Business Setup In Mandalika SEZ

Information, not advice: KEK Mandalika Intelligence is an independent editorial guide — not a government body, zone operator, or licensed adviser. Incentives and regulations change and apply case-by-case; verify with the OSS system, official KEK channels, and licensed Indonesian counsel before acting. If you engage a partner we introduce, that partner may pay us a referral fee at no cost to you.

Business setup in Mandalika SEZ means creating a legally recognised company that can enjoy Special Economic Zone incentives while operating inside the Mandalika tourism zone in Central Lombok. For most foreign founders this will be a PT PMA (foreign investment company) structured to fit KEK rules, OSS-RBA licensing, and the HGB-on-HPL land model used inside Mandalika.

What “Business Setup in Mandalika SEZ” Actually Means

The phrase sounds simple, but it bundles several separate steps and legal layers:

Choosing the right legal form (usually PT PMA for foreigners).
Registering through the national Online Single Submission – Risk Based Approach (OSS-RBA).
Registering as a Mandalika SEZ (Kawasan Ekonomi Khusus / KEK) investor with the Mandalika Administrator.
Arranging use-rights over land: typically HGB (Hak Guna Bangunan) on top of ITDC’s HPL in Mandalika.
Getting sectoral licences: hotel, restaurant, villa rental, tour services, or other tourism-supporting activities.

In Bahasa:
Setup perusahaan di Mandalika SEZ untuk orang asing = bikin PT PMA, urus perizinan OSS-RBA, daftar ke Administrator KEK Mandalika, dan pakai skema HGB di atas HPL ITDC untuk lahan, supaya usaha berizin dan bisa pakai fasilitas KEK.

All of this sits on the national legal framework for KEK:

PP (Peraturan Pemerintah) tentang KEK Mandalika dan KEK secara umum.
PMK (Peraturan Menteri Keuangan) yang mengatur insentif pajak dan kepabeanan di KEK pariwisata.
BKPM/OSS regulations on PT PMA and risk-based licensing.

We keep references regulation-level because individual forms and portals change interfaces frequently.

Step 1 – Decide If Mandalika SEZ Fits Your Business Model

Before you set up a mandalika sez company, confirm two things:

Your planned activity is allowed in a tourism SEZ.
You are comfortable operating inside land controlled by ITDC under an HPL structure.

1.1 What types of business are allowed?

Legally, Mandalika is a tourism-focused KEK. The core allowed activities revolve around:

Accommodation: hotels, resorts, villas, serviced apartments.
Food & beverage: restaurants, cafés, beach clubs, catering.
Tourism services: travel bureaus, tour operators, event organisers, MICE.
Recreation and sports: water sports operators, wellness, theme-park style attractions, golf support, etc.
Supporting services: limited retail, logistics, property management, and other activities that directly support tourism in the zone.

If you want to build a small, non-tourism-focused factory, Mandalika is probably not the right KEK. Indonesia has industrial KEKs for that.

1.2 Why operate inside Mandalika SEZ rather than outside?

Key differences are regulatory and fiscal, not lifestyle:

Aspect	Inside Mandalika SEZ	Outside SEZ (rest of Lombok)
Tax incentives	Eligible for KEK incentives per PMK on SEZ tourism (tax holiday/tax allowance, VAT & import facilities) [subject to approval]	Standard Indonesian tax regime, no SEZ-specific facilities
Land structure	Mostly HGB-on-HPL under ITDC’s HPL; long lease-style structure	Can be HGB on state land or freehold owned by Indonesian individuals/legal entities
Licensing	OSS-RBA + KEK Administrator registration + SEZ-specific approvals	OSS-RBA + regional/DPMPTSP approvals, no KEK layer
Import of capital goods	Eligible for customs and tax relief for KEK-based imports (subject to PMK and customs approval)	Normal import duties & VAT apply
Community & environmental expectations	High scrutiny: SEZ master plan, local communities, and coastal protections	Village and district level planning and adat, but no KEK masterplan overlay

If you are still not sure how your concept fits, you can plan your trip with us; we coordinate WhatsApp calls with licensed legal and notary partners who can walk you through sector rules. We stay independent: no one can pay to change what we publish; if you proceed with our partner they may pay us a referral fee at no extra cost to you.

Step 2 – Choose Your Company Structure (PT PMA vs Local PT)

Most foreign investors who set up company Mandalika will use a PT PMA.

2.1 PT PMA: the default for foreign investors

PT Penanaman Modal Asing (PT PMA) is the standard foreign direct investment company in Indonesia, controlled by BKPM rules and the current “Positive Investment List”.

