Guide to Doing Business

Bali & Lombok

Foreword

Indonesia is a country that is sometimes overlooked by the rest of the world despite its thriving economy.
Indonesia’s growth has been quick and vast, with experts predicting Indonesia to become the
fourth-largest economy in the world despite the contraction caused by the Covid-19 pandemic. There are
many enticing aspects of the Indonesian economy and demographics: the population of over 270,000,000
people with the majority in their productive age, large markets with positive consumer behavior, and
relatively stable politics.

For most of my adult life, I have felt very passionate about business development in Indonesia. In recent
years, foreign direct investment in Indonesia has seen positive growth, and this is not something that has
surprised me. Indonesia is full of talented workers with the skills and creativity to compete internationally.
This country is full of welcoming people ready to accept foreigners that visit for business or pleasure.

For entrepreneurs - Indonesian or foreign - I recommend starting your business in Indonesia as soon as
possible. Indonesia is a great market that will continue to grow in the future, so start your business now.
Find a suitable partner in Indonesia to grow and make connections to develop an ecosystem to create
sustainable growth. Focus on your core processes, and outsource your supporting functions to someone
capable of sustaining your business.

Use this document as a guide to registering your business. Of course, we at InCorp Indonesia are also
available to assist in this process if you need us - we are here to help and are only a phone call away.
Whether expanding your business or starting one from scratch, I wish you good luck and great success in
this beautiful country.

Vidvant Brahmantyo
CEO InCorp Indonesia

The information compiled in this document is based on the current regulations on 6 June 2022. Further research on regulation updates or new
processes is recommended in addition to the information provided in this document. InCorp Indonesia will not be liable for any losses and/or
damages in connection with the use of this document. The links to other websites do not imply a recommendation for all the content found on this
document. Site owners and content may change without notice and may occur before disabled or removed links are updated.
 Contents

Foreword 2

Visa 5
Social Cultural Visa 6
Retirement Visa 6
KITAS 7

Bank Account 8
Opening Foreign Currency Account 9
Additional Information 9

Company Setup 10
Foreign Limited Liability Company (PT PMA) 11
Local Company (PT PMDN) 12
Representative Office in Indonesia (KPPA) 13

Office Space 14

Land and Property Ownership 16

The Price Mechanism Of Land & Property Ownership 17
Land Titles 18

Top Business Field in Bali and Lombok 21

Freelancers 22
Digital Nomads 23
Opening a Restaurant 24
Opening a Guest House or a Hotel 24

InCorp Indonesia's Overview of Services 26

Visa

Guide to Doing Business in Bali & Lombok 5

 Social-Cultural Visa
Bali and Lombok have become the most popular spots in Indonesia among others foreign nationals.
However, foreigners do not come to Bali and Lombok to only do their business or enjoy their dream holiday -
they are also attracted by the thought of helping the country through diverse social activities.
Volunteers and digital nomads not working for Indonesian customers may choose to come to Bali and
Lombok with a social-cultural visa in their passport. To get this kind of visa, foreigners are required to
present a letter of invitation from a sponsor in Indonesia. This sponsor can be either an Indonesian citizen
or local company.
The visa allows you to enter the country for an initial two months and can be later extended for additional
30 days (four times in total). However, keep in mind that the visa can be only extended in the location
stated in your sponsor’s KTP or passport. Consequently, if you are planning to stay in Bali and Lombok,
your sponsor must be a local resident.

Retirement Visa
Foreign nationals older than 55 years can benefit from a retirement visa, which is initially granted for one
year but can be extended annually for up to 5 years. Foreigners who want to apply for a retirement visa
must meet following conditions:
● Minimum age of 55 years
● Have hired an Indonesian housemaid
● Have health insurance
As no work is allowed when holding a retirement visa in Indonesia, its holders must prove sufficient funds
to cover their living expenses during their proposed stay in Bali and Lombok (in total, USD 18,000 per year).
Moreover, only foreign nationals stated below can obtain this kind of visa.

