To start a digital agency in Bali, a foreign founder normally incorporates a foreign-owned limited liability company (PT PMA), selects the right KBLI business classification, registers through the OSS system, and arranges permits for any foreign staff. Foreign-owned companies must meet the investment threshold in the investment ministry's rules, so budget capital before choosing a structure.
What does a digital agency do, and how is it classified?
A digital agency sells services such as web design, social media, SEO, content and paid advertising. In Indonesian registrations these map to KBLI activity codes, which OSS uses to set the licence.
The Indonesian industrial classification (KBLI 2020) lists advertising under code 73100 "Periklanan", covering advertising services such as creative work, production of advertising material, and media planning and buying (OSS KBLI entry; BPS KBLI 73100). Software and website development fall under different codes, so an agency with several service lines may need more than one KBLI. Each additional code can affect the investment calculation, discussed below.
Whether a given code is open to foreign ownership and any conditions attached are shown in OSS and the current positive investment list. Check the specific code on OSS before you commit to a structure; we have not assumed it here.
Which company structure should you use?
A foreign founder usually needs a PT PMA; an Indonesian-owned PT is a different route that does not give the foreigner direct ownership.
| Option | Ownership | Points to check |
|---|---|---|
| PT PMA | Foreign shareholding (alone or with Indonesian partners) | Investment and capital thresholds; KBLI openness; foreign staff permits |
| PT with Indonesian shareholders only | Indonesian citizens or Indonesian entities | Foreign founder has no direct ownership; contractual protections needed |
See our general guides to company registration in Indonesia and starting a business in Indonesia.
How much capital does a foreign-owned agency need?
A PT PMA must meet the minimum investment value in the investment ministry's rules: more than IDR 10 billion excluding land and buildings, per 5-digit KBLI per project location.
Article 12 of Investment Coordinating Board (BKPM) Regulation 4 of 2021 sets this threshold, with different aggregation units for some sectors such as wholesale trade, food and beverage, and construction. The same article states a minimum issued and paid-up capital of IDR 10 billion unless other legislation says otherwise. A later 2025 ministerial regulation appears to repeat the wording; confirm which instrument applies on your filing date. Because the test is applied per KBLI and per location, adding service lines or a second office can change the amount to be shown.
Many founders underestimate this. Test the maths against your actual plan, including the reasonable use of the capital over time, before choosing a structure. The wider pros and cons are covered in our guide to pros and cons of a business in Indonesia.
How do you register the company?
Incorporate the PT, obtain the business identity number (NIB) through OSS with the chosen KBLI codes, then complete tax and social security registration.
- Choose the name, shareholders, directors and commissioners.
- Incorporate the PT and obtain legal entity approval.
- Register on OSS and select the KBLI codes; the system sets the licence requirements for each activity. See our guide to describing business activities in OSS.
- Obtain the tax number and register for taxes. See the company registration number note.
- Register employers with BPJS Ketenagakerjaan once you hire; see NPP explained.
How do you hire in Bali, including foreign staff?
Indonesian staff are employed under Indonesian employment rules with BPJS enrolment; foreign staff need manpower approval and a stay permit for the role.
For foreign employees, the employer first obtains RPTKA approval and pays the compensation fee, covered in our RPTKA guide. A foreign founder who holds shares may qualify for the investor route; see the investor KITAS guide. Do not assume a visit visa allows you to work for your own company.
What practical points matter for a Bali-based agency?
Practical matters include a physical address that matches the registration, clear client contracts and invoicing in rupiah or a stated foreign currency, and tax compliance from the first month.
- Address and location. The registered business address and project location feed into the registration and the investment test, so keep them consistent with your lease.
- Client contracts. State the scope, currency, payment terms and ownership of deliverables. For overseas clients, record how the invoice currency and rate are determined.
- Tax and accounting. Set up monthly bookkeeping and withholding procedures from the start. Our guide to corporate tax compliance lists the recurring obligations.
- Local relationships. Understand local customs and the regional context when hiring and contracting.
Next step
If you are planning a foreign-owned agency, JCSS Indonesia can assist with entity structuring and registration through its PT PMA set-up service. This article is general information, not legal advice, and requirements change.
Frequently asked questions
Can a foreigner own 100% of a digital agency in Bali?
It depends on the KBLI code and the current investment rules. A foreign-owned company is set up as a PT PMA, and whether the activity is open to foreign ownership, and on what conditions, is shown on the OSS page for that code and in the positive investment list. Check each code before you structure ownership.
What is the minimum investment for a PT PMA digital agency?
Under Article 12 of BKPM Regulation 4 of 2021, a PT PMA must invest more than IDR 10 billion excluding land and buildings, per 5-digit KBLI per project location, with issued and paid-up capital of at least IDR 10 billion, unless other rules differ. Confirm the instrument in force at filing.
Which KBLI code applies to a digital agency?
Advertising services, including creative, production, and media planning and buying, sit under KBLI 73100 Periklanan. Web, software and other digital services use separate codes. Many agencies register several codes, but each can affect licensing and the investment calculation, so choose them from your actual service list.
Can I work in Bali on a tourist visa for my own agency?
Do not assume so. Working for a company in Indonesia requires the proper permit and stay status for the role, which for a shareholder may be the investor route and for an employee the work route with RPTKA approval. Confirm the correct visa with immigration or an adviser before starting work.
Do I need an office in Bali?
The company needs a registered business address and the location of its activity must be consistent with its registration and the investment test. The address should match your lease or your authorised arrangement. Check the requirements for your KBLI and location in OSS before signing a lease.
General information only, not legal or tax advice for your specific facts. Regulations change; confirm the current position with JCSS Indonesia before acting.