Key facts:

Ownership: Foreigners can own majority or 100% shares in many tourism-related sectors, subject to the latest positive list and any special caps.
Capital: Minimum issued/paid-up capital usually IDR 2.5–10+ billion depending on sector and practice. For tourism in a KEK, expect to be closer to the upper end. [Practice-based estimate, last verified June 2026 – always check current BKPM policy.]
Shareholders: Minimum 2 shareholders (can be individuals or foreign entities).
Directors/Commissioners: At least 1 director and 1 commissioner; foreigners can serve, but KITAS/visa needed to work onshore.

Regulations to watch:

Presidential Regulation on the Positive Investment List (Daftar Prioritas Investasi).
BKPM/OSS guidelines on minimum capital and NIB issuance.

2.2 Local PT or nominee structures

Using a purely local PT with Indonesian shareholders to control a foreigner-funded asset is common in Indonesia’s informal market. It is also legally risky.

Nominee/shareholder arrangements that hide effective foreign ownership conflict with the spirit of investment rules and can be challenged.
Inside a KEK, scrutiny is higher because the Administrator and central government track foreign investment and incentives.

If you are a foreign investor wanting real control over a mandalika sez company, using a properly capitalised PT PMA is the compliant route.

Step 3 – Reserve Name and Establish the PT PMA

This phase is similar across Indonesia, with a few KEK-specific twists later.

3.1 Name check and reservation

You (or your notary) submit a proposed company name through the Ministry of Law and Human Rights online system. Rules include:

3 words minimum in the company name.
Not identical/similar to existing registered names.
No use of certain protected terms without approval.

3.2 Deed of establishment and approval

Process in practice:

Draft Articles of Association (Anggaran Dasar) with your notary: scope of business (KBLI codes), capital structure, shareholder details, governance.
Sign the Deed of Establishment in front of the notary.
Notary submits to the Ministry for legalisation as a legal entity.

Indicative timeline:
From first notary meeting to legal entity status: ±2–4 weeks in normal conditions. [Practice-based estimate, last verified June 2026.]

3.3 Capital injection

Indonesia requires that the paid-up capital for a PT PMA is actually contributed, not just written in the Articles.

In practice for a tourism PT PMA:

You open a bank account (can be a temporary account initially).
Shareholders transfer their capital contributions.
You keep bank slips and internal resolutions as proof in case of audit or OSS checks.

Some KEK investors coordinate capital injection timing with land payments or construction milestones; your tax and legal advisers should align these.

Step 4 – OSS-RBA: NIB and Business Licences

Once your PT PMA exists, you enter the OSS-RBA system.

4.1 Getting an NIB (Nomor Induk Berusaha)

NIB is your Business Identification Number. It doubles as:

Company registration number.
Importer identification (if activated).
Registration for social security and other systems.

Process through OSS-RBA:

Register an account for the company.
Fill basic data (company, capital, shareholders, KBLI codes, location).
Declare risk level of each activity based on KBLI (low, medium-low, medium-high, high).
System issues NIB and basic business licence if your sector and risk level allow it.

Most tourism services in Mandalika are “medium” or “high” risk in OSS terms, so they require Standards and/or Specific Licences (Perizinan Berusaha untuk Menunjang Kegiatan Usaha).

4.2 Sectoral licences for tourism and property

Examples (non-exhaustive):

Hotel licence (for accommodation operations).
Restaurant/F&B licence.
Travel services licence (biro perjalanan wisata).
Building construction/operation-related approvals once you start building.

These licences are typically:

Applied for through OSS-RBA.
Fulfilled by uploading building permits, hygiene/fire certificates, environmental documents, and KEK Administrator endorsements.

You do not need every licence on day one. Many are triggered by construction progress or operations tests.

Step 5 – Register with the Mandalika SEZ Administrator

To access KEK facilities, simply having a PT PMA and NIB is not enough. You must be recognised as an investor operating inside the SEZ.

5.1 Role of the KEK Administrator

The Administrator KEK Mandalika is the local arm of the National Council for Special Economic Zones (Dewan Nasional KEK). It:

Verifies that investors meet KEK investment criteria.
Coordinates with customs and tax offices to apply KEK incentives under relevant PMK.
Aligns your project with the Mandalika master plan (zoning, design, environment).

5.2 Registration package

Practice-based document list (always check latest Administrator checklist):

Company legal docs: Deed, MoLHR approval, NIB, NPWP.
Investment plan: value (in IDR or USD equivalent), timeline (construction, operation), sector.
Land/use rights documents: agreement with ITDC or other legal holder if applicable.
Basic design or concept note: especially for built assets (villas, resorts, attractions).

The Administrator evaluates:

If your activity fits KEK Mandalika’s tourism focus.
If you meet minimum investment thresholds for KEK facilities (varies by sector and incentive type).

5.3 Timeline and interaction

In practice, expect several rounds of clarification:

1–2 weeks to prepare documents with your consultant or notary.
Several weeks to receive formal clarity on status and next steps, depending on queue and completeness. [Practice-based estimate, last verified June 2026.]

