Avoid These 9 Costly Mistakes with the Right Business and Legal Advisor for PT PMA in Lombok

Introduction: PT PMA Setup Is Just the Beginning

For many foreign investors, receiving the NIB (Business Identification Number) and completing their PT PMA registration feels like the final step. However, the real journey of operating a legally compliant business in Indonesia—especially in Lombok—begins after incorporation.

The post-incorporation phase is filled with recurring obligations: monthly tax filings, LKPM reports, BPJS registration, payroll documentation, and other legal duties that must be fulfilled accurately and on time. Neglecting even one of these requirements can result in frozen OSS access, government fines, or even permit revocation. This is especially true for businesses trying to operate smoothly in tourism-heavy or sensitive zones of Lombok, where local governance and expectations are deeply rooted.

Understanding the regulatory landscape in Indonesia requires more than just reading the laws—it demands local insight, cultural understanding, and the ability to adapt to evolving government systems such as OSS (Online Single Submission) and BKPM (Investment Coordinating Board) regulations. That’s where the role of a business and legal advisor for PT PMA in Lombok becomes crucial.

A trusted business and legal advisor for PT PMA in Lombok will not only ensure your business stays compliant with national and regional laws but also help you navigate nuanced local expectations. In this article, we’ll break down all the key post-setup responsibilities and show you how the right advisor protects your investment, reputation, and operational continuity.

Monthly Tax Filings and PPh 21 Obligations

One of the most common misconceptions foreign investors have is that taxes only apply once a PT PMA is generating revenue. In fact, monthly tax filings are mandatory even if your business in Lombok is not yet operational or generating income. Ignoring this obligation is one of the fastest ways to get flagged by the tax office (DJP), potentially leading to penalties and audits.

The most relevant taxes for PT PMAs include:

• PPh 21 – Income tax withheld from employee salaries
• PPh 23 – Tax on services rendered by third parties
• PPN (VAT) – If your business is a VAT-registered entity (PKP)
• Final Tax – For certain business categories like F&B or hospitality with specific treatment under the 0.5% rate (if eligible)

Even if your PT PMA has no employees or ongoing business activities yet, you still need to submit Nihil (zero) reports every month to remain in compliance. Missing even a single monthly report may result in administrative sanctions and frozen access to OSS services.

This is where a business and legal advisor for PT PMA in Lombok becomes essential. They can manage your monthly reporting schedule, ensure the right tax codes are applied, and file everything correctly via DJP Online, Indonesia’s official tax portal.

A reliable business and legal advisor for PT PMA in Lombok also helps you stay updated with changes in tax rates, digital platforms, and regional variations that may affect your business setup or reporting. They ensure your focus stays on growth while they handle the regulatory grind.

Quarterly LKPM Filing: Mandatory Investment Reports

For every PT PMA (foreign investment company) in Indonesia, filing the Laporan Kegiatan Penanaman Modal (LKPM) is not optional—it’s mandatory, even when there’s no business activity during the quarter. The LKPM is submitted to the Indonesian Investment Coordinating Board (BKPM) and serves as a critical tool for the government to monitor and evaluate the progress of foreign investments in the country.

Each report must include detailed updates on:

• Realized investments
• Operational activities
• Number of employees
• Obstacles faced
• Use of imported goods and local content

Even if your company is still in preparation or pre-operational stage, reporting “zero activity” is still a legal obligation. Failure to file LKPM may result in serious consequences, such as:

• Suspension of your company’s OSS (Online Single Submission) account
• Inability to renew or apply for licenses and permits
• Risk of being flagged as non-compliant by the authorities

That’s why having a business and legal advisor for PT PMA in Lombok is not just a convenience—it’s a necessity. Your advisor will track the reporting schedule, prepare the necessary documentation, and ensure your LKPM submissions are accurate, timely, and complete.

Lombok-based investors, especially those new to Indonesia’s legal landscape, often overlook these quarterly reports due to unfamiliarity with local regulations. A business and legal advisor for PT PMA in Lombok helps bridge that gap, offering clarity, compliance, and peace of mind.

