT Company Bali.
The primary eligibility requirement is a minimum of two shareholders. These can be individuals or corporate entities of any nationality.
While you have the freedom to own the company entirely, the governance structure must include at least one Director and one Commissioner.
In 2026, foreign nationals can hold both positions, though at least one member of the board should ideally be a resident of Indonesia for smoother administrative handling at local banks and tax offices.
Capital Requirements: Paid-up vs. Total Investment
One of the most significant updates in the 2025-2026 period is the decoupling of “paid-up capital” from the “total investment plan.”
To establish a PT PMA IT Company Bali, you must declare a total investment plan of more than IDR 10 billion (approximately USD 650,000) per five-digit KBLI code.
However, you are only required to inject IDR 2.5 billion (approximately USD 160,000) as paid-up capital at the time of incorporation.
This shift allows for more efficient cash flow management. You can realize the remaining IDR 7.5 billion progressively through equipment purchases, staff salaries, and expansion over a several-year period.
It is important to note that while the barrier to entry has lowered, the IDR 10 billion threshold is still the mandatory benchmark for obtaining an Investor KITAS.
If your goal is to reside in Bali while managing your company, your share ownership must reflect this higher commitment on paper.
KBLI 62011 & 62020: Aligning Your Tech Activities
Precision in your business classification is the difference between a smooth license and a blocked operation. The Indonesian Standard Industrial Classification (KBLI) uses five-digit codes to define your activities.
For most IT development firms, the relevant codes are 62011 (Application Development) and 62020 (IT Consultancy). These are generally classified as “low-risk” sectors in the OSS system, meaning your NIB (Business Identification Number) serves as your primary business license.
However, risks arise if your tech company overlaps with other regulated sectors. For example, if your software includes financial technology or cybersecurity services, the risk level may shift to “Medium-High,” triggering mandatory audits and additional technical certifications.
In 2026, the OSS system is less forgiving of misclassification; an incorrect KBLI code can lead to your expats being denied work permits because their job descriptions do not align with the company’s registered activities.
Step-by-Step: From Deed to OSS Activation in Bali
The incorporation process in 2026 has been significantly digitized, yet still requires a physical notary for foundational documents.
- Name Check & Deed: Choose a three-word Indonesian name. A notary will draft the Deed of Establishment and submit it to the Ministry of Law and Human Rights for approval.
- Tax Registration: Once the entity is approved, you will receive your Company Tax ID (NPWP) and EFIN for digital tax reporting.
- OSS-RBA Registration: Your data is synced to the Online Single Submission system. You will receive your NIB, which acts as your business “passport” for your PT PMA IT Company Bali.
- Bank Account & Capital Injection: Open a corporate bank account and deposit the minimum paid-up capital.
- Investment Reporting (LKPM): Within your first quarter, you must submit your first LKPM report via the OSS system to declare your investment progress.
This entire process typically takes 1 to 3 months. While the official timeline is faster, delays often occur during the bank account opening phase or when aligning KBLI codes with the notary.
Operational Realities: Virtual vs. Physical Offices
In the post-pandemic era, many IT companies prefer a remote-first model. In 2026, using a “Virtual Office” for your legal address in Bali is still permitted for IT development sectors.
This is an excellent way to keep overhead low during the startup phase for a PT PMA IT Company Bali.
However, be cautious: as your company scales and begins hiring local staff or applying for expat work permits, the authorities may conduct a “field audit” to verify you have a legitimate base of operations.
If you choose a physical office, ensure the land is zoned for commercial use. Bali’s zoning laws are strictly enforced in 2026; building an IT office in a “Green Zone” will result in a permit denial.
For most tech entrepreneurs, the move toward co-working hubs or shared boutique offices in Berawa or Pererenan provides the best balance of a legal address and a creative environment.
Expat Hiring: RPTKA and Manpower Compliance
A PT PMA IT Company Bali provides the legal right to sponsor foreign employees, but it comes with strict “expat-to-local” ratio requirements.