Face-to-face or hybrid meetings are common; regulations are central, but interpretations and implementation details get discussed locally.

Step 6 – Land: Understanding HGB-on-HPL in Mandalika

Inside Mandalika SEZ, most land is under ITDC’s HPL (Hak Pengelolaan Lahan). As an investor, you typically do not get freehold; you get a derivative land right.

6.1 HPL and HGB basics

Plain-English recap:

HPL (Hak Pengelolaan): a management right given by the state to an entity (here, mostly ITDC) to control and plan a large area.
HGB (Hak Guna Bangunan): a right to build and use buildings on land, usually for 30 years, extendable according to agrarian rules.

In Mandalika:

ITDC holds HPL over the SEZ core area.
Investors usually receive HGB “di atas HPL” – a building right layered over ITDC’s management right.

In Bahasa:

ITDC pegang HPL (hak kelola).
Investor dikasih HGB di atas HPL – bisa bangun dan operasi, tapi tanah tetap di bawah HPL ITDC.

6.2 What this means for you

Practical implications:

You have a strong, registered right to build and use buildings for the HGB period.
You can often mortgage the HGB, subject to bank policy.
At expiry, you apply for extension under the rules in force at that time.
You must comply with ITDC’s masterplan and design guidelines as part of the agreement.

Community dimension: Mandalika sits next to and often on land historically used by Sasak communities. Even where legal title has shifted to HPL, investors who succeed in the long term usually build early relationships with neighbouring villages, hire locally, and respect access paths and cultural sites. Legal land rights are necessary; social licence is equally critical.

6.3 Land acquisition process for investors

Typical sequence:

Commercial negotiation with ITDC: plot, use, timeline, high-level design parameters.
Letter of intent or reservation agreement: sometimes with staged payments.
Signing of cooperation/land utilisation agreement that sets out rights and obligations under the HGB-on-HPL structure.
Issuance of HGB certificate in your company’s name, referencing ITDC’s HPL.

Your notary and legal counsel should cross-check:

The HPL details (certificate number, map, boundaries).
That your HGB is properly recorded in the land office system as a derivative right.
Restrictions on transfer, sub-lease, or strata-title sales if you plan villa-style products.

Step 7 – Construction and Building Permits

Once your mandalika sez company has land rights, building is still not automatic.

7.1 Perizinan bangunan (building approvals)

Indonesia has shifted from the old IMB system to a more integrated building approval regime (Persetujuan Bangunan Gedung / PBG and related).

Inside Mandalika, you face two layers:

National/regional building regulations via OSS-RBA and the local public works office (Dinas PUPR).
SEZ/masterplan compliance via ITDC and the KEK Administrator: height limits, set-backs, environmental buffers, design language.

Typical documents:

Architectural and structural drawings.
Site plan aligned with approved plot boundaries.
Environmental documents (UKL-UPL or AMDAL depending on project scale and sensitivity).
Evidence of land rights (your HGB).

7.2 Environmental and coastal considerations

Mandalika includes sensitive coastal zones, hills, and community-used land. Depending on project scale, you may require:

Full AMDAL (Analisis Mengenai Dampak Lingkungan) for large resorts or attractions.
UKL-UPL for smaller accommodations or F&B.
Special coastal or marine use approvals if you build jetties, marinas, or modify shorelines.

Delays often occur here. Building your timeline on optimistic permit dates is risky. Add buffer months for environmental and design revisions.

Step 8 – Taxes and KEK Incentives

One of the reasons investors set up company Mandalika is access to KEK tax and customs facilities.

8.1 Legal basis for incentives

You will see references to:

PP on KEK (e.g. PP that establishes Mandalika as a KEK and general KEK framework).
PMK on tax facilities for KEK tourism zones: corporate income tax reduction, VAT, and import facilities.

Exact PMK numbers and details may change; always confirm the latest regulation text and Directorate General of Taxes (DJP) guidance.

8.2 Typical facilities in tourism KEKs

In broad strokes (subject to sector, investment size, and approval):

Corporate income tax relief for a set period, often structured as tax holiday or tax allowance depending on project parameters.
VAT relief on certain transactions within the KEK.
Customs and import facilities for capital goods and materials entering the KEK.

These are not automatic: you must apply and be approved. Misalignment between what sales teams promise and what regulations actually allow is common. Always match any “incentive” claim to a specific PP/PMK and to your own eligibility.

8.3 Day-to-day taxation

Even with incentives, your Mandalika SEZ company still handles:

Withholding taxes (PPh 21/23/26 etc.).
VAT where applicable, subject to KEK rules.
Final taxes on certain transactions.

A KEK does not remove the need for local bookkeeping and compliance; it just changes the parameters. Many foreign-led projects retain local tax consultants from the start of construction, not only once operations begin.