In short, LKPM filing is not just about ticking boxes—it’s about maintaining your company’s good legal standing. Don’t let an administrative miss jeopardize your investment. Let a trusted business and legal advisor for PT PMA in Lombok handle it while you focus on growing your business.

BPJS Registration for All Employees

If your PT PMA in Indonesia hires even just one employee, social security registration is mandatory. Under national labor law, every company—regardless of size—must register their workforce in two BPJS programs:

1. BPJS Kesehatan (healthcare insurance)
2. BPJS Ketenagakerjaan (employment social security)

These programs are designed to protect both local and foreign workers by providing access to healthcare, workplace accident insurance, retirement benefits, and death compensation. Failure to register employees in these programs not only violates Indonesian labor regulations but can also lead to legal penalties, labor disputes, and complications during permit renewals or audits.

For many new investors, navigating the BPJS registration process and understanding the payroll deduction rules can be overwhelming. This is where a business and legal advisor for PT PMA in Lombok becomes essential. Your advisor will:

• Guide you through initial BPJS company registration
• Register each employee for both BPJS programs
• Set up correct salary-based premium calculations
• Ensure timely monthly payments
• Prepare reports in case of audits or claims

A business and legal advisor for PT PMA in Lombok can also help you stay updated with the latest regulations from BPJS Ketenagakerjaan, including changes in contribution percentages or new coverage categories.

It’s important to note that both employers and employees contribute to these programs. The employer must deduct the employee’s portion from monthly payroll and submit combined contributions to BPJS on time. Incorrect payment or late submission can result in interest charges or administrative fines.

By working with a business and legal advisor for PT PMA in Lombok, you’ll avoid common pitfalls and ensure your company remains compliant, responsible, and protected under Indonesian labor law.

OSS, NIB, and Licensing Maintenance

Once your PT PMA is established, the work doesn’t stop there. Maintaining your NIB (Nomor Induk Berusaha) and associated business licenses in the OSS (Online Single Submission) system is a mandatory, ongoing responsibility. These records reflect your company’s legal standing and must remain accurate and up to date at all times.

Any significant change—such as your company’s address, business classification (KBLI), shareholders, board of directors, or even company name—must be updated in the OSS system. Failure to do so can lead to suspension of licenses, difficulties during audits, and problems renewing other permits such as business location permits, environmental approvals, and tax registrations.

A business and legal advisor for PT PMA in Lombok plays a crucial role in keeping your OSS portfolio compliant. They help monitor the validity of your NIB, facilitate any required updates in the OSS system, and ensure that all supporting documents—from notarial deeds to tax and BPJS compliance—are in order before any change is submitted.

More importantly, as regulations evolve, having a business and legal advisor for PT PMA in Lombok ensures you’re not caught off guard. They provide alerts on policy changes and can guide you on whether your activities require new licenses or risk classification reviews under the OSS Risk-Based Approach (RBA).

Keeping your OSS account active and accurate is not just administrative—it’s legal protection. Your NIB is the gateway to permits, banking, import-export licenses, and other essential business functions. By entrusting this to a reliable advisor, you’re making sure your PT PMA operates smoothly, lawfully, and with minimal disruption.

HR & Labor Compliance: Contracts, Payroll, and Leave

For every PT PMA operating in Lombok, understanding and complying with Indonesia’s labor regulations is non-negotiable. Employment contracts must be written in Bahasa Indonesia and follow the provisions of Indonesia’s Labor Law, including Law No. 13 of 2003 and the Job Creation Law (UU Cipta Kerja).

A business and legal advisor for PT PMA in Lombok helps draft clear, legally sound contracts—whether for permanent, fixed-term, or probationary employees. They ensure terms include job descriptions, working hours, salary, benefits, leave entitlements, and termination clauses that meet legal standards.

You must also comply with the local minimum wage set annually for West Nusa Tenggara Province, which includes Lombok. Payroll must include proper income tax (PPh 21) deductions, social security contributions (BPJS), and honor the mandatory 13th-month salary (Tunjangan Hari Raya or THR) for eligible employees.

Leave entitlements—such as annual leave, sick leave, and maternity/paternity leave—must also be clearly tracked and implemented. A business and legal advisor for PT PMA in Lombok will help you set up HR systems, train your admin staff, and prevent disputes with clear policies.