Argentina Denmark Ireland

Australia Egypt Island

Austria Estonia Italy

Bahrain Finland Japan

Belgium France Kuwait

Brazil Germany Liechtenstein

Brunei Greece Luxemburg

Bulgaria Hungary Malaysia

Canada India Maldives

Cyprus Iran Malta

6 Visa
 Monaco Saudi arabia USA

Netherlands Singapore Taiwan

New South Africa Thailand

Zealand
Norway South Korea

Oman Spain

Philippines Suriname

Poland Sweden

Portugal Switzerland

Qatar United Arab Emirates

Russia United Kingdom

KITAS
A KITAS is a limited stay permit. It is a legal document that proves you are allowed to work, invest capital
in the business sector, pursue education, and marry an Indonesian citizen.

Spouse-Sponsored Residence Permit (KITAS)

A spouse of an Indonesian citizen (the Indonesian government must acknowledge the marriage) is
allowed to apply for a spouse-sponsored temporary stay permit (KITAS). After two years of marriage, a
foreign spouse can apply for a permanent stay permit (KITAP).
✔ Work as an independent adviser or a consultant.
✖ Conduct any business in Indonesia

Working Visa
When it comes to securing an Indonesian working visa, there are two documents to obtain:

● KITAS (Kartu Izin Tinggal Terbatas)

● IMTA (Izin Mempekerjakan Tenaga Asing)

Beware that working without an IMTA (working permit) is illegal and can result in legal consequences
such as fines and deportation.
The maximum validity of a working KITAS is one year and is extendable up to five times. It must be
sponsored by an Indonesian company which is required to pay DPKK (Expertise Skill Development Fund)
for around USD 1,200 per year.

Guide to Doing Business in Bali & Lombok 7

 Bank
Account

8 Bank Account
There are three major players in the Indonesian banking market (Mandiri, BRI and BCA) followed by a huge
number of either local or smaller institutions. The requirements for opening a bank accounts may differ
from each other. In a nutshell, banks usually require the following information:

For an Individual For a Corporate Entity

Copy of an identity card or passport Memorandum and/or Articles of Association

Copy of a stay permit in Business licenses (for Indonesian

Indonesia/temporary residence permit* companies)

Taxpayer identification number (for Indonesian

companies)

*Generally, a KITAS is required but some banks do make exceptions when you have a local reference.

Opening a Foreign Currency Account

Limited Balance Tourist Account
Tourists and expats who come to Bali and Lombok for a short-term visit can benefit from a tourist bank
account. It has a strict balance range with a minimum USD 2,000 and a maximum of USD 50,000.
Note that if your balance does not reach USD 10,000, bank institutions impose higher fees.

Unlimited Balance Expat Account

Expats that want to open an Indonesian bank account that is not limited by a fixed balance should apply for
an unlimited balance account. To open this account, a foreign national needs to prove their identity with a
valid passport and one additional document of your choice.
This document could be a reference document from a bank in their home country, domicile letter of the
expat, credit or debit card, copies of residence contracts or identity papers of their expat spouse.

Special Balance Expat Account

Only Indonesian banks complying with specific risk management requirements and prudent banking can
open a bank account with a balance of over USD 1 million for foreigners. The conditions are the same as
in the case of unlimited balance expat account - a passport and an additional document.
This kind of account applies progressive taxing (the higher the balance, the lower the tax rate) and tax on
deposit interest is lower than the general tax rate.

Additional Information
Whether or not you have sufficient funds or a foreign currency account does not fit your needs, it is
possible to open an “ordinary” bank account as well. Three types of accounts that are commonly used in
Indonesia are checking, savings (both in rupiah and foreign currency, usually USD) and deposit accounts.
Companies in Indonesia that have a foreign shareholder are required to maintain a bank account. The
account which must be established with a bank licensed to handle foreign currencies (known as
Foreign-Exchange Bank of Bank Devisa).

Guide to Doing Business in Bali & Lombok 9

 Company
Setup

10 Company Setup
In general, there are three options when setting up a company in Indonesia.

Foreign Limited Liability Company (PT PMA)

A foreign-owned company, also known as a “PT PMA”, is the most common choice among foreigners who
want to build a business in Bali and Lombok. Although it can be fully owned by foreigners, foreign
nationals have to investigate the ownership limits based on the Positive Investment List.
Requirements include:
● A minimum start-up capital of IDR 10 billion
● 2 shareholders, 1 director, 1 commissioner (all of them can be foreigners, individual or corporate)
● A biannual LKPM report and after the quarterly principal license

The following table provides a general overview of the process of setting up a PT PMA.