Step 9 – Practical Timelines and Cost Ranges

Some high-level practice-based estimates for a straightforward small-medium tourism project (e.g. boutique hotel/villa complex). These are not quotes and should be verified for your project scale.

9.1 Indicative timeline

Pre-feasibility and site visits: 1–3 months.
Company establishment (PT PMA): 1–2 months.
OSS-RBA NIB + basic licencing: often within days once data is ready.
KEK Administrator registration and alignment: several weeks to a few months depending on project clarity.
Land agreement and HGB issuance: 2–6+ months, depending on negotiations and land office speed.
Environmental and building approvals: 3–9+ months depending on project scale and revisions.

Real-life projects often run several tracks in parallel. The longest poles in the tent are usually land/HGB finalisation and environmental/building approvals.

9.2 Cost ranges

All numbers below are practice-based ranges for planning only, last verified June 2026, and will vary by advisor, project size, and negotiation. They exclude land price and construction cost.

PT PMA setup (notary + legal assistance): roughly IDR tens of millions up to low hundreds of millions for more complex structures. [VERIFY for your case.]
Licensing and OSS-RBA consulting: similar magnitude (tens of millions of IDR) depending on the number of KBLI and sectors involved.
Environmental studies (UKL-UPL vs AMDAL): from the low tens of millions up to several hundred million IDR for full AMDAL with public consultation. [Wide spread; project-specific.]
Tax and accounting setup: monthly retainers starting in the single-digit millions of IDR for basic compliance and scaling with transaction volume.

We label these as ranges because fixed “all-in package” prices often hide low service levels or exclusions. Better to scope your project and ask for transparent proposals. If you want curated introductions, you can plan your trip with us via WhatsApp; we connect you to vetted legal, tax, and design partners. Our editorial work stays independent: no one can pay to change what we publish; if you proceed with our partner they may pay us a referral fee at no extra cost to you.

Step 10 – Operating Responsibly in Mandalika

A business setup in Mandalika SEZ is not just paperwork; it is entering a local ecosystem.

10.1 Community and labour

Local expectations include:

Prioritising local hires where possible, with training for higher-skill roles.
Working with village leaders on access routes, noise, and event scheduling.
Supporting local suppliers (food, crafts, guiding) in ways that respect fair pricing.

Labour law applies fully in KEK: contracts, minimum wage, social security (BPJS) enrollment, and occupational health and safety.

10.2 Environmental stewardship

Investors are under growing scrutiny for beach cleanliness, water usage, wastewater treatment, and hillside stability.

Design for realistic water and power scenarios; grid capacity and water infrastructure evolve over time.
Plan for waste handling – both during construction and operation.
Avoid “build first, permit later”; this approach has created community and regulatory conflict elsewhere in Indonesia.

10.3 Exit and transferability

If you might sell your Mandalika SEZ company or asset later:

Keep your corporate and land documentation clean from day one.
Clarify in your land agreement with ITDC how HGB transfer or project sale is handled.
Consider share sale vs asset sale tax implications well before you go to market.

A well-structured PT PMA with clear KEK status and compliant land rights typically transfers more smoothly than an improvised nominee holding structure.

FAQs on Business Setup in Mandalika SEZ

Can a foreigner own a company in Mandalika SEZ directly?

Yes, foreigners can own shares directly through a PT PMA, subject to the Positive Investment List and sector-specific caps. For most tourism sectors, majority or 100% foreign ownership is allowed, but you still need to comply with KEK registration, capital requirements, and sectoral licences.

Do I need an Indonesian partner to set up company Mandalika?

Not always. Many tourism activities allow 100% foreign-owned PT PMA. An Indonesian partner is optional, not automatically required. Where foreign ownership caps exist, you may need an Indonesian shareholder, but this should be a genuine partner, not a sham nominee structure.

How long does it take to get fully operational inside Mandalika SEZ?

For a small to mid-sized hospitality project, count on 12–24 months from serious planning to opening, depending on land, permits, construction complexity, and your own decision speed. Legal setup and basic licences can be done in a few months; the rest is design, environmental approvals, and building work.

Is HGB-on-HPL safe for long-term investment?

HGB-on-HPL is a standard structure in many Indonesian large-scale developments. It gives you registered rights to build and operate for the HGB term, with extension options under existing agrarian rules. It is different from freehold, but widely used and accepted by banks and investors when the documentation is clear and compliant.

Where can I get on-the-ground help to set up a Mandalika SEZ company?

You will need a combination of local notary, legal counsel, tax adviser, and often an architect or planner familiar with Mandalika’s masterplan. KEK Mandalika Intelligence is independent and publication-focused; through our plan your trip page we can coordinate WhatsApp introductions to vetted professionals. No one can pay to change what we publish; if you proceed with our partner they may pay us a referral fee at no extra cost to you.