Here is a list of questions that we get asked regularly. Should you have any other questions, feel free to get in touch directly.

What is the official legal name of Bali Investment Club and its address?
Jalan Raya Sanggingan No.36
Kabupaten Gianyar
Bali 80561, Indonesia
What other investments are available to BIC members?
BIC continuously sources investments based in Indonesia to diversify its New Paradigm offerings. Our team speaks to local companies on a weekly basis and only lists new projects in the portfolio once they have undergone strict due diligence and a deal has been signed.
What is a PT PMA?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company established under the laws of Indonesia. It is the only allowed form of foreign direct investment in Indonesia by foreign investors, in which individuals and legal entities can be registered as shareholders. However, some business activities require Indonesian Citizens or legal entities to hold shares alongside foreigners.
What is the legal structure that supports my investment?
BIC is established as a PT PMA (limited liability company), with BIC management as directors, commissioners, and shareholders of the company. All agreements between BIC, investors, and investees, are legally compliant and enforceable in Indonesian courts of law (and are drafted in English and Bahasa).
Where does BIC hold my funds?
The Club holds member loans in interest-bearing accounts in which all investor funds are deposited. To ensure clear differentiation between “deployable capital” and “investor returns”, BIC uses two bank accounts with Bank Negara Indonesia [BNI], a state-guaranteed financial entity and one of Indonesia’s most trusted banking groups. The Club uses separate accounts at Permata Bank to cater to company expenses.
What do the repayment schedules look like? Are they annual, quarterly, etc?
The interest repayments vary from deal to deal and can start from 3 months into funding, to more than 12 months depending on the maturity and nature of the investment.
How does BIC manage my returns?
BIC investees issue repayments to the Club’s “investor returns” account. BIC then pays taxes on capital gains to the Indonesian tax authorities and pays out each investor accordingly. Investors will also receive a receipt of tax payment, which they can show to their local tax authorities to avoid double taxation.
What is a typical interest rate paid by a "venture"?
Interest rate paid by the ventures depends on the performance of each venture. There is no guaranteed interest rate for exception of deals made on pure loan agreement, which will be a minority of our deal structures. As a standard, BIC aims to provide returns greater than 10% Annualised Hurdle Rate, making BIC investments attractive prospects.
What are the stand-by processes for non-payment of interest?
This is determined in the Term Sheet signed between BIC & an Investee. Of course, all investments carry risk, and while we do our best to ensure positive returns to our investors, we cannot protect against all events of default. This is the nature of the game.
You charge a 5% fee per "share". For multiple shares still 5%?
Yes, BIC currently charges a 5% provision, added on top, when investing a minimum of USD 20,000, up to 5 shares. Investors wishing to invest more than 5 shares’ worth (over USD 100,000) will only pay a 3% fee, and become eligible to become co-investors with larger capital contributions.
Do you charge an investor 5% annual management fee over the total nominal value he/she invested in the CIC fund? Where does that money actually come from? Out of interest paid by ventures?
Yes, the annual management fee is over the nominal value invested (3-5%). The exact % will vary based on the amount invested as per the above question. If applicable, this fee is deducted from the interest carried during that year or can be billed for separately. BIC also invites investors to become mentors to investees, in which case their annual fees can be waived in reward for their contributions.
Can you explain how Withholding Taxes dealt with and structured? Who will do the tax reporting?
Our accountants and notaries handle all tax-related activities, and our CFO supervises the process to ensure that all capital gains are strictly accounted for and due tax is paid according to Indonesian corporate tax regulations.
BIC retains tax amounts payable by investors and pays the taxes on behalf of investors (10% – 20%). Investors then receive the net capital gain amount and a receipt from the tax office that tax has been paid.
Can you elaborate on the 20% carried interest fee?
If the investor returns are in excess of the 10% annualised hurdle we aim to achieve, BIC retains 20% of the interest difference, so 20% of any returns above the hurdle. This ensures that the investor receives at least 10% of the returns, while recompensing BIC for an investment that is outperforming expectations.
Can you run me through a typical investment with BIC?

Sure, here is what a basic investment would look like with BIC. In these scenarios, we assume that the principal is paid back as a separate transaction.


100% interest returns to the Investor Member should the invested project produce returns equal or below an annualised return rate of 10%.

E.g. $20,000 investment yields a $2,000 return in one year.

$2,000 before tax goes to the Member



80% interest returns to the Investor Member should the invested project produce returns above an annualised return rate of 10%.

E.g. $20,000 investment yields a $4,000 return in one year.

$2,000 before tax goes to the Member (for the 10% hurdle rule)
$1,600 before tax goes to the Member (20% commission applied for beating 10% hurdle)

$3,600 before tax goes to the Member
$ 400 goes to BIC