No Procedure Duration (Working Days)

1 Approval of company name at the Ministry of Law and Human Rights 2

2 Approval of Principal License at the Indonesian Investment 15

Coordinating Board (BKPM)

3 Preparation of Article of Association by Notary 4

4 Obtain Deed of Establishment at the Ministry of Law and Human Rights 3

5 Obtain Certificate of Domicile at the Local Government Office 15

6 Obtain Taxpayer Registration Number (NPWP) 3

7 Environmental Monitoring Letter (SPPL) 3

8 Obtain Company Registration Certificate (TDP) at the Local Government 14

Guide to Doing Business in Bali & Lombok 11

 Local Company (PT PMDN)
A Limited liability company, also known as a “PT PMDN”, is the most widely used form of business entity in
Indonesia. Its paid-up share capital depends on the size of a company, so starting a local company can be
more affordable than a foreign-owned one. However, foreigners should beware that a PT PMDN must be
100% owned by local shareholders - either an Indonesian individual or legal entity.
Foreign nationals can still open a local company through a trustworthy local corporate nominee, and InCorp
Indonesia can assist with drafting the agreement.
Moreover, do not underestimate the amount of paid-up capital as it influences whether your company is
eligible to hire foreigners or not. Here are some key points to know about a PT PMDN:
● Fully owned by local shareholders
● 2 months setting up period
● Shared capital depends on the size of a company
Local companies are divided into three categories:

Small IDR 50,000,000 - IDR 500,000,000

Medium IDR 500,000,000 - IDR 10,000,000,000

Large IDR 10,000,000,000 and more

Note: Only medium and large companies can sponsor Work Permits for foreigners.

The process of setting up a local company takes two months, and the steps are as follows:

No Procedure Duration (Working Days)

1 Approval of company name at the Ministry of Law and Human Rights 2

2 Preparation of Article of Association by Notary 4

3 Obtain Deed of Establishment at the Ministry of Law and Human Rights 3

4 Obtain Certificate of Domicile at the Local Government Office 15

5 Obtain Taxpayer Registration Number (NPWP) and VAT number at 3

the Tax Office (check out tax reporting deadlines, warnings, and
recommendations in Indonesia).

6 Environmental Monitoring Letter (SPPL) 3

7 Obtain Trading Business License (SIUP) 3

8 Obtain Company Registration Certificate (TDP) at the Local 7

Government

12 Company Setup
Representative Office in Indonesia (KPPA)
A representative office of foreign company, also known as a “KPPA” is a convenient way businesses from
abroad can gain market presence in Indonesia. If you want to start a KPPA in Bali and Lombok, it must be
located in Denpasar as they can be established exclusively in the capitals of Indonesian provinces. In
addition, no direct selling or receiving income is permitted, as a KPPA can only conduct marketing and
promotion activities. Therefore, KPPAs offer low incorporation fees with no minimum capital requirement,
and KPPA establishment does not require shareholders and directors to run the business - only a chief
executive is sufficient.

Requirements PT PMA PT PMDN KPPA

Board of Directors ● Minimum two ● Minimum two ● No shareholder or

and Management shareholders shareholders director required
(corporate/individual) (corporate/individual)
● Minimum one local ● Minimum one local ● One chief
director director before executive is
employing a foreign sufficient
director
● Must have at least ● Must have at least
one commissioner one local
(can be a foreigner commissioner
with a valid work
permit)

Capital ● Minimum IDR 10 ● Minimum IDR 50 No capital is

billion of investment million required
● At least IDR 10 ● At least 25% of the
billion should be capital should be
provided as a provided as paid-up
paid-up capital

Benefits ● Full control of ● Lower incorporation ● Low incorporation

business cost cost
● Eligible to sponsor ● Open for any ● Eligible to sponsor
work and stay business sectors work and stay
permit for foreign and fields permits for foreign
employee employees

