Capital Requirements for PT PMA in Indonesia

Indonesia introduced major reforms to foreign investment capital requirements through:

• Peraturan Menteri Investasi dan Hilirisasi/Kepala BKPM No. 5 Tahun 2025
• The risk-based licensing framework under OSS-RBA
• Company law provisions under UU No. 40 Tahun 2007 on Limited Liability Companies, as amended by the Omnibus Law framework

These reforms significantly reduce the minimum paid-up capital for PT PMA while maintaining the overall investment threshold.

Minimum Issed and Paid-Up Capital: IDR 2.5 Billion

Under BKPM Regulation No. 5 of 2025, a PT PMA must have:

Minimum issued and paid-up capital (modal ditempatkan dan disetor) of IDR 2,500,000,000

This replaces the previous requirement of IDR 10 billion in paid-up capital under earlier BKPM regulations.

What This Means

• At least IDR 2.5 billion must be subscribed and paid by shareholders.
• The funds must be deposited into the company’s bank account.
• The capital must remain in the company account for a minimum of 12 months.

Capital Usage Restriction (12-Month Rule)

The paid-up capital cannot be withdrawn or transferred from the company bank account for at least 12 months, except for legitimate business purposes such as:

• Purchase of company assets
• Machinery or equipment
• Office setup
• Operational expenses

This rule ensures the capital is genuinely used for business activity, not merely injected for licensing compliance.

Read more: Classification of Companies Based on Capital in Indonesia

Minimum Total Investment Value: Above IDR 10 Billion

Although the paid-up capital requirement was reduced, the minimum total investment value requirement remains unchanged.

A PT PMA must have:

Total planned investment exceeding IDR 10,000,000,000

This calculation:

• Excludes land acquisition costs
• Excludes building purchase or construction costs (except in specific sectors)
• Applies per 5-digit KBLI business classification
• Applies per project location

What Counts Toward the Investment Value

Included:

Machinery and production equipment

• Technology systems and software
• Vehicles used for business
• Operational capital
• Infrastructure related to business activity

Excluded (general rule):

• Land purchase
• Building acquisition or construction

However, certain sectors such as property, accommodation, plantations, agriculture, livestock, and aquaculture may apply different calculation standards where land and building can be considered part of investment.

Paid-Up Capital vs Total Investment: Two Separate Requirements

These are legally distinct obligations:

The paid-up capital forms part of the overall investment plan, but the total investment must still exceed IDR 10 billion per KBLI per location.

Both conditions must be satisfied.

Company Law Framework (Authorized Capital Rule)

Under Indonesia’s Company Law (UU No. 40 of 2007 as amended):

• Founders determine the amount of authorized capital (modal dasar).
• At least 25 percent of the authorized capital must be issued and paid.
• For PT PMA, the issued and paid capital must not be lower than IDR 2.5 billion.

In practice, most PT PMA structures use:

• Authorized capital set above IDR 2.5 billion
• Issued and paid-up capital of at least IDR 2.5 billion

This structure ensures compliance with both company law and investment regulations.

Sector-Specific Capital Requirements

While IDR 2.5 billion is the general minimum paid-up capital, certain sectors may require:

• Higher capital thresholds
• Additional licensing requirements
• Special regulatory approvals

These depend on:

• KBLI classification
• Risk level under OSS-RBA (low, medium-low, medium-high, high)
• Sectoral ministry regulations

Investors must verify their KBLI code before finalizing capital structure.

Positive Investment List and Foreign Ownership

Capital requirements alone are not sufficient. Foreign investors must also verify whether their business sector is open to foreign ownership under:

Presidential Regulation No. 10 of 2021
as amended by
Presidential Regulation No. 49 of 2021

The Positive Investment List determines whether a KBLI is:

• Fully open to foreign ownership
• Partially restricted (ownership caps)
• Reserved for MSMEs or closed

Even if you meet the IDR 2.5 billion paid-up capital and IDR 10 billion total investment requirements, your PT PMA cannot be approved if the sector is restricted.

Always verify your 5-digit KBLI, foreign ownership limit, and OSS risk level before structuring capital.

Practical Example (Consulting PT PMA in Bali)

If a foreign investor establishes a consulting company:

• Paid-up capital deposited: IDR 2.5 billion
• Total investment plan: IDR 10.5 billion
• Land and building excluded from calculation
• Capital maintained in company account and used for operational expenses

This structure complies with 2025 PT PMA requirements.

Why Indonesia Reduced the Capital Requirement

The 2025 reform aims to:

• Improve ease of doing business
• Increase foreign direct investment
• Lower entry barriers for smaller foreign investors
• Improve regional competitiveness

The reduction from IDR 10 billion paid-up capital to IDR 2.5 billion represents a 75 percent decrease in minimum shareholder capital requirement.

However, the total investment threshold remains in place to ensure business seriousness and economic contribution.

Key Takeaways for Foreign Investors

• Minimum paid-up capital: IDR 2.5 billion
• Minimum total investment: Above IDR 10 billion
• Land and building generally excluded from investment calculation
• Capital must remain in company account for 12 months (except operational use)
• Investment applies per 5-digit KBLI per project location
• Sector-specific rules may override general thresholds

Both capital and investment requirements must be met simultaneously.

Final Note

Indonesia’s investment and licensing framework continues evolving under BKPM and OSS-RBA reforms.

Before structuring your PT PMA, always verify:

• Your KBLI business classification
• Risk level under OSS
• Sector-specific capital requirements
• Latest implementing regulations

Read more: How to Get NIB and Business Permits on OSS Indonesia for Foreigners

How BaliEasy Can Help With Your PT PMA Structure

Understanding Indonesia’s capital framework is only the first step. Proper structuring and regulatory alignment are essential to avoid licensing rejection, capital miscalculation, or future compliance issues.

Visa BaliEasy assists foreign investors with:

• Structuring PT PMA capital in accordance with the latest BKPM and OSS requirements
• Ensuring your investment plan aligns with your selected KBLI and project location
• Selecting the correct business classification before incorporation
• Handling company incorporation, NIB issuance, and OSS registration
• Aligning company structure with Investor KITAS eligibility
• Providing ongoing compliance guidance as regulations evolve

We offer end-to-end PT PMA setup support in Bali and across Indonesia, backed by responsive human customer support to ensure your business is established correctly from the start.