Generally, for every one expat specialist you hire, you should aim to employ at least one to five local Indonesian staff. This is part of the government’s push for technology transfer.
Each expat hire requires an approved RPTKA (Foreign Worker Utilization Plan) and a paid IMTA (Manpower Levy) of USD 1,200 per year.
In 2026, the “IT Specialist” category is highly scrutinized. You must prove that the foreign worker possesses skills that are not readily available in the local labor market.
Ensuring your company’s “Skill Transfer” program is documented in your annual reports is essential to maintaining your right to sponsor foreign talent.
Failure to comply with manpower audits can lead to the blacklisting of your company and the immediate deportation of your foreign staff.
Real Story: Navigating the Audit in Pererenan
Christ, a 34-year-old developer from LA, thought he was playing it safe. By 2024, his AI-driven logistics platform was running smoothly from a virtual office in Badung.
He had 100% ownership, the code, and the Canggu lifestyle. But during a routine mid-2026 audit, the government dropped a bombshell: because his reports showed zero physical investment in Bali, his NIB—and his right to do business as a PT PMA IT Company Bali—was on the verge of being revoked.
Julian had assumed that since he was a digital service, his “capital” was his code. However, the Indonesian government expects to see the IDR 10 billion investment plan being realized in the local economy through “realized investment” in hardware or office infrastructure.
He faced a potential NIB suspension that would end his tech dreams in the tropics.That’s when he used a local legal consultancy to restructure his reporting, documenting his high salaries for local developers and his lease of a physical studio in Pererenan as realized capital.
Christ’s lesson was clear: an IT company in Bali isn’t just a digital entity; it’s a local economic participant.
The government wants you here, but they want to see that you’re actually building something that stays in Bali.
Risks and Penalties: Avoiding the Blacklist
Operating an IT company in Bali without a “Risk-Smart” mindset can lead to severe consequences. The most common pitfall is undercapitalization.
If your paid-up capital of IDR 2.5 billion for a PT PMA IT Company Bali is not maintained or is withdrawn for non-business purposes within the first 12 months, your status can be voided, leading to fines exceeding IDR 100 million.
Additionally, “dormancy” is a major red flag. If your company fails to file quarterly LKPM reports or monthly tax returns for two consecutive periods, the OSS system may automatically revoke your NIB.
This not only shuts down your business but also invalidates any KITAS permits sponsored by the company.
In 2026, the integration between the Tax Office and Immigration means that a corporate compliance failure can lead to an immediate “red light” at the airport for the company’s directors.
FAQs about PT PMA IT Company Bali
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Can I own an IT company 100% as a foreigner in 2026?
Yes, KBLI codes for software development and IT consultancy allow for 100% foreign ownership under the current PT PMA IT Company Bali regulations.
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What is the total investment requirement for a tech venture?
You must commit to an investment plan of more than IDR 10 billion. However, only IDR 2.5 billion needs to be paid up (deposited) during the initial setup of your PT PMA IT Company Bali.
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Do I need a physical office to get a NIB?
For IT services, a virtual office is often sufficient for the NIB. However, if you plan to hire expats or have more than five local staff, a physical office is highly recommended to pass government audits.
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Can I run my company remotely without living in Bali?
Yes, you can be a shareholder or director of a PT PMA IT Company Bali remotely. However, the company still requires a registered address in Indonesia and must fulfill all monthly and quarterly reporting obligations.
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What happens if I use the wrong KBLI code?
It can block your business licenses, prevent you from hiring expats, and lead to administrative fines. It is essential to choose codes that precisely match your revenue-generating activities.
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Is there an "IT specific" tax break in Bali?
While there aren't Bali-specific IT tax breaks, certain "Tech Pioneer" status companies in Indonesia can apply for corporate tax holidays if their investment exceeds certain thresholds.
