Full Guide on Indonesian Kitas: And How to Open Business in Indonesia

Full Guide on Indonesian Kitas: And How to Open Business in Indonesia

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JOOi team
Published on 16 Jan 2023 at 3:47 PM
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Bali is a paradise for everyone who step foot on the island. If we look at the development of Bali from the past few years, there has been a significant increase. Based on data from Indonesia Central Bureau of Statistic (BPS), from July to September 2022, Bali's economy skyrocketed to 8.09%, surpassing Indonesia's economic growth at 5.72%. This acceleration is illustrated by how developments in the Canggu area to Tanah Lot are lined up and starting to decorate every corner of the region. While 7 years ago, places like Canggu only have few visitors, Canggu now has become one of the must-visit destination with extended stays for foreigners.

The combination of culture, local wisdom, and the natural landscape appeals to local and foreign entrepreneurs who want to broaden their wings and do business on the island. This makes Bali the ideal location for a commercial stop. So if you are a foreigner wanting to start a business in Indonesia, particularly Bali, you come to the right page.


Step by Step: Starting a Business in Bali

1. Identify the right type for your business


Bali is a storehouse for all kinds of holiday destinations. Regardless of what you are looking for, you can find it in Bali. That is due to the rich tourism potential of Bali and the holiday season that takes place all year round. With this "all year" season, all the business will be there. However, you must determine which type of business is suitable for your company. Here are a couple of options that might be a good fit for doing business in Bali:

- Food and beverage business. Such as bars, restaurants, cookshops or even culinary tours

- Clothing line. The clothing line's design and sales sector is booming among foreigners in Bali. They create their brand with both local and national nuances. Then, make their imagination stylish.

- Health, spiritual and life-developing services. Foreign people are very interested in a healthy lifestyle and harmony with nature. Bali encouraged them to create yoga and spa classes which soothe body and soul.

- Recreation and outdoor activities. It's not Bali without outdoor activities. Moreover, the exquisite range of beaches offers vast commercial potential for water sports such as surfing. Activities like diving and snorkelling are also favorable activities in Bali. Or do you have another choice?


2. Pick a strategic spot.


An excellent commercial location will undoubtedly open many possibilities for easy marketing to consumers. A potential location is a location that is often visited and viewed by many people. To determine the right spot, it's a good idea to research the area according to the market segment you will target, whether it is suitable or not. 

Psst, don't forget about accessibility! It's better if the workplace has easy access and pays attention to the environment. So you can carry on business safely and comfortably. In Bali, there are several areas whose companies follow specific characteristics. Like Uluwatu and Ubud, which are known for their wellness retreats. Seminyak is filled with spas and beautiful places. Also, Jimbaran and Kuta are famous for their seafood restaurants. Thus, you can determine the "right" and appropriate place for your business later.


3. Corporate Type.

Opening a business, in general, to open a business in Indonesia, foreigners must establish a joint stock company (PT). For foreign companies, the required business license is Perseroan Terbatas Penanaman Modal Asing (Foreign Investment Limited Liability Company) or PT PMA. Here are the things needed to get a PMA license:

- Company profile,

- Name of PT (includes three words, must be in Bahasa),

- Owner's passport (at least one director and one commissioner),

- Distribution of shares and Business address.


PMA arrangements usually take approximately 7-10 working days. By arranging PMA, potential investors will receive company legality documents such as articles of incorporation, decree of the ministry of justice and human rights, OSS permit, company profile from Ditjen AHU (department of justice and human rights - legal administration), company taxpayer id number. Furthermore, these legal documents also allow business owners to open businesses in Indonesia, create savings accounts, and apply for residence permits.

When you already have a PMA, foreigners can apply for a temporary residence permit (KITAS Investor). Unlike a working KITAS, KITAS Investor is valid for two years and does not need to pay a monthly residence permit to the Ministry of Manpower like working KITAS holders.

With a certain amount of research and preparation underway, there are too many detailed activities that need to be completed in one or two surveys. And with KITAS Investor, you can enter Indonesia and travel abroad as many time as you like to help facilitate the flow of business during the preparatory process.

Then how can JOOi help you realize your dream business in Bali? As a one-stop solution for your travel needs, JOOi can help you set up PMA, as well as residence permit easier, hassle-free, and at a competitive price! 

For more information you can contact our Customer Service or email us [email protected]


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