By ensuring full labor law compliance, you protect your business from future legal risks and create a fair, positive work environment that attracts and retains quality talent.

Environmental and Regional Permits in Lombok

When setting up a PT PMA in Lombok, navigating local permits and environmental regulations is just as crucial as national licensing. Zoning regulations (RTRW), Environmental Impact Assessment (AMDAL or UKL-UPL), and Building Permits (PBG) must be secured before construction or operations begin. These permits are typically managed through regional offices and require detailed documentation about your business activities and their potential effects on the local environment and community.

Additionally, Lombok’s cultural landscape adds another layer of consideration. In many areas—especially those with strong traditional communities—you may also need informal approval from Desa Adat (traditional village authorities) or Kepala Desa (village chief). These are not official permits, but gaining their blessing can be critical to securing community support and avoiding future disputes.

A business and legal advisor for PT PMA in Lombok acts as a bridge between formal government processes and these informal cultural norms. They guide you through site selection, liaise with local authorities, prepare necessary documents, and even help coordinate community consultations where needed.

Securing environmental and regional permits for your PT PMA in Lombok ensures your project is legally sound, culturally sensitive, and sustainable from the start—helping you avoid costly delays and maintain goodwill with both officials and local residents.

Common Mistakes Without a Legal Advisor

Running a PT PMA in Lombok without a legal advisor can lead to serious—often costly—mistakes. One of the most common issues is failing to report monthly or quarterly taxes, even when there is no income. This can result in administrative penalties and potential audits from the tax office.

Another frequent oversight is not registering employees for BPJS Kesehatan and BPJS Ketenagakerjaan, which is mandatory even if you only employ one person. Skipping this step can lead to blocked licensing processes or difficulties in employment disputes.

Many businesses also forget to update their KBLI (business classification code) when they change or expand activities. Without the correct KBLI, your operational license becomes invalid, and your business risks being flagged during OSS audits or licensing renewals.

A business and legal advisor for PT PMA in Lombok proactively monitors all these compliance touchpoints—ensuring taxes are filed, BPJS is set up, and your OSS account reflects the latest legal status. With the right partner, your business avoids unnecessary risks and stays focused on growth.

How to Choose the Right Business and Legal Advisor in Lombok 

Choosing the right business and legal advisor for PT PMA in Lombok is a critical decision that directly impacts your company’s long-term success and compliance. Look beyond flashy promises—focus on professionals who offer local expertise with national licensing experience. Navigating OSS, BKPM, and regional permits in Lombok requires both knowledge of the national system and familiarity with local government dynamics.

The ideal advisor should also have experience across multiple sectors, such as tourism, F&B, real estate, and construction. This ensures they understand the unique challenges and compliance nuances of your industry.

More importantly, the best business and legal advisor for PT PMA in Lombok isn’t just someone you call during a problem—they become your strategic partner. They actively monitor your legal obligations, suggest proactive improvements, and bridge cultural or bureaucratic gaps that often slow down foreign businesses.

Whether you're setting up a villa rental business, restaurant, or diving center, partnering with the right advisor means peace of mind—and more time to focus on growth, not red tape.

Conclusion: Compliance Is a Continuous Investment 

Establishing a PT PMA in Lombok is a bold and exciting first step, but it’s only the beginning. The true challenge lies in maintaining ongoing compliance with Indonesian regulations—both at the national and regional levels. From taxes and BPJS to OSS updates, labor laws, and environmental permits, compliance isn’t a one-time task—it’s a continuous investment.

Working with a trusted business and legal advisor for PT PMA in Lombok gives you the clarity and structure needed to stay ahead of changing rules. Whether it’s reminding you of monthly tax filings, updating your business license after changes in ownership, or ensuring labor contracts follow the latest legal standards, the right advisor helps you operate confidently.

Instead of getting caught up in bureaucratic processes or risking costly penalties, you can focus on growing your business—building your brand, serving your customers, and scaling your operations.

Protect your investment from day one. Partnering with a reliable business and legal advisor for PT PMA in Lombok means you're not navigating the system alone. You’re backed by someone who understands both the law and the local landscape—ensuring your journey in Indonesia is sustainable, strategic, and successful.