Function ● Allows ● Allows ● Not allowed to

profit-generating profit-generating generate financial
business activities business activities income
● Allows up to 100% ● 100% local ● Allows up to 100%
foreign ownership ownership foreign ownership
● Ideal for business ● Ideal for business ● Ideal for testing the
sectors that are sectors that are waters before
open for foreign open for foreign setting up a
investment investment fully-fledged
company
● Works best for
non-sales activities

Guide to Doing Business in Bali & Lombok 13

 Office
Space

14 Office Space
Whether you are a freelancer searching for an ideal office or entrepreneur who needs an office address to
register a company, you will probably have hard times in Bali and Lombok.

A domicile letter and an address of a business office are required when registering a company in
Indonesia. Note that it is not allowed to use an office address located in residential area, and the office
area must physically exist. Before renting an office, carefully check its building documentation and make
sure that the property is in accordance with requirements.

Do Don’t

Use a virtual office for company registration Register an office address in a residential
area

The process of renting property in Bali and Lombok differ from the systems in most Western countries.
Most importantly, rent is often paid upfront. Regardless of whether you want to rent a house or land for
six months, one year or even 10 years - rent is paid upfront unless your property is in one of the major
tourist areas where the rent is significantly higher.
The Indonesian legislation (under some conditions) permits using a virtual office for the purpose of
company incorporation. Mainly smaller companies can benefit from this exemption and obtain a
registered address and a domicile letter without renting a physical office space.
A majority of freelancers and investors doing business in Bali and Lombok tend to rent a shared space
(coworking space) or separated booths in a shared room.

To Register Your Company, You Should Have:

● A domicile letter
● A business address (can be easily gained when you use our services)
InCorp Indonesia provides both virtual and coworking offices in Bali and Lombok, so entrepreneurs can
choose what fits their needs the best - a virtual office with all amenities of a service office without a
physical room or coworking space. Moreover, if you want us to take care of your business administration,
a service office workstation is the best choice. With facilities such as a full equipment suite, secretarial
services and a receptionist, you can focus entirely on the core activities of your business.

Guide to Doing Business in Bali & Lombok 15

 Land and Property
Ownership

16 Land and Property Ownership

The construction industry in Indonesia is currently thriving with USD 238 billion valuation in 2021 and
projected to by more than 5% in the next four years. This projection will attract more interest from
investors, which will aid in job creation.
To support this projection, the Minister of Agrarian Affairs and Spatial Planning or the Head of the National
Land Agency has issued Regulation No. 18 of 2021 on Procedures for the Determination of the Right to
Manage and Rights over Land. This promotes the convenience for foreign investors regarding property
regulation and land ownership in Indonesia, especially for Bali and Lombok.
The regulation states that foreigners who have secured immigration documents can own landed houses
or multi-story housing that occupy certain types of land with specific requirements:

Landed Houses
● Luxury houses following the relevant laws and regulations
● One plot of land is permitted per person or family
● The purchased area can be a maximum of 2,000 sqm. One can be exempt from this limitation if:
○ The relevant property positively impacts local economic and social life
○ Foreigners have secured a permit from the Minister
○ Residency ownership for foreign representatives

Multi-story Housing, which falls into the commercial category

The Price Mechanism Of Land And Property Ownership

Foreign investors must comply with the price mechanisms to obtain land and property ownership in Bali
and Lombok. Find the details below:

Bali

Landed House Multi-story Housing

IDR 5 billion IDR 2 billion

West Nusa Tenggara (Lombok)

Landed House Multi-story Housing

IDR 3 billion IDR 1 billion

Guide to Doing Business in Bali & Lombok 17

 Land Titles
The Agrarian Law specifies several regulations concerning the titles and rights over land in Indonesia,
including Bali and Lombok.

Land English Regulation Duration Eligibility

Title Translation

Hak Milik Freehold ● Law No 5/1960 Indefinite Indonesian citizens

concerning only
Basic Agrarian
Regulations

● Government
Regulation
No. 18/2021

Hak Guna Right to ● Law No 5/1960 30 years + ● Indonesian

Bangunan construct or concerning extendable 20 citizens
(HGB) own Basic Agrarian years
buildings on Regulations + renewable 30 ● Legal entities
the land years established in
● Government = a total of 80 Indonesia
Regulation years
No. 18/2021 Can be issued on
top of:
1. State Land
2. Land
Management
Right
3. Freehold Right

Hak Guna Right to ● Law No 5/1960 35 years + ● Indonesian

Usaha cultivate concerning Basic extendable 25 citizens
(HGU) Agrarian years
Regulations +renewable 35 ● Legal entities
years established in
● Government = a total of 95 Indonesia
Regulation years
No. 18/2021

● Minister of
Agrarian Affairs
and Spatial
Planning
Regulation No.
7/2017

Hak Pakai Right to use ● Law No 5/1960 The right issued on ● Indonesian
within a time concerning top of State Land and citizens
period Basic Agrarian Land Management
Regulations Right: ● Foreign citizens
with KITAS/KITAP
● Government 30 years +
Regulation ● Legal entities
extendable 20 years
No. 18/2021 established in
+ renewable 30 years
Indonesia
= a total of 80 years

18 Land and Property Ownership

Land Title English Legislation Duration Eligibility
Translation

● Minister of The right issued on ● Religious and

Agrarian Affairs top of Freehold Right: social-based
and Spatial agencies
Planning 30 years +
Regulation No. extendable (the ● Foreign Legal
29/2016 maximum period Entities
does not define)

Right to use Government Indefinite ● Central

as long as Regulation Government
utilized No. 18/2021 agencies

● Local Government

● Village
Government

● Foreign country
Representative

● International
Organization
Representative

Hak Right to Government Indefinite ● Central

Pengelolaan manage Regulation Government
No. 18/2021 Agencies

● Local Government

● State-Owned
Enterprise/Local-
Owned Enterprise

● Land Bank
Agency

● Legal Entity
appointed by
Central
Government

Hak Sewa Right to lease ● Law No 5/1960 30 years + ● Indonesian

concerning Basic extendable 20 citizens
Agrarian years
Regulations + renewable 30 ● Foreign citizens
years with KITAS/KITAP
● Supreme Court =a total of 80
Decision No. ● Legal entities
years
2785/K/Pdt/2011 established in
Indonesia

Guide to Doing Business in Bali & Lombok 19

 Land Title English Legislation Duration Eligibility
Translation

Hak Right of use ● Law No 30 years (or years ● Indonesian

Pakai over 20/2011 left based on the citizens
Atas condominium concerning land title on which
Satuan Condominium the condominium ● Foreign citizens
Rumah was established with
Susun ● Minister of on) KITAS/KITAP
Agrarian Affairs + extendable 20
and Spatial ● Legal entities
years + renewable
Planning established in
30 years
Regulation No. Indonesia
= a total of 80
29/2016 years ● Representatives
of foreign legal
entities
Hak Milik Right of ● Law No Follows the term
Atas ownership 11/2020 stated in the land ● Representatives
Satuan over concerning Job certificate of the of foreign
Rumah condominium Creation developer countries and
Susun international
● Law No agencies
20/2011
concerning ● Central
Condominium Government
Agencies
● Government
Regulation No. ● Local
18/2021 Government
Agencies

20 Land and Property Ownership

Top Business Field
in Bali and Lombok

Guide to Doing Business in Bali & Lombok 21

 Living in one of the world’s top destinations, enjoying a never-ending summer and making a living there
sounds like a paradise. Indeed, Bali and Lombok are a hot must-go for expats, but it is important to check
the legal obligations first.
The following pages cover the most popular business fields in Bali and Lombok, as well as to summarise
all their do’s and don’ts.

Freelancers
Clearly stated from the beginning, freelancing in Bali and Lombok (as referred to freelancers working for
Indonesian customers) are is a big “NO.” Surely, Bali and Lombok are full of expats gambling with their
visa but you definitely do not want to be one of them. Legal consequences are severe and the local
authorities, whether government bodies or local police are known for their regular visa checks and
deportations of foreigners.

Challenges

● It is prohibited to conduct economic

activities that would generate income,
unless you have a KITAS and IMTA.
● Starting your own company in order to
sponsor your application might not be
the best strategy as there is a high fee
when employing a foreigner.
● Your Indonesian customers might not
be able to pay you enough to cover
your visa expenses.
● When you decide to try your chance
and freelance in Bali and Lombok
without a proper visa, getting a new
Indonesian customer could be very
complicated.

Firstly, there is no suitable visa for this kind

of work. When applying for a working KITAS,
a letter of sponsorship from an Indonesian
company is required. So, to get a KITAS, you
must be employed and cannot work as a
freelancer.
Secondly, your company would have to pay a
yearly fee of around USD 1,200 to the
Ministry of Manpower when employing a
foreigner. As a result, starting your own
business would cost you much more than
you should invest in a freelancing career.

Thirdly, Indonesia is a developing country

and wages are significantly lower than in
developed countries. Your Indonesian
customers might not be able to pay you
enough to cover your visa expenses.

22 Top Business Field in Bali and Lombok

Lastly, if you decide to try your chance and freelance in Bali and Lombok without a proper visa, problems
will soon arise. Trying to gain clients would be complicated - even trying to sell your services to the locals
would not be easy, and you could make existing business owners upset by operating without proper
licenses and visas.
The only “grey zone” is if one is married to a local. In fact, the Indonesian Immigration enables a KITAS
spouse holder to work and do business to make ends meet for them and for their family without a work
permit in the informal sector, by freelancing or having a small business that is not a legal entity. When
working within a legal entity, an IMTA is a must. However, the Ministry of Manpower often does not follow
this legal act which results in ambiguous information and different experiences of expats.

Digital Nomads
On the contrary, digital nomads work
remotely from their homes and for
customers from countries in which they
are not currently based in. Thus, while
staying in Bali and Lombok, digital
nomads work for customers who are not
Indonesians, and as a result, do not
generate any income coming from the
Indonesian market. This fact enables
them to stay in Bali and Lombok legally
as they can use a tourist or social-cultural
visa based on their preferences.

While they do not legally need one, digital

nomads need a space to work. A primary
requirement is usually a convenient place
with stable and fast internet connection.
In Bali and Lombok, there are many
coworking spaces where you can work,
be productive, meet interesting people,
share your business ideas and network.

InCorp Indonesia offers our serviced

offices and coworking spaces in the heart
of Kuta - a prime location nearby tourist
attractions, hotels, and the airport.
Everything is also well connected by main
roads.

Guide to Doing Business in Bali & Lombok 23

 Opening A Restaurant
Due to the continually growing number of foreign nationals in Bali and Lombok, this
location has become a melting pot of different cultures. June, July and August are the
months when tourism is booming, streets are crowded, and restaurants are always full.
However, a real test of your business plan comes with low tourist season when the
competition becomes quite strong.
Thus, do not underestimate preparing a detailed business plan and conducting market
research. Both of these will help you build an extraordinary place that can compete with
other restaurants.
Besides incorporating either a foreign-owned company (PT PMA) or a local one (PT
PMDN), opening a restaurant requires some additional licenses. In the case of choosing a
PT PMA, keep in mind that the share of foreign ownership is limited to 51% when opening a
restaurant, and 49% when opening a bar or cafe. Other required licenses depend on your
restaurant - how big it is, the location, and what food will be served. Having a clear idea of
your business plan prior to opening your restaurant can ensure that you will have enough
time to obtain all the additional licenses needed.
Since food and drink service business is considered as a tourism business, specific
regulations might apply under Ministerial Regulation of the Ministry of Culture and Tourism.
Your application, however, will be addressed to a government body in the area where your
business will be located.
What you need to do:

Strict Requirements For Alcohol

● Obtain SIUP - MB
Restaurant license alcoholic beverage trading license

● Obtain NPPBKC
Registration number of custom goods business

Even though Bali and Lombok are known as the Islands of the Gods, due to the Muslim
majority in Indonesia, strict rules are imposed on serving alcohol. As imported alcohol is
subject to quotas, its price is relatively high. It is also worth noting that local authorities
frequently check bars and restaurants to see if a place has all necessary documents.
Furthermore, a restaurant where live or pre-recorded music will be played must obtain
licenses from record labels or competent foundation that facilities the use of such
material. Failing to do so could trigger expensive penalties.

What you need to do:

Permit For Restaurants With Live Music

Restaurant which has live or pre-recorded music must obtain licenses from record
labels or a competent foundation facilitating the use of the material.

Opening A Guest House Or Hotel

Even though until recent years foreign nationals were not allowed to own a property in
Indonesia, the law has changed and managing an accommodation service has become a
popular business venture in Bali and Lombok. To be able to legally make a living in this
field, you must first set up a company.

24 Top Business Field in Bali and Lombok

Options for setting up a guest house or hotel:
● PT PMA (foreign-owned)
● PT PMDN (local-owned)
Accommodation services are not excluded from the
Positive Investment List and the maximum amount
of foreign ownership for a PT PMA is 67%.
In case you are considering opening a guest house
or hotel, pay attention to the title of the real estates
as not all of them can be owned by foreigners.

Hak Guna Bangunan

One of the titles which enables its owners (both

domestic and foreign) to construct a building
on a plot of land by a corporation or individual
for a period of between 20 and 30 years, which
can be extended later.

Melati Hotel License

Needed for those who want to own a hotel with

more than 5 rooms. This license is generally
only issued to local citizens.

Take a look at a local nominee service, since it is

considered riskier to work with a local individual.
InCorp Indonesia can help you draft an agreement
with your selected partner.

Checking all necessary licenses is a must even

when purchasing an existing rental property which
has been already operating as a rental property for
tourists. Unfortunately, cases where properties do
not have all the necessary permits and their owners
try to sell them are not rare.

Important!
● Start your business with a trustworthy local
partner

● Check all necessary licenses when purchasing

an existing rental property which has been
already operating as a rental property for
tourists
● Hotels in Indonesia have to pay 10% tax that is
called “PB10” in Indonesian, this tax is added to
your client’s bill. It is paid every month to a
respective office in the area where your property
is located.

Guide to Doing Business in Bali & Lombok 25

 InCorp Indonesia's
Overview of Services
● Company
Registration
● Virtual & Serviced
Office
INCORPORATION
● Closing of Company
(Dissolution)
● Medical Devices
● Cosmetics
PRODUCT REGISTRATION ● Food & Beverage
& IMPORT
● Health Supplements
● Household Products
● Accounting & Tax
BUSINESS SUPPORT Reporting
SERVICES ● Payroll Processing
● Recruitment & HR
Establishment
● Legal Consultation
● Legal Agreement
SECRETARIAL &
Services
COMPLIANCE
● Due Diligence &
Background Check
TRANSFER PRICING ● Transfer Pricing
SERVICES Compliance
● Investor KITAS
● Business Visa
● Work Permit & KITAS
IMMIGRATION ● Spouse Visa
● Dependent Visa
● Permanent Stay
Permit (KITAP)
● Internal Audit
BUSINESS ADVISORY ● ESG Advisory
● Bank Account
OTHER SERVICES ● Buying Agent
● Local Partner Selection
● Local Distributor &
Partner
26 InCorp Indonesia's Overview of Services
● Corporate Recovery &
Insolvency
● Business Licenses
● Mergers &
Acquisitions
● Land & Property
Ownership
● Trademark Registration
● Import & Export Licenses
● Halal Certification
● SNI License
● Importer of Records
● Audit & Review
● Financial &
Operational
Resilience
● Employer of Records
● Employment Services
● Business Document
Revision
● Transfer Pricing
Advisory
● Social Visa
● Tourist Visa
● Retirement Visa
● Overseas Visa
● Visa on Arrival
● Risk Management
● Mystery Shopping
● Driving License
● IMEI Registration
Contact Us

INCORP INDONESIA
Istana Kuta Galeria Blok BW 2 No. 3A
Jl. Patih Jelantik, Kuta, Badung
Bali 80361, Indonesia
bali@incorp.co.id

cekindo.com | cekindo.cn | indonesia.incorp.asia

© All